Apollo Tyres Q1 FY27 profit jumps 27x to ₹349 crore

Result snapshot: sharp year-on-year turnaround

Apollo Tyres Ltd reported a strong year-on-year improvement in consolidated profitability for the quarter ended June 30, 2026 (Q1 FY27). Consolidated net profit rose to ₹348.87 crore, compared with ₹12.88 crore in the corresponding quarter last year. Revenue from operations increased to about ₹7,397.8 crore, reflecting steady demand across domestic and international businesses. The June-quarter outcome also came alongside a key leadership update, with the board approving the resignation of CFO Gaurav Kumar as whole-time director effective August 6, 2026. The company said he will support a smooth transition and may continue beyond his notice period if required. The board meeting to approve the unaudited standalone and consolidated results was held on August 6, 2026 under Regulation 30 of SEBI (LODR) Regulations, 2015.

Profit rebound supported by exceptional items normalising

The company attributed the year-on-year jump in reported profit to the easing of last year’s exceptional losses and restructuring impact. During Q1 FY27, Apollo Tyres recorded an exceptional gain of ₹24 crore. In the year-ago quarter, it had reported an exceptional loss of ₹370 crore, which weighed on the bottom line. Separately, Apollo Tyres also said the corresponding period last year included a net impact after tax of restructuring and impairment of its Netherlands plant amounting to ₹273 crore. With that low base and the absence of large one-off charges, the reported consolidated profit rose sharply.

Margins: operating margin softer, net margin expands

Despite the sharp rise in net profit, operating profitability was relatively steady and margins were mixed. Operating profit for the quarter was reported at ₹868 crore, broadly unchanged year-on-year. Operating margin stood at 11.73%, compared with 13.23% in the prior-year period, indicating some pressure on operating leverage. Net profit margin, however, expanded to 4.72% from 0.20%, reflecting the swing in exceptional items and the lower base effect from last year’s one-offs.

Revenue growth led by India demand, Europe stays resilient

Revenue from operations rose 12.76%-12.9% year-on-year to around ₹7,398 crore in the April-June quarter, up from about ₹6,561 crore in the year-ago period. The company cited steady growth in the Indian market and resilient performance by European operations despite a challenging business environment. Apollo Tyres reported total income of ₹7,456.1 crore, compared with ₹6,579.6 crore a year earlier. Profit before tax increased to ₹467.7 crore from ₹38.4 crore in the comparable quarter last year.

Regional detail: APMEA revenue grows 14.5%

Apollo Tyres disclosed regional performance for the reporting quarter, with revenue of ₹5,528.75 crore from the Asia-Pacific, Middle East, and Africa (APMEA) region. This was up 14.5% year-on-year. The company’s commentary across reports pointed to steady demand in its domestic business as a key support, while European operations held up in a difficult operating environment.

Board actions: CFO Gaurav Kumar resigns as whole-time director

Alongside the financial results, the board approved the resignation of Gaurav Kumar as whole-time director and as a member of the Risk Management Committee. The resignation takes effect from the close of business on August 6, 2026. The company said Kumar is pursuing new personal and professional challenges outside the organisation, and confirmed there were no other material reasons for the decision.

Kumar has been associated with Apollo Tyres for over 22 years. While he has resigned from the board role, the company said he will continue to discharge his duties as Chief Financial Officer for a transition period. Apollo Tyres also said he has agreed to remain beyond his notice period, if required, to ensure a smooth handover, and will cease to be a key managerial personnel after handing over responsibilities.

CFO succession: appointment process underway

Apollo Tyres said it is in the process of appointing a new CFO. The company added that the appointment will be announced to the stock exchanges in due course. For investors, the immediate focus is on continuity in finance leadership through the handover period, while the board proceeds with the replacement process.

Operational update: Enschede plant production discontinued

In the same flow of updates around the June-quarter results, Apollo Tyres also reported that production at its Enschede plant in the Netherlands has been discontinued. The company’s filings and reports cited the Netherlands plant in the context of earlier restructuring and impairment impacts as well.

Key numbers table

Market impact: what the numbers mean for investors

The headline profit rebound is largely explained by the swing in exceptional items and the absence of last year’s one-time restructuring and impairment charges. At the operating line, profit was broadly flat year-on-year, and operating margin declined versus the prior-year quarter. That combination makes the margin trend and the quality of earnings important reference points when reading the results. Separately, the CFO transition is a key governance event, particularly because Kumar also served as whole-time director and was part of the Risk Management Committee. The company’s statement that he will remain during a transition period reduces immediate continuity risk while a successor is identified.

Conclusion

Apollo Tyres delivered higher June-quarter revenue and a sharp year-on-year rise in reported net profit, supported by a reversal in exceptional items compared with the prior-year period. At the same time, the company is managing a top finance leadership transition, with Gaurav Kumar stepping down as whole-time director effective August 6, 2026 while continuing as CFO temporarily. The next formal update investors will watch is the company’s announcement of the incoming CFO to the stock exchanges, as the handover process progresses.