Apollo Tyres enters the Q1 FY27 results season amid a strong Indian auto demand environment, balanced against significant raw material cost headwinds. Investors will be focused on the company's ability to offset surging natural rubber prices through price hikes and the early impact of the Enschede plant closure on European profitability.
| Results date | August 06, 2026 |
|---|---|
| Quarter | Q1 FY 2026-2027 |
| Previous quarter revenue | Rs. 7,335.7 Cr |
| Previous quarter PAT | Rs. 630.97 Cr |
| Previous quarter EBITDA margin | 14.6% |
| Market cap | Rs. 27,191.85 Cr |
| CMP | Rs. 428.15 |
The board meeting is scheduled for August 06, 2026, to consider the unaudited standalone and consolidated financial results for Q1 FY27.
An analyst and investor conference call is scheduled for August 07, 2026, at 3:30 PM IST.
Apollo Tyres is expected to report robust revenue growth driven by strong Indian auto demand, which saw double-digit retail growth in PV and CV segments throughout the quarter. However, margins face compression pressure due to a sharp rally in natural rubber prices, which rose from Rs. 221/kg in March to Rs. 267/kg by June. Management previously guided for a low-to-mid teens sequential increase in the raw material basket, and the upcoming call will clarify how effectively the 6-8% price hikes implemented in Q1 managed this inflation. The Enschede plant closure, effective June 30, 2026, marks a strategic milestone, with the company expecting profitability benefits to emerge from H2 FY27. Investors will look for updates on the pace of further price increases and the impact of elevated input costs on consolidated EBITDA margins compared to the 14.6% reported in Q4 FY26.
Raw material cost and margin trajectory: Monitoring the impact of the raw material basket inflation against implemented price hikes.
India demand and volume growth: Tracking the sustainability of strong domestic demand trends.
Enschede plant closure and European operations: Assessing the transition impact following the June 30, 2026, closure.
Performance vs Guidance Tracking: Reviewing progress on key strategic and financial targets.
The Enschede plant closure is expected to reduce Europe manufacturing revenue by approximately 5-6%, primarily from the loss-making agri/OHT OE segment. Management considers this a strategic move to improve long-term European competitiveness and profitability.
The company has implemented 6-8% price hikes across categories, with 3-5% completed early in the quarter and the remainder in May. Management has indicated that these hikes are insufficient if commodity prices persist and that at least two additional rounds of increases may be required.
The board has approved a Rs. 5,800 crore capex plan for PCR and TBR capacities at the Andhra Pradesh plant, spanning FY27 to FY29. Revenue flow from this expansion is expected to begin in FY28, with full benefits realised by FY30.
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