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CEAT Board Approves ₹1,314 Crore Capacity Expansion at Chennai Plant

CEAT Limited

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January 19, 2026, 12:39 PM

CEAT Limited's Board approved a ₹1,314 Crore capex for its Chennai plant, aiming to add 35 Lakh Tyres per annum capacity by H1 FY2028. The expansion will be funded by internal accruals and debt to meet anticipated demand in the PCUV segment. Unaudited financial results for Q3 FY2026 were also approved.

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CEAT Limited's Board of Directors, in a meeting held on January 19, 2026, has unanimously approved a significant capital expenditure of approximately ₹1,314 Crores for capacity addition at its Chennai plant.

The proposed expansion aims to increase the plant's capacity by about 35 Lakh Tyres per annum, adding to the existing capacity of approximately 95 Lakh Tyres per annum (including capacity under implementation). This expansion is expected to be completed by the end of the first half of FY2028.

The investment will be funded through a mix of internal accruals and debt. The rationale behind this expansion is the company's expectation of robust growth in the PCUV (Passenger Car Utility Vehicle) category in the short to medium term, with this investment intended to progressively service the anticipated future demand.

Additionally, the Board reviewed and approved the Unaudited Financial Results (Standalone and Consolidated) for the period ended December 31, 2025, along with the Limited Review Reports. The trading window for dealing in the company's securities will open 48 hours after the declaration of these financial results.

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