CEAT Limited delivered exceptional Q3FY26 financial results for the quarter ended December 31, 2025, demonstrating robust operational performance with significant profit growth across all business segments. The RPG Group company reported consolidated net profit of ₹155.70 crores, marking a substantial 60.30% year-on-year increase from ₹97.10 crores in the corresponding quarter last year.

Strong Financial Performance Metrics

The company's consolidated revenue reached ₹4,157.00 crores for the quarter, representing a robust 26.00% year-on-year growth from ₹3,301.00 crores. EBITDA performance was particularly impressive, with the EBITDA margin improving to 13.66% for the quarter. On a standalone basis, CEAT reported revenue of ₹3,957.00 crores with 20.00% year-on-year growth, EBITDA margin of 14.08%, and net profit of ₹192.00 crores.

Major Capacity Expansion at Chennai Plant

CEAT announced a significant capacity expansion initiative at its Chennai plant located in Kannanthangal, requiring an investment of ₹1,314.00 crores. The expansion aims to add 35 lakh tyres per annum capacity by the first half of FY28, increasing the existing capacity from 95 lakh tyres per annum.

The expansion reflects CEAT's expectation of strong demand growth in the passenger car and utility vehicle category and positions the company to capitalize on anticipated future market opportunities.

Debt Management and Financial Strategy

During the quarter, CEAT undertook strategic debt management initiatives, repaying ₹100.00 crores in listed secured non-convertible debentures while issuing ₹250.00 crores in unsecured NCDs on a private placement basis. As of December 31, 2025, the company maintains ₹400.00 crores in outstanding NCDs and ₹600.00 crores in commercial papers, with debt levels remaining consistent with the previous quarter.

Management Commentary and Market Outlook

MD & CEO Arnab Banerjee highlighted that the quarter was supported by strong revenue growth across all segments, aided by GST rate reductions that boosted domestic market sentiment. He noted emerging opportunities in international markets and expressed confidence that positive momentum would continue into the next quarter. CFO Kumar Subbiah emphasized that strong top-line growth drove operating leverage and margin improvement, supported by stable commodity prices that helped sustain gross margins.

Exceptional Items and Strategic Positioning

The company recognized exceptional items totaling ₹58.00 crores during Q3FY26, primarily related to provisions for obligations arising from the New Labour Codes notified by the Government of India. 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.

CEAT Limited has announced its board approval for an investment of up to ₹361.00 lakhs in its wholly owned subsidiary Tyresnmore Online Private Limited. The investment will be made through subscription in a rights issue of equity shares, as disclosed under Regulation 30 and 51 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Investment Structure and Details

The approved investment involves the acquisition of 29,575 equity shares of Tyresnmore Online Private Limited, each with a face value of Re.1/- fully paid up. The transaction will be executed through cash consideration via remittance through normal banking channels.

About Tyresnmore Online Private Limited

Tyresnmore Online Private Limited is a private company incorporated on June 2, 2014, with its registered office in New Delhi, India. The subsidiary operates in the auto ancillary sector, primarily engaged in selling automotive tyres, batteries, and providing ancillary automotive services including installation, fitting, wheel balancing, and wheel alignment for automotive tyres.

Financial Performance Track Record

The subsidiary has demonstrated consistent growth over the past three fiscal years:

Shareholding and Regulatory Compliance

Following this proposed investment, CEAT Limited will maintain its 100% shareholding in Tyresnmore Online Private Limited. The transaction falls under the purview of related party transactions as per Section 177 of the Companies Act, 2013 and Regulation 23 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key regulatory aspects include:

• The transaction is conducted at arm's length
• No governmental or regulatory approvals are required for the acquisition
• Promoter/promoter group/group companies of CEAT Limited have no interest in Tyresnmore except for it being a wholly owned subsidiary

Strategic Impact

The investment represents CEAT's continued commitment to strengthening its wholly owned subsidiary operations in the automotive aftermarket segment. As Tyresnmore operates in the auto ancillary business focusing on tyre sales and related services, this investment aligns with CEAT's core business operations in the tyre manufacturing sector.

The company has confirmed that the investment details will be made available on its official website at www.ceat.com , ensuring transparency and compliance with disclosure requirements.