Apollo Tyres Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Apollo Tyres Ltd filed with BSE on 11 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Apollo Tyres reported Q1 FY27 consolidated revenue of INR 74 billion, up 12.8% year-on-year, with EBITDA margin at 11.7%, down about 150 basis points on raw material cost pressures. India operations delivered their highest ever quarterly revenue of INR 54.6 billion, up 15.6% year-on-year, largely volume-led, while Europe revenue grew 0.5% year-on-year to EUR 147 million with EBITDA margin at 8.9%. Management also announced CFO Gaurav Kumar's departure from the company after completing the Enschede transition project.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Consolidated Revenue: INR 74 billion (Q1 FY27)
p. 2
“The consolidated revenue for the quarter stood at INR 74 billion with an EBITDA margin of 11.7%, down about 150 basis points year-on-year, primarily on account of RM cost pressures.”
Gaurav Kumar, page 2 of the filed PDF · View the filing
India Operations Revenue: INR 54.6 billion (Q1 FY27)
p. 3
“The revenue for the quarter was INR 54.6 billion, representing a healthy growth of 15.6% Y-o-Y and 4.3% sequentially.”
Gaurav Kumar, page 3 of the filed PDF · View the filing
India EBITDA: INR 6.5 billion, 12% margin (Q1 FY27)
p. 3
“The EBITDA for the quarter stood at INR 6.5 billion, a margin of 12% compared to 13.6% in the corresponding period last year.”
Gaurav Kumar, page 3 of the filed PDF · View the filing
Europe Revenue: EUR 147 million (Q1 FY27)
p. 3
“Revenue for the quarter was EUR147 million, up 0.5% Y-o-Y.”
Gaurav Kumar, page 3 of the filed PDF · View the filing
Europe EBITDA margin: 8.9% (Q1 FY27)
p. 3
“The EBITDA for the quarter stood at EUR13 million, a margin of 8.9%, lower than the previous year 10.8%.”
Gaurav Kumar, page 3 of the filed PDF · View the filing
Raw material cost increase: 17% (Q1 FY27)
p. 3
“Raw material costs escalated sharply during Q1 by the magnitude of nearly 17%.”
Gaurav Kumar, page 3 of the filed PDF · View the filing
India volume growth by channel: Replacement 13%, OEM 10%, Exports 15% (Q1 FY27)
p. 5
“Replacement was 13% OEM was 10% and exports was 15%.”
Gaurav Kumar, page 5 of the filed PDF · View the filing
Consol Q1 CapEx: INR 650 crores (Q1 FY27)
p. 10
“So the full CapEx for Q1 was INR 650 crores at a consol level.”
Gaurav Kumar, page 10 of the filed PDF · View the filing
Consol Net Debt to EBITDA: 0.4 (Q1 FY27)
p. 10
“The net debt to EBITDA at the consol level was 0.4.”
Gaurav Kumar, page 10 of the filed PDF · View the filing
Absolute Net Debt: INR 1,700 plus crores (Q1 FY27)
p. 10
“Absolute net debt just a minute. was about INR 1,700 plus crores.”
Gaurav Kumar, page 10 of the filed PDF · View the filing
Reifen Revenue: EUR 43 million (Q1 FY27)
p. 16
“Just a minute, so Reifen was EUR 43 million revenue in Q1, and about 3% EBITDA.”
Gaurav Kumar, page 16 of the filed PDF · View the filing
India CapEx for quarter: INR 500 crores (Q1 FY27)
p. 8
“So even India, for example, the quarter CapEx was INR 500 crores.”
Gaurav Kumar, page 8 of the filed PDF · View the filing
Natural rubber price: INR 225 (Q1 FY27)
p. 14
“So rubber this quarter was at INR 225, synthetic rubber, INR 250, carbon black, INR 125 and steel cord, INR 165.”
Gaurav Kumar, page 14 of the filed PDF · View the filing
TBR replacement market share: upwards of 30%
p. 17
“I would believe that in TBR replacement, we would be now upwards of 30%.”
Gaurav Kumar, page 17 of the filed PDF · View the filing
Passenger car replacement market share: 21% plus
p. 17
“And in passenger car replacement, we would be 21% plus.”
Gaurav Kumar, page 17 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Raw material inflation — about 8% sequentially · Q2 FY27
stated conditionally by Gaurav Kumar
p. 3
“Based on the current outlook, we expect raw material inflation of about 8% sequentially into Q2.”
Gaurav Kumar, page 3 of the filed PDF · View the filing
Enschede restructuring benefits — H2 FY27
stated firmly by Gaurav Kumar
p. 3
“The Netherlands plant stopped production as planned in June 2026, and we expect the financial and operational benefits of the restructuring to start materialising from H2 of the current fiscal year.”
Gaurav Kumar, page 3 of the filed PDF · View the filing
Europe EBITDA margin — high teens EBITDA · full year
stated as an aspiration by Gaurav Kumar
p. 7
“In terms of your second part of your question, on a full year basis in Europe, with this change, we would look to deliver high teens EBITDA.”
Gaurav Kumar, page 7 of the filed PDF · View the filing
Hungary capacity expansion — from about 17,000 car tyres to 21,000 · H2
stated firmly by Gaurav Kumar
p. 9
“So Hungary would go up from about 17,000 car tyres to 21,000.”
Gaurav Kumar, page 9 of the filed PDF · View the filing
India capacity ramp-up — end of this year, ramping through FY28
stated firmly by Gaurav Kumar
p. 9
“The India capacity will probably, I think, start coming on stream towards the end of this year and then ramp up through FY '28.”
Gaurav Kumar, page 9 of the filed PDF · View the filing
Net debt-to-EBITDA — current year
stated firmly by Gaurav Kumar
p. 8
“we anticipate that our net debt-to-EBITDA ratio will go up slightly in the current year.”
Gaurav Kumar, page 8 of the filed PDF · View the filing
Rubber price direction — Q3 onwards
stated conditionally by Gaurav Kumar
p. 14
“So we definitely expect rubber to start cooling down from Q3 onwards as the seasonal impact goes off.”
Gaurav Kumar, page 14 of the filed PDF · View the filing
August price increase — similar quantum to July, about 2 odd percent · August
stated conditionally by Gaurav Kumar
p. 12
“So I don't have information of what is being planned, but I would expect a similar quantum in August.”
Gaurav Kumar, page 12 of the filed PDF · View the filing
ASP correction possibility — Q4
stated conditionally by Gaurav Kumar
p. 16
“There may be some price correction downwards in Q4.”
Gaurav Kumar, page 16 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Volume growth was 13% in replacement, 10% OEM, 15% exports, all double-digit, with strong outlook continuing.
Answered by Gaurav Kumar
Asked by Raghunandhan NL: What is the India volume growth across OEM, replacement and exports, and the outlook for each?
p. 5
“So the volume growth across these three channels was fairly stable. Replacement was 13% OEM was 10% and exports was 15%.”
Gaurav Kumar, page 5 of the filed PDF · View the filing
India needs 15-16% price increase but only about 11%-plus has been implemented so far; Europe needs about 10% but only 3-4% implemented.
Answered by Gaurav Kumar
Asked by Raghunandhan NL: What price hikes have been taken in India and Europe versus what is required?
p. 6
“So the current quantum of price increase is about 9% in TBR and 11% in other categories.”
Gaurav Kumar, page 6 of the filed PDF · View the filing
Margins would have been about 11% without the cost overlap.
Answered by Gaurav Kumar
Asked by Amyn Pirani: What margin would Europe have delivered without the overlap of costs from the Netherlands-Hungary transition?
p. 7
“I would say if those overlaps were not there, we would have been at about 11% odd margin levels, okay?”
Gaurav Kumar, page 7 of the filed PDF · View the filing
CapEx has started and will increase further in Q2 and Q3, and the company expects to become a net borrower with rising net debt-to-EBITDA.
Answered by Gaurav Kumar
Asked by Amyn Pirani: Has net debt remained stable despite the guided CapEx of more than INR 3,000 crores?
p. 8
“Yes, it will go further up in Q2, Q3. So to a certain extent, you are right that it's not exactly one fourth, but the CapEx is onward and we anticipate that our net debt-to-EBITDA ratio will go up slightly in the current year.”
Gaurav Kumar, page 8 of the filed PDF · View the filing
Price increases were staggered through the quarter, so only 3-4% flowed into revenue versus the 7-9% announced.
Answered by Gaurav Kumar
Asked by Siddhartha Bera: Why hasn't revenue realisation benefited more given the price hikes taken?
p. 9
“So when I talk about the 7% to 9%, what is flowing into the revenue would only be the 3% to 4% because they were taken staggered through the quarter.”
Gaurav Kumar, page 9 of the filed PDF · View the filing
Advertisement and sales promotion spend was reduced by almost 50% due to the tough environment, but management does not expect further reduction.
Answered by Gaurav Kumar
Asked by Vijay Pandey: What is driving the reduction in other expenses, and will it continue?
p. 11
“So one of the major reductions was on the advertisement and sales promotion. And that was reduced by almost 50%.”
Gaurav Kumar, page 11 of the filed PDF · View the filing
About 20-25% of the agri business is now through offtake with two partners, and stabilisation will take a couple of quarters.
Answered by Gaurav Kumar
Asked by Vijay Pandey: What is the agri business offtake situation in Europe and growth outlook?
p. 11
“At this stage, in terms of how much we are offtaking, I would say about 20% to 25% of our agri business would be through offtake.”
Gaurav Kumar, page 11 of the filed PDF · View the filing
About 7-8% is attributable to rupee devaluation, with domestic rubber prices also aligning to landed import costs.
Answered by Gaurav Kumar
Asked by Basudev Banerjee: How much of the raw material basket increase is due to rupee depreciation?
p. 14
“Yeah, so about 7-8% would be the rupee devaluation and the rest of it is...”
Gaurav Kumar, page 14 of the filed PDF · View the filing
Unprecedented cost pressures and strong double-digit demand growth justified steeper price increases than historical norms.
Answered by Gaurav Kumar
Asked by Joseph George: Is the current pricing discipline in the tyre industry different from previous cycles?
p. 15
“So clearly, the situation was something which required a drastic response.”
Gaurav Kumar, page 15 of the filed PDF · View the filing
It depends on the magnitude of the raw material decline and demand scenario; some price correction downward could occur in Q4.
Answered by Gaurav Kumar
Asked by Vijay Pandey: Do you expect the industry to maintain pricing discipline if raw material costs fall, or could ASPs correct?
p. 16
“See difficult to predict, Vijay. It will also depend on the magnitude of the RM drop.”
Gaurav Kumar, page 16 of the filed PDF · View the filing
Yes, competition has followed with price increases of similar magnitude, with some timing differences.
Answered by Gaurav Kumar
Asked by Aniket Mhatre: Has competition also taken similar price increases?
p. 17
“No. So competition has also taken price increases, could be a little up or down, there could be some timing differences.”
Gaurav Kumar, page 17 of the filed PDF · View the filing
Risks flagged
Geopolitical situation in West Asia causing volatility in raw materials, energy and logistics costs
p. 3
“The geopolitical situation in West Asia continued to create headwinds in select international markets, leading to heightened uncertainty and cost volatility across raw materials, energy and logistics costs.”
Gaurav Kumar, page 3 of the filed PDF · View the filing
Commodity price volatility until West Asia situation stabilises
p. 3
“Commodity prices are likely to remain volatile until the geopolitical situation in West Asia stabilises.”
Gaurav Kumar, page 3 of the filed PDF · View the filing
US export market underperforming due to inflation and dealer inventory issues
p. 10
“So U.S., which is a focused geography, has not performed as per expectations with a tougher market.”
Gaurav Kumar, page 10 of the filed PDF · View the filing
West Asia export geographies behind budget due to war impact
p. 10
“The West Asia geographies have been impacted by the war. So they are behind budget.”
Gaurav Kumar, page 10 of the filed PDF · View the filing
Elevated domestic natural rubber prices despite cooling international prices
p. 16
“So any particular reason because international rubber prices are starting to cool down, but domestic rubber prices are still at very elevated level.”
Vijay Pandey, page 16 of the filed PDF · View the filing
Possible demand moderation in replacement market due to El Nino and high base effect
p. 13
“Also like with the potential impact of El Nino coming nearby and with the high base of second half, do you see demand moderating in replacement market for trucks and buses and farm segment?”
Yash Agrawal, page 13 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.