Apollo Tyres (APOLLOTYRE) Q2 25/26 earnings summary

Executive summary

• Consolidated revenue grew 6.1% year-over-year to INR 68,311 million in Q2 FY26, marking the highest growth in the last 10 quarters, with EBITDA margin at 14.9% and strong recovery in export markets and premiumization.

• India operations saw Q2 FY26 revenue at INR 47,149 million, up 5.7% YoY, with EBITDA margin at 15.3%; Vredestein achieved record volumes in India.

• Board approved unaudited financial results for Q2 and H1 FY26 and authorized raising up to Rs. 10,000 million via NCDs, subject to shareholder approval.

• GST rationalization in India and brand initiatives, including lead sponsorship of the Indian cricket team, provided a boost to demand and growth.

Financial highlights

• H1 FY26 consolidated revenue was INR 133,918.49 million, up from INR 127,718.76 million YoY; consolidated PAT for H1 FY26 was INR 5,994.57 million.

• Standalone Q2 FY26 revenue was INR 47,149 million, EBITDA INR 7,206 million (margin 15.3%), and PAT INR 2,772 million (margin 5.9%).

• European operations posted 4% YoY revenue growth in Q2 FY26 to EUR 177 million, with UHP mix rising to 49% and sequential margin improvement.

• Basic and diluted EPS for H1 FY26 were Rs. 4.27 (consolidated) and Rs. 7.87 (standalone).

• Net debt for consolidated operations stood at INR 26 billion; net debt to EBITDA ratio improved to 0.8x.

Outlook and guidance

• Management expects to maintain or accelerate top-line growth in India and Europe, focusing on profitability, cost control, and free cash flow.

• Board approved raising up to Rs. 10,000 million through NCDs to support future growth and capital needs.

• Demand momentum is expected to remain healthy in H2, supported by GST reforms and infrastructure rebound.

• Replacement demand is projected to move to mid-to-high single digits; export growth for the year targeted at high single digits.

• European market outlook remains challenging but is showing signs of improvement.