CEAT Ltd R&D Expenditure FY26 rises to Rs 240 crore with innovation focus

CEAT Ltd increases R&D investment during FY26

CEAT Ltd increased its research and development expenditure to Rs 240 crore during FY 2025-26, according to disclosures in the company's Integrated Annual Report 2025-26. The tyre manufacturer continued its innovation-led growth agenda by expanding product development capabilities, testing infrastructure and digital engineering initiatives. The total R&D expenditure reflected higher investment compared with the previous financial year, supporting advanced tyre technologies, sustainable product development and faster market introduction. The company’s focus remained on strengthening innovation capabilities across multiple tyre segments.

R&D expenditure breakdown and financial contribution

According to the Board's Report and financial statement disclosures, CEAT's total R&D expenditure for FY26 stood at Rs 24,046 lakh, including Rs 9,587 lakh in capital expenditure and Rs 14,459 lakh in revenue expenditure. This represented an increase from FY25, when total R&D spending was Rs 22,430 lakh, consisting of Rs 7,972 lakh capital expenditure and Rs 14,458 lakh revenue expenditure. The company maintained consistent investment momentum despite changes in the proportion of R&D spending relative to net sales during the reporting period.

R&D expenditure accounted for 1.56% of net sales in FY26 compared with 1.72% in FY25. Over the last eight years, this ratio has varied between approximately 1.3% and 1.85%, while the absolute investment value has continued to increase. CEAT reported that its innovation activities contributed to business value creation through improved development efficiency, new product introduction and technology advancement. The company highlighted R&D as a key capability supporting future growth across specialty tyres, commercial applications and sustainable mobility requirements.

Patent portfolio and sustainable tyre innovations

CEAT reported an R&D workforce intensity of 10.30% and a cumulative patent filing count of 214 during FY26. The company received eight new patents during the year and maintained 214 active R&D projects. It also reported revenue from new product development of USD 317 million and stated that innovation initiatives generated Rs 105 crore in technical economy. The company achieved an approximately 30% reduction in time-to-market through innovation and digitalisation initiatives, while introducing sustainable product innovations including Circl 50, Circl 90 and Sustainmax.

Expansion of R&D and testing infrastructure

CEAT established the R&D Ambernath Compound Laboratory in September 2025 as a centre of excellence for innovation, material characterisation and product validation within the specialty tyre sector. The facility covers off-the-road, agricultural and industrial applications, rubber tracks and solid tyres. The company stated that integrated compounding and rubber-testing infrastructure at the facility improves development efficiency and accelerates specialised product launches. This investment strengthens CEAT's capability to develop application-focused tyres and enhance validation processes for demanding operating conditions.

The company also expanded its Tyre Testing Centre to improve laboratory-based simulation of field performance and market-failure conditions. The enhanced facility enables proactive issue identification, faster corrective actions and reduction of field claims. Testing capabilities include evaluation of durability, footprint, stiffness and deflection characteristics. These improvements allow CEAT to validate products more effectively before commercial deployment while supporting quality improvement initiatives. The infrastructure development reflects the company's focus on advanced testing methodologies and data-driven product improvement.

Commercial vehicle testing and global standards alignment

CEAT strengthened its Commercial Vehicle Tyre Testing Infrastructure by adding India's first Scania 460 G 4x2 prime mover equipped with an advanced SUPER engine. The company described this investment as a strategic step to enhance R&D capability and align product development with global standards. The new testing asset supports faster tyre evaluation, homologation requirements in international markets such as Europe and the USA, and reduction of development timelines and costs. This capability supports the company's ambition to improve commercial tyre performance and reliability.

AI and digital technologies in R&D operations

CEAT stated that its R&D centres use advanced digital tools, simulation technologies and Gen AI to develop safer, longer-lasting and energy-efficient tyres while improving development efficiency. The company has applied machine learning models across R&D functions to increase productivity and reduce development cycles. It also collaborated with a digital partner to convert hand-drawn tyre sketches into rendered images and 3D models. The company implemented a fully digitalised new product development workflow through PLM software and uses RUBY as an R&D knowledge management hub supporting digital engineering capabilities.

Frequently Asked Questions

What was CEAT's R&D expenditure in FY26?
CEAT's R&D expenditure reached Rs 240 crore in FY26, reflecting increased investment in innovation, testing infrastructure and digital engineering capabilities. The company allocated Rs 24,046 lakh towards research and development activities during the financial year. This included capital expenditure for infrastructure development and revenue expenditure for ongoing research activities. The investment supported new product development, sustainable tyre innovations, advanced testing capabilities and improved development efficiency across different tyre categories.

How did CEAT improve its R&D capabilities during FY26?
CEAT improved its R&D capabilities through infrastructure expansion, digital tools and advanced testing facilities. The company established the Ambernath Compound Laboratory, expanded tyre testing capabilities and introduced additional commercial vehicle testing resources. These developments helped improve product validation, reduce development timelines and support global market requirements. CEAT also adopted artificial intelligence, machine learning models and digital workflows to enhance engineering efficiency and accelerate innovation activities.