Apollo Tyres Q2 revenue up 16.69% to ₹7,970 crore

Apollo Tyres Limited (NSE: APOLLOTYRE)

reported Q2 consolidated revenue of ₹7,970 crore, up 16.69% YoY from ₹6,830 crore. Net profit rose 11.54% to ₹290 crore, but EBITDA fell 16.08% to ₹856 crore. What happened: EBITDA margin shrank by 420 bps to 10.74% from 14.94% a year ago. Sales growth came from steady volume demand in replacement and commercial vehicle channels. Costs, mainly raw material inputs, grew faster than sales. Why it matters: Revenue is up 16.69% while operating profit is down 16.08%. The company is selling more but keeping less of each rupee at the operating level. My view: Net profit still rose while EBITDA fell, so support came from below the operating line. The data does not show the split, so I treat that cushion as less reliable than operating profit. Net margin also slipped to about 3.6% from 3.8% (₹290 crore on ₹7,970 crore versus ₹260 crore on ₹6,830 crore). Growth is real, but pricing has not yet covered input costs. What I am watching: EBITDA margin recovering above 12%, rubber and carbon black prices, and replacement demand in passenger and commercial vehicles. European operations are a risk if demand there stays slow. The board also considered raising funds through a private placement of Non-Convertible Debentures, and the outcome is not yet confirmed. Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations.