Apollo Tyres Ltd. reported its audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, approved by the Board of Directors at its meeting held on May 14, 2026. On a consolidated basis, the company posted a sharp recovery in quarterly profitability, with net profit rising to ₹6,309.73 million from ₹1,846.18 million in the same period last year. Quarterly consolidated revenue from operations climbed to ₹73,356.74 million from ₹64,235.87 million year-on-year, while consolidated EBITDA for Q4 stood at 10.8B Rupees against 8.4B Rupees in the prior-year quarter, with EBITDA margin expanding to 14.69% from 13.04%. On a standalone basis, the company recorded a net profit of ₹9,033.73 million for the quarter, a sharp increase from ₹1,491.63 million in the same period last year. A significant contributor to the year's profitability was the company's decision to adopt the concessional tax regime under Section 200 of the Income Tax Act, 2025, effective from Tax Year 2026-27, which resulted in a net deferred tax liability reversal of ₹5,736.71 million recognised during the year. The applicable tax rate will reduce to 25.17% from the earlier rate of 34.94%, with exemption in MAT.

Q4 FY26 Earnings Conference Call Highlights

At the post-results conference call held on May 15, 2026, Vice Chairman and Managing Director Neeraj Kanwar and Chief Financial Officer Gaurav Kumar addressed analysts and investors. Kanwar noted that Q4 closed with consolidated top-line growth of nearly 14% year-on-year and an EBITDA margin of 14.6%, while the full year delivered consolidated top-line growth of 9% year-on-year with an EBITDA margin of nearly 14.6%. Indian operations witnessed strong double-digit growth in both replacement and OEM markets across all product categories. In Europe, volume growth was low single-digit, with certain international markets impacted by geopolitical developments in West Asia, which added volatility to raw materials, energy, and logistics costs.

Kanwar highlighted that the company's balance sheet remains strong, with consolidated net debt to EBITDA improving significantly from 3.2 times to 0.4 times as of March 2026. Apollo Tyres received OEM approvals from BMW, MINI, Genesis, KIA, and Mahindra during the quarter, and launched upgraded premium products across India and Europe. The company also rolled out a new B2B e-commerce platform in Europe and was recognised by Amazon Web Services as a case study for its use of AI and data technologies. Apollo Tyres was recognised as a Top Employer in 2026, with India Operations receiving the recognition for the first time, and its climate targets received validation from the Science-Based Targets Initiative.

India Operations: Volume Growth and Pricing

Gaurav Kumar reported that India standalone revenue for the quarter was INR 52.4 billion, reflecting growth of 14.3% over the same quarter last year and approximately 2% over the previous quarter. The EBITDA for the quarter stood at INR 7.6 billion, with a margin of 14.6% compared to 11.2% in the same period last year. Volume growth in both OE and replacement segments was high teens, while export volumes recorded mid-single-digit growth. TBR replacement and PCR replacement each posted over 20% growth for the quarter, while TBR OEM also grew over 20% and PCR OEM recorded single-digit growth.

Advertisement and sales promotion spends were elevated during the quarter, running at 4% of sales against a typical 2%, reflecting activation costs related to the BCCI cricket jersey sponsorship. Management indicated that A&P spends would normalise going forward to approximately 2.5% plus of sales over the longer term. The net debt to EBITDA for India operations improved from 1.1 times in March 2025 to 0.7 times at the end of March 2026. Demand in April remained equally strong, with management expecting the same momentum to continue through Q1.

The following table summarises key raw material prices in Q4 and current levels as shared during the call:

Management noted that raw material costs are expected to rise in the mid to high teens on a sequential basis in Q1. Apollo Tyres has announced price increases of 6% to 8% for the current quarter in India, implemented in two tranches, with further rounds of price increases expected to be needed beyond this level. For OEM customers, a pricing formula with a three-month lag applies for a portion of the customer base, with the remainder subject to negotiation.

FY27 Capital Expenditure and Capacity Plans

Against a backdrop of rising rubber costs, Apollo Tyres has announced an expansion plan of ₹3,500 crore for FY27, with nearly 80% directed towards growth and capacity expansion projects. The following table outlines the allocation of the planned capital expenditure:

Capacity utilisation stood at a high of 90% across both India and Europe operations at the end of Q4. Management confirmed that FY27 CapEx plans are largely committed, with some flexibility available for FY28 if demand conditions change. The consolidated ROCE for FY26 stood at 13.4%, an improvement of approximately 240 basis points compared to FY25.

Europe Operations: Restructuring and Outlook

Europe revenue for the quarter was EUR 170 million, down 1% year-on-year, with market conditions remaining muted. The EBITDA for the quarter stood at EUR 25 million, with a margin of 14.6% compared to 14.3% in the same period last year. Management attributed the multi-year margin compression from historical levels of 16% plus to sluggish market conditions combined with elevated energy costs and salary inflation in Western Europe, with Netherlands salary inflation running at approximately 12% to 13% annually versus a typical 4% to 5%.

The closure of the Enschede plant in the Netherlands remains on track, with the last day of production set for June 30. A non-cash write-off of EUR 43 million has been taken on fixed assets at the plant during the quarter. The total exceptional item impact for the year ended March 31, 2026 on this account aggregated to ₹10,001.24 million. A cash outflow of approximately EUR 55 million, comprising the social plan payout of EUR 50 million and related legal costs, is expected in FY27 as per local legal requirements. Management indicated that the positive margin impact from the restructuring is expected to flow through in H2 of FY27, with a target of returning to and potentially surpassing 16% EBITDA margins in Europe over the medium term. A 2% price increase has been announced in Europe for Q1, with further increases under consideration depending on competitor actions.

The agricultural/OHT segment, which contributed approximately 12% of European revenues, was the only product category where some revenue loss is anticipated post-closure, as this capacity was not replicated in other plants. The OE portion of this segment, approximately 5% to 6% of revenues, was described as loss-making. For all other product categories, supply continuity is expected through the Hungary and India plants.

The following table summarises the Reifencom performance for the quarter as disclosed during the call:

Standalone Financial Performance

The following table summarises the key standalone financial metrics for the quarter and full year:

On a standalone basis, total assets stood at ₹205,323.59 million as at March 31, 2026, compared to ₹203,099.29 million in the prior year. Total equity increased to ₹118,965.60 million from ₹106,720.53 million. The company recognised exceptional items of ₹9.47 million for the quarter ended March 31, 2026, related to a reorganisation exercise for employees, and ₹74.56 million for the full year ended March 31, 2026.

Consolidated Financial Performance

On a consolidated basis, Apollo Tyres reported revenue from operations of ₹73,356.74 million for the quarter and ₹284,706.00 million for the full year, compared to ₹64,235.87 million and ₹261,234.17 million respectively in the prior year. The consolidated net profit for the full year stood at ₹13,724.16 million. The consolidated basic EPS for the quarter stood at ₹9.97 and ₹21.66 for the full year.

Consolidated total assets were ₹292,397.17 million as at March 31, 2026, against ₹273,060.20 million in the prior year. Total consolidated equity stood at ₹167,151.67 million compared to ₹147,656.99 million.

Segment Performance

The company operates across three geographical segments: APMEA (Asia Pacific, Middle East and Africa), Europe, and Others. The following table presents segment assets and liabilities for FY26:

Key Financial Ratios (Standalone)

The following table presents select standalone financial ratios for FY26:

Analyst View

Morgan Stanley has maintained an Equal-weight rating on Apollo Tyres with a target price of ₹535, citing the company's strong Q4 performance. The brokerage highlighted that revenue, EBITDA, and adjusted PAT rose 14%, 28%, and 69% year-on-year respectively during the quarter. The EBITDA beat estimates, driven primarily by robust performance from the India business.

Dividend and Board Decisions

The board recommended a final dividend of ₹2.50 per equity share (250% on face value of ₹1 each), amounting to ₹1,587.75 million, subject to shareholder approval at the ensuing Annual General Meeting. This is in addition to the interim dividend of ₹3.50 per share (350%) already paid during FY26, bringing the total dividend for the year to ₹6.00 per share (600%). The board also approved the appointment of M/s. BBS Associates, Cost Accountants, as Cost Auditor for FY27, replacing M/s. N.P. Gopalakrishnan & Co. consequent to the completion of their tenure, effective May 14, 2026. Additionally, the board approved seeking shareholder approval for the re-appointment of Ms. Lakshmi Puri (DIN: 09329003) as an Independent Director for a second term of five years, effective from October 29, 2026. The auditors, M/s. S. R. Batliboi & Co. LLP, issued unmodified opinions on both the standalone and consolidated audited financial statements for the year ended March 31, 2026. The listed non-convertible debentures (NCDs) issued by the company aggregate to ₹8,650 million as on March 31, 2026, secured by a pari passu first charge on movable fixed assets.

Apollo Tyres has notified the stock exchanges of a forthcoming Board of Directors meeting scheduled for May 14, 2026 (Thursday), pursuant to Regulations 29 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The meeting will take up key agenda items, including the approval of audited financial results and a potential dividend recommendation for the financial year ended March 31, 2026. Additionally, the company has intimated the exchanges of an analyst and investor conference call scheduled for May 15, 2026, to discuss its Q4FY26 financial and operational performance.

Key Agenda Items

The board meeting has been convened to address the following matters:

Q4FY26 Analyst and Investor Conference Call

Pursuant to Regulation 30(6) and 46(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Apollo Tyres has scheduled a group conference call for analysts and investors to discuss the company's financial and operational performance for Q4FY26. The call is scheduled for Friday, May 15, 2026, at 04:00 PM IST. The company has noted that the schedule is subject to changes in case of exigencies on the part of investors or the company. The transcript of the conference call will be submitted to the stock exchanges and placed on the company's website at www.apolloyres.com .

Trading Window Closure

In line with the company's earlier communication dated March 30, 2026, the trading window for dealing in Apollo Tyres' securities was closed from April 1, 2026. The window will remain closed until 48 hours after the declaration of audited financial results, i.e., up to May 16, 2026 (both days inclusive). This closure is in compliance with applicable insider trading regulations.

Regulatory Compliance

Both intimations were submitted to BSE Ltd. and the National Stock Exchange of India Ltd. on May 5, 2026, and were signed by Seema Thapar, Company Secretary & Compliance Officer of Apollo Tyres. The filings underscore the company's adherence to its disclosure obligations under SEBI's listing regulations.