CEAT Steps Up Capex as Strong FY26 Performance Meets Rising Cost Pressures
- By Sharad Matade
- May 05, 2026
CEAT Limited plans to invest INR 13-14 billion in fiscal 2027 to expand capacity and support growth, as the tyre maker rides strong momentum from a record FY26 while preparing for a near-term squeeze from raw material inflation.
The capital expenditure programme—up roughly 25 percent from the previous year—comes as capacity utilisation remains elevated at 85–90 percent across categories, necessitating incremental investments to meet demand.
Chief Executive Arnab Banerjee said the company would remain “careful” in the first quarter amid volatile input costs and macro uncertainty, before scaling up spending as conditions stabilise.
Additional investments are also being channelled into integrating the CAMSO off-highway tyre business, with about USD 30 million earmarked for upstream capabilities such as compound mixing and calendering. The integration is expected to be completed by the end of FY27, unlocking margin benefits from FY28.
Record year underpins expansion
The investment push follows a strong FY26 in which CEAT delivered double-digit growth across segments.
Standalone revenue rose 15.5 percent for the full year, while fourth-quarter revenue grew 18.2 percent, crossing INR 150 billion in annual revenue for the first time.
Growth was driven by a combination of volume expansion and pricing, aided by GST rationalisation that improved affordability and boosted demand across replacement and OEM channels.
Replacement demand remained robust, particularly in two-wheelers, while OEM growth was led by passenger vehicles and farm equipment. International operations also rebounded strongly, with high growth in Europe and the U.S.
Profitability milestones
CEAT crossed a key profitability threshold, with EBITDA exceeding INR 20 billion for the first time and margins holding at 13.4 percent for the full year.
Net profit stood at INR 8.12 billion, supported by operating leverage, cost discipline and an improved product mix.
Finance chief Kumar Subbiah said the company’s balance sheet remains “strong enough to provide growth capital”, with debt levels stable at around INR 30 billion and leverage metrics improving.
Global expansion and premium focus
CEAT is deepening its international footprint, setting up local entities in Germany, the UK, France and Poland to strengthen distribution and customer engagement.
Exports now account for over one-fifth of standalone revenue, rising further when including CAMSO, as the company expands in higher-margin markets.
The tyre maker is also focusing on premiumisation, with increased sales of larger passenger vehicle tyres and high-performance two-wheeler tyres, alongside a growing presence in electric vehicle segments.
Digital and EV strategy
The company is investing in digital infrastructure, including a centralised data lake and AI-led analytics capabilities, aimed at improving operational efficiency and decision-making.
In electric mobility, CEAT holds about 29 percent share in passenger EV OEM tyres and 18% in electric two-wheelers, positioning itself to benefit from the sector’s growth.
Cost headwinds loom
Despite strong fundamentals, CEAT faces mounting cost pressures.
Raw material costs—linked to crude oil and natural rubber—are expected to rise sharply, with management guiding for a 15 percent increase in the first quarter of FY27.
To mitigate the impact, the company is implementing price increases of up to 10 percent in the replacement market, though pass-through in OEM and international segments will occur with a lag.
Executives cautioned that demand may moderate as higher prices take effect, particularly in price-sensitive categories such as commercial vehicles.
Outlook
CEAT expects demand to remain broadly supportive, underpinned by rural cash flows, replacement cycles and ongoing economic activity, though growth is likely to moderate from FY26 levels.
“Structural demand drivers remain in place,” Banerjee said, adding that the company is positioned to navigate near-term volatility while sustaining long-term growth.
JK Tyre Appoints Pushpak Barik As Vice President – Replacement Business
- By TT News
- July 21, 2026
JK Tyre & Industries has appointed Pushpak Barik as Vice President – Replacement Business, reinforcing its domestic leadership team as the company looks to strengthen its presence in the replacement tyre market, according to a report.
In his new role, Barik will lead the strategic growth of JK Tyre's replacement business, with responsibility for expanding the company's replacement market portfolio, optimising channel performance and strengthening its retail footprint across India.
Before joining JK Tyre, Barik served as Head of Sales – Commercial Mobility at TVS Motor Company, where he led initiatives to accelerate business growth in the commercial mobility segment.
He brings extensive industry experience, having held leadership positions at Continental, Ashok Leyland, Bajaj Auto and Tata Motors. His expertise spans sales leadership, channel development, commercial mobility, strategic partnerships, network expansion and business transformation.
JK Tyre said Barik's experience in driving profitable growth, strengthening distribution networks and expanding market presence will support the company's next phase of growth in the replacement business.
Tiina Frazer Appointed To Nokian Tyres Management Team As SVP Of Brand, Marketing And Communications
- By TT News
- July 18, 2026
Nokian Tyres has announced the promotion of Tiina Frazer to Senior Vice President of Brand, Marketing and Communications, effective 1 August 2026. In addition to her new executive role, she will join the company’s Management Team, operating from the headquarters in Helsinki, Finland, and reporting directly to President and CEO Paolo Pompei.
Frazer originally joined the Finnish tyre manufacturer in September 2025 as Vice President for the same functional area. Her professional background includes a tenure as Vice President of Brands and Marketing at HKFoods Finland Oy, along with prior senior leadership roles at Lumene, Roche Pharmaceuticals and Fiskars, bringing extensive cross-industry experience to her expanded responsibilities.
Paolo Pompei, President and CEO, Nokian Tyres, said, “I am delighted to welcome Tiina to the Nokian Tyres Management Team. Her experience in building impactful brands make her an excellent addition to our team as we continue to strengthen our premium position in our key markets.”
Fornnax Secures EU Service Partnership With Industry Veteran Lukas Baur
- By TT News
- July 17, 2026
Fornnax Technology has taken a decisive step to strengthen its European footprint by formalising a service partnership with industry veteran Lukas Baur of NOBA Maschinenservice. The agreement, ratified by company CEO Jignesh Kundaria, transitions the Indian manufacturer’s support model from remote coordination to an on-the-ground operational presence. This strategic alignment is designed to address the growing demand for immediate technical intervention across the continent’s recycling sector.
Based in Worbis, Germany, Baur commands a fully integrated service infrastructure that includes a 1,000-square-metre workshop fitted with a 5-tonne crane system, a dedicated hydraulic bay and specialised tooling for bearing replacements. His mobile response unit comprises 12 Mercedes Sprinter vans and a workforce of 24 certified technicians, enabling rapid deployment across a 1,000-kilometre radius. This setup guarantees that Fornnax customers can expect emergency assistance within 24 hours of a service call.
Baur’s professional history spans over 20 years of hands-on work with prominent shredder brands such as Eldan, Lindner and Vecoplan, giving him intimate knowledge of the operational challenges faced by European plant operators. His decision to join forces with Fornnax was driven by the manufacturer’s distinctive combination of competitive pricing, rugged construction and advanced wear-resistant engineering. He recognised that the current market turbulence – marked by tight margins, postponed capital expenditures and a dwindling labour pool – demanded a partnership capable of delivering both technical depth and logistical speed.
Under the new arrangement, Baur assumes full responsibility for the entire equipment lifecycle, covering system commissioning, scheduled upkeep, urgent breakdown recovery and the supply of mechanical, hydraulic and electrical components. He has also expressed a long-term vision to transform his Worbis facility into a regional spare parts consolidation centre, particularly if Fornnax opts to stock inventory at that location. To match anticipated growth, he plans to augment his fleet and technician count by two to three units annually.
This collaboration signals Fornnax’s broader commitment to building a dedicated European service network rather than relying on generalized support structures. With Baur’s proven capabilities now formally integrated, the company aims to deliver faster resolution times and technically nuanced assistance that aligns with the high-throughput demands of modern recycling operations. The partnership ultimately positions Fornnax as a formidable contender in the European shredding equipment landscape, with service excellence as its cornerstone.
Jignesh Kundaria, Director and CEO, Fornnax, said, "We strongly believe that by continuously improving our service quality and customer satisfaction index, we can build long-term relationships with our customers. Higher customer satisfaction leads to greater trust, which significantly increases repeat orders and ultimately drives sustained growth in our sales revenue."
Apollo Tyres Steps Up Investments In AI, Mfg And Global Expansion To Drive Export-Led Growth
- By Sharad Matade
- July 17, 2026
Apollo Tyres is accelerating investments in manufacturing technology, artificial intelligence and international expansion as the company seeks to strengthen its position in premium tyre markets while expanding its global production footprint.
The tyre maker said its long-term strategy, branded Momentum 2.0, is centred on financial discipline, product premiumisation, manufacturing expansion and sustainability, following a year in which it outperformed the industry across several segments and delivered strong international revenue growth.
The company has reinforced its global manufacturing network, operating six manufacturing facilities across India and Hungary and two global R&D centres in Chennai and the Netherlands. Its products are now sold in more than 100 countries, supported by continued investments in research, development and an expanding global distribution network.
Apollo is also increasing investment in digital manufacturing, describing technology as a key driver of future competitiveness. During FY26, the company rolled out its Advanced Manufacturing Execution System (AMES) across major manufacturing plants, enabling real-time production monitoring, end-to-end traceability and greater integration between factory operations and enterprise systems.
To accelerate digital transformation, Apollo established a dedicated AI Innovation Unit that is developing artificial intelligence and machine-learning applications for manufacturing, engineering and business operations. The company said generative AI and agentic AI assistants are being deployed to improve simulations, operational planning and enterprise-wide decision-making, positioning AI as a core element of future factory operations.
Research and development remains another strategic investment priority. Apollo said it invested INR 460.87 million in R&D during FY26 while establishing advanced DoJo Centres at its Chennai and Andhra Pradesh facilities to strengthen engineering capabilities and accelerate product innovation.
International manufacturing continues to underpin Apollo's export ambitions. The company's Gyöngyöshalász plant in Hungary has become a strategic hub for serving European markets, allowing Apollo to manufacture closer to customers while strengthening supply-chain resilience amid evolving global trade dynamics.
Management said Europe remains a key growth market, particularly in premium passenger car tyres, while North America offers opportunities through higher-value products. During the year, Apollo expanded its dealer network by adding more than 250 dealers across the United States and Canada, strengthening distribution for the Vredestein brand and improving access to replacement markets.
Despite ongoing geopolitical uncertainty, energy price volatility and changing trade policies, Apollo said it would continue investing in innovation, operational efficiency and manufacturing excellence rather than slowing capital deployment.
Looking ahead, the company said it will maintain a disciplined capital allocation strategy while continuing investments in product innovation, brand building, manufacturing efficiency and digital transformation, with a strong focus on improving return on capital employed and supporting sustainable long-term growth in both domestic and export markets.
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