CEAT Ltd closed FY 2025-26 with its highest-ever revenue, crossing the Rs 15,000-crore mark for the first time, even as Chairman Harsh V Goenka cautioned that rising input costs are emerging as a significant challenge for the year ahead.
In his message to shareholders in the company's Integrated Annual Report 2025-26, Goenka said consolidated revenue for the year stood at Rs 15,678 crore, a growth of nearly 19% over the previous year, while net profit rose 48%. He attributed the jump to disciplined execution, improved operating efficiencies and healthy growth across the company's key business segments.
The results came against a backdrop that Goenka described as challenging on multiple fronts. The Indian economy, he noted, maintained its growth momentum through the year on the back of sustained infrastructure spending, tax reforms and healthy domestic consumption. Globally, however, tariffs and geopolitical uncertainty weighed on the operating environment for most of the year, and the Iran conflict toward the year-end triggered what Goenka called unprecedented supply chain disruptions.
CAMSO Integration Progresses
A central theme of the Chairman's message was the ongoing integration of CAMSO, the off-highway tyre business CEAT acquired and is folding into its existing off-highway operations. Goenka said the company is working to unlock synergies across products, markets, channels and OEM customers, with the aim of strengthening CEAT's position in the global off-highway tyre market. The Vice-Chairman's message elsewhere in the report notes that the CAMSO integration is progressing as planned and remains in a transition phase, with capabilities being built across manufacturing and customer engagement to unlock its full potential over time.
EVs and Premium Tyres Drive Share Gains
Goenka pointed to electric vehicles and premium tyres as the two strategic segments delivering the strongest growth and market share gains during the year. He said the company continues to sharpen its market positioning through a combination of sustainable materials, premiumisation, technology-led products and deeper customer engagement; a strategy aimed at strengthening CEAT's footing in higher-value categories rather than competing purely on volume.
Operational excellence and digital transformation, Goenka said, remain central to CEAT's growth journey, with plans to further enhance efficiencies, optimise costs and improve supply chain agility. He flagged a specific push to "democratize AI capability" across the organisation and embed it into everyday workflows and decision-making, backed by investment in data architecture, AI governance frameworks and dedicated AI labs to explore use cases.
On sustainability, Goenka said CEAT made what he called remarkable progress toward its Net Zero aspirations during the year, citing greater adoption of renewable energy, improved resource efficiency and a sharper focus on sustainable materials and circularity. He noted the company scored 69 in the S&P Global 2025 Corporate Sustainability Assessment, placing it among the top 4% of the auto component industry globally.
FY27 Outlook: Input Costs the Key Risk
Looking ahead, Goenka identified input cost inflation as the most significant headwind entering FY 2026-27. He said CEAT's structural demand drivers, balance sheet strength and business fundamentals position the company to navigate the pressure while sustaining growth momentum over the long term.