Apollo Tyres Q4 FY26 profit jumps 242% to ₹631cr

Key takeaway from the Q4 result

Apollo Tyres reported a sharp rise in profitability for the March quarter of FY26, with consolidated net profit more than tripling year-on-year. The company attributed a major part of the upside to gains from remeasuring deferred tax liabilities after opting for a lower tax regime under the Finance Act, 2026. Revenue growth remained steady in the quarter, indicating operating momentum alongside the one-off tax-led benefit. The update was disclosed through a regulatory filing and carried by PTI.

Q4 FY26 profit jumps on tax remeasurement gain

For Q4 FY26 (quarter ended March 31, 2026), Apollo Tyres reported consolidated net profit of ₹630.97 crore, up 241.76% from ₹184.62 crore in the year-ago quarter. The company said the rise was supported by a net positive impact of ₹573.67 crore due to remeasurement of deferred tax liabilities at a lower applicable tax rate. Apollo Tyres decided to adopt the concessional tax regime under the Finance Act, 2026.

Under the change, the applicable tax rate is expected to reduce to 25.17% from 34.94%, and the company also cited exemption in MAT (minimum alternate tax). Such accounting remeasurement effects can create significant quarter-to-quarter volatility in reported profit even when underlying operations are stable. Investors typically track both reported earnings and profit metrics excluding such impacts to assess recurring performance.

Revenue rises 14% in the March quarter

Revenue from operations rose 14.19% year-on-year to ₹7,335.67 crore in Q4 FY26. The revenue increase indicates demand and pricing remained supportive during the quarter, even as the company flagged broader external headwinds such as geopolitical tensions in West Asia. Management commentary pointed to continued strength in India, especially in replacement and OEM channels.

Apollo Tyres’ chairman Onkar Kanwar said India performance remained robust, particularly in the replacement and OE segments. He also said truck-bus radials recorded growth of over 20% in Q4. For Europe, the company said operations performed in line with prevailing market conditions.

Profit before tax and exceptional items disclosed

Profit before exceptional items and tax was reported at ₹617.78 crore in Q4 FY26, compared with ₹378.75 crore in Q4 FY25. The company also reported exceptional items amounting to ₹456.13 crore during the quarter. The filing cited the deferred tax remeasurement benefit as a key driver of the quarter’s net profit.

Given exceptional items and tax changes can materially alter bottom-line numbers, quarter-level comparisons are most useful when read alongside these line items. Apollo Tyres’ disclosures provide both the PBT before exceptional items and the exceptional amount for context.

Full-year FY26: profit up 22%, revenue up 9%

For FY26, Apollo Tyres reported consolidated net profit of ₹1,372.42 crore, up 22.39% versus FY25. Revenue from operations for FY26 rose 8.98% to ₹28,470.60 crore compared with FY25.

The company also disclosed that FY25 consolidated net profit was ₹1,121.32 crore. A separate disclosure in the provided data set noted consolidated revenue of ₹26,123 crore in FY25 (₹261.23 billion) for the year ended March 31, 2025. These figures frame FY26 growth as a mix of volume and pricing-led expansion across geographies.

Management view: India demand, Europe steady, West Asia risk

Kanwar said the company remained optimistic about sustained demand momentum in India, supported by positive rural sentiment. At the same time, he pointed to ongoing geopolitical tensions in West Asia as a headwind. The statement suggests the company is monitoring external risks that could affect logistics, input costs, and demand across export-linked corridors, though no quantified impact was provided in the filing.

Apollo Tyres’ principal business activity remains manufacturing and sale of automotive tyres, with the India and Europe businesses forming the key operating blocks in its commentary.

Stock market reaction

Shares of Apollo Tyres ended 1.31% higher at ₹401.70 on the BSE, as per the update. The move indicates a positive immediate reaction to the earnings announcement, though the closing price reflects only one trading session’s response.

Snapshot table: reported numbers from the filing

Why the tax change matters for investors

Apollo Tyres’ decision to move to the concessional tax regime reduces the applicable tax rate, which can lift post-tax profitability on an ongoing basis compared with the earlier rate, subject to the company’s effective tax profile. But the immediate, outsized quarter impact came from remeasuring deferred tax liabilities at the lower rate, leading to the disclosed net positive impact. That benefit is accounting-led and typically non-recurring, so investors often separate it from operating trends such as revenue growth, segment demand, and margin movement.

The company’s commentary on truck-bus radial growth in India and stable performance in Europe provides additional context on demand conditions during the quarter. Near-term monitoring points include how replacement and OEM demand tracks in FY27 and whether geopolitical risks translate into measurable cost or demand disruptions.

Conclusion

Apollo Tyres closed FY26 with higher revenue and a 22% rise in full-year profit, while Q4 net profit surged on the back of a deferred tax remeasurement gain after adopting the concessional tax regime. The next set of disclosures will be watched for clarity on how much of the earnings uplift is structural through a lower tax rate versus one-off accounting impacts.