Apollo Tyres Q1 FY2027 Revenue Jumps 13% as Net Profit Rebounds

Apollo Tyres revenue climbed 13% in the first quarter of fiscal 2027 as strong demand in India and steady performance in Europe lifted sales. The tiremaker reported revenue of Rs 7,398 crore ($781.68 million) and net profit of Rs 349 crore ($36.86 million) for the quarter ended June 30, 2026.

The underlying picture was more mixed than the net-profit increase suggests. Operating profit remained essentially unchanged at $91.71 million, causing Apollo’s operating margin to narrow from approximately 13.2% to 11.7%. The prior-year net result also included an approximately $28.8 million after-tax impact from restructuring and impairment of the company’s Netherlands plant, creating an unusually low comparison for the latest quarter.

Apollo Tyres Q1 FY2027 Results at a Glance

Up 4.5 percentage points*

Margins and changes marked with an asterisk are Tire Review calculations using rounded figures reported by Apollo Tyres. The prior-year net profit includes a Rs 273 crore after-tax restructuring and impairment impact tied to the Netherlands plant. U.S.-dollar figures are Apollo’s cross-currency references for the current quarter.

Revenue Growth Outpaced Operating Profit

Apollo generated approximately $88.4 million more revenue than it did in the same quarter last year, a 12.8% increase using the company’s rounded figures and a consistent exchange-rate reference. Operating profit, however, remained at approximately $91.7 million.

That reduced the amount of operating profit Apollo generated from every $100 of revenue from approximately $13.20 to $11.70. In margin terms, the decline was about 1.5 percentage points year over year.

Apollo did not provide a detailed cost bridge or identify specific expenses behind the margin contraction in its earnings release. Because of this, the result shows that higher sales did not translate into higher operating profit during the quarter, but the information released does not support attributing that gap to any single cost, region or product category.

Chairman Onkar Kanwar said demand and plant utilization supported the quarter’s top-line growth.

“We delivered healthy revenue growth during the quarter, supported by robust demand across market segments and sustained high-capacity utilisation across our manufacturing network,” Kanwar said. “We continue to pursue profitable growth by strengthening execution, enhancing operational efficiency and staying closely aligned with customer requirements. While we remain mindful of the evolving macroeconomic environment, we are well-positioned to capitalise on growth opportunities while maintaining our emphasis on value creation.”

The Net-Profit Rebound Needs Context

Apollo’s reported net profit rose from approximately $1.37 million to $36.86 million, an increase of roughly $35.5 million using a consistent exchange-rate reference. Mathematically, that is an increase of approximately 2,585%, or nearly 27 times the prior-year result. That percentage is less informative than it first appears because the comparison period absorbed the after-tax impact of the Netherlands restructuring and impairment.

Adding back only the approximately $28.8 million impact identified by Apollo produces an implied prior-year base of approximately $30.2 million. Against that rough comparison, current-quarter net profit was approximately 22% higher (this is a Tire Review calculation, not an adjusted profit figure reported by Apollo, and does not account for any other differences between the periods).

The current quarter’s 4.7% net margin also compares with an implied 4.4% prior-year margin after that single charge is added back, rather than the 0.2% reported margin.

India Grew as Europe Remained Resilient

Apollo said its Indian operations recorded steady revenue growth, while its European operations delivered resilient performance despite a challenging business environment. The company did not release regional revenue, volume, product-mix or profitability figures with the announcement.

The performance follows a strong finish to fiscal 2026, when Apollo reported record quarterly revenue in India and said replacement and original-equipment demand remained robust. Truck-bus radial sales grew more than 20% in that fourth quarter.

Apollo has continued expanding its premium retail presence in India. In July, it opened its second super-premium outlet in Jaipur and said it planned to add three to four more locations across major metropolitan markets.

In Europe, the company entered the quarter as it prepared to launch the Vredestein Quatrac Pro 2, an ultra-high-performance all-season tire manufactured in Hungary. Apollo’s earnings release did not identify that product or the Vredestein brand as a contributor to quarterly growth.

Q1 Revenue Held Near Apollo’s Fourth-Quarter Level

Using the same exchange-rate reference, first-quarter revenue was $781.68 million. That was 0.8% above the approximately $775.1 million Apollo generated in fiscal 2026’s fourth quarter. Operating profit fell 18.8% sequentially from approximately $113 million. Operating margin moved from approximately 14.6% in the fourth quarter to 11.7% in the first.

Net profit declined from approximately $66.7 million in the fourth quarter to $36.86 million. That sequential net-profit comparison does not cleanly measure operating momentum because Apollo’s fourth-quarter results included one-time items. Those items related to the Netherlands operations and the company’s adoption of India’s concessional corporate tax regime.

The comparison nonetheless shows that Apollo maintained the higher sales level it reached at the end of fiscal 2026. Quarterly profitability, however, moved back from the stronger fourth-quarter result.

CFO Gaurav Kumar to Leave Apollo Tyres

Apollo also announced that Chief Financial Officer Gaurav Kumar will resign from the company and its board of directors. He plans to pursue what Apollo described as personal and professional challenges. Kumar has spent 20 years with Apollo. He has agreed to remain beyond his notice period if the company needs him to support the transition.

He will cease to be one of Apollo’s key management personnel when he hands over his responsibilities. The company said it is searching for a successor and will notify stock exchanges after making the appointment.

“Gaurav deserves kudos for the critical role he has played in the growth of Apollo Tyres, both in India and overseas, in the last twenty years,” Vice Chairman and Managing Director Neeraj Kanwar said. “While we do regret losing him, we are conscious of his personal aspirations and wish him the very best in his future endeavours.”