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CEAT Ltd reported strong growth in the December quarter, supported by higher volumes, improving operating margins and continued investment in capacity expansion, while flagging near-term pressure from currency movement and raw material costs.

The tyre maker posted consolidated revenue of INR 41.57 billion for the third quarter of FY26, up about 26 percent year on year. Standalone revenue rose 20.1 percent to INR 39.57 billion, driven by growth across replacement, OEM and international markets.

“This was a good Q3 for us, with more than 20 per cent year-on-year growth on a standalone basis,” said Arnab Banerjee, Managing Director and Chief Executive Officer. “Volume momentum continued across segments, supported by GST rationalisation, improving consumer sentiment and steady recovery in OEM demand.”

Demand outlook remains supportive

Management said the Indian tyre market entered calendar 2025 on a stronger footing, aided by tax reforms, rising electric vehicle adoption and premiumisation. CEAT expects the industry to deliver healthy single-digit growth over the medium term.

“Increasing disposable income in rural markets following robust rabi sowing and kharif harvest completion has been supportive,” Banerjee said, adding that replacement demand for truck and bus radials is expected to remain in the mid-to-high single digits, with seasonal upside during the summer months.

Two-wheeler tyres continued to perform strongly, while OEM demand for medium and light commercial vehicles recovered following GST rationalisation. Passenger vehicle demand is expected to grow at double-digit rates in the near term, supported by easing financing conditions.

International demand for radial commercial vehicle and passenger car tyres remained firm, with India emerging as a credible sourcing base for global OEMs and distributors.

Margins improve despite cost headwinds

Standalone EBITDA rose to INR 5.56 billion, translating into a margin of 14.1 per cent. Consolidated EBITDA stood at INR 5.68 billion, with margins improving both sequentially and year on year.

Gross margins, however, contracted sequentially by about 109 basis points, largely due to currency depreciation and inventory adjustments.

“The depreciation of the rupee and a modest rise in international natural rubber prices could result in a 1 to 1.5 per cent cost headwind over the next few quarters,” said Kumar Subbiah, Chief Financial Officer. “While crude-linked inputs remain stable, currency remains the key variable to watch.”

Standalone profit after tax came in at INR 1.92 billion, compared with INR 2.02 billion in the previous quarter. The decline reflected a one-time provision of INR 578 million linked to new labour code implementation.

“This provision largely relates to past service costs,” Subbiah said. “The ongoing quarterly impact going forward is expected to be minimal.”

Camso integration on track

CEAT said the integration of its Camso off-highway tyre business is progressing broadly as planned. Quarterly revenue stood at about USD 20 million, reflecting the ongoing transition of customer relationships from Michelin to CEAT.

“Most existing customers have approved the business transfer, ensuring continuity,” Banerjee said. “There are some one-time transition and IT costs in Q3, which will not recur from Q4 onwards.”

Management said underlying operating margins at Camso are already in double digits and are expected to improve further as utilisation rises and CEAT gains greater control over sourcing and sales.

Capex remains elevated

Capital expenditure during the quarter stood at INR 2.54 billion, taking cumulative spend for the year to INR 6.73 billion, excluding acquisition-related intangibles.

The board approved an additional INR 13.14 billion investment at the Chennai plant to add 3.5 million passenger car tyres of annual capacity, with completion targeted for the second half of FY28. The project will be funded through a mix of internal accruals and debt.

“Our capex guidance remains broadly in line with earlier estimates,” Subbiah said. “We will continue to monitor leverage closely to ensure balance sheet strength.”

Standalone gross debt stood at INR 29.54 billion, with debt-to-EBITDA improving to 1.25 times.

EV, premiumisation and sustainability

CEAT maintained a strong position in electric vehicle tyres, with more than 30 per cent share in OEM passenger EV tyres and about 20 per cent in two-wheeler EVs. The company continues to invest in premium products, including larger rim-size, run-flat and ZR-rated tyres, to improve realisations.

On sustainability, CEAT announced a partnership with CleanMax to develop 59 MW of hybrid wind-solar capacity, targeting about 60 per cent renewable energy usage by FY27.

“Q3 closed on a strong note, supported by a robust product pipeline and improving customer confidence,” Banerjee said. “We remain focused on sustaining growth while maintaining margin discipline and investing for the long term.”

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Pirelli has entered into a strategic agreement with Swedish technology firm Univrses to integrate artificial intelligence-based computer vision systems into its Cyber Tyre platform. As part of the deal, Pirelli has acquired a 30 percent stake in Univrses, with an option to increase that share to a majority holding. The collaboration will embed Univrses’ 3DAI technologies into Pirelli’s existing Cyber Tyre solutions, creating a unified system aimed at producing safer and higher performing vehicles.

The combined technology has potential applications in advanced driver-assistance systems and autonomous driving. It also generates timely, actionable data for road management, helping authorities make better decisions and deploy resources more efficiently. This could lead to fewer road accidents and saved lives. The system uses onboard cameras and tyres to collect feedback on road conditions. Pirelli’s Cyber Tyre, the first integrated hardware and software system of its kind, gathers data from tyre sensors, processes it with proprietary algorithms and communicates in real time with vehicle electronics and the cloud.

Univrses originally developed its technology to help cars understand their surroundings, but it has since been adapted to turn vehicles into AI-powered road monitoring agents. The Swedish company’s 3DAI Engine provides autonomous vehicles with perception capabilities including 3D positioning, mapping and spatial deep learning. Its 3DAI system digitises roadside infrastructure using data from vehicle-mounted sensors like cameras.

A pilot project is already active in Italy. In 2025, Pirelli and the Puglia Region launched a road network monitoring system to create an updated map of infrastructure conditions. The system analyses data from tyres via the Cyber Tyre platform alongside visual data from cameras interpreted by Univrses’ technology.

Andrea Casaluci, CEO, Pirelli, said, “The agreement with Univrses further enhances our Cyber Tyre™ platform, thanks to advanced AI‑based artificial vision technologies. The collaboration between Pirelli and Univrses will make a significant contribution to the ongoing transformation of cars into true software‑defined vehicles.”

Jonathan Selbie, CEO, Univrses, said, “Continuous monitoring and data are becoming the new foundation for infrastructure asset management, and Univrses technology is able to provide powerful analytical capabilities based on reliable and frequently updated data. In this context, we are pleased to welcome Pirelli as an investor and to take our partnership to the next level: we will join forces to deliver increasingly advanced services and products.”

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ZC Rubber is preparing a major European-focused showcase at THE TIRE COLOGNE, scheduled to run from 9 to 11 June 2026. The tyre manufacturer will occupy Booth C050g in Hall 8.1, highlighting its WESTLAKE and GOODRIDE brands with a clear emphasis on products tailored specifically for regional market demands.

The display will blend imminent and future innovations. Products destined for a European launch in the latter half of 2026 will appear alongside the company’s current truck and bus radial lineup. Selected previews of developments planned for 2027 will also be on view. A featured attraction is the Westlake Sport RS2, a drift-proven ultra-high-performance tyre praised for its grip, precision and 180 treadwear rating. A renewed rubber compound, developed through work with the Red Bull Driftbrothers, now delivers steadier traction under severe driving conditions. Appearing at the stand, Red Bull Driftbrothers driver and engineer Elias Hountondji will illustrate how motorsport data directly refines ZC Rubber’s product engineering.

Additional new passenger car radial models for Europe in the second half of 2026 include the Westlake ZuperFlex Z-137, Goodride RideMax G-147, the all-season Westlake Zuper4S Z-411 and the off-road focused Westlake Terra Legend SL399 and Goodride Mud Legend SL388. On the truck and bus side, already available tyres such as the Westlake WSL2, Westlake WDL2+ and Goodride S2, D3 and D4 will be exhibited, covering steer and drive axle needs for long-haul and heavy-duty transport.

A sneak peek at 2027 offerings will feature the Westlake Z-301 commercial van tyre, Goodride All Season G-721, Goodride SnowComfort G-518 and new TBR models including the Westlake WTL2, Westlake WTR OEM and Goodride M2. ZC Rubber’s team will remain on-site throughout the event, welcoming visitors and partners to the booth for meetings and professional discussions.

Leo Liao, General Manager, ZC Rubber Europe, said, “This year’s showcase reflects a much broader and more complete portfolio for Europe. From UHP and all-season tyres to all-terrain, mud-terrain and TBR solutions, we are bringing new developments across almost every major segment. This reflects how seriously we take the European market: we are listening to local needs, investing in the right products and building a portfolio that better matches the needs of our European partners.”

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Magna Tyres has launched the MA801 TR, a new solid tyre engineered for extreme operating conditions in recycling facilities and heavy industrial settings. Designed to maximise equipment uptime while supporting high load capacities, the tyre is built to deliver dependable performance in harsh environments. The official debut of the MA801 TR will take place at IFAT 2026 in Munich, scheduled from 4 to 7 May 2026.

The new model is intended for compact wheel loaders and telescopic handlers, featuring a flat-free solid construction. Its extra-deep non‑directional tread is reinforced by a triangular structural design, which enhances traction and stability on surfaces littered with sharp debris. Available in sizes 13.00‑24 and 14.00‑24, the tyre prioritises puncture resistance and reduced maintenance needs.

Thanks to its robust architecture and deep tread profile, the MA801 TR offers an extended service life and consistent performance across demanding work cycles. By eliminating the risk of flats, Magna Tyres positions the tyre as a reliable solution for recycling and industrial operations where continuous heavy loads are standard.

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The Yokohama Rubber Co., Ltd. has secured validation from the Science Based Targets initiative (SBTi), a prominent corporate climate-action organisation, for its greenhouse gas (GHG) emission reduction targets set for 2035. This endorsement confirms that the company’s goals are scientifically aligned with the standards established under the Paris Agreement. The validated targets are measured relative to the company’s 2024 emission levels.

Under the approved framework, Yokohama Rubber aims for a 63.0 percent reduction in combined Scope 1 and Scope 2 emissions, which cover direct emissions from its business activities as well as indirect emissions from purchased energy. Additionally, the company commits to a 37.5 percent cut in Scope 3 emissions, specifically targeting indirect supply chain emissions from purchased products and services, along with fuel and energy-related activities not included in Scope 1 or Scope 2. To achieve these reductions, Yokohama Rubber has been expanding solar power generation and renewable energy electricity at its global plants, while also disclosing indirect emissions from product distribution, use and disposal since 2013.

The company obtained SBTi validation to accelerate supply-chain-wide emission cuts in response to intensifying climate challenges. Operating under its sustainability management slogan, ‘Caring for the Future’, Yokohama Rubber continues to create shared value by tackling social issues directly through its business operations.

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