CEAT Limited’s board has approved a capital expenditure of ₹1,314 Crores for its Chennai plant expansion at Kannanthangal, Maduramangalam Post, Sriperumbudur TK, Kancheepuram. This investment, funded through a mix of internal accruals and debt, aims to increase the plant’s capacity by about 35 Lacs Tyres per annum. The expansion is expected to be completed by the end of the first half of FY2028 to meet anticipated demand in the PCUV category.
Chennai Plant Expansion
CEAT Limited is set to expand its Chennai plant at Kannanthangal, Maduramangalam Post, Sriperumbudur TK, Kancheepuram, with a proposed capital expenditure approved by the board.
Capacity and Investment
The expansion project involves an investment of approximately ₹1,314 Crores. It is geared towards increasing the production capacity by about 35 Lacs Tyres per annum. The investment will be financed through a combination of internal accruals and debt.
Projected Timeline
The company anticipates completing the capacity addition by the end of the first half of FY2028. This timeline aligns with CEAT’s strategic objectives to capitalize on growth opportunities in the Passenger Car and Utility Vehicle (PCUV) category.
Rationale for Expansion
CEAT expects strong growth in the short to medium term within the PCUV segment. This investment is intended to incrementally increase capacity, addressing the anticipated future demand and strengthening CEAT’s market position.
Financial Performance: Q3 FY26
CEAT Limited announced its unaudited consolidated financial results for Q3 FY25-26, reporting revenue of ₹4,157 crore, a 26% year-on-year increase. The EBITDA margin stood at 13.66%, with a net profit of ₹155 crore. On a standalone basis, revenue was ₹3,957 crore, up 20% year-on-year, with an EBITDA margin of 14.08% and a net profit of ₹192 crore.
Impact of New Labour Codes
The company has recognised a provision of ₹58 crores in Q3 towards the impact of new labour codes.
Source: BSE
