Volume growth of tyre companies remained healthy, supported by robust momentum in both the OEM and replacement segments, along with continued premiumisation, said Ceat management.
Overall consumer trend still is towards buying SUVs and it is too early to say if the rise in demand for small car witnessed by automobile manufacturers in GST 2.0 era will be sustained, according to tyre maker CEAT Ltd MD and CEO Arnab Banerjee. The company is maintaining its guidance for a double digit growth for the ongoing fiscal although GST 2.0 has provided an impetus, and it is looking to tap rural markets, specially for farm and two-wheeler tyres, Banerjee told PTI. "It is too early to say... Overall consumer trend still is towards buying SUVs," Banerjee said when asked about the continuation of the impact of GST 2.0 in the passenger cars segment, specially rise in small car demand. In the last few years, SUV sales have driven passenger cars segment and small cars sales have declined due to affordability issues. In 2025, SUVs continued strong traction going up to 55.8 per cent of total PVs sold in India from 53.8 per cent in 2024, even as small cars showed signs of recovery
In Q3FY26, Ceat reported a 60 per cent jump in its consolidated net profit to ₹155.77, as compared to ₹97.11 crore a year ago
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Ceat's profit, however, slumped 16.2 per cent sequentially due to costs related to the implementation of new labour codes and an exceptional-item profit in Q2FY26
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Since December 11, the stock price of JK Tyre has appreciated by 10 per cent after the HDFC Mutual Fund acquired 257,305 equity shares or 0.09 per cent stake in the company via open market purchase.
The brokerage said most major OEMs reported double-digit year-on-year volume growth, aided by festive spillover, GST 2.0-led affordability, improved rural sentiment and robust export demand
JK Tyre & Industries, TVS Srichakra, Apollo Tyres and Balkrishna Industries were up in the range of 3 per cent to 8 per cent on the BSE in Monday's intra-day trade.
RPG Group-owned Ceat reports strong double-digit growth in Q2FY26 as Camso integration, festive demand, and robust OEM volumes drive profits and revenue
Revenue from operations increased 14.2 per cent. Total expenses rose 12.2 per cent, with the cost of materials consumed climbing 9.6 per cent
Among other tyre makers, Balkrishna Industries, Apollo Tyres and Ceat were up 2 per cent to 3 per cent on the BSE in intra-day trade.
In the past one month, the BSE Auto index has outperformed the market by soaring nearly 15 per cent, as compared to 1.4 per cent gain in BSE Sensex.
Analysts see the deal as transformative for CEAT's positioning in the high-margin off-highway tyre (OHT) space, upgrading the stock to a 'Buy'.