News

Apollo tyres consolidated results

• While revenue and EBITDA were inline with results, PAT was a surprise beat.
• Revenue for the company grew 12.8% y-o-y to Rs. 7398 crores led by the improving mix and higher ASP. Gross profit declined 116bps y-o-y and 405bps y-o-y due to an accelerated increase in prices of raw materials like crude and its derivatives and rubber. But price hikes helped manage the inflated costs.
• EBITDA for the quarter was reported at Rs. 868 crore which was flat y-o-y but reduced 18.8% q-o-q inline with seasonality trend. EBITDA margins reduced by 149bps y-o-y and 284bps q-o-q which was lower than most competitors and managed through strong control of costs, inventory management and operational efficiency.
• PAT grew considerably to Rs 349 crores in Q1FY27 but saw a sequential drop which is typical of seasonality. Slower finance costs and higher other income help company beat consensus and estimated.
• We continue to remain positive on the overall growth prospect of the company on back of reducing costs, higher ASP, better mix of products and high replacement demand. The new capacity expansion will help cater to resilient domestic demand and help increase topline. 

Results Highlights (Rs. Cr.)

Margin Profile