Tire manufacturer Ceat Ltd forecasts confident double-digit growth in the fiscal year 2027. This growth is driven by increased domestic demand following a reduction in GST, expansion of production capacity, and export resilience, despite disruptions in West Asia.
MD & CEO of Ceat Ltd, Arnab Banerjee, stated that the company anticipates strong double-digit growth overall in the fiscal year 2027. The company previously announced investments of ₹1,205 crore to expand production capacity. Banerjee noted that the increase in available capacity will also contribute to growth.
In the first quarter of the current fiscal year, Ceat Ltd demonstrated a consolidated revenue growth of 22 percentage points, reaching ₹4,318 crore. Banerjee expressed optimism regarding overall market expansion after the introduction of GST reduction, emphasizing that rural markets are performing well, and the first-quarter revenue growth was positive.
The company has planned capital expenditures of ₹1,205 crore, which will be primarily directed towards increasing the production capacity for two-wheeler tires at its Nagpur plant. Currently, the existing plant capacity is nearing full utilization, standing at 80,000 tires per day, and the investments will allow for an addition of approximately 53,000 tires daily.
However, Banerjee warned that the growth rate might slow down slightly in the future due to price hikes implemented by the company to partially offset rising raw material costs and anticipated further increases. He added that despite the growth slowdown due to price increases, margin improvement is expected in the second half of the year.
The rise in raw material costs is likely to continue into the second quarter. Banerjee suggested that the best-case scenario involves price stabilization, but the average will still be higher than in the first quarter, necessitating further tire price increases. The company also confirmed its intention to achieve double-digit growth in exports. Banerjee reported that the company has a very strong order book, amounting to about 60 days, and export price increases are happening in phases.
Ceat receives large orders for tires for passenger cars, SUVs, trucks, and buses from various parts of the world. Meanwhile, the West Asian market, which accounts for approximately 12–13 percent of the company's international sales, remains unstable, being 'on and off.'
Radico Khaitan, a major alcoholic beverage producer, expects its premium and above segment to grow by 20% in the current fiscal year. Furthermore, the company forecasts an increase in the share of white spirits and a rise in margin by 120 basis points, despite short-term volatility in raw material prices.
According to Managing Director Abhishek Khaitan, the company, which owns brands such as Rampur Indian Single Malt, Jaisalmer Indian Craft Gin, Magic Moments Vodka, Morpheus Brandy, and 8 PM Whisky, achieved a net income exceeding 6,000 crore rupees in the 2026 fiscal year. He termed this figure 'the highest growth in history,' and EBITDA profit surpassed the 1,000 crore rupee mark.
Looking ahead to the 2027 fiscal year, Khaitan told PTI that he anticipates a '20% volume growth in premium products' and a '25% value growth in the luxury segment,' alongside margin expansion, even with short-term fluctuations in raw material costs. He specified that a margin expansion of 120 basis points is expected this year.
The company's luxury product portfolio, which includes single malt whiskies and brands like Royal Ranthambore, generated a turnover of 475 crore rupees in the last fiscal year. This segment is expected to grow by 25% over the next two to three years. The company recently launched a new variant, 'Rampur 1943 Virasat,' positioned as 'affordable luxury,' priced between 3,500 and 4,000 rupees per bottle (750 ml) to fill the entry-level niche and expand its customer base.
The Rampur Single Malt range, which has received numerous international awards, now comprises nine variants and is priced from 8,500 to 5 lakh rupees per bottle. Khaitan noted that after eight years of investing in malt production facilities, these investments are beginning to bear fruit. He also added that Rampur is the only Indian single malt whisky collaborating with Air India on international flights.
In the 2026 fiscal year, Radico Khaitan sold 36.62 million cases, with the Prestige & Above segment accounting for 16.7 million cases, contributing 45.6% of the total volume. This segment generated 3,063.7 crore rupees, representing 70.3% of the company's total IMFL revenue. The Prestige & Above portfolio includes brands such as After Dark, Magic Moments, Morpheus Brandy, and Royal Ranthambore.
Khaitan emphasized that India is witnessing a structural shift towards white spirits, particularly vodka. He pointed out that while vodka accounts for 28% of the global market, it was only 3% in India three years ago, rising to 4.5% last year and reaching 6% between April and June of this year. He called this an 'enormous shift in the beverage industry' and stated that white spirits are the future, as young consumers and women are the primary drivers of white spirit consumption in India's relatively young population.
The flagship vodka, Magic Moment, which holds nearly 60% of the vodka market share in India, sold over one million cases monthly from April to June, leading to quarterly sales of approximately 3.3 million cases compared to 2.27 million cases the previous year, marking a growth of over 45%. Khaitan also reported that Magic Moment is the fifth largest vodka brand by sales volume globally. Flavoured vodka, which constitutes 65-70% of the Indian market, has become a central part of the company's innovation strategy, with regional flavours such as mango, jamun, and tandai resonating strongly with young consumers.
Regarding exports, Khaitan stated that the company earns about 8% of total sales value from foreign markets, having representation in 100 countries and 63 duty-free outlets. The company plans to increase this number to 100 duty-free stores. He noted that exports are becoming increasingly robust, as Indian brands, especially single malt whiskies, attract foreigners due to their mystique and global popularity.
Concerning capital expenditures, Khaitan stated that the company has no 'significant capital expenditure plan' for the 2027 fiscal year. He clarified that at current rates, this will be in the range of 150 to 175 crore rupees, of which about 50-60 crore rupees is allocated to maintenance. The remaining funds are directed towards specific brand-related activities, such as malt aging, installations, and barrels.
