Apollo Tyres (APOLLOTYRE) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 consolidated revenue grew 5% year-on-year to INR 69.3 billion, with 8% sequential growth, despite raw material cost pressures and exceptional items impacting profitability.

• EBITDA margin held at 13.7%, but EBITDA declined 21.6% year-on-year due to raw material inflation and exceptional costs.

• Net profit for Q3 FY25 fell to INR 3,372 million, with margin down to 4.9% from 7.5% a year ago.

• Market share gains achieved in domestic PCR and agri replacement segments, while OEM segment volumes declined.

• 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 million (+5% YoY, +8% QoQ); EBITDA: INR 9,470 million (margin 13.7%, -465 bps YoY); PAT: INR 3,372 million (margin 4.9%).

• Standalone revenue: INR 45,398 million (+4.8% YoY); EBITDA: INR 5,035 million (margin 11.1%); standalone net profit: INR 1,235 million.

• Europe revenue: EUR 181 million (+3% YoY, +6% QoQ); EBITDA: EUR 32 million (margin 17.7%).

• Reifen.com revenue: EUR 88 million, EBITDA margin above 7%.

• Debt-equity ratio (consolidated): 0.25 as of December 31, 2024, improved from 0.31 a year ago.

Outlook and guidance

• Focus on business fundamentals, cost control, and free cash flow generation, with continued digital transformation in supply chain.

• Operating performance in Europe expected to remain healthy with ongoing sales mix improvement and cost optimization.

• Replacement demand in India projected to remain healthy in Q4, with further improvement anticipated.

• Raw material costs expected to remain 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 next year due to capacity constraints in passenger car tires.