Apollo Tyres Q1 FY27 profit jumps to ₹349 cr in 2026

Key developments from the June-quarter update

Apollo Tyres Ltd reported a sharp 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 same quarter last year. Revenue from operations increased to ₹7,397.79 crore, reflecting a double-digit year-on-year rise. The update also carried a senior leadership change, with the Board approving the resignation of Gaurav Kumar as Whole-time Director. He will continue as Chief Financial Officer (CFO) for a transition period to support handover.

Board meeting and regulatory filing context

The company said its Board of Directors met on August 6, 2026, and approved the unaudited standalone and consolidated financial results. The approval was disclosed pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Alongside the results, the Board also accepted Kumar’s resignation as Whole-time Director and as a member of the Risk Management Committee. The resignation is effective from the close of business hours on August 6, 2026.

Profit turnaround: what changed year-on-year

Apollo Tyres attributed the year-on-year surge in reported profit to a low base and the easing of exceptional losses that affected the year-ago quarter. For Q1 FY27, the company posted consolidated net profit of ₹348.87 crore. In Q1 FY26, net profit was ₹12.88 crore, with the company noting that the prior-year number included the net impact after tax of restructuring and impairment of the Netherlands plant amounting to ₹273 crore.

Separately, one report cited an exceptional gain of ₹24 crore in the quarter, compared with an exceptional loss of ₹370 crore in the year-ago period, supporting the year-on-year increase in reported profit. Another disclosure referenced an exceptional expense of ₹23.54 crore for the quarter, including ₹24.74 crore received from IL&FS Financial Services Ltd as an interim distribution that was disclosed as an exceptional item. These statements highlight that exceptional items played a meaningful role in the reported year-on-year swing.

Revenue growth and demand commentary

Revenue from operations rose 12.76 percent to 12.9 percent year-on-year to about ₹7,398 crore (reported as ₹7,397.79 crore). The company’s growth was described as being supported by steady demand across its domestic and international businesses. Another update noted steady growth in the Indian market and resilient performance by European operations despite a challenging business environment.

The same quarter’s total income was reported at ₹7,456.12 crore, up from ₹6,579.65 crore a year earlier. Total expenses rose to ₹7,012.03 crore from ₹6,171.15 crore. Employee benefits expense increased to ₹962.80 crore from ₹869.55 crore, as per the numbers reported.

Operating performance and margins

Operating profit was reported at ₹868 crore for the quarter, described as broadly in line with the same quarter last year. Operating margin was reported at 11.73%, down from 13.23% in the prior-year period. Net profit margin expanded to 4.72% from 0.20%, reflecting the sharp rise in bottom-line profit compared with the year-ago quarter.

These margin movements indicate that while operating profitability softened year-on-year, reported net profitability improved significantly, consistent with the impact of exceptional items and the lower base in the prior period.

Quarter-on-quarter snapshot

Apollo Tyres also saw a quarter-on-quarter change in performance. Consolidated revenue increased to ₹7,397.79 crore from ₹6,560.76 crore in the preceding quarter. However, consolidated profit declined to ₹348.87 crore from ₹630.97 crore in the prior quarter. The quarter-on-quarter move shows revenue improved sequentially, while profit moderated from the immediately preceding quarter.

CFO and Whole-time Director resignation: what the company said

The company announced that Gaurav Kumar resigned as Whole-time Director and Board member, and also stepped down from the Risk Management Committee. The stated reason was to pursue opportunities outside the organisation and new professional challenges. Kumar has been associated with the company for over 22 years, and the company said he will continue in the CFO role temporarily to ensure a smooth transition. It added that he has agreed to remain beyond his notice period, if required, to facilitate the transition, and will cease to be a key managerial personnel after handing over his responsibilities.

Kumar’s letter to the Board, as reported, said: “I hereby tender my resignation from the position of Whole-time Director of the Company to pursue new personal and professional challenges outside the organization... with effect from the close of business hours on August 6, 2026.”

The company also said it is in the process of appointing a new CFO, and that the appointment will be announced to the stock exchanges in due course.

Enschede plant update mentioned alongside results

In addition to the financial results and the resignation announcement, one update said production at the Enschede plant in the Netherlands has been discontinued. The company’s June-quarter disclosures, including the earlier reference to Netherlands restructuring and impairment impacts, have kept investor focus on the Europe business and related cost actions.

Summary table: Q1 FY27 versus comparable periods

Why the update matters for investors

For investors, the quarter highlights two separate threads. First, the year-on-year profit jump is large, but it needs to be read with the context of the prior-year base, which included restructuring and impairment impacts tied to the Netherlands plant, and the role of exceptional items. Second, the Board-level exit of a long-serving CFO and Whole-time Director introduces a leadership transition at a time when the company is reporting improved year-on-year performance but lower profit sequentially.

Conclusion

Apollo Tyres posted higher revenue and a sharp year-on-year profit increase for Q1 FY27, while operating margin declined versus the year-ago period. The company also confirmed that CFO Gaurav Kumar will step down as Whole-time Director effective August 6, 2026, and stay on as CFO for a transition period. Apollo Tyres has said it is already in the process of appointing a new CFO, with further updates expected to be disclosed to stock exchanges in due course.