More Stories

Informist, Thursday, Aug. 7, 2025

By Gopika Balasubramanium

MUMBAI – Apollo Tyres Ltd. is likely to report high-single-digit growth in both its consolidated net profit and revenue for the June quarter. Robust growth in its automobile segment will likely offset the slowdown in its replacement business even as Apollo Tyres did not take any price hike in this quarter. Though operations in Europe are seen as weak, an appreciation of the euro will be favourable for the company. The company is also expected to have benefitted from stable raw material costs during the quarter, according to brokerages.

For the June quarter, the consolidated net profit of Apollo Tyres is seen rising 8% on year to INR 3.25 billion, according to the average of the estimates from five brokerages. The estimates for net profit range from INR 2.75 billion by Nuvama Wealth Management to INR 3.98 billion by Nirmal Bang Equities. 

The tyre-maker's consolidated net sales are expected to rise over 7% to INR 67.59 billion for the latest quarter, the estimates showed. The highest estimate for the top line was INR 70.32 billion from Nirmal Bang while the lowest estimate was INR 66.36 billion by Nomura Equity Research. Sequentially, its net profit is seen up over 76%, while net sales are expected to rise over 5%.  

Motilal Oswal Financial Services expects the tyre-maker's standalone revenue to rise 5% on year, driven by good demand from automobile companies ahead of the government mandating air-conditioned driver cabins in commercial vehicles. Meanwhile, replacement demand is likely to have slowed down during this quarter and exports will likely remain weak. 

The company is expected to report an over-2% on-year decline in earnings before interest, tax, depreciation, and amortisation to INR 8.90 billion for the June quarter, according to the average of estimates from five brokerages. The EBITDA is expected to be in the range of INR 8.25 billion to nearly INR 10 billion.

Kotak Securities expects the consolidated EBITDA margin to improve 40 basis points sequentially to 13.40%. However, on a year-on-year basis, it is seen down by a percentage point. Motilal Oswal expects the EBITDA margin to be flat on quarter at 13% but decline 140 bps on a year-on-year basis. 

At 1022 IST, the stock traded at INR 432 on the National Stock Exchange, down 0.7%. The stock has fallen 8.5% since the company detailed its March quarter earnings. During the previous quarter, the company had reported a consolidated net profit of INR 1.85 billion on revenues of INR 64.24 billion. Of the 15 brokerage reports on the company available with Informist, 10 have a 'buy' or equivalent rating on the stock with an average target price of INR 548. One has a 'hold' or rating, and four have a 'sell' rating on the stock. 

Following are the Apr-Jun earnings estimates for Apollo Tyres based on reports from five brokerage firms in descending order by the estimate of net profit:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Deepshikha Bhardwaj

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.