Q2 raw material cost impact of 8-10%
Despite some crude oil correction, natural rubber prices remain elevated and rupee depreciation will add to costs in Q2 versus Q1. This represents a sequential cost increase of 8-10%.
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Additional 4-6% price hike in Q2
After 11% cumulative price increase in replacement market (7% by June, now ~11% post-July 1 hike), management targets another 4-6% through July-August to recover the raw material cost gap.
FY27 capex of ₹1,300-1,400 crore
Capacity-related capex prioritized with high utilization across plants. New 53,000 two-wheeler tire capacity approved at ₹25 crore, to be phased by FY31.
CAMSO full control by Q3 FY27
60% customer transition completed by Q1 end; 90% expected by September. FY28 will be first full year with control of entire value chain; H2 FY27 will see volume growth commencement.
Replacement growth high single-digit for FY27
Management expects replacement demand to sustain high single-digit growth through FY27, driven by GST rationalization.
Capex guidance of ₹1,000-1,200 crore per annum
Annual capex is expected to move from ₹900-1,000 crore to ₹1,000-1,200 crore from next year, including PCR capacity expansion at Chennai.
CAMSO margin to trend to low double-digit from Q4
Reported CAMSO margins should reach double-digit from Q4 onwards as one-time transition costs are eliminated.
Raw material cost headwind of 1-1.5% in Q4
Management expects a 1-1.5% sequential increase in raw material basket cost in Q4 due to currency and natural rubber.