Apollo Tyres posted a consolidated net profit of Rs 349 crore for the quarter ending June 2026, a steep climb from the Rs 12.8 crore recorded a year earlier.
The numbers reflect a sharp turnaround.
Revenue climbs while EBITDA margin slips
Revenue from operations rose 12.8% year‑on‑year to Rs 7,398 crore, up from Rs 6,561 crore in the comparable period. Despite the top‑line growth, earnings before interest, taxes, depreciation and amortisation (EBITDA) held at Rs 868 crore, virtually unchanged from the prior year’s Rs 869 crore. Consequently, the EBITDA margin fell to 11.7% from 13.2%.
Other income increased to Rs 58 crore from Rs 19 crore, while the tax expense jumped to Rs 119 crore from Rs 25 crore. The profit surge was largely driven by a reversal of exceptional items: a one‑time gain of Rs 24 crore offset a loss of Rs 370 crore recorded in the same quarter last year.
Management change amid cost pressures
In a separate filing, the firm announced that Whole‑time Director Gaurav Kumar resigned effective August 6, ending his role on the Risk Management Committee. Kumar will remain as Chief Financial Officer for a transition period, citing “new personal and professional challenges.”
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The company had previously warned that raw‑material inflation could erode margins and disclosed price hikes intended to mitigate the impact. Still, the flat EBITDA suggests that higher input costs absorbed much of the revenue gain.
During the same trading session, Apollo Tyres shares closed at Rs 451.20, up 1.42% from the prior close of Rs 444.90. The stock touched an intraday high of Rs 451.75 and a low of Rs 441.25.
For tyre manufacturers, the shift from a loss on exceptional items to a modest gain can mask underlying operational challenges. While the headline profit looks impressive, the unchanged EBITDA indicates that the core business still wrestles with cost inflation. This reality means that any future earnings growth will likely depend more on sustained pricing power than on one‑off accounting adjustments.
The earnings release notes that the cost structure remains under pressure, a point echoed by analysts who see the margin compression as a signal that price increases may not fully offset raw‑material price hikes. The situation highlights the importance of monitoring input‑cost trends in the coming quarters.
Overall, Apollo Tyres showed solid top‑line momentum but faced a tighter profit envelope at the operating level. Investors and stakeholders will be watching the firm’s ability to translate revenue growth into healthier margins without relying on extraordinary items.
