Apollo Tyres reported a robust performance in the first quarter of FY27, with consolidated revenue growing 12.8% YoY to INR 74 billion. India Operations were a standout, achieving their highest-ever revenue with a 15.6% YoY growth to INR 54.6 billion, driven by strong volume growth across all segments. The company also discussed raw material cost pressures, pricing strategies, and outlooks for both domestic and European markets.
Apollo Tyres Reports Strong Q1 FY27 Performance
Apollo Tyres Limited announced its financial results for the first quarter ended June 30, 2026, showcasing a strong performance, particularly in its Indian operations. The company’s consolidated revenue for the quarter stood at INR 74 billion, marking a healthy year-on-year growth of 12.8%. While sequential growth was muted, the domestic business emerged as a significant growth driver.
India Operations Achieve Record Revenue
The India Operations delivered their strongest year-on-year quarterly growth in the last 14 quarters, recording their highest-ever revenue. Revenue for the quarter reached INR 54.6 billion, representing a substantial 15.6% YoY growth and a 4.3% sequential increase. This growth was primarily volume-led, with double-digit growth observed across all segments compared to the same period last year, positioning Apollo Tyres favorably against market trends.
Financial Highlights and EBITDA Margins
Consolidated EBITDA for the quarter was INR 8.7 billion (approximately), with an EBITDA margin of 11.7%. This represents a decline of about 150 basis points year-on-year, attributed primarily to raw material cost pressures. Despite these challenges, the company successfully defended its margins through calibrated price increases and disciplined cost control measures.
European Market and Restructuring
In Europe, Apollo Tyres reported low single-digit volume growth on a YoY basis. Revenue for the quarter was EUR 147 million, a slight increase of 0.5% YoY. The EBITDA for the European segment stood at EUR 13 million, with a margin of 8.9%, down from 10.8% in the previous year. The company noted that certain overlap costs related to the Enschede plant closure and transition are impacting current results, with expected financial and operational benefits to materialize from the second half of the fiscal year.
Raw Material Costs and Pricing Strategy
Raw material costs escalated by approximately 17% during Q1 FY27. For Q2, the company anticipates raw material inflation of about 8% sequentially. In India, price increases of 7% to 9% were implemented during Q1, with further increases announced for Q2. The company aims for a total price increase of 15% to 16% to offset RM inflation, currently standing at the 11% plus zone. In Europe, price increases of 3% to 4% have been implemented so far, with a total required increase of about 10% for Q1-Q2.
Strategic Initiatives and Outlook
Apollo Tyres highlighted progress in R&D, OEM approvals for EV platforms, and improvements in product quality and cost optimization. The company also advanced its sustainability agenda and digitalization efforts. Looking ahead, demand is expected to remain healthy across categories and channels, with July already showing a strong start. The company is well-positioned to sustain momentum and accelerate growth across its India and Europe operations while maintaining a strong balance sheet.
Source: BSE
