Apollo Tyres' Q1 FY 2025-26 Quarterly Results

Result Summary

• Apollo Tyres Ltd reported a 3.9% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Jun (Q1 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 3.4%.
• Its expenses for the quarter were up by 7.6% QoQ and 4.6% YoY.
• The net profit decreased 96.4% QoQ and decreased 95.7% YoY.
• The earnings per share (EPS) of Apollo Tyres Ltd stood at 0.2 during Q1 FY 2025-26.

Financial Statments for Q1 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Apollo Tyres Ltd is a prominent player in the tire manufacturing industry, known for producing a wide range of tires for passenger vehicles, commercial vehicles, agricultural applications, and more. The company operates in multiple markets across the globe, with a substantial presence in India and Europe. Apollo Tyres has been engaged in various strategic initiatives to expand its market reach and enhance its production capabilities. As of the data available up to October 2023, there are no specific major recent developments provided for Apollo Tyres Ltd.

Revenue

In Q1FY26, Apollo Tyres Ltd reported a total income of ₹6579.65 crores, compared to ₹6332.52 crores in Q4FY25 and ₹6365.69 crores in Q1FY25. This represents a quarter-over-quarter (QoQ) increase of 3.9% and a year-over-year (YoY) increase of 3.4%. The revenue growth indicates a progressive increase in the company's total income over the observed periods, reflecting the company's ability to generate sales and other income streams. However, the specific drivers behind this revenue increase are not discussed in the provided data.

Profitability

For Q1FY26, Apollo Tyres Ltd recorded a profit before tax (PBT) of ₹38.30 crores, which is a significant decrease from ₹562.89 crores in Q4FY25 and ₹423.22 crores in Q1FY25. This marks a substantial decline of 93.2% QoQ and 91.0% YoY. The profit after tax (PAT) for Q1FY26 was ₹12.88 crores, down from ₹354.08 crores in Q4FY25 and ₹302.00 crores in Q1FY25, reflecting a 96.4% QoQ decline and a 95.7% YoY decline. Earnings per share (EPS) also fell sharply to ₹0.20, compared to ₹5.60 in Q4FY25 and ₹4.80 in Q1FY25, indicating a similar percentage decrease as PAT. These figures suggest challenges in maintaining profitability despite revenue growth.

Operating Metrics

Total expenses for Apollo Tyres Ltd in Q1FY26 were ₹6171.15 crores, up from ₹5732.83 crores in Q4FY25 and ₹5902.05 crores in Q1FY25, showing a QoQ increase of 7.6% and a YoY increase of 4.6%. The rise in expenses has outpaced the growth in total income, contributing to the significant reductions in profit margins. The tax expense for Q1FY26 was ₹25.48 crores, compared to ₹208.92 crores in Q4FY25 and ₹121.24 crores in Q1FY25, marking a decrease of 87.8% QoQ and 79.0% YoY. These changes in tax and expenses have affected the net profitability, as evidenced by the sharp decline in both profit before and after tax. The data highlights the importance of managing operating costs to sustain profitability amidst fluctuating revenue and expense figures.