Apollo Tyres Q1 Profit Rises Sharply as Revenue Grows 13%

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628

reported a strong performance for the first quarter of FY27, with consolidated net profit rising to ₹349 crore, compared with ₹13 crore in the corresponding quarter last year, when earnings were impacted by a one-time restructuring loss. Revenue from operations increased 13% year-on-year to ₹7,157 crore, driven by healthy growth in both its India and Europe businesses. The company's operating performance also improved during the quarter. EBITDA increased 15% year-on-year to ₹1,042 crore, while the EBITDA margin expanded to 14.6% from 14.3% a year earlier, supported by better product mix and operational efficiencies. The company reported strong demand across key replacement and original equipment segments, while its European operations also contributed positively despite a challenging market environment. Management highlighted continued focus on premium products, cost optimisation, and operational efficiency to sustain profitability. Industry & Economic Impact: The results reflect healthy demand in the tyre industry, supported by growth in the automotive sector, replacement demand, and stable raw material conditions. Improved operating margins indicate that tyre manufacturers are benefiting from better product mix and disciplined cost management. From an economic perspective, sustained growth in the tyre industry supports automobile manufacturing, transportation, logistics, and exports. Expansion in tyre production also benefits the broader manufacturing ecosystem, creates employment, and contributes to industrial growth. Source: Economic Times No Recommendations