CEAT's R&D Budget Climbs to Rs 240 Crore in FY26
CEAT Ltd increased its research and development expenditure to Rs 240 crore in FY 2025-26, up from Rs 224.30 crore a year earlier, according to disclosures in the company's Integrated Annual Report 2025-26, as the tyre maker continued to scale what it described as an "innovation-led growth agenda."
Per the Board's Report and the accompanying notes to the standalone and consolidated financial statements, CEAT's total R&D expenditure for FY26 stood at Rs 24,046 lakh, comprising Rs 9,587 lakh of capital expenditure and Rs 14,459 lakh of revenue expenditure. This compares with total R&D spend of Rs 22,430 lakh in FY25 — Rs 7,972 lakh capital and Rs 14,458 lakh revenue.
As a share of net sales, R&D expenditure stood at 1.56% in FY26, compared with 1.72% in FY25 — a ratio that has fluctuated between roughly 1.3% and 1.85% over the eight-year window even as the absolute rupee figure has climbed steadily.
214 Active Patents, 30% Faster Time-to-Market and USD 317 Million in NPD Revenue
In its Intellectual Capital disclosures, CEAT reported an R&D workforce intensity of 10.30% for the year, alongside a cumulative patent filing count of 214. The company said it was granted 8 new patents during FY26 and had 214 active R&D projects underway. It also reported revenue from new product development (NPD) of USD 317 million and said its innovation efforts generated Rs 105 crore in "technical economy" during the year. CEAT said it achieved an approximately 30% reduction in time-to-market as a result of its innovation and digitalisation initiatives, and listed three sustainable product innovations — Circl 50, Circl 90 and Sustainmax — introduced during the year.
Inside CEAT's New Ambernath Compound Lab for Specialty Tyres
A key infrastructure development flagged in the report was the establishment of the R&D Ambernath Compound Laboratory in September 2025, which CEAT described as a centre of excellence for innovation, material characterisation and product validation within the specialty tyre sector, covering off-the-road (OTR), agricultural and industrial applications, rubber tracks and solid tyres. The company said the facility's integrated compounding and rubber-testing infrastructure "notably enhances development efficiency and expedites the time-to-market for specialised products."
The report also noted an extension of the company's Tyre Testing Centre, which it said bolsters its capability to simulate field performance and market-failure conditions in a laboratory setting, enabling proactive issue identification, swifter corrective action and fewer field claims. Testing capabilities cited include assessments of durability, footprint, stiffness and deflection.
Separately, CEAT said it strengthened its Commercial Vehicle Tyre Testing Infrastructure by adding what it described as India's first Scania 460 G 4x2 prime mover equipped with an advanced SUPER engine, calling it a strategic investment to enhance R&D capabilities and align product development with global standards. The company said the new asset would enable faster, more effective tyre testing, support homologation requirements in international markets such as Europe and the USA, and help reduce development timelines and costs.
AI and Digital Tools: How CEAT Is Rebuilding R&D From the Inside
The Board's Report said CEAT's R&D centres drive innovation "through advanced digital tools, simulation technologies and Gen AI, enabling the development of safer, longer-lasting and energy-efficient tyres while improving development efficiency." Elsewhere, the report described machine learning model utilisation across R&D functions to increase efficiency and reduce development cycle time, a collaboration with a digital partner to convert hand-drawn tyre sketches into rendered images and 3D models, and a fully digitalised new product development workflow running on PLM software. The report also referenced RUBY, described as an R&D knowledge management hub, as part of the company's broader "Digital Engineering and R&D" capability.