Apollo Tyres announced its financial results for the second quarter of FY27, reporting a consolidated revenue growth of over 16% year-on-year to INR 79.7 billion. The company achieved an EBITDA of INR 8.6 billion, with a margin of 10.7%. This performance was driven by strong brand positioning, disciplined cost management, and strategic pricing initiatives in response to elevated raw material costs.
Apollo Tyres Announces Strong Q2 FY27 Performance
Apollo Tyres Ltd. has reported its financial results for the second quarter of the fiscal year 2027 (Q2 FY27), ending November 5, 2026. The company demonstrated a resilient performance characterized by a 16% year-on-year revenue growth, reaching INR 79.7 billion on a consolidated basis. This marks the strongest year-on-year revenue growth in the last 16 quarters.
Key Financial Highlights
Consolidated EBITDA for the quarter stood at INR 8.6 billion, translating to an EBITDA margin of 10.7%. Despite facing a challenging operating environment marked by significant inflation in key raw material costs, the company’s disciplined cost management and operating efficiencies helped to partially offset these pressures. The financial strength of the company remains a key focus, with a consolidated net debt to EBITDA ratio standing at just 0.9 times as of September 30, 2026.
Operational and Strategic Progress
In terms of strategic priorities, Apollo Tyres has strengthened its product portfolio through new approvals with leading OEMs including BMW, Mercedes-Benz, Mahindra, and Tata Motors. The company is also leveraging artificial intelligence and advanced analytics for digital transformation to enhance productivity and operational reliability. The SAP S/4HANA implementation for its US business was successfully completed, with plans underway for European and Indian operations.
Regional Performance
India operations saw a revenue increase of nearly 26% year-on-year to INR 59.2 billion, driven by both Replacement and OEM channels. Profitability in India was impacted by raw material costs, with EBITDA at INR 6.6 billion and a margin of 11.1%. The company implemented pricing actions of up to 15% in the Replacement segment and significant price increases in the OEM business to address cost escalations.
European operations faced a challenging environment, with revenue declining by 12% year-on-year to EUR 157 million, primarily due to weakness in truck and agriculture segments and temporary supply disruptions. Despite these challenges, the PCR business continued to gain market share. EBITDA margins for European operations stood at 10.3%.
Outlook
Looking ahead, Apollo Tyres expects demand conditions in India to remain supportive. On the commodity front, the company anticipates a single-digit high, single-digit increase in quarter three, with stabilization expected towards the end of the year and tapering from next year. The company remains committed to its strategic priorities, focusing on growth, cost optimization, and maintaining a strong balance sheet.
Source: BSE
