Apollo Tyres' EBITDA margin down 149 bps despite healthy revenue growth
This story was originally published at 14:19 IST on 7 August 2026
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--Apollo Tyres Apr-Jun consol EBITDA INR 8.68 bln, unchanged from year ago
--Apollo Tyres Apr-Jun consol EBITDA margin 11.7% vs 13.2% year ago
--Apollo Tyres Apr-Jun India revenue INR 54.62 bln vs INR 47.25 bln year ago
--Apollo Tyres Apr-Jun India EBITDA margin 12.0% vs 13.6% year ago
--Apollo Tyres Apr-Jun Europe revenue 147 mln euros vs 146 mln euros year ago
--Apollo Tyres Apr-Jun Europe EBITDA margin 8.9% vs 10.8% year ago
--Apollo Tyres: Good growth momentum is expected for Europe business in Q2
--Apollo Tyres: Europe business volume Q1 rose in low single digit on yr
--Apollo Tyres: India ops EBITDA margin down Q1 on higher raw material cost
--Apollo Tyres: Price hikes being taken to mitigate cost impact
MUMBAI – Apollo Tyres Ltd. Friday said its earnings before interest, tax, depreciation, and amortisation margin was lower in the June quarter due to higher raw material costs. The company said it will undertake further price hikes to mitigate the impact of input costs in the coming quarters. Thursday, the company reported a revenue from operations of INR 73.98 billion for the June quarter, up 13% on year.
The company's consolidated EBITDA for the June quarter was INR 8.68 billion, unchanged from the year-ago quarter. However, its EBITDA margin fell 149 basis points on year to 11.7% from 13.2% in the year-ago quarter. Around 69% of the company's consolidated revenue was generated from its India business, up by three percentage points from the year-ago quarter. Its Europe business generated 26% of the company's revenue, down by one percentage point. Other regions generated 5% of the company's revenue. The replacement segment generated 79% of the company's consolidated revenue, up by four percentage points from the year-ago quarter. The rest of the company's revenue was generated by demand from original equipment manufacturers.
The company's India business saw a 15.6% quarterly growth, its strongest growth in 14 quarters. The India business generated INR 54.61 billion in revenues in the June quarter. It saw double-digit growth across the replacement, original equiment, and export segments. However, the India business' EBITDA margin fell 165 bps on year to 12% from 13.6%. The company said the EBITDA margin fell due to a rise in raw material costs, and they will undertake further price hikes to mitigate the imapact.
Apollo Tyres' European business saw low single digit volume growth, causing revenue growth to remain flat on year and EBITDA margin to decline 186 bps on year to 8.9% from 10.8%. The company expects the European business to give good growth momentum from the September quarter onwards.
At 1307 IST, Apollo Tyres' shares were slightly down at INR 446.35 apiece on the National Stock Exchange. The company had reported its earnings on Thursday, after market hours. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Upasika Singhal
Edited by Akul Nishant Akhoury
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