Earnings Review
Apollo Tyres Q2 profit hit by one-time cost, higher tax
This story was originally published at 20:12 IST on 13 November 2025
Register to read our real-time news.Informist, Thursday, Nov. 13, 2025
Please click here to read all liners published on this story
--Apollo Tyres Jul-Sept consol net profit INR 2.58 bln
--Analysts saw Apollo Tyres Jul-Sept consol net profit at INR 3.67 bln
--Apollo Tyres Jul-Sept consol revenue INR 68.31 bln
--Analysts saw Apollo Tyres Jul-Sept consol revenue at INR 67.53 bln
--Apollo Tyres Jul-Sept consol PAT INR 2.58 bln vs INR 2.97 bln year ago
--Apollo Tyres Jul-Sept consol revenue INR 68.31 bln vs INR 64.37 bln yr ago
--Apollo Tyres board OKs raising up to INR 10 bln via NCDs
--Apollo Tyres Q2 consol raw material cost INR 31.68 bln vs INR 33.35 bln
--Apollo Tyres Apr-Sept consol PAT INR 2.71 bln vs INR 5.99 bln year ago
--Apollo Tyres Apr-Sept consol revenue INR 133.92 bln vs INR 127.72 bln
--Apollo Tyres Q2 Asia-Pacific, West Asia, Africa revenue INR 48.23 bln
--Apollo Tyres Q2 consol Europe revenue INR 21.91 bln vs INR 19.29 bln
--Apollo Tyres Jul-Sept consol operating margin 14.94% vs 13.64% year ago
By Pallavi Singhal
NEW DELHI – Apollo Tyres Ltd. reported a lower-than-expected profit for the September quarter due to exceptional one-time cost and higher tax outgo in the September quarter. The net profit fell even as revenue and operating margins improved on year on the back of lower raw material costs and steady demand in India and Europe.
The company posted a consolidated net profit of INR 2.58 billion for Jul–Sept, down 13% on year but sharply higher than INR 129 million in the previous quarter. The net profit fell short of the analysts' expectation of INR 3.67 billion. In the trailing quarter, the company had reported its lowest ever profit growth due to an almost 10-fold increase in the one-time costs.
Revenue from operations rose 6% on year to INR 68.31 billion, slightly above the consensus estimate of INR 67.53 billion. Sequentially, revenue was up nearly 4%.
Operating performance improved, with the consolidated operating margin at 14.94%, compared with 13.64% a year earlier. However, profitability was impacted by exceptional one-time costs of INR 1.8 billion, largely related to the restructuring and closure of the company's Enschede manufacturing plant in the Netherlands. This was lower than INR 3.7 billion booked in the June quarter but still weighed on the bottom line.
A 5% decline in raw material costs to INR 31.68 billion lent some support to margins. Employee benefit expenses rose 14% to INR 8.79 billion, while finance costs eased about 16% to INR 1.01 billion. Depreciation and amortisation inched up 2% to INR 3.83 billion. A higher tax outgo of INR 1.28 billion, compared with INR 1.01 billion a year earlier, further weighed on the net profit.
In Apr-Sept, Apollo Tyres reported a net profit of INR 2.71 billion, less than half of the INR 5.99 billion it reported in the same period last year. The company's revenue during this time rose 5% to INR 133.92 billion.
Regionally, sales from Asia-Pacific, West Asia, and Africa rose 6% on year to INR 48.23 billion, while Europe revenue increased 14% to INR 21.91 billion from INR 19.29 billion a year earlier.
The company's board also approved raising up to INR 10 billion through non-convertible debentures through private placement. Apollo Tyres released its earnings after market hours. It's shares closed 0.9% higher at INR 536.90 on the National Stock Exchange. End
Edited by Akul Nishant Akhoury
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.
To read more please subscribe
Share this Story:
