CEAT posts 28% y-o-y decline in Q1 net profit

18 Jul 2025 , 12:15 PM

CEAT Ltd announced a 27.7% decline in its net profit for the quarter ended June 2025 to ₹112 Crore. In the previous corresponding period, the business logged a net profit of ₹154 Crore, despite logging healthy growth in revenue and volumes.

The company said that it logged a 10.5% year-on-year growth in its revenue to ₹3,529 Crore. This was higher than ₹3,193 Crore in Q1 FY24, fueled by strong performance in both OEM (Original Equipment Manufacturer) and replacement segments. 

The business said that its EBITDA logged marginal growth of 1.3% to ₹387 Crore. On the other hand, margins slipped to 11% versus 12% in the previous corresponding period due to higher marketing spends.

The business said that it witnessed significant growth in its domestic demand with strong volumes growth throughout key OEM categories and a resilient replacement market. However, the international business witnessed muted growth on a year-on-year basis, weighed down owing to macroeconomic challenges.

The business also kept aside a capital expenditure of about ₹450 Crore for expansion of its Chennai plant situated in Kannanthangal, Maduramangalam Post, Sriperumbudur TK, Kancheepuram.

Currently, the facility produces about 70 Lakh tyres annually, being 80% of its total capacity. As per the company, the proposed expansion will add about 35% to the company’s production capacity. The company plans to complete the capacity addition by 2027.

For feedback and suggestions, write to us at [e-mail]