Apollo Tyres

Apollo Tyres reported its highest-ever quarterly revenue, both on a standalone and consolidated basis, reaching INR 7,740 crores, a nearly 12% YoY growth. The consolidated EBITDA margin improved to 15.3%, up from 13.7% in the same quarter last year and 14.9% in the previous quarter. This performance was driven by robust demand in India and disciplined cost initiatives.

India operations demonstrated strong performance with INR 5,140 crores in revenue, growing over 13% YoY, and an EBITDA margin of 14.5%. The domestic market saw robust double-digit growth across all channels and product categories, including OEM, replacement, and exports. The momentum was further boosted by a positive demand environment and reduced GST rates for the industry.

Europe operations recorded flattish revenue at EUR 180 million, with an improved EBITDA margin of 17.9%. Despite a muted demand environment, the company's premium brand, Vredestein, achieved its highest-ever volumes. The PCR capacity expansion in Hungary is progressing as planned, and the Enschede plant in the Netherlands is scheduled to stop production by June 2026, with expected profitability benefits from H2 FY27.

The Board approved a substantial capex of INR 5,800 crores for FY27-29 to expand PCR and TBR capacities at its AP plant. Approximately INR 3,000 crores is earmarked for overall capex in FY27, with FY28 potentially seeing even higher investments. This expansion, necessitated by current high capacity utilization in India (high 80s), aims to meet future demand and capitalize on growth opportunities, with revenue flow expected to begin in FY28 and full benefits by FY30.

The company significantly strengthened its balance sheet, reducing consolidated net debt to INR 1,300 crores by December 2025, down from INR 2,600 crores in September 2025. This led to a consolidated Net Debt to EBITDA ratio of 0.4x, a substantial improvement from 0.8x. The reduction was primarily driven by strong operational cash flows and a decrease in short-term borrowings, with long-term debt repayments also on schedule.

Apollo Tyres continues to invest in brand equity, notably through its sponsorship of the official Indian Cricket Team jersey, which has garnered extensive media attention and boosted brand reach and visibility, particularly in rural markets. On the digitalization front, the company is leveraging Artificial Intelligence to enhance customer service, improve plant efficiencies, and optimize costs.

The company received multiple accolades for its sustainability efforts, including the first prize in the 'Best Industry' category at the 6th National Water Awards for its Chennai plant. R&D initiatives continue to secure additional model approvals from marquee passenger vehicle manufacturers and achieve podium positions in independent European tests, reaffirming product competencies and supporting the premiumization strategy.