Apollo Tyres Accelerates Growth with Strong Q2 FY26 Performance

Apollo Tyres Ltd. has reported a robust performance for the second quarter of fiscal year 2026, marking its highest revenue growth in the last ten quarters. The company's consolidated revenue surged by 6.1% year-on-year to INR 6,831.1 crore, while consolidated EBITDA saw an impressive 16.3% increase, reaching INR 1,020.7 crore. This strong top-line momentum was accompanied by a significant expansion in EBITDA margins, which improved by 130 basis points year-on-year to 14.9%. The positive results underscore the effectiveness of the company's strategic initiatives and its ability to navigate a dynamic market landscape.

The growth was broad-based, with India operations demonstrating particular strength. The domestic market experienced an encouraging demand recovery, significantly bolstered by the recent GST rationalization and a strong rebound in export markets. India's standalone revenue for Q2 FY26 stood at INR 4,714.9 crore, a 5.7% increase year-on-year. The EBITDA margin for India operations saw a remarkable improvement of 321 basis points year-on-year, reaching 15.3%. This was driven by a focus on product premiumization, with the Vredestein brand achieving its highest-ever volumes in the quarter, validating the success of Apollo Tyres' dual-brand strategy in the Passenger Car Radial (PCR) segment. Volume growth was observed across both replacement and OEM segments, with farm and two-wheeler segments showing particular strength.

In Europe, despite a challenging demand environment marked by economic and geopolitical uncertainties, Apollo Tyres registered a 4% year-on-year growth in its topline, with revenue reaching EUR 177 million. The company's premiumization journey continued in Europe, with the Ultra High Performance (UHP) mix increasing to 49% in Q2 FY26, up from 46% in the same quarter last year. While year-on-year margins declined due to overall market conditions, sequential EBITDA improvement was noted. The company's strategic decision to close its Enschede plant in the Netherlands, aimed at optimizing its manufacturing mix, is progressing, with a settlement reached with the Works Council. This move is expected to yield a positive impact on European operations' profitability in the long term, with an estimated payback period of about two years.

Strategic Initiatives and Future Outlook

Apollo Tyres is actively pursuing several strategic initiatives to sustain its growth trajectory. In research and development, the company continues to secure additional model wins from marquee German OEM manufacturers in both India and Europe, reinforcing its product capabilities and premiumization efforts. On the branding front, a significant development is the company's new role as the lead title and jersey sponsor of the Indian cricket team. This partnership is expected to provide unparalleled reach in rural Indian markets, driving demand across various tyre categories, including car, two-wheeler, agri, and truck tyres.

Sustainability remains a core pillar for Apollo Tyres. The company has enhanced its S&P Global ESG rating score to 58 in 2025, up from 53 in 2024, and has received the prestigious CII-ITC Sustainability Award for Corporate Social Responsibility in Excellence. Its Chennai plant also earned Gold Awards for Safety, Health, Energy, and Environment, reflecting a strong commitment to responsible operations. Furthermore, as part of its healthcare initiatives, Apollo Tyres has launched a digital healthcare application for truck drivers, facilitating video consultations and helping them locate nearby healthcare centers.

Financial Discipline and Market Positioning

Apollo Tyres maintains a disciplined approach to capital allocation, focusing on Capex and Free Cash Flow (FCF) generation to keep leverage at very low levels. The consolidated net debt to EBITDA ratio stood at a healthy 0.8x as of September 2025. The company's capacity expansion plans, including PCR capacity in Hungary and Andhra Pradesh, are on track, with Hungary's production expected to commence in the next fiscal year. Management anticipates maintaining and accelerating top-line growth in both India and Europe, with Q3 revenue growth expected to be at least at par with Q2, and profitability remaining stable or improving. Raw material costs are projected to be range-bound in Q3, supporting healthy margins.

| Revenue Mix Consolidated – YTD FY26 (INR Crore) | | :-------------------------------------------- | :------------------ | | India | 8,570.75 | | Europe | 3,749.70 | | Others | 1,071.35 | | Total | 13,391.80 |

Apollo Tyres is proactively positioning itself to navigate emerging challenges and seize new opportunities. The company's strong fundamentals, strategic direction, and unwavering focus on profitability, free cash flows, and return ratios are expected to capture long-term value across its core markets. The management's commitment to continuous monitoring of market trends, cost structures, and driving sustainable, profitable growth instills confidence in its future trajectory.