Arnab Banerjee, MD and CEO of CEAT, stated the corporate maintained robust double-digit progress throughout the quarter, aided by a discount in GST charges on tyres and autos, which is predicted to assist home demand. He additionally highlighted the total integration of Camso into CEAT in September, marking a key milestone within the firm’s international premiumisation technique. CEAT goals to maintain double-digit progress within the second half of the 12 months.
Home demand remained sturdy, supported by GST rationalisation. The Substitute (RE) section recorded mid-single-digit progress in Q2FY26, although gross sales dipped in three weeks of September on account of commerce down-stocking and buy deferments forward of the brand new GST charges. The OEM section posted robust mid-20% progress, pushed by larger fitments in bigger rim-size passenger autos.
By product class, PV tyres grew in mid-single digits, two-wheelers recorded robust progress aided by constructive rural sentiment, farm tyres rose in mid-teens, and truck and bus tyres expanded on a low base. CEAT additionally gained market share in bikes at choose accounts.
Wanting forward, the home tyre market is predicted to learn from GST-led demand, particularly for small-ticket autos in rural and semi-urban areas. CEAT is more likely to proceed posting double-digit progress within the close to time period, supported by beneficial GST charges, robust rural demand, and premiumisation tendencies.
In accordance with JM Monetary, trade demand within the RE section is projected to develop consistent 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. Within the OEM section, progress is predicted at 0 to low single digits for MHCVs, 6-8% for PVs, and two-wheelers are anticipated to keep up wholesome momentum with slight moderation. JM Monetary has downgraded the inventory from Purchase to Add, with a goal worth of Rs 4,050.
(Disclaimer: Suggestions, strategies, views and opinions given by the consultants are their very own. These don’t signify the views of The Financial Occasions)
