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.

Apollo Tyres , a prominent player in the Indian tyre industry, has recently found itself embroiled in a customs dispute regarding anti-dumping duty payments. The company has received an order from the Joint Commissioner (Customs) at Nhava Sheva, demanding payment of anti-dumping duty along with a penalty and fine totaling Rs 12.69 lakh.

Order Details

The order, issued under the Customs Act, 1962, stems from a disagreement over the alleged short payment of anti-dumping duty by Apollo Tyres. The company received the communication on October 27, 2025, as disclosed in their regulatory filing.

Financial Impact and Company's Response

Apollo Tyres has stated that this order does not have a material impact on the company's financial position, operations, or other activities. In response to the order, the company plans to take the following steps:

1. File an appeal before the Appellate Authority
2. Contest the demand and penalties imposed

Regulatory Disclosure

In compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Apollo Tyres has made a formal disclosure to the stock exchanges. The disclosure provides details as mandated by SEBI Master Circular no. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.

Key Information from the Disclosure

While the order presents a regulatory challenge for Apollo Tyres, the company's prompt disclosure and planned appeal demonstrate its commitment to addressing the issue through proper channels. Investors and stakeholders will likely keep a close watch on the developments of this case and its potential implications for the company's international trade practices.