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CEAT reported a 27.7% YoY drop in Q1 FY25 net profit to ₹112 crore, even as revenue rose 10.5% to ₹3,529 crore. The company also announced a ₹450 crore capex to expand its Chennai plant by FY27.
By Megha Rani July 17, 2025, 8:40:51 PM IST (Published)
Tyre major CEAT Ltd reported its Q1 FY25 earnings on Thursday (July 17), posting a 27.7% decline in net profit to ₹112 crore compared to ₹154 crore in the same quarter last year, despite healthy growth in revenue and volumes.
The company’s revenue rose 10.5% year-on-year to ₹3,529 crore, up from ₹3,193 crore in Q1 FY24, driven by strong performance in both OEM (Original Equipment Manufacturer) and replacement segments. EBITDA grew marginally by 1.3% to ₹387 crore, while margins declined to 11% from 12% a year ago due to higher marketing spends.
Domestic demand remained strong, with robust volume growth across key OEM categories and a resilient replacement market. However, the international business stayed flat on a year-on-year basis, weighed down by ongoing macroeconomic headwinds.
Capital expenditure plan
CEAT has also announced a capital expenditure plan of approximately ₹450 crore to expand its Chennai plant located at Kannanthangal, Maduramangalam Post, Sriperumbudur TK, Kancheepuram. The facility currently produces around 70 lakh tyres annually, operating at 80% capacity utilisation. The proposed expansion will increase production capacity by about 35%, specifically in the Passenger Car Utility Vehicle (PCUV) segment.
The company aims to complete the capacity addition by the end of FY 2027. The investment will be financed through a combination of internal accruals and debt. CEAT expects strong medium-term growth in the PCUV category and plans to scale up capacity progressively to meet anticipated demand.
Arnab Banerjee, as Managing Director & CEO, said, “We continue to grow at a strong pace with double-digit growth in top-line, driven by OEM and replacement segments. Looking ahead, we are well-positioned to ride the premiumisation and electrification trend in the domestic market and renew our growth in international markets with stability in the geopolitical situation.”
The company also announced the reappointment of Arnab Banerjee as Managing Director & CEO for an additional two-year term, effective April 1, 2026, subject to shareholder approval. The decision follows a recommendation by the Nomination and Remuneration Committee.
Company's CFO, Kumar Subbiah, added, “Q1 saw strong growth and high-capacity utilisation at all our manufacturing facilities. This growth came on the back of an increase in demand from OEM and replacement segments. As Q1 is a marketing-heavy quarter with significant marketing costs associated with IPL, operational margins saw a slight dip. Efficient cash flow management helped in gross debt coming down by ₹100 crore during the quarter.”
Shares of CEAT Ltd ended 0.49% lower at ₹3,855.25 on the BSE.
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(Edited by : Ajay Vaishnav)
