Arnab Banerjee, MD and CEO of CEAT, said the company maintained strong double-digit growth during the quarter, aided by a reduction in GST rates on tyres and vehicles, which is expected to support domestic demand. He also highlighted the full integration of Camso into CEAT in September, marking a key milestone in the company’s global premiumisation strategy. CEAT aims to sustain double-digit growth in the second half of the year.
Domestic demand remained robust, supported by GST rationalisation. The Replacement (RE) segment recorded mid-single-digit growth in Q2FY26, though sales dipped in three weeks of September due to trade down-stocking and purchase deferments ahead of the new GST rates. The OEM segment posted strong mid-20% growth, driven by higher fitments in larger rim-size passenger vehicles.
By product category, PV tyres grew in mid-single digits, two-wheelers recorded strong growth aided by positive rural sentiment, farm tyres rose in mid-teens, and truck and bus tyres expanded on a low base. CEAT also gained market share in motorcycles at select accounts.
Looking ahead, the domestic tyre market is expected to benefit from GST-led demand, especially for small-ticket vehicles in rural and semi-urban areas. CEAT is likely to continue posting double-digit growth in the near term, supported by favourable GST rates, strong rural demand, and premiumisation trends.
According to JM Financial, industry demand in the RE segment is projected to grow in line with GDP for MHCVs (mid-single digits), 7-8% for two-wheelers, and 0 to low single digits for PVs, with potential upside from GST rationalisation. In the OEM segment, growth is expected at 0 to low single digits for MHCVs, 6-8% for PVs, and two-wheelers are expected to maintain healthy momentum with slight moderation. JM Financial has downgraded the stock from Buy to Add, with a target price of Rs 4,050.
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