Apollo Tyres Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Apollo Tyres Ltd filed with BSE on 18 May 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 consolidated Q4 FY26 revenue growth of about 14% year-on-year with an EBITDA margin of 14.6%, while India operations posted high-teens volume growth in both replacement and OE segments. Europe revenue declined 1% year-on-year amid muted demand and the planned closure of the Enschede plant, which resulted in a EUR 43 million non-cash write-off. Management said raw material costs are expected to rise in the mid to high teens sequentially in Q1 FY27, prompting announced price increases of 6% to 8% in India and 2% in Europe.
Numbers mentioned
Consolidated revenue: INR 73.4 billion (Q4 FY26)
p. 3
“The consolidated revenue for the quarter stood at INR 73.4 billion, reflecting healthy double-digit growth of 14% plus compared to the same quarter last year.”
Gaurav Kumar, page 3 of the filed PDF · View the filing
Consolidated EBITDA margin: 14.6% (Q4 FY26)
p. 3
“The consolidated EBITDA for the quarter stood at INR 10.7 billion, a margin of 14.6% compared to 13% in the same period last year.”
Gaurav Kumar, page 3 of the filed PDF · View the filing
Net debt to EBITDA (consolidated): 0.4x (FY26)
p. 3
“The net debt to EBITDA for consolidated operations improved from 0.7x at the end of last year to 0.4x.”
Gaurav Kumar, page 3 of the filed PDF · View the filing
Consolidated ROCE: 13.4% (FY26)
p. 3
“Helped by healthy margin performance, our consolidated ROCE for FY'26 stood at 13.4%, an improvement of around 240 basis points compared to FY'25.”
Gaurav Kumar, page 3 of the filed PDF · View the filing
India revenue: INR 52.4 billion (Q4 FY26)
p. 4
“The revenue for the quarter was INR 52.4 billion, a growth of 14.3% over the same quarter last year and almost 2% over the previous quarter.”
Gaurav Kumar, page 4 of the filed PDF · View the filing
India EBITDA margin: 14.6% (Q4 FY26)
p. 4
“The EBITDA for the quarter stood at INR 7.6 billion, a margin of 14.6% compared to 11.2% in the same period last year.”
Gaurav Kumar, page 4 of the filed PDF · View the filing
Europe revenue: EUR 170 million (Q4 FY26)
p. 4
“Coming to Europe, revenue for the quarter was EUR 170 million, down 1% Y-on-Y.”
Gaurav Kumar, page 4 of the filed PDF · View the filing
Europe EBITDA margin: 14.6% (Q4 FY26)
p. 4
“The EBITDA for the quarter stood at EUR 25 million, with an improved margin performance of 14.6%, compared to 14.3% for the same period last year.”
Gaurav Kumar, page 4 of the filed PDF · View the filing
Enschede plant fixed asset write-off: EUR 43 million (Q4 FY26)
p. 5
“a non-cash write-off of EUR 43 million has been taken on the fixed assets this quarter.”
Gaurav Kumar, page 5 of the filed PDF · View the filing
Capacity utilisation: 90% (Q4 FY26)
p. 5
“The capacity utilisation was at a high of 90% across both our India and Europe Operations.”
Gaurav Kumar, page 5 of the filed PDF · View the filing
Deferred tax liability positive impact: INR 570 plus crores (FY26)
p. 4
“our deferred tax liabilities have provided a positive net impact of almost INR 570 plus crores and has been recognised in the P&L during the year as reflected in the net profit.”
Gaurav Kumar, page 4 of the filed PDF · View the filing
India net debt to EBITDA: 0.7x (March 2026)
p. 4
“The net debt to EBITDA for India Operations has significantly improved from 1.1x in March '25 to 0.7x at the end of March '26.”
Gaurav Kumar, page 4 of the filed PDF · View the filing
Reifencom revenue: EUR 40 billion (Q4 FY26)
p. 15
“So the Reifencom number for this quarter was EUR 40 billion and EBITDA just under 2%.”
Gaurav Kumar, page 15 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.
India tax rate — 25% from 34% · FY27
stated firmly by Gaurav Kumar
p. 4
“With this transition, our applicable tax rate reduces from 34% to 25%”
Gaurav Kumar, page 4 of the filed PDF · View the filing
FY27 CapEx — INR 35 billion · FY27
stated firmly by Gaurav Kumar
p. 5
“For FY'27, we have outlined a CapEx of INR 35 billion, with nearly 80% towards growth and capacity expansion projects.”
Gaurav Kumar, page 5 of the filed PDF · View the filing
India price increases — 6% to 8% · Q1 FY27
stated firmly by Gaurav Kumar
p. 4
“we have already announced price increases of 6% to 8% for this current quarter.”
Gaurav Kumar, page 4 of the filed PDF · View the filing
Further price increases beyond 6-8%
stated conditionally by Gaurav Kumar
p. 8
“We would need further price increases, Basudeb, and given how the industry implements price increases in small quantums, we would need two rounds of price increases.”
Gaurav Kumar, page 8 of the filed PDF · View the filing
Raw material cost inflation — high teens · Q1 FY27
stated conditionally by Gaurav Kumar
p. 4
“Raw material costs are expected to rise in high teens on a sequential basis.”
Gaurav Kumar, page 4 of the filed PDF · View the filing
Q2 commodity inflation versus Q1 — Q2 FY27
stated conditionally by Gaurav Kumar
p. 9
“Yes, so Q2 could -- if nothing changes, Q2 could be marginally higher than Q1.”
Gaurav Kumar, page 9 of the filed PDF · View the filing
Europe EBITDA margin — 16% · medium to long term
stated as an aspiration by Gaurav Kumar
p. 10
“We definitely believe that in a normalised scenario, we will get back to a 16% which was our earlier normal, and in fact, we believe we can even surpass that.”
Gaurav Kumar, page 10 of the filed PDF · View the filing
Europe margin improvement from Enschede closure — H2 FY27
stated conditionally by Gaurav Kumar
p. 7
“So in H2 of FY'27, the positive impact of margins as we become more cost competitive for our European operations should start flowing in.”
Gaurav Kumar, page 7 of the filed PDF · View the filing
A&P spend as percentage of sales — around 2.5% plus of sales · FY27
stated as an aspiration by Gaurav Kumar
p. 10
“Going forward, we would expect, as growth kicks in, etc., for it to be around a 2.5% plus of sales.”
Gaurav Kumar, page 10 of the filed PDF · View the filing
India and Europe demand momentum — Q1 FY27
stated conditionally by Gaurav Kumar
p. 4
“demand remains strong across categories and channels, with April already showing equally strong volume growth, and we expect the same momentum to continue through Q1.”
Gaurav Kumar, page 4 of the filed PDF · View the filing
Europe growth outlook — Q1 FY27
stated conditionally by Gaurav Kumar
p. 4
“In terms of outlook, we expect a better growth momentum in Q1.”
Gaurav Kumar, page 4 of the filed PDF · View the filing
Cash outflow related to Enschede closure — EUR 50 million · FY27
stated firmly by Gaurav Kumar
p. 14
“There's a payout of social plan as per the agreement of about EUR 50 million that has already been provided for in the earlier quarters.”
Gaurav Kumar, page 14 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.
OE and replacement volume growth was high teens, exports grew mid-single digits, and TBR replacement grew 20% plus with OEM TBR also 20% plus.
Answered by Gaurav Kumar
Asked by Raghunandhan NL: What was the total volume growth in Q4 standalone and how did exports and TBR/PCR replacement perform?
p. 5
“So Raghu, as mentioned, for both OE and replacement, the volume growth was high teens. Exports were impacted by events through the year.”
Gaurav Kumar, page 5 of the filed PDF · View the filing
The situation is volatile; roughly half the needed price increase has been taken and a couple more rounds are required.
Answered by Gaurav Kumar
Asked by Siddhartha Bera: Does the mid-teens cost increase factor in the entire cost rise, and how much more price hike is needed?
p. 6
“We've taken about half the price increase that is needed. So at least a couple of more rounds of price increases would be needed to negate all the cost push that is there.”
Gaurav Kumar, page 6 of the filed PDF · View the filing
Positive margin impact is expected to begin in the second half of FY27 after the plant closure stabilises.
Answered by Gaurav Kumar
Asked by Siddhartha Bera: When will European margin benefits from the restructuring start showing?
p. 7
“Take about another quarter as we stabilise things. So in H2 of FY'27, the positive impact of margins as we become more cost competitive for our European operations should start flowing in.”
Gaurav Kumar, page 7 of the filed PDF · View the filing
Management gave current natural rubber prices versus Q4 levels, noting the increase.
Answered by Gaurav Kumar
Asked by Basudeb Banerjee: What were the current raw material prices compared to Q4?
p. 8
“Current natural rubber prices are at INR 250 a kg. It started, I think, at the beginning of the quarter at about INR 220 odd, so it had already gone up.”
Gaurav Kumar, page 8 of the filed PDF · View the filing
Sluggish market conditions combined with high energy costs and elevated salary inflation in Western Europe have compressed margins.
Answered by Gaurav Kumar
Asked by Amyn Pirani: Why have Europe margins remained below historical levels despite year-on-year improvement?
p. 9
“the reason is that the European market conditions have been sluggish, flattish to a negative now for two years running. And in that scenario, it has been coupled with continuing high energy costs and salary inflations which are much higher than the usual for these Western European geographies.”
Gaurav Kumar, page 9 of the filed PDF · View the filing
Management believes margins can return to and even surpass the previous normal level of 16%.
Answered by Gaurav Kumar
Asked by Vijay Pandey: Is a 16% EBITDA margin achievable in Europe in the medium to long term?
p. 10
“We definitely believe that in a normalised scenario, we will get back to a 16% which was our earlier normal, and in fact, we believe we can even surpass that.”
Gaurav Kumar, page 10 of the filed PDF · View the filing
Management said the outlook is uncertain and depends on GDP growth, though current demand remains strong.
Answered by Gaurav Kumar
Asked by Rishi Vora: How should demand be expected to trend in the second half of FY27 given price increases and fuel cost pressures?
p. 13
“How the second half pans out, right now, things are just too volatile to be able to make any definitive statement.”
Gaurav Kumar, page 13 of the filed PDF · View the filing
A potential revenue loss is expected mainly in the agricultural/OHT category, with agri revenues at about 12% of total and OE portion roughly half of that.
Answered by Gaurav Kumar
Asked by Rishi Vora: What revenue impact will result from the Enschede plant closure?
p. 14
“The agri-contribution overall was about 12% of our revenues. And within that, the OE piece would be about half of it. So let's say 5%, 6%.”
Gaurav Kumar, page 14 of the filed PDF · View the filing
FY27 capex is largely committed given high capacity utilisation, with flexibility possible only for FY28.
Answered by Gaurav Kumar
Asked by Joseph George: Is the announced CapEx flexible if demand slows?
p. 15
“Through April, we struggled in terms of keeping up with the demand. So right now, we would definitely be going ahead as per our CapEx plans. If we see slowing down, we would have some flexibility for FY'28.”
Gaurav Kumar, page 15 of the filed PDF · View the filing
Risks flagged
Geopolitical developments in West Asia creating volatility in raw material, energy and logistics costs
p. 2
“Growth in certain international markets was impacted by the geopolitical developments in West Asia, which continue to create significant uncertainty and add volatility to raw materials, to energy and to logistics costs.”
Neeraj Kanwar, page 2 of the filed PDF · View the filing
Rising raw material costs expected to pressure margins in the near term
p. 4
“the geopolitical developments in West Asia have added significant volatility to raw material, energy, and logistics costs, which will impact margins in near term.”
Gaurav Kumar, page 4 of the filed PDF · View the filing
High salary and energy cost inflation in Western Europe compressing margins
p. 9
“the European market conditions have been sluggish, flattish to a negative now for two years running.”
Gaurav Kumar, page 9 of the filed PDF · View the filing
Weak demand in the U.S. export market
p. 6
“U.S. market is currently looking weak as we enter the first month.”
Gaurav Kumar, page 6 of the filed PDF · View the filing
Potential slowdown in GDP and demand from continued fuel and tyre price inflation
p. 13
“if the continued inflation, both on the fuel side, tyre, and other materials continue, there would be some impact on the overall GDP and hence the demand.”
Gaurav Kumar, page 13 of the filed PDF · View the filing
Weak truck tyre sales in Europe due to supply issues from India
p. 4
“truck tyre sales were impacted by the supply issues from India.”
Gaurav Kumar, page 4 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.