According to reports from Stock Market News, Apollo Tyres delivered impressive March quarter (Q4FY26) results with consolidated revenues increasing 14% year-on-year to ₹7,336 crore and Ebitda growing 27.6% to ₹1,069 crore. The company's Ebitda margin expanded 153 basis points aided by healthy margins across APMEA and Europe regions. Despite these strong financial metrics, the stock has declined 25% so far in 2026, touching a new 52-week low of ₹374 on Monday.
As reported by Stock Market News, the India business, representing 63% of FY26 consolidated revenue, remained Apollo's key growth driver with management indicating over 20% growth in TBR (truck and bus radial) replacement and OEM volumes. PCR (passenger car radial) tyres replacement growth was also strong at over 20%, while OEM volumes were up in single-digit. CFO Gaurav Kumar noted that demand trends remain strong across categories and channels, even in Q1FY27, with part of this momentum attributed to premiumization initiatives and increased brand visibility through BCCI sponsorship.
According to Stock Market News, the management indicated that input costs could rise in the high-teens in Q1FY27, driven primarily by elevated natural rubber prices. To combat rising costs, Apollo Tyres has implemented price hikes of 6-8% and forecasts further increases. Motilal Oswal Financial Services has factored in a 250-bps Ebitda margin contraction in FY27 in the India business, which it expects to recover gradually in FY28. The company expects Ebitda margin to recover to historical levels of about 16% in the medium-term.
As reported by Stock Market News, Apollo Tyres achieved significant debt reduction with net debt dropping to about ₹1,600 crore in FY26 from ₹2,500 crore a year earlier, and net-debt-to-Ebitda improved to 0.4x from 0.7x. The company intends to proceed with its capex plan with more focus on domestic expansion. However, Nomura Research cautions that significant capex of ₹3,500 crore/₹3,000 crore for FY27/FY28 could impact free-cash-flow generation. Despite the strong Q4 performance, margin woes may keep meaningful upsides at bay in the near future.
