The company achieved record domestic quarterly revenue and declared an interim dividend of ₹3.50 per share. Strategic capacity expansion in Andhra Pradesh aims to address projected medium-term growth in radial tire segments.
Apollo Tyres Ltd (NSE: APOLLOTYRE) reported consolidated revenue of ₹77,431 million for the quarter ended December 31, 2025, a 11.8% increase year-over-year. This growth was driven by pent-up demand in India following GST rate reductions and robust double-digit growth across replacement, OE, and export channels. Consolidated EBITDA rose 25.2% to ₹11,859 million, with margins expanding 165 basis points to 15.3%. Net debt decreased by ₹13 billion during the quarter to reach ₹13 billion by December 2025.
Apollo Tyres is a global tire manufacturer headquartered in Gurugram, India, with manufacturing operations in India and Europe. The business model focuses on three geographical segments: APMEA (Asia Pacific, Middle East, and Africa), Europe, and Others (Americas and corporate entities). The company maintains market leadership in India and utilizes a dual-brand strategy with its Apollo and Vredestein brands to drive premiumization.
Performance by Business Vertical and Segment Updates
In the APMEA region, primarily India, the company registered its highest-ever quarterly revenue, crossing the ₹5,000 crore mark. Standalone revenue grew 13.2% year-over-year to ₹51,390 million. The standalone product mix is dominated by Truck & Bus tires (54%), followed by Passenger Vehicles (22%) and Light Commercial Vehicles (9%).
European operations reported flattish revenue of €180 million due to a muted demand environment. However, the Ultra High Performance (UHP) tire mix improved to 52% of sales compared to 48% in the previous year’s quarter. Capacity utilization reached 87% in India and 94% in Europe for the year-to-date period.
Strategic Expansion and Interim Dividend
The Board of Directors approved a capacity expansion at the Andhra Pradesh plant involving an investment of approximately ₹5,810 crore. This project aims to add 3.7 million Passenger Car Radial (PCR) tires and 1.3 million Truck Bus Radial (TBR) tires per annum by the end of FY2029. The expansion will be funded through internal accruals and debt. Additionally, an interim dividend of ₹3.50 per equity share was declared for FY26.
Operational Scale and Robust Capital Strength
The company’s capital structure remains robust with a Net Debt to EBITDA ratio of 0.4x. Free cash flow for the year-to-date period reached ₹16 billion, supporting future growth capex. The paid-up equity share capital stands at ₹635.10 million.
Regulatory Milestones and Management Commentary
Apollo Tyres recognized an incremental estimated obligation of ₹259.31 million as an exceptional item due to the consolidation of the New Labour Codes in India. In Europe, the company is managing the intended discontinuation of tire production at its Enschede plant in the Netherlands by 2026, with an estimated restructuring cost of ₹5,449.40 million recorded in previous periods. Management continues to prioritize profitable growth, free cash flow generation, and improved return ratios.
Future Outlook and Broader Industry Trends
The outlook for the Indian market remains healthy in the short-to-medium term. European operating performance is expected to improve through cost optimization and a gradual recovery in demand. Year-to-date consolidated revenue for FY26 reached ₹211,349 million, up 7.3% from the previous year, with an overall EBITDA margin of 14.5%.