Apollo Tyres Reports Q2 Net Profit Of ₹290 Crore With Revenue At ₹7,970 Crore

Market snapshot: Apollo Tyres Limited reported its consolidated quarterly financial results for Q2, delivering a 16.69% YoY increase in revenue to ₹7,970 crore alongside an 11.54% YoY growth in consolidated net profit to ₹290 crore. However, operating performance faced pressure as EBITDA declined to ₹856 crore, causing EBITDA margins to contract to 10.74%.

Data Snapshot

• Q2 consolidated revenue from operations reached ₹7,970 crore, representing a growth of 16.69% YoY compared to ₹6,830 crore in the year-ago period.
• Q2 consolidated net profit increased 11.54% YoY to ₹290 crore from ₹260 crore in Q2 of the previous fiscal.
• Q2 consolidated EBITDA stood at ₹856 crore, registering a decline of 16.08% YoY from ₹1,020 crore.
• Q2 consolidated EBITDA margin compressed by 420 bps YoY to 10.74% compared to 14.94% in the corresponding prior-year period.

What's Changed

• Revenue expanded by 16.69% YoY to ₹7,970 crore vs ₹6,830 crore.
• Net profit grew by 11.54% YoY to ₹290 crore vs ₹260 crore.
• EBITDA contracted by 16.08% YoY to ₹856 crore vs ₹1,020 crore.
• EBITDA margin reduced by 420 bps YoY to 10.74% vs 14.94%.

Key Takeaways

• Topline expansion remained robust, driven by resilient volume demand in core replacement and commercial channels.
• Operating profit faced headwinds from input cost pressures, leading to a 420 bps contraction in operating EBITDA margin.
• Net profitability held up, supported by revenue growth and disciplined expense management outside direct production costs.

SAHI Perspective

Apollo Tyres demonstrates clear volume and revenue strength across key domestic and export channels. However, the operating environment highlights margin sensitivity to raw material input costs. Sustained top-line growth provides operational leverage, but near-term earnings traction will depend on price pass-through mechanisms and input cost stabilization.

Market Implications

The mixed earnings picture—solid revenue momentum paired with EBITDA margin compression—signals balanced near-term trading dynamics for tyre manufacturers. Investors will closely track raw material cost trends and replacement market pricing adjustments across the broader auto ancillary sector.

Trading Signals

Market Bias: Neutral

Topline revenue expanded 16.69% YoY to ₹7,970 crore and PAT rose to ₹290 crore, offset by EBITDA margin compression to 10.74% from 14.94% YoY.

Overweight: Tyre Manufacturing, Auto Ancillaries

Underweight: Margin-Sensitive OEM Suppliers

Trigger Factors:

• Raw material price stabilization in rubber and carbon black
• Quarterly EBITDA margin recovery above 12%
• Replacement demand trends in commercial and passenger vehicle segments

Time Horizon: Near-term (0-3 months)

Industry Context

The tyre industry continues to benefit from steady replacement demand and automotive production recovery. However, elevated natural rubber and petrochemical raw material prices remain key factors impacting operational margins across tyre producers.

Key Risks to Watch

• Escalating raw material costs compressing operating margins further
• Slower demand recovery in European overseas operations

Recent Developments

In late October 2026, Apollo Tyres submitted regulatory intimations to stock exchanges regarding its board meeting to consider un-audited Q2 financial results and fund raising via private placement of Non-Convertible Debentures.

Closing Insight

While top-line growth highlights Apollo Tyres' strong market positioning, disciplined input cost management and pricing realignments will be key to margin expansion in coming quarters.

High Performance Trading with SAHI.