Apollo Tyres Ltd. delivered exceptional financial performance in Q4 FY26, with consolidated net profit surging 241.1% to ₹631 crore compared to ₹185 crore in the corresponding period last year. According to the company's exchange filing, this remarkable growth demonstrates the tire manufacturer's strong operational performance during the quarter. The company also declared a final dividend of ₹2.50 per share for the fiscal year, bringing the total dividend for FY26 to ₹6 per share when combined with the interim dividend of ₹3.50 per share already paid during the year. The profit surge was significantly boosted by a one-time tax gain of ₹574 crore related to adoption of a concessional tax regime, though the company also recorded a one-time loss of ₹456 crore in the fourth quarter. As per Rediff Moneynews, the company has decided to adopt the concessional tax regime under the Finance Act, 2026, following which its applicable tax rate shall be reduced to 25.17% from the earlier rate of 34.94% and exemption in MAT.
The company's operational metrics showed substantial improvement with EBITDA growing 43% year-on-year to ₹712 crore from ₹498 crore in the previous fiscal, while EBITDA margins expanded significantly to 9.7% from 7.8% in the preceding financial year. Revenue showed robust growth, increasing 14.2% year-on-year to ₹7,336 crore from ₹6,424 crore in the previous year. For the full financial year FY26, Apollo Tyres reported a 22.4% increase in consolidated net profit to ₹1,372 crore, compared with ₹1,121 crore recorded in FY25. Revenue from operations for the year rose 9% to ₹28,471 crore, up from ₹26,123 crore in the prior fiscal year, while annual operating profit climbed 16% to ₹4,143 crore compared to ₹3,572 crore in FY25. The company's EBITDA margins improved to 14.6% from 13% a year earlier, demonstrating enhanced operational efficiency. Total expenses in the quarter under review were higher at ₹6,753.36 crore compared to ₹6,072.67 crore in the same period a year ago.
Despite strong overall performance, Apollo Tyres announced significant strategic changes including the planned closure of its Netherlands plant by mid-2026 due to unsustainable production costs, rising energy and labor expenses, and lower demand for specialized tires. The company faces intense pricing pressure from cheaper Chinese tire imports in European markets, where Indian firms lack protective tariffs. Production will shift to Hungary and India to cut costs and improve margins, aiming to counter economic challenges and inflation. The Indian tyre industry is forecast to grow 6-8% in FY2026, mainly from domestic replacement sales, aided by GST adjustments, though challenges include U.S. import tariffs affecting exports and high natural rubber prices.
Commenting on the company's performance, Apollo Tyres Chairman Onkar Kanwar highlighted strong domestic performance, stating "Our performance in India remained robust, particularly in the replacement and OE segments, with truck-bus radials recording growth of over 20 per cent in Q4." He added that "Our European Operations performed in line with prevailing market conditions. While ongoing geopolitical tensions in West Asia continue to pose headwinds, we remain optimistic about sustained demand momentum in India, supported by positive rural sentiment." The company's market value stood at approximately ₹25,324.65 crore on the same date, with shares closing 1.35% higher at ₹401.80 compared to a 1.18% increase of the NSE Nifty 50, outperforming the broader market. The company's board recommended a final dividend of ₹2.50 per equity share for FY26, subject to shareholder approval at the upcoming annual general meeting.
