CEAT Ltd reported a 26 per cent year-on-year increase in consolidated revenue to ₹4,157 crore for the third quarter ended December 31, 2025, the tyre manufacturer announced on Sunday. Net profit for the quarter stood at ₹155 crore, with EBITDA margin at 13.66 per cent.
The company’s board also approved a capital expenditure of ₹1,314 crore for capacity expansion at its Chennai plant in Kannanthangal. The investment will add approximately 35 lakh tyres per annum to the existing capacity of 95 lakh tyres, expected to be operational by the first half of FY2028. The expansion will be funded through internal accruals and debt.
On a standalone basis, CEAT’s revenue grew 20 per cent year-on-year to ₹3,957 crore, with EBITDA margin at 14.08 per cent and net profit at ₹192 crore. The company recognised a provision of ₹58 crore during the quarter toward obligations arising from the new labour codes notified by the Government of India in November 2025.
growth drivers
MD & CEO Arnab Banerjee attributed the performance to strong revenue growth across all segments. “Reduction in GST rates have improved sentiments in domestic market, and we have had some opportunities opening up in international markets as well,” he said, adding that the positive momentum is expected to continue.
CFO Kumar Subbiah noted that strong top-line growth drove operating leverage, leading to margin improvement. “Stable commodity prices helped in sustaining gross margins,” he said, while confirming that debt levels remained consistent with the previous quarter.
During the quarter, CEAT repaid ₹100 crore in listed secured non-convertible debentures and issued ₹250 crore in unsecured NCDs on a private placement basis. The company has ₹400 crore in outstanding NCDs and ₹600 crore in commercial papers as of December 31, 2025.
CEAT, part of the RPG Group, manufactures over 48 million high-performance tyres annually across segments including two-wheelers, passenger vehicles, commercial vehicles, and off-highway vehicles.
The shares of CEAT Ltd ended on the NSE today at ₹3,895 up ₹101.60 or 2.68 per cent.