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How much did raw-material costs increase during Q1, how much pricing has CEAT taken and what is the remaining gap?

Raw-material costs rose nearly 20% q-o-q in Q1, driven mainly by natural rubber, which increased from about ₹180/kg to ₹280/kg. CEAT expects a further 7-8 per cent increase in Q2.. The company raised replacement-market prices by 6-7 per cent during Q1, translating into about 4.5 per cent average realisation benefit. Additional hikes of 3-3.5 per cent from July 1, 3 per cent in late July, and another increase planned for August are expected to narrow the gap. CEAT aims to recover most of the cost increase by the end of Q2, though some lag may remain.

Could repeated price increases weaken demand, and what is CEAT’s growth outlook?

Demand remains strong despite industry-wide price hikes. Q1 standalone revenue grew 18.7 per cent y-o-y, with roughly one-third from pricing and two-thirds from volume growth. Replacement, OEM and international businesses all posted double-digit growth. CEAT expects strong double-digit growth in FY27, supported by both volumes and pricing.

Has the weaker rupee helped exports, and how is CEAT managing the wider West Asia disruption?

While a weaker rupee has modestly improved export realisations, it has also increased input costs, limiting any net benefit. Exports account for about 20 per cent of standalone revenue. CEAT increased international prices by 5-7 per cent on fresh orders and is focusing on higher-margin geographies and products. To manage West Asia disruptions, it secured raw-material supplies early, reduced discretionary spending, restricted travel, slowed hiring and strengthened currency hedging.

Where does the Camso business stand, and when will CEAT provide growth and margin guidance?

Camso was flat to slightly down in Q1. CEAT expects to complete most customer-facing and sales integration by end-Q2 and plans to provide clearer growth and profitability guidance from Q3 onward.

Will margin pressure affect CEAT’s capex, and should investors expect debt to rise?

CEAT spent about ₹300 crore on capex in Q1 and continues to prioritise capacity-expansion projects. FY27 capex guidance of ₹1,300-1,400 crore remains unchanged for now. Debt rose about ₹90 crore in Q1, mainly due to higher raw-material inventory. The company expects most capex to be funded through internal accruals, with only limited additional borrowing if required.

When should investors expect margins to recover, and what is CEAT’s broader FY27 guidance?

Margin pressure is likely to persist in Q2 as input costs rise faster than pricing benefits flow through. CEAT expects to recover most of the raw-material inflation by the end of Q2, with Q3 likely to see improvement if commodity prices stabilise. The company remains focused on strong double-digit growth, gradual margin recovery and stronger profitability in H2 FY27.