Apollo Tyres Ltd
Apollo, established in 1972, manufactures automatic bias and radial tyres, and tubes. It has plants in Kochi, Vadodara, Pune, and Chennai. The product profile includes prominent tyre brands in the T&B, light truck, passenger car, and farm vehicle segments in India, catering to both original equipment manufacturers, and the replacement market.
Key Business segments
The Company is the owner of 2 brands of tyres, Apollo & Vredestein. Apollo brand primarily manufactures tyres for the Indian Sub-continent. The Vredestein brand operates in Europe and is over 110 years old & has achieved premium brand premium brand status in the industry.
Revenue Mix FY24
- Trucks & Buses – 42%
- Passenger vehicles – 37%
- Farm/Off highway – 9%
- Light truck – 6%
- Others – 5%
Shareholding Pattern
Financial Summary
| Particulars | Mar-23 | Mar-24 | Mar-25 |
| Sales | 24,568 | 25,378 | 26,123 |
| Sales Growth % | 17.28% | 3.30% | 2.94% |
| Expenses | 21,235 | 20,909 | 22,552 |
| Operating Profit | 3,333 | 4,468 | 3,572 |
| OPM % | 14% | 18% | 14% |
| Net Profit | 1,046 | 1,722 | 1,121 |
| EPS in Rs | 16.47 | 27.11 | 17.66 |
Final Outlook
Apollo Tyres reported modest revenue growth in FY25, with consolidated sales rising to ₹26,123 crore. However, net profit declined to ₹1,121 crore (vs ₹1,722 crore in FY24), and EBITDA margin dropped to 13.7% due to raw material inflation, export weakness, and restructuring costs.
In India (APMEA), strong replacement demand and TBR performance supported growth, while OE volumes declined due to strategic exits from low-margin segments. European operations faced capacity constraints, especially in non-UHP tyres, impacting volumes and margins. Enschede plant closure (Netherlands) is planned for FY26, with capacity shifting to cost-efficient Hungary.
Financial Snapshot & Leverage
- EBITDA margin declined to 13.67% in FY25 (vs 17.52% in FY24).
- Net profit margin fell to 4.29% (vs 6.78% in FY24).
- Standalone debt fell sequentially; consolidated net debt/EBITDA stood at 0.8x.
- Opex increased to 17% of sales (up from 14% over two years) due to energy costs, freight, and restructuring-linked one-offs.
- Working capital reached 17% of sales, largely due to inventory buffers.
Strategic focus remains on premiumisation, global cost optimisation, and expanding PCR capacity. Management is optimistic about FY26, expecting a margin recovery and stronger performance starting Q1.
