CEAT’s board has approved a capital expenditure for its Chennai plant, projecting an investment of approximately ₹1,314 Crores. This expansion aims to add about 35 Lakhs Tyres per annum to the existing capacity, expecting completion by the first half of FY2028. The investment will be funded through a mix of internal accruals and debt, targeting growth in the PCUV category to meet future demand.
Capacity Expansion in Chennai
CEAT Limited is set to expand its Chennai plant located in Kannanthangal, Maduramangalam Post, Sriperumbudur TK, Kancheepuram. The expansion project has received board approval and will involve a significant capital expenditure.
Investment and Funding
The company plans to invest approximately ₹1,314 Crores in this expansion. The funding will be managed through a mix of internal accruals and debt, optimizing the company’s financial structure to support this growth initiative.
Capacity and Timeline
The expansion aims to add about 35 Lacs Tyres per annum of production capacity. The project is expected to be completed by the end of the first half of FY2028.
Strategic Rationale
This investment is driven by the company’s expectation of good growth in the short to medium term, particularly in the PCUV (Passenger Car and Utility Vehicle) category. The increased capacity will enable CEAT to progressively service the anticipated future demand in this segment.
Current Capacity Utilization
The current capacity utilization at the Chennai plant is approximately 80% of the installed capacity, excluding additional capacity under implementation. The existing capacity stands at about 95 Lakh Tyres per annum, including ongoing capacity additions.
Financial Performance in Q3 FY26
CEAT reported strong consolidated revenue for Q3 FY26, reaching ₹4,157 crore, a 26% year-over-year increase. The EBITDA margin stood at 13.66%, and net profit was reported at ₹155 crore. On a standalone basis, revenue was ₹3,957 crore, a 20% year-over-year increase, with an EBITDA margin of 14.08% and net profit of ₹192 crore.
Source: BSE
