Apollo Tyres Limited (APOLLOTYRE) share price
₹417.65 on NSE as of 2026-09-11. -0.45% on the day. market cap ₹26,525 Cr. P/E 15.5. 52-week range ₹371.80 to ₹536.90. Automobile and Auto Components.
Apollo Tyres Q1 FY27: Revenue ₹7,398 Cr, Operating Profit Flat at ₹868 Cr, and a 12% Margin
At a glance
Revenue for the June 2026 quarter came in at ₹7,398 crore, up 12.8% on the year. Operating profit was ₹868 crore, against ₹868 crore in the same quarter last year — the kind of arithmetic that makes a spreadsheet look like it froze mid-refresh. It didn't. Revenue grew by roughly ₹837 crore and operating profit grew by ₹0.22 crore.
OPM landed at 12%, against 13% a year ago and 15% in the March quarter. Management attributes the decline to raw-material cost pressures, noting India raw-material costs rose about 17% in the quarter with roughly 8% further inflation expected sequentially into Q2.
Net profit was ₹349 crore. The comparison base is unusual: June 2025 PAT was ₹13 crore, dragged by exceptional items of ₹370 crore relating to the Netherlands restructuring. The current quarter carries an exceptional credit of ₹23.5 crore, of which ₹24.7 crore is an interim distribution received from IL&FS on deposits written off in earlier years — money that left the building years ago, sending a postcard.
Other Income was ₹82 crore, positive for the first time in five quarters after a run of ₹-351 crore, ₹-150 crore, ₹23 crore and ₹-421 crore.
The Enschede plant in the Netherlands stopped tyre production in June 2026. What that does to the European arithmetic is the more interesting half of this quarter.
Introduction
Apollo Tyres was established in 1972 and makes automotive bias and radial tyres and tubes, with plants in Kochi, Vadodara, Pune, Chittoor and Chennai. Fifty-four years is long enough for a tyre company to have acquired a second personality entirely, and Apollo has: in May 2009 it bought Vredestein, a Netherlands subsidiary of the bankrupt Amtel-Vredestein NV, for €40 million, and in FY16 it added Reifencom GmbH, a German distributor running 37 stores, for €45.6 million. In February 2013 it sold its South African operations to Sumitomo Tire for $60 million.
The most consequential recent decision was undoing part of the 2009 purchase. On 25 April 2025, Apollo Tyres (NL) B.V. submitted a Request for Advice to its Works Council on discontinuing tyre production at Enschede. Consultation ran under the Dutch Works Councils Act. Production stopped in June 2026. The company recognised impairment and closure provisions of ₹455 crore in the March 2026 quarter, taking the FY26 total to ₹1,000 crore including ₹545 crore of restructuring costs booked at September 2025. Crisil puts the exceptional loss at roughly ₹1,028 crore and expects about €50 million in employee settlements and regulatory payments.
Management says a large part of the Netherlands volume — around 750,000 tyres — shifts to Hungary, with lower-end 14-inch and 15-inch sizes moving to India, and expects transfer completion around September–October 2026.
Meanwhile the capex taps opened. In February 2026 the board approved roughly ₹5,810 crore to add about 3.7 million passenger car radial and 1.3 million truck-bus radial tyres of annual capacity in Andhra Pradesh by end-FY29. FY27 capex is planned at ₹3,500 crore, about 80% toward growth, of which ₹3,000 crore goes to India and the rest to the Hungary passenger car expansion. Q1 consolidated capex was ₹650 crore.
Business model
They make round black things and sell them twice — once to the carmaker, and again, more profitably, when the first set wears out.
The replacement channel was 79% of consolidated revenue in FY26 versus 80% in FY25; OEM was 21% versus 20%. By product in FY26: Truck & Bus 40%, Passenger Vehicle 38%, Farm/Off-Highway 10%, Light Truck 7%, Others 6%. By region: India 60%, Europe 30%, Others 10%. Crisil's read of FY26 splits the geography as APMEA around 63% and Europe around 30%.
Two brands do the work. Apollo covers commercial, passenger, two-wheeler, farm and industrial. Vredestein is the premium car-tyre brand, which also does agricultural, industrial and — a detail that rewards reading the fine print — bicycle tyres. A company measuring truck radial capacity in millions also makes something you inflate with a hand pump.
Distribution is 7,200 dealers in India and 7,000 in Europe. Crisil counts around 6,500 domestic dealerships including exclusive Apollo-branded outlets.
Manufacturing runs five tyre plants in India — Cochin, Vadodara, Chennai and Andhra Pradesh — plus Hungary, where Vredestein has capacity for 5.5 million passenger car and light truck tyres and 675,000 heavy commercial vehicle tyres. India capacity utilisation was 85% in FY26 versus 81% in FY25; Europe 93% versus 80%. In Q1 FY27 utilisation ran at 91% in India and 94% in Europe, and management describes India as "running into the 90s" with FY27 capacity tight.
R&D runs from two global centres, 270-plus active patents and 400-plus design registrations, with 18 patents and 43 design applications filed in FY26. R&D spend was 1.00% of turnover in the last two years, down from 1.80% in the earlier period shown.
Quarterly results, balance sheet, cash flow, ratios, shareholding and the filings themselves are on the full page for Apollo Tyres Limited.
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