Apollo Tyres reports a 12.8% rise in revenue for Q1 FY27, driven by India’s record quarterly sales and strategic restructuring in Europe, despite margin pressures from raw material inflation.
Apollo Tyres reported a 12.8% rise in consolidated revenue in the first quarter of FY27, with India delivering its strongest ever quarterly sales at Rs.54.6 billion, up 15.6% from a year earlier. The company said the domestic business benefited from double-digit volume growth across replacement, original equipment and exports, reinforcing its position in a market that remains its main growth engine.
Management said the India business was helped by broad-based demand, with replacement volumes up 13%, OEM volumes up 10% and exports up 15%. According to GuruFocus’s summary of the earnings call, most of the revenue gain was driven by volumes rather than pricing, as staggered increases only began to feed through during the quarter.
That momentum came against a difficult cost backdrop. Apollo Tyres said raw material inflation rose sharply in the period and compressed consolidated EBITDA margin to 11.7%, down 150 basis points year on year. Gaurav Kumar, the company’s chief financial officer, said on the call that further price increases were being implemented in July and August to catch up with input costs, which he said were still climbing in the second quarter.
The Europe business remained more subdued, with revenue up just 0.5% as the company worked through plant changes, including the closure of its Netherlands facility and the transfer of production to Hungary and India. Apollo Tyres said the restructuring should eventually support higher profitability, and it sees additional upside from European anti-dumping duties on Chinese tyres, which it expects to help its passenger-car replacement segment. The company also pointed to a net debt-to-EBITDA ratio of 0.4, a sign of a still-strong balance sheet, while continuing to invest in research, digital tools and sustainability initiatives.
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