Apollo Tyres reported a strong performance for Q4 FY26, achieving a 14% year-on-year consolidated top-line growth and an EBITDA margin of 14.6%. The company saw robust double-digit volume growth in India, bolstered by successful new OEM partnerships. Despite a challenging global macroeconomic environment and rising raw material costs, the firm significantly improved its balance sheet, with the net debt-to-EBITDA ratio falling to 0.4 times as of March 2026.
Financial Highlights
For the fourth quarter of FY26, Apollo Tyres recorded consolidated revenue of INR 73.4 billion, marking a healthy 14% plus growth compared to the same quarter last year. The consolidated EBITDA reached INR 10.7 billion, reflecting a margin expansion to 14.6% from 13% in the previous year. The company’s focus on cash flow and profitability has led to a major deleveraging, with the net debt-to-EBITDA ratio improving dramatically from 3.2 times in March 2020 to 0.4 times by the end of March 2026.
Operational Performance
India Operations were a primary growth driver, with a 14.3% revenue increase to INR 52.4 billion, supported by strong high-teens volume growth in both replacement and Original Equipment (OE) segments. The company successfully secured fresh approvals from leading OEMs including BMW, MINI, Genesis, KIA, and Mahindra. Meanwhile, European operations saw a 14.6% EBITDA margin, with restructuring efforts at the Enschede plant proceeding on track to drive future cost-competitiveness.
Strategic Outlook and Capital Expenditure
Looking ahead to FY27, Apollo Tyres has outlined a capital expenditure plan of INR 35 billion, with nearly 80% dedicated to growth and capacity expansion projects. The company is actively mitigating the impact of raw material cost inflation—expected to rise in the high teens—through calibrated price increases of 6% to 8% across product categories. Management remains confident in its long-term strategic direction, bolstered by high capacity utilization of 90% across global operations and a strengthened balance sheet.
Sustainability and Digital Initiatives
Apollo Tyres continues to prioritize innovation and sustainability. The company’s climate targets have received formal validation from the Science-Based Targets Initiative, affirming a long-term commitment to net-zero emissions across the value chain. Additionally, the firm is scaling the use of Artificial Intelligence in manufacturing and logistics, earning recognition from Amazon Web Services for its advanced data technology initiatives.
Source: BSE
