Apollo Tyres reports a mixed global demand landscape as it plans ₹35 billion in capital expenditure for FY27, supported by robust growth in India and signs of recovery in Europe, despite US challenges.
Apollo Tyres opened its first-quarter FY27 results call with a management presentation led by chief financial officer Gaurav Kumar, after a video glitch forced the session to continue on audio only, according to the transcript published by GuruFocus. Kumar said chief executive Neeraj Chandra was unable to join because of an urgent commitment and told investors the company would share an update on performance and outlook.
The call came as Apollo Tyres was reported to have entered the new financial year on a firmer footing. An analysis by Arthneeti said demand was strong across categories and sales channels, with April showing notable volume growth. The same note said Apollo was seeing encouraging signs in European export markets, even as demand in the US remained weak.
That contrast matters because Apollo has been leaning on capacity growth to support its next phase of expansion. Arthneeti reported that the company is planning capital expenditure of ₹35 billion for FY27, largely for new capacity, while its review of the previous quarter said Apollo had delivered record revenue, strong double-digit growth in India and improving margins. Europe was described as broadly flat in that earlier period, with pricing and raw material costs remaining relatively stable.
Taken together, the call and the surrounding analysis suggest Apollo is trying to balance a mixed global demand picture with a significant investment programme. The company’s near-term momentum appears to be coming from India, while Europe is showing signs of recovery and the US remains a drag, leaving management to prove that the planned spending can translate into sustained growth.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
