• Margin pressure: Revenue rose 26% in Q2, but profit declined around 40% and EBITDA margin fell from 13.3% to 9.6%. Kumar Subbiah attributed the margin pressure to high commodity costs, including crude above 100 to 105 and rubber at a 20-year high; he expects Q3 to remain affected, with conditions potentially better in Q4.
• Pricing actions: CEAT raised prices by 12% across categories from April to the end of September, with 6 to 7% still needed for full recovery. Further increases were planned in October for 2-wheelers and truck and bus radial tyres; discretionary costs are being controlled, and marketing costs were lower in Q2 and expected to be lower in Q3.
• Segment growth: In Q2, OEM growth was almost 30% and exports grew about 25%, while replacement growth was double-digit. Subbiah said price and volume growth contributed in segments other than replacement, where price growth was higher.
• Two-wheeler capacity: CEAT is increasing Nagpur capacity from 80,000 to 100,000 tyres, expected to be commissioned in 1 quarter, and adding 50,000 per day capacity through an investment of ₹1,200 crore. By 2031, two-wheeler capacity is planned to rise by another minimum 2 million tyres per month; the new location was still under negotiation.
• EV tyre plans: CEAT’s market share in EVs, in both 2-wheelers and passenger cars, is higher than its current share. EV supplies are mostly to OEMs now, with replacement demand expected to emerge after 2 years; the company is developing EV tyres for OEMs.