Tyre makers expect H2 FY26 rebound on festive demand, rural recovery

Apollo, Ceat and JK Tyre expect demand to pick up in H2 FY26 on festive buying, rural recovery and steady replacement demand, though uneven rainfall weighs on tractor sales

Tyre makers expect demand to pick up in the second half of the financial year 2026 (H2FY26), aided by festival season buying and a possible rural recovery, even as weakness continues to weigh on sales in the near term.

 

Companies remain cautiously optimistic, banking on replacement demand, urban consumption and easing raw material costs to support growth.

 

Apollo Tyres anticipates “a stronger topline growth” in both India and Europe. “The replacement segment is likely to lead the growth domestically,” Managing Director Neeraj Kanwar said in the post Q1 earnings call. Apollo believes that demand momentum should improve in the latter half of FY26, supported by infrastructure and mining activity post-monsoon.

 

However, the company cautioned that the topline improvement in the second quarter would be largely seasonal, though it is expected to aid operating leverage and support margins.

 

Ceat is cautiously optimistic going forward as they expect the festival season and rural recovery to support demand in the second half. Urban demand continues to be resilient while rural demand remains subdued, with hopes of a revival post-monsoon. Two-wheeler demand for the company has been volatile and tractor sales muted due to uneven rainfall, though both segments could recover later in the year.

 

“Replacement demand continues to be steady and remains the main driver for us in the domestic market,” Arnab Banerjee, managing director and chief executive officer of Ceat said.

 

JK Tyre also expects a pickup in demand in H2, with festival season tailwinds playing a crucial role.

 

“With the upcoming festival season coupled with the benefit of the recent repo rate cuts and favourable monsoon conditions, we expect the consumer sentiments to improve further,” said Anshuman Singhania, managing director of JK Tyre.