CEAT expects more tyre price hikes as raw material costs stay high; margin recovery seen next fiscal

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- ✓CEAT expects tyre price hikes to continue through the third and fourth quarters as raw material costs stay high.
- ✓Managing Director Arnab Banerjee said, "raw material inflation remains a key challenge despite signs of moderation." The company hopes for margin recovery in the first half of the next year.
Story at a Glance
- Category
- Indian Markets
- Reported By
- cnbctv18
- Reading Speed
- 8 Minute(s)
- Market Focus
- India Economy
The company expects gross margins to recover in the first half of the next financial year if input costs stabilise. It also expects Camso to turn EBITDA positive in H2 and sees steady demand across OEM, replacement and export markets.
CEAT, expects tyre price hikes to continue through the third quarter and likely into the fourth quarter as it works to recover from a sharp rise in raw material costs.
The company expects gross margins to gradually improve, with a return to its preferred margin band likely in the first half of the next financial year, provided input costs stabilise.
Arnab Banerjee, Managing Director & CEO of CEAT, said raw material inflation remains a key challenge despite signs of moderation. He added that demand has remained stable so far in the third quarter and the company expects its Camso acquisition to turn earnings before interest, taxes, depreciation, and amortisation positive in the second half of the current fiscal year 2026-27 .
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