APOLLOTYRE · Automobile and Auto Components · filed 4 Nov 2026
Apollo Tyres Ltd. reported revenue of ₹7,968 cr for July to September 2026, +16.6% on the year and +7.7% on the quarter. That is faster than this quarter has grown in recent years (+4.3% on average), so the year-on-year number is not just the season. It is the highest quarterly revenue in the last 12 quarters on record. Over the last four quarters revenue comes to ₹30,445 cr, +13.8% on the four before.
Operating profit (EBITDA) was ₹855 cr, a margin of 10.7%, −421 bps on the year and −100 bps on the quarter. It is the narrowest margin of the last 8 quarters (range 10.7% to 15.3%). Operating costs grew +22.4%, faster than revenue at +16.6%, so operating profit grew less than sales.
Net profit was ₹292 cr, +13.3% on the year and −16.2% on the quarter, with earnings per share of ₹4.62. Profit before other income, one-offs and tax fell 29.0%, so 42 points of the headline growth came from outside the core business. The tax rate of 26% is in line with its recent average. Profit over the last four quarters totals ₹1,743 cr, +119.8% on the four before.
Of the 23 companies in Automobiles and components that have reported Q2 FY27 so far, Apollo Tyres Ltd. ranks 21st on revenue growth; the sector median is +30.1%. Its margin moved −421 bps on the year against a sector median of −89 bps.
A vehicle maker's revenue is volumes times average price, and its margin moves with steel, aluminium and rubber costs and with the share of exports and premium models.
On earnings per share of ₹27.48 over the last four quarters, the stock at ₹417.15 trades at 15.2 times trailing earnings.
Most of the profit growth did not come from the business. What lifted the gap?
Source: Results filing
Less than half the profit turned into operating cash. Working capital, or something else?
Source: Cash flow statement
Operating margin fell sharply on the year. Pricing, input costs, or mix?
Source: Results filing
Could not run on this quarter: Related-party transactions, Promoter pledges and allotments, Earlier promises against delivery. The filing did not carry these lines.
Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.
| Balance sheet | Sep '26 | Last year end | Change |
|---|---|---|---|
| Trade receivables | ₹3,909 cr | ₹3,191 cr | ▲ 22.5% |
| Inventory | ₹6,115 cr | ₹5,452 cr | ▲ 12.1% |
| Cash | ₹973 cr | ₹1,029 cr | ▼ 5.4% |
| Bank balances | ₹14.6 cr | ₹14.8 cr | ▼ 1.6% |
| Long-term borrowings | ₹1,643 cr | ₹1,502 cr | ▲ 9.4% |
| Short-term borrowings | ₹2,673 cr | ₹1,130 cr | ▲ 136.6% |
| Trade payables | ₹4,080 cr | ₹3,224 cr | ▲ 26.6% |
| Net block | ₹14,134 cr | ₹14,547 cr | ▼ 2.8% |
| Capital work in progress | ₹2,324 cr | ₹918 cr | ▲ 153.2% |
| Equity | ₹17,553 cr | ₹16,715 cr | ▲ 5.0% |
| Total assets | ₹32,208 cr | ₹29,240 cr | ▲ 10.2% |
| Cash flow, year to date | This year | Last year |
|---|---|---|
| Operating cash flow | ₹264 cr | ₹1,315 cr |
| Capital expenditure | −₹1,878 cr | −₹570 cr |
| Investing cash flow | −₹1,433 cr | −₹565 cr |
| Financing cash flow | ₹1,108 cr | −₹762 cr |
| Dividends paid | −₹158 cr | −₹317 cr |
Operating cash flow was 0.41× profit. Receivables at 46 days of sales (+6 days against the last year end). Inventory at 73 days of sales (+3 days).
Other matter: “We did not review the interim financial information of 6 subsidiaries included in the unaudited consolidated financial results, whose interim financial results reflect total assets of Rs. 155,889 million as at September 30, 2026, total revenue of Rs. 25,232 million… Read in full
We did not review the interim financial information of 6 subsidiaries included in the unaudited consolidated financial results, whose interim financial results reflect total assets of Rs. 155,889 million as at September 30, 2026, total revenue of Rs. 25,232 million and Rs. 52,884 million, total net profit after tax of Rs. 550 million and Rs. 1,022 million, total comprehensive income of Rs. 550 million and Rs. 1,022 million for the quarter ended September 30, 2026 and the period ended on that date respectively and net cash inflows of Rs. 2,100 million for the period April 01, 2026 to September 30, 2026, as considered in the Statement which have been reviewed by their respective independent auditors.
Filing p. limited review report
₹0.0 cr still unused. “Approved raising of funds by issue of Non-Convertible Debentures (NCDs) aggregating up to ₹1,000.00 crore through Private Placement, subject to approval of shareholders via postal ballot; 125%+ security cover maintained on existing NCDs.”
Appointed Mr. Ravi Kumar Shingari as Chief Financial Officer (Key Managerial Personnel / Senior Management) of the Company with effect from November 4, 2026. (p. outcome letter p.1, Annexure A)
Apollo Tyres Europe B.V. recognised an additional expense of ₹26.18 crore (Rs. 261.79 Million) towards employee restructuring costs following discontinuation of tyre production at Enschede plant. (p. note 4d of consolidated results)
Tax: Consolidated tax expense of ₹103.89 crore (current tax ₹71.30 crore, deferred tax ₹32.59 crore) on Profit before tax of ₹396.18 crore
| Metric | Q2 FY27 | Q1 FY27 | Q2 FY26 |
|---|---|---|---|
| APMEA Segment Revenue (₹ crore) | 5,973 | 5,529 | 4,823 |
| Europe Segment Revenue (₹ crore) | 2,156 | 2,039 | 2,191 |
| Operating Margin (EBITDA / Revenue) | 10.73% | 11.73% | 14.94% |
| Net Profit Margin | 3.67% | 4.72% | 3.78% |
| Inventory Turnover Ratio (x) | 5.29 | 5.08 | 5.07 |
| Debtors Turnover Ratio (x) | 8.47 | 10.05 | 8.67 |
Worked out from filed numbers. APMEA Segment Revenue: Consolidated APMEA segment revenue (Rs. 59,732.34 million converted to ₹ crore) · Europe Segment Revenue: Consolidated Europe segment revenue (Rs. 21,555.68 million converted to ₹ crore)
not disclosed
Dealer-level inventory days are not quantitatively stated in the financial results filing.
Cost of materials consumed for 6M consolidated increased to ₹8,331.02 crore from ₹6,451.25 crore in 6M FY26 (+29.1% YoY), putting pressure on operating margins (11.22% in 6M FY27 vs 14.10% in 6M FY26).
Raw material cost inflation compressed operating profit margins year-on-year.
Read using the Automobiles and components framework (named in the filing read). Primary valuation lens: P/E through the cycle.
Read more closely in this sector: Dealer inventory days · Raw material cost against realisation.
| Segment | Revenue | YoY | Result | YoY |
|---|---|---|---|---|
| APMEA | ₹5,973 cr | ▲ 23.9% | ₹462 cr | ▼ 12.4% |
| Europe | ₹2,156 cr | ▼ 1.6% | ₹52.1 cr | ▼ 46.1% |
| Others | ₹268 cr | ▼ 77.2% | ₹3.3 cr | ▼ 92.3% |
| Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | ₹6,595 cr | ₹6,258 cr | ₹6,335 cr | ₹6,437 cr | ₹6,928 cr | ₹6,424 cr | ₹6,561 cr | ₹6,831 cr | ₹7,743 cr | ₹7,336 cr | ₹7,398 cr | ₹7,968 cr |
| YoY | — | — | +1% | +2% | +5% | +3% | +4% | +6% | +12% | +14% | +13% | +17% |
| EBITDA margin | 18.3% | 16.4% | 14.3% | 13.6% | 13.7% | 13.0% | 13.2% | 14.9% | 15.3% | 14.6% | 11.7% | 10.7% |
| Other income, % of PBT | 0% | 7% | −2% | 4% | 1% | −35% | −924% | 8% | 3% | −260% | 12% | 11% |
| Exceptional items | — | — | — | — | — | — | — | −₹180 cr | — | — | ₹23.5 cr | −₹26.9 cr |
| Tax rate | 31% | 37% | 29% | 25% | 27% | 29% | 66% | 33% | 35% | — | 25% | 26% |
| Net profit | ₹497 cr | ₹354 cr | ₹302 cr | ₹297 cr | ₹337 cr | ₹185 cr | ₹13.0 cr | ₹258 cr | ₹471 cr | ₹631 cr | ₹349 cr | ₹292 cr |
| YoY | — | — | −24% | −37% | −32% | −48% | −96% | −13% | +40% | +241% | +2,584% | +13% |
| Core profit YoY | — | — | −22% | −43% | −36% | −33% | −10% | +40% | +52% | +66% | −1% | −29% |
| EPS | ₹7.82 | ₹5.58 | ₹4.76 | ₹4.68 | ₹5.31 | ₹2.91 | ₹0.20 | ₹4.07 | ₹7.41 | ₹9.93 | ₹5.52 | ₹4.62 |
| Flags | · | · | ✓ | 1 | 1 | 1 | ✓ | 1 | ✓ | 1 | 2 | 3 |
Each quarter is read with the same rules. Balance-sheet and cash checks run on half-year and annual quarters; filing-read checks run where a read exists.
Apollo Tyres Ltd. reported revenue of ₹7,968 cr (+16.6% on the year) and net profit of ₹292 cr (+13.3% on the year) for July to September 2026.
Profit before other income, exceptional items and tax moved −29.0% on the year, against +13.3% for reported profit.
3 checks raised a question: Most of the profit growth did not come from the business. What lifted the gap?
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