Apollo Tyres Ltd
BSE:500877
Apollo Tyres Ltd
Apollo Tyres Ltd., founded in 1972, has grown to become a prominent player in the global tire industry, navigating the complex road of international expansion and technological innovation. It originally began its journey in India, tackling the competitive landscape with a sharp focus on service quality and customer satisfaction. From manufacturing tires for commercial and passenger vehicles to embracing the latest in radial technology, Apollo Tyres has adhered closely to its core values of performance, sustainability, and innovation. This holistic approach, combined with strategic acquisitions and partnerships, has enabled it to stretch its footprint beyond its home turf into the covetous markets of Europe and beyond. Through a blend of organic growth and strategic acquisitions, Apollo Tyres has steadily built a strong portfolio that includes well-regarded brands such as Apollo and Vredestein.
Central to Apollo Tyres' business model is its vertically integrated operations, which allow it to control every aspect of tire manufacturing, from raw material procurement to final assembly. This structure enables the company to optimize its supply chain efficiently, enhance product quality, and maintain a competitive pricing strategy. Revenue streams are primarily driven by the sale of tires across different vehicle segments – including passenger vehicles, commercial vehicles, and off-highway vehicles – adhering to a diverse market approach that safeguards against sector-specific downturns. Furthermore, by investing in R&D and sustainability initiatives, Apollo Tyres continually adapts to evolving customer needs and regulatory requirements, ensuring they remain a preferred choice in both established and emerging markets. In essence, its business agility and commitment to quality fuel its profitability and growth trajectory in the ever-challenging global tire market.
Apollo Tyres Ltd., founded in 1972, has grown to become a prominent player in the global tire industry, navigating the complex road of international expansion and technological innovation. It originally began its journey in India, tackling the competitive landscape with a sharp focus on service quality and customer satisfaction. From manufacturing tires for commercial and passenger vehicles to embracing the latest in radial technology, Apollo Tyres has adhered closely to its core values of performance, sustainability, and innovation. This holistic approach, combined with strategic acquisitions and partnerships, has enabled it to stretch its footprint beyond its home turf into the covetous markets of Europe and beyond. Through a blend of organic growth and strategic acquisitions, Apollo Tyres has steadily built a strong portfolio that includes well-regarded brands such as Apollo and Vredestein.
Central to Apollo Tyres' business model is its vertically integrated operations, which allow it to control every aspect of tire manufacturing, from raw material procurement to final assembly. This structure enables the company to optimize its supply chain efficiently, enhance product quality, and maintain a competitive pricing strategy. Revenue streams are primarily driven by the sale of tires across different vehicle segments – including passenger vehicles, commercial vehicles, and off-highway vehicles – adhering to a diverse market approach that safeguards against sector-specific downturns. Furthermore, by investing in R&D and sustainability initiatives, Apollo Tyres continually adapts to evolving customer needs and regulatory requirements, ensuring they remain a preferred choice in both established and emerging markets. In essence, its business agility and commitment to quality fuel its profitability and growth trajectory in the ever-challenging global tire market.
Record Revenue: Apollo Tyres posted its highest-ever quarterly consolidated revenue in Q3 FY'26, growing nearly 12% year-over-year to INR 77.4 billion.
Margin Expansion: Consolidated EBITDA margin improved to 15.3%, up from 13.7% in the same quarter last year.
India Growth: Domestic revenue grew 13%-plus year-over-year with double-digit volume growth across OEM, replacement, and exports.
Debt Reduction: Net debt was sharply reduced to INR 13 billion from INR 26 billion last quarter, helped by strong cash flows.
Europe Weakness: European revenues remained flat year-over-year, reflecting ongoing weak demand conditions.
Capacity Expansion: Board approved INR 5,800 crore CapEx for Indian plant expansion over FY’27-29 to meet rising demand.
A&P Spend Spike: Advertising and promotion spend jumped in Q3 due to new sponsorships; expected to normalize to about 2.5% of sales from FY'27.
Stable Raw Materials: Raw material costs are expected to stay steady in Q4, despite some volatility in input prices.
Market Share: Management indicated they have maintained or slightly gained market share in core segments.
