Apollo Tyres revenue rises, margin falls in September quarter

Apollo Tyres Ltd reported consolidated revenue from operations of Rs 7,968.15 crore for the quarter ended September 30, 2026, up from Rs 6,831.09 crore a year earlier, while its operating margin fell to 10.73% from 14.94%. Revenue growth was led by APMEA, but segment results declined in both APMEA and Europe.

How did Apollo Tyres perform in the September 2026 quarter?

Apollo Tyres increased consolidated revenue from operations by Rs 1,137.06 crore year on year to Rs 7,968.15 crore in the quarter ended September 30, 2026. Revenue was also above Rs 7,397.79 crore in the quarter ended June 30, 2026. Including other income of Rs 42.36 crore, total income reached Rs 8,010.51 crore, against Rs 6,860.83 crore in the September 2025 quarter.

Apollo Tyres reported profit before tax of Rs 396.18 crore, compared with Rs 386.08 crore a year earlier and Rs 467.69 crore in the preceding quarter. Profit before share of associate or joint-venture profit, exceptional items and tax fell to Rs 422.85 crore from Rs 566.04 crore in September 2025, showing that the higher reported pre-tax profit reflected lower exceptional charges rather than higher underlying profit.

Apollo Tyres recorded profit after tax of Rs 292.29 crore, up from Rs 258.05 crore in the prior-year quarter but down from Rs 348.87 crore in June 2026. Basic earnings per share, not annualised, rose to Rs 4.62 from Rs 4.07 a year earlier and declined from Rs 5.52 sequentially. For the half year ended September 30, 2026, revenue was Rs 15,365.94 crore and profit after tax was Rs 641.16 crore.

Which Apollo Tyres segment drove revenue growth?

Apollo Tyres’ APMEA, or Asia Pacific, Middle East and Africa, segment drove the revenue increase, as its quarterly segment revenue rose to Rs 5,973.23 crore from Rs 4,822.78 crore a year earlier. APMEA includes manufacturing and sales operations in India, as well as entities in the United Arab Emirates, Thailand and South Africa. Its segment result nevertheless declined to Rs 461.70 crore from Rs 527.16 crore.

Apollo Tyres’ Europe segment generated revenue of Rs 2,155.57 crore, compared with Rs 2,190.56 crore in September 2025. Europe’s segment result fell to Rs 52.06 crore from Rs 96.63 crore year on year, although it improved from Rs 15.18 crore in June 2026. The Others segment reported revenue of Rs 268.22 crore, down from Rs 1,178.01 crore a year earlier.

Apollo Tyres’ inter-segment revenue decreased to Rs 428.87 crore from Rs 1,360.26 crore in the preceding-year quarter. After that elimination, segment revenue reconciled to consolidated revenue from operations of Rs 7,968.15 crore. Total segment results declined to Rs 517.09 crore from Rs 667.08 crore, as lower results in APMEA and Europe outweighed the revenue gain.

Why did Apollo Tyres’ operating margin decline?

Apollo Tyres’ operating margin, defined in the filing as earnings before interest, tax, depreciation and amortisation divided by revenue from operations, fell 4.21 percentage points year on year to 10.73% in September 2026. The margin was also below 11.73% in the June 2026 quarter. For the half year ended September 30, 2026, the operating margin was 11.22%, against 14.10% a year earlier.

Apollo Tyres’ cost of materials consumed rose to Rs 4,241.42 crore from Rs 3,168.36 crore in the prior-year quarter. Purchases of stock-in-trade increased to Rs 848.81 crore from Rs 545.07 crore, while other expenses rose to Rs 1,377.54 crore from Rs 1,196.22 crore. Employee-benefit expense declined to Rs 830.90 crore from Rs 878.57 crore over the same comparison.

Apollo Tyres’ finance costs declined to Rs 94.24 crore from Rs 101.05 crore year on year, but were higher than Rs 91.47 crore in June 2026. Depreciation and amortisation was Rs 380.62 crore, compared with Rs 383.40 crore a year earlier. Net profit margin was 3.67%, below 3.78% in September 2025 and 4.72% in the preceding quarter.

What changed in Apollo Tyres’ balance sheet and borrowings?

Apollo Tyres’ total consolidated assets increased to Rs 32,207.97 crore at September 30, 2026, from Rs 29,239.72 crore at March 31, 2026. Capital work-in-progress rose to Rs 2,324.26 crore from Rs 917.90 crore, inventories increased to Rs 6,114.54 crore from Rs 5,452.28 crore, and trade receivables rose to Rs 3,908.87 crore from Rs 3,190.84 crore.

Apollo Tyres’ total equity was Rs 17,553.16 crore at September 30, compared with Rs 16,715.17 crore at the March year-end. Total liabilities rose to Rs 14,654.81 crore from Rs 12,524.55 crore, including current borrowings of Rs 2,673.33 crore versus Rs 1,129.95 crore. The debt-equity ratio was 0.25 times, compared with 0.16 times at June 30, 2026 and 0.22 times a year earlier.

Apollo Tyres had listed non-convertible debentures, or NCDs, of Rs 1,250 crore outstanding at September 30, 2026. NCDs of Rs 500 crore carry interest of 8.75% a year and have a 10-year bullet-payment structure, according to the filing. Apollo Tyres also had commercial paper with a face value of Rs 250 crore outstanding.

What exceptional items affected Apollo Tyres’ results?

Apollo Tyres recorded exceptional items of Rs 26.85 crore in the September 2026 quarter, compared with Rs 180.04 crore in the September 2025 quarter and an exceptional gain of Rs 23.54 crore in June 2026. The current-quarter charge included Rs 67.40 lakh paid under an employee reorganisation exercise and Rs 26.18 crore of employee restructuring expense recognised by Apollo Tyres Europe B.V.

Apollo Tyres’ September 2025 exceptional items included Rs 176.47 crore of restructuring costs relating to the Enschede plant in the Netherlands. Apollo Tyres (NL) B.V. submitted a request for advice to its works council on April 25, 2025, on discontinuing tyre production and related operations at Enschede. The filing says tyre production at the plant was discontinued during the previous quarter.

Apollo Tyres reported exceptional items of Rs 3.32 crore for the half year ended September 30, 2026, compared with Rs 550.24 crore in the corresponding prior-year period. The current half-year figure included a Rs 24.74 crore interim distribution from IL&FS Financial Services Ltd against inter-corporate deposits written off in earlier years, offset by employee-related costs.

Conclusion

Apollo Tyres delivered higher September-quarter revenue, led by a Rs 1,150.45 crore year-on-year increase in APMEA segment revenue, but the revenue gain coincided with lower segment results in APMEA and Europe. Higher material costs, stock-in-trade purchases and other expenses accompanied a 4.21-percentage-point fall in operating margin to 10.73%.

The disclosed matter to watch is whether the Enschede production discontinuation leads to further closure or employee restructuring costs after the Rs 26.18 crore charge recognised in Europe during the quarter. Apollo Tyres also disclosed that Ravi Kumar Shingari’s appointment as chief financial officer became effective on November 4, 2026.