Apollo Tyres Limited Earnings Summary — Q1 FY2027
Apollo Tyres Reports Strong Revenue Growth Amidst Raw Material Headwinds and Senior Management Changes
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue grew 0.8% sequentially in Q1 FY2027.
- Revenue of ₹7,398 Cr is 12.8% higher year-on-year.
- Revenue has compounded at 7.7% annualised over the last 10 quarters.
- Net profit of ₹349 Cr is 2608.6% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at -0.7% annualised across the period.
- Operating margin stands at 11.7% in Q1 FY2027.
- Operating margin compressed by 150 bps year-on-year.
- Over the last two years operating margin has contracted by 262 bps.
- PBT margin is 6.3%.
- Expenses grew 14.7% against revenue growth of 12.8%.
- Operating profit of ₹868 Cr is 0.0% higher year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 56/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 7,398 | 7,336 | 7,743 | 6,831 | 6,561 | 6,424 | 6,928 | 6,437 | 6,335 | 6,258 |
| Expenses | Stable | 6,530 | 6,267 | 6,557 | 5,810 | 5,693 | 5,586 | 5,981 | 5,559 | 5,426 | 5,230 |
| Operating Profit | Stable | 868 | 1,069 | 1,186 | 1,021 | 868 | 837 | 947 | 878 | 909 | 1,028 |
| Operating Margin | Softening | 11.7% | 14.6% | 15.3% | 14.9% | 13.2% | 13.0% | 13.7% | 13.6% | 14.3% | 16.4% |
| Other Income | Declining | 82 | -421 | 23 | -150 | -351 | -91 | 4 | 17 | -10 | 38 |
| Interest | Stable | 91 | 90 | 100 | 101 | 101 | 109 | 111 | 120 | 107 | 115 |
| Depreciation | Stable | 391 | 397 | 385 | 383 | 378 | 377 | 376 | 376 | 370 | 388 |
| Profit Before Tax | Volatile | 468 | 162 | 723 | 386 | 38 | 260 | 465 | 399 | 423 | 563 |
| Tax | Volatile | 119 | -469 | 253 | 128 | 25 | 75 | 127 | 101 | 121 | 209 |
| Net Profit | Volatile | 349 | 631 | 471 | 258 | 13 | 185 | 337 | 297 | 302 | 354 |
| Net Margin | Volatile | 4.7% | 8.6% | 6.1% | 3.8% | 0.2% | 2.9% | 4.9% | 4.6% | 4.8% | 5.7% |
Key Takeaways
- Revenue grew 12.8% YoY to ₹73,978 million, driven by strong double-digit growth in Indian replacement and OE markets.
- EBITDA margins contracted to 11.73% from 14.57% in the prior quarter, pressured by rising raw material and logistics costs.
- The company announced the resignation of Mr. Gaurav Kumar as Whole-time Director, though he remains CFO for a transition period.
- Discontinuation of tyre production at the Enschede plant in the Netherlands was completed during the quarter.
- Net Profit surged YoY primarily due to a lower base in Q1 FY26, which was impacted by significant exceptional restructuring items.
- The company received a ₹247.36 million exceptional gain from an interim distribution related to previously written-off IL&FS deposits.
- India operations remain the primary driver, contributing ₹55,287 million to segment revenue, up 14.5% year-on-year.
Management Guidance
Management expects significant raw material inflation (high teens sequentially) and has implemented price hikes of 6-8%, with further increases likely necessary to protect margins.
Sentiment Shift
Deteriorating
While volume growth remains robust, profitability is facing immediate pressure from a sharp rise in raw material costs and volatility in West Asia affecting logistics.
Outlook
The company expects full capacity utilization and is progressing with a ₹35 billion CapEx plan for FY27, focusing on expansion in India and Hungary. The European margin profile is expected to improve in H2 FY27 following the stabilization of the Enschede plant closure.
From the Annual Report (Key Quotes)
“Growth across all product categories has been very encouraging, placing us firmly in line with and in some segments ahead of the market performance.”
“Geopolitical developments in West Asia... add volatility to raw materials, to energy and to logistics costs. We are closely monitoring the evolving situation.”
“The balance sheet remains very strong... providing us with ample financial strength to navigate future uncertainties with confidence.”
Official Quarterly Documents
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This summary is AI-generated from Apollo Tyres Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.