New Delhi, May 2 -- A host of favourable factors is aligning to boost tyre maker Ceat Ltd's margins. While margins declined year-on-year in the March quarter (Q4FY25), they improved sequentially. Consolidated Ebitda margin stood at 11.3% in Q4, ahead of the consensus estimate of 10.7%, while gross margin came in at 37.5%. Easing input costs and price hikes in the two-wheeler and passenger vehicle segments during the quarter provided support.

Ceat expects further margin tailwinds in the first half of FY26, driven by softer raw material prices. International rubber prices have fallen by $200 per tonne from the Q4FY25 range of $1,900-2,000, now trading at a Rs.7-8/kg discount to domestic prices.

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