Apollo Tyres Ltd (APOLLOTYRE)

Automobile and Auto Components · Tyres · NSE · Updated 2 September 2026

By StockFin Research Team • AI-Assisted Analysis • Source: BSE/NSE Filings

₹442.65 ↓ 9.22% (1Y)

🎯 Key Takeaways

Apollo Tyres is in a strategic transition phase, shifting production capacity from Europe to India while navigating near-term margin pressure from raw material inflation. Management is executing a deliberate reallocation strategy to reposition the business for long-term profitability, supported by pricing actions and capacity expansion, though short-term profitability is being compressed by external cost pressures.
Revenue grew 0.8% QoQ to ₹7,398 in Q1FY27.
⚠️ Raw material inflation remains a near-term risk, with 17% increases already impacting margins, and while pricing actions are underway, the timing of f

Market Cap

₹28,113

P/E Ratio

16.4

P/B Ratio

1.67

ROE

10.2%

ROCE

10.9%

Debt/Equity

0.16

Div Yield

1.36%

Promoter

36.9%

✨ Ask AI About APOLLOTYRE 📊 Interactive Charts

📖 The Story

Apollo Tyres is in a strategic transition phase, shifting production capacity from Europe to India while navigating near-term margin pressure from raw material inflation. Management is executing a deliberate reallocation strategy to reposition the business for long-term profitability, supported by pricing actions and capacity expansion, though short-term profitability is being compressed by external cost pressures.

📰 What's Happening

In Q1 FY27, Apollo Tyres achieved 12.8% YoY revenue growth to ₹74,000 crores, driven by 15.6% domestic volume expansion, despite a 150 basis point EBITDA margin decline to 11.7% due to 17% raw material inflation. Management implemented 7% price hikes in India and 3% in Europe to offset inflation, with an additional 1-2% increase planned for July-August 2026. A key strategic shift involves relocating 750,000 units annually from the Netherlands to Hungary, with the new plant ramping up in Q3 2026 and full capacity expected by September-October 2026. The CFO transition after 22 years is part of this capacity reallocation, not a governance concern. The appointment of Rajeev Kumar Sinha as a whole-time director effective August 13, 2026, brings deep manufacturing and sustainability expertise to support this transition. Shareholders approved a final dividend of Rs.2.50 per share (250% payout) at the AGM on July 29, 2026, and ratified Lakshmi Puri’s reappointment as Independent Director until 2031. Additionally, a 9.93% encumbrance on shares was released on August 26, 2026, removing a historical risk factor.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Revenue	6,831	7,743	7,336	7,398
Operating Profit	637	801	672	477
OPM %	9.3%	10.3%	9.2%	6.5%
Net Profit	258	471	631	349
EPS	₹4.07	₹7.43	₹9.97	₹5.52

Revenue growth has accelerated, with Q1 FY27 showing the strongest YoY increase (12.8%) in recent quarters, supported by robust domestic volume growth of 15.6%. However, EBITDA margin pressure is evident, declining 150 basis points to 11.7% in Q1 FY27 due to 17% raw material inflation, despite healthy operating profit growth. While operating margins were higher in prior quarters (10.3% in Dec 2025), the current margin compression reflects temporary cost headwinds that management expects to mitigate through pricing and operational realignment. CapEx of over ₹500 crores in Q1 alone supports the strategic shift in production geography, signaling long-term investment in Indian capacity. Net debt remains stable at ~₹1,700 crores (0.4x EBITDA), indicating prudent leverage management amid expansion.

🔮 Management Outlook & What's Next

Management expects pricing actions to fully offset inflationary pressures by H2 FY27, with additional 1-2% price hikes planned in July-August 2026. The capacity shift from Europe to Hungary is on track for completion by September-October 2026, and Indian capacity commissioning remains targeted for FY28. The new whole-time director, Rajeev Kumar Sinha, will focus on operational efficiency and sustainability initiatives to support this transition. Management views the current margin pressure as temporary and transitional, with profitability expected to stabilize beyond H2 as pricing and operational changes take effect.

Extracted from official company announcements. Not StockFin.ai's opinion.

🏦 Balance Sheet (₹ Cr)

Item	Mar 2025	Mar 2025	Mar 2026	Mar 2026
Equity Capital	64	64	64	64
Reserves	14,245	14,702	15,469	16,765
Borrowings	4,801	4,410	4,518	2,632
Total Liabilities	27,505	27,306	29,009	29,240
Fixed Assets	15,749	15,551	15,836	16,646
Investments	43	45	52	62
Total Assets	27,505	27,306	29,009	29,240

The balance sheet shows a strategic shift in capital allocation toward growth, with total assets rising to ₹29,240 crores as of March 2026, up from ₹27,306 crores in March 2025. Borrowings increased slightly to ₹2,632 crores from ₹4,518 crores in the prior year, but this appears to reflect reclassification or timing rather than a leverage surge, as net debt remains stable at ~₹1,700 crores (0.4x EBITDA). Equity and reserves have grown steadily, supporting the CapEx program without aggressive debt accumulation. The stable debt profile suggests management is funding expansion through internal cash flows and selective financing, maintaining a conservative capital structure amid transformation.

💰 Cash Flow Statement (₹ Cr)

Item	Mar 2026
Operating	+3,667
Investing	-1,341
Financing	-2,177
Net Cash Flow	+149

👥 Shareholding Pattern

Category	Q2FY26	Q3FY26	Q4FY26	Q1FY27
Promoters	37.0%	36.9%	36.9%	36.9%
FII	11.9%	12.3%	12.2%	10.1%
DII	27.9%	27.9%	27.6%	29.0%
Public	7.2%	6.8%	7.1%	7.6%
# Shareholders	4,24,104	4,01,081	4,08,704	4,26,532

Institutional investor interest has been rising, with FII holdings increasing from 11.9% in Q2 FY26 to 12.15% in Q4 FY26 and peaking at 12.26% in Q3 FY26, indicating accumulation. DII holdings also rose from 27.56% in Q4 FY26 to 29.04% in Q1 FY27, suggesting growing confidence among domestic institutional investors. Promoter holding remains stable at 36.93% over the last four quarters, with no signs of dilution or encumbrance, especially after the recent release of a 9.93% pledge. The growing number of shareholders (4,26,532 in Q1 FY27) reflects broadening retail participation, supporting liquidity and market interest.

⚖️ Peer Comparison — Tyres

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
MRF	56,133	23.2	15.2%	11.5%	0.11
BALKRISIND	45,075	32.1	13.2%	12.8%	0.37
APOLLOTYRE	28,113	16.4	10.9%	10.2%	0.16
CEATLTD	13,748	23.3	15.6%	11.2%	0.59
JKTYRE	10,783	16.1	12.0%	10.9%	0.78
TVSSRICHAK	4,235	45.9	8.5%	7.8%	0.74
GOODYEAR	1,703	31.6	13.1%	8.9%	0.00
TOLINS	372	11.5	12.2%	10.0%	0.05
542013	168	27.1	17.1%	18.6%	0.54
539040	15	312.5	1.5%	1.2%	0.08

🔗 Peer Stock Analyses

MRF BALKRISIND CEATLTD JKTYRE TVSSRICHAK

⚠️ Risk Factors

1. Raw material inflation remains a near-term risk, with 17% increases already impacting margins, and while pricing actions are underway, the timing of full offset depends on global commodity trends and competitive dynamics. 2. The success of the Hungary plant ramp-up and capacity shift from Europe is operationally complex and subject to execution delays, which could prolong margin pressure. 3. European business performance is stagnant, with only 0.5% revenue growth and 8.9% EBITDA margin, indicating structural challenges in that market that may limit upside. 4. Management turnover, including the CFO’s departure after 22 years, introduces transition risk, though it is being managed as part of planned reallocation.

📋 Recent Filings

🧠 Analyst's Read

Apollo Tyres is undergoing a structural transformation with long-term strategic intent, but near-term profitability is being weighed down by inflation and transition costs. The company’s execution of capacity reallocation, pricing power, and leadership upgrades provides a foundation for recovery in margins beyond H2 FY27. Investors should monitor the pace of margin recovery in upcoming quarters and the successful ramp-up of the Hungary facility as key near-term catalysts.

Based on filing content and financial data. Not a recommendation.

Read the full analysis

Quarterly trends, balance sheet, cash flow, peer comparison, and AI insights — sign up free to unlock.

2 free AI queries per day.

✨ Deep Dive with AI on APOLLOTYRE

Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-02.

Editorial & Data Transparency Notice

This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.

📡 Get AI alerts when APOLLOTYRE files new disclosures

Track APOLLOTYRE filings, board meetings, and corporate actions. Free email alerts at 5 PM.

Track APOLLOTYRE — Free

Free account · 2 AI queries/day

About · Privacy Policy · Terms of Service · Pricing

Today's Announcements · Screener · Insights · AI Chat

Data provided by CMOTS Internet Technologies Pvt Ltd