Earnings Review
Sharp increase in one-time costs drags Apollo Tyre's PAT
This story was originally published at 19:42 IST on 7 August 2025
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--Apollo Tyres Apr-Jun consol net profit INR 128.78 mln
--Analysts saw Apollo Tyres Apr-Jun consol net profit at INR 3.20 bln
--Apollo Tyres Apr-Jun consol PAT INR 128.78 mln vs INR 3.02 bln year ago
--Apollo Tyres Apr-Jun consol revenue INR 65.61 bln vs INR 63.35 bln yr ago
--Apollo Tyres Apr-Jun net profit includes one-time cost INR 3.70 bln
--Apollo Tyres Apr-Jun raw material cost INR 32.83 bln vs INR 30.79 bln
--Apollo Tyres Q1 Asia-Pac, West Asia, Africa sale INR 48.3 bln vs INR 47.1 bln
--Apollo Tyres Apr-Jun Europe sales INR 18.48 bln vs INR 17.15 bln yr ago
--Apollo Tyres Apr-Jun consol operating margin 13.23% vs 14.35% year ago
By Rati Chaphekar
MUMBAI – Apollo Tyres Ltd. saw its lowest ever profit growth in the June quarter on the back of an almost 10-fold increase in the one-time costs. The company also underperformed the revenue estimates by analysts.
Apollo Tyres Ltd. reported a net profit of INR 128.78 million, sharply down 95.74% on year and down 93.02% on quarter. The company severely underperformed the analysts' expectation of net profit of INR 3.02 billion. This is the company's lowest profit growth in at least past 39 quarters.
The company reported a revenue of INR 65.61 billion, down 4% on year and down marginally on quarter. The company misssed the analysts' estimate of INR 66.78 billion.
The company reported a sharp increase in its exceptional items expense of INR 3.7 billion which is almost 10 times the exceptional items expense in the year-ago quarter.
Apollo Tyres' inventories fell to a negative of INR 2.65 billion in the June quarter from a negative of INR 1.95 billion in the year-ago quarter. The company's raw material costs rose to INR 32.83 billion from INR 30.79 billion year ago. The cost of purchase of stock-in-trade rose to INR 6.5 billion, up nearly 15% on year and employee benefit expenses rose to INR 8.70 billion, up 9% on year.
Sales from the Asia-Pacific, West Asia, and Africa rose to INR 48.29 billion in the reporting quarter from INR 47.14 billion in the year-ago quarter. The company's Europe sales were INR 18.48 billion in the reporting quarter, up from INR 17.15 billion on year. The consolidated operating margin for the company fell to 13.23%, down 112 bps from the year-ago quarter. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Akul Nishant Akhoury
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