Apollo Tyres announced that Catalyst Trusteeship Limited has released its pledge on 63,050,966 equity shares of the company, representing 9.93% of the paid-up share capital. This development occurred on November 17, 2025, as disclosed in a regulatory filing.

Key Details of the Pledge Release

The pledge was originally created by Emerald Sage Investment Ltd in favor of Catalyst Trusteeship, which acted as the security agent for certain lenders. These lenders included overseas banks and entities eligible to obtain the benefit of the pledge under applicable Reserve Bank of India guidelines.

Impact on Shareholding

Following the release of the pledge, Catalyst Trusteeship's holding in Apollo Tyres has been reduced to nil. This move effectively eliminates the encumbrance on these shares, potentially impacting the ownership structure and voting rights associated with this significant portion of Apollo Tyres' equity.

Regulatory Compliance

The disclosure was made under Regulation 29(2) & 29(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. This regulatory filing ensures transparency in significant changes to share pledges and ownership structures of listed companies.

Company Background

Apollo Tyres, listed on both the BSE Limited and National Stock Exchange of India Limited, maintains its equity share capital at INR 63,51,00,946. This figure remains unchanged both before and after the release of the pledge, indicating no immediate impact on the company's capital structure.

Apollo Tyres Ltd (ISIN: INE438A01022) has reported a strong performance for the second quarter of fiscal year 2026, marking its highest revenue growth in the last 10 quarters. The company's consolidated revenue stood at INR 68.3 billion, representing a 6% year-on-year growth, while maintaining a healthy EBITDA margin of 14.9%.

Key Financial Highlights

• Consolidated revenue: INR 68.3 billion (6% YoY growth)
• EBITDA margin: 14.9% (up from 13.6% in Q2 FY25)
• India operations revenue: INR 47.1 billion (6% YoY growth)
• India operations EBITDA margin: 15.3%
• European operations revenue: EUR 177 million (4% YoY growth)
• European operations EBITDA margin: 12.7%

Growth Drivers and Market Performance

The company's growth was primarily driven by volume increases in both replacement and OEM segments, coupled with a significant recovery in export markets. In India, Apollo Tyres saw mid-single-digit volume growth, with the farm segment, two-three wheelers, and other categories showing substantial demand uplift.

The GST rationalization announced by the Government of India in September has positively impacted the company's performance, especially in rural markets. This reform is expected to have far-reaching effects on India's consumption story, particularly benefiting Apollo Tyres' car and two-wheeler tyre segments.

Market Share and Competitive Positioning

According to internal estimates, Apollo Tyres maintains a strong market position in key segments:

The company has successfully arrested the market share loss in the TBR segment and is now focusing on regaining lost ground through a combination of brand strength, product quality, and expansion of distribution channels.

European Operations and Restructuring

Apollo Tyres' European operations showed resilience despite challenging market conditions. The company reported a 4% year-on-year growth in revenue, with a 21% sequential growth due to seasonality. The EBITDA margin for European operations stood at 12.7%, showing improvement from the previous quarter.

The company has reached a settlement with the Works Council in the Netherlands regarding the closure of production activities at the Enschede plant. This restructuring is expected to optimize manufacturing mix and improve long-term profitability for European operations.

Strategic Initiatives and Future Outlook

Apollo Tyres has secured the title sponsorship of the Indian cricket team, a move expected to significantly boost brand visibility and reach, particularly in rural markets. This strategic partnership is anticipated to have a positive influence on the company's long-term growth story.

Looking ahead, Apollo Tyres expects to maintain and accelerate top-line growth momentum in both Indian and European markets. The company remains focused on profitability, free cash flow generation, and improving return ratios.

Neeraj Kanwar, Managing Director and Vice Chairman of Apollo Tyres, expressed optimism about the second half of the fiscal year, stating, "We are hopeful that Q3 revenue growth should be, if not better, but at least at the same level. Profitability will continue to remain at this level, if not better."

As Apollo Tyres continues to navigate the evolving market dynamics and competitive landscape, its focus on brand strength, product quality, and strategic initiatives positions the company well for sustained growth in the coming quarters.