CEAT raises ad spend 15 per cent as FY26 revenue tops Rs 15,000 crore

MUMBAI: CEAT isn’t just putting more rubber on the road, it’s putting more muscle behind its brand. The RPG Group-owned tyre maker increased its advertising and sales promotion spend by nearly 15 per cent in FY26, backing high-profile sports sponsorships and marketing campaigns as it delivered record revenue and profit during the year.

According to the company’s latest annual report, advertising and sales promotion expenses rose to Rs 325 crore in FY26 from Rs 283.7 crore in the previous financial year. The higher outlay was driven by campaigns around the Indian Premier League (IPL), Women’s Premier League (WPL) and a series of brand-building initiatives aimed at strengthening consumer engagement and market presence.

The company said its sales and marketing efforts gained momentum across the replacement market, original equipment manufacturers (OEMs) and its international business, supported by stronger product acceptance, wider distribution and growing demand for premium products.

“FY 2025-26 was a strong year for sales, marketing and customer engagement, with momentum across replacement, OEM and international markets. The year saw improved product acceptance, expanded distribution, increased premiumisation and stronger customer trust among dealers and partners,” the company said in its annual report.

CEAT added that it continued to strengthen its positioning as a premium, performance-led tyre brand by focusing on products offering better performance, reliability, safety and long-term value.

The marketing push came alongside a record financial performance. Chairman H.V. Goenka said the company crossed the Rs 15,000 crore revenue milestone for the first time, with consolidated revenue rising nearly 19 per cent year-on-year to Rs 15,678 crore.

Net profit surged 48 per cent, driven by disciplined execution, improved operating efficiencies and healthy growth across key business segments.

Looking ahead, Goenka said the company would continue to sharpen its competitive positioning through premiumisation, technology-led products and deeper customer engagement.

“Our focused efforts in the key strategic segments of electric vehicles and premium tyres drove strong growth and market share gains across both the categories during the year,” he said.

Commenting on the outlook for FY27, Vice Chairman Anant Goenka cautioned that volatile raw material prices and geopolitical uncertainty could weigh on the operating environment in the near term.

“Demand fundamentals remain intact, supported by structural drivers such as growth in vehicle ownership, infrastructure-led activity and continued premiumisation,” he said.

The latest numbers suggest CEAT is accelerating both on the road and in the marketplace, using bigger marketing bets alongside premium products to strengthen its brand as competition intensifies across India’s fast-growing tyre industry.