Apollo Tyres (APOLLOTYRE) Q3 24/25 earnings summary

Executive summary

• Consolidated Q3 FY25 revenue rose 5% year-over-year to INR 69,280 Mn, with EBITDA at INR 9,470 Mn and margin at 13.7%, despite raw material cost pressures and exceptional items impacting profitability.

• Margins held steady sequentially but declined year-over-year due to raw material inflation and exceptional costs.

• Market share gains in domestic PCR and agri replacement segments, with Europe operations posting positive top-line growth and improved product mix.

• Strategic focus on premiumization, R&D, sustainability, and digital supply chain transformation, including new product launches and certifications.

• Board approved new ESOP scheme, re-appointment of Independent Director, and appointed a new Chief Supply Chain Officer.

Financial highlights

• Q3 FY25 consolidated revenue: INR 69,280 Mn (+5% YoY, +8% QoQ); EBITDA: INR 9,470 Mn (13.7% margin); PAT: INR 3,372 Mn (4.9% margin).

• Standalone revenue: INR 45,398 Mn (+4.8% YoY); standalone EBITDA margin: 11.1%; standalone net profit: INR 1,235 Mn.

• Europe revenue: EUR 181 Mn (+3% YoY, +6% QoQ); EBITDA margin: 17.7%.

• Reifen.com revenue: EUR 88 Mn with 7%+ EBITDA margin.

• Debt-equity ratio (consolidated): 0.25 as of December 2024, improved from 0.31 a year ago.

Outlook and guidance

• Continued recovery in operating performance expected, led by replacement demand in India and market growth in Europe.

• Raw material costs expected to be range-bound in Q4, with gross margin benefits from earlier price increases.

• CapEx for FY25 likely to be INR 700–800 crores, with higher CapEx planned for FY26 due to capacity constraints.

• Focus on operational efficiency, cost control, and digital transformation in supply chain.