Apollo Tyres Q1 FY27 Results: Revenue Jumps 12.8% as India Business Delivers Strong Growth Despite Margin Pressure
Apollo Tyres Ltd. reported a strong revenue performance in the first quarter of FY27, with consolidated revenue rising 12.8% year-on-year to ₹7,397.8 crore. The company said it delivered its strongest year-on-year quarterly growth in 14 quarters, supported by double-digit growth across replacement, OE and export markets.
However, higher raw material costs put pressure on profitability, with consolidated EBITDA margin declining to 11.7% from 13.2% in Q1 FY26.
The company’s Q1 FY27 investor presentation highlights strong demand across key categories, improving brand visibility and continued momentum in the Indian replacement market, while also pointing to cost pressures as a key near-term challenge.
Apollo Tyres Q1 FY27: Key Financial Highlights
Apollo Tyres recorded consolidated revenue of ₹7,397.8 crore in Q1 FY27, compared with ₹6,560.8 crore in the same quarter last year.
| Particulars | Q1 FY27 | Q1 FY26 | YoY Change |
|---|---|---|---|
| Revenue | ₹7,397.8 crore | ₹6,560.8 crore | +12.8% |
| EBITDA | ₹868.0 crore | ₹867.7 crore | Flat |
| EBITDA Margin | 11.7% | 13.2% | -149 bps |
| EBIT | ₹535.6 crore | ₹509.1 crore | +5.2% |
| PAT | ₹348.8 crore | ₹12.8 crore | — |
| PAT Margin | 4.7% | 0.2% | — |
While revenue growth was strong, EBITDA remained broadly flat because of higher raw material costs. The company said it is taking positive pricing actions to mitigate the impact of rising input costs.
The significant improvement in reported PAT also needs to be viewed in the context of exceptional items in the comparable periods.
India Business Drives Strong Growth
The Indian business was the standout performer during the quarter.
Standalone revenue increased 15.6% year-on-year to ₹5,461.9 crore, compared with ₹4,725.4 crore in Q1 FY26.
Apollo Tyres said this represented its strongest year-on-year quarterly growth in the last 14 quarters.
The company saw double-digit growth across:
- Replacement market
- Original equipment (OE)
- Export markets
- Key product categories
According to the presentation, stronger brand equity and visibility following Apollo Tyres’ BCCI sponsorship also helped support volumes.
However, profitability remained under pressure.
Standalone EBITDA rose modestly to ₹654.9 crore from ₹644.7 crore, while EBITDA margin declined to 12.0% from 13.6%.
The company attributed the margin decline primarily to raw material and other cost pressures.
India Revenue Breakdown
Apollo Tyres’ Indian standalone business has a diversified product mix, led by Truck & Bus tyres.
| Product Category | Share |
| Truck & Bus | 53% |
| Passenger Vehicle | 22% |
| Light Truck | 9% |
| Farm | 7% |
| Others | 9% |
By channel, replacement business remains the largest contributor, accounting for approximately 66% of standalone revenue, followed by OEM at 23% and exports at 11%.
Replacement Market Remains a Key Growth Engine
The replacement segment continues to be an important growth driver for Apollo Tyres.
The company highlighted healthy growth in the passenger car tyre replacement segment (PCR Replacement) and expects the positive momentum to continue in the coming quarters.
The company also expects good growth momentum in Q2 FY27 in India.
This is important because the replacement market generally provides tyre manufacturers with a broader and more recurring demand base compared with the more cyclical OEM market.
Europe Business Shows Stable Performance
Apollo Tyres’ European operations remained relatively stable during Q1 FY27.
Revenue from the company’s European sales and manufacturing operations, excluding ReifenCom GmbH’s distribution business, stood at approximately €147 million, compared with €146 million in Q1 FY26.
The company’s European EBITDA margin declined to 8.9% from 10.8%, a reduction of approximately 186 basis points.
| Europe Operations | Q1 FY27 | Q1 FY26 |
| Revenue | €147 million | €146 million |
| EBITDA Margin | 8.9% | 10.8% |
The European business therefore faced margin pressure even though revenue remained broadly stable.
Consolidated Revenue Mix
Apollo Tyres has a diversified revenue base across geographies and product categories.
On a consolidated basis, the company’s revenue mix was approximately:
By Region
- India: 69%
- Europe: 26%
- Others: 5%
By Product
- Truck & Bus: 41%
- Passenger Vehicle: 36%
- Farm/Off-Highway: 11%
- Light Truck: 7%
- Others: 6%
By Channel
- Replacement: 66%
- OEM: 23%
- Exports: 11%
This mix gives Apollo Tyres exposure to both replacement demand and OEM volumes, while its India and European operations provide geographic diversification.
Capacity Utilisation Remains High
Apollo Tyres reported strong capacity utilisation across its key operations.
The presentation showed capacity utilisation of approximately:
- India: 91%
- Europe: 94%
High utilisation levels indicate that the company’s manufacturing assets continue to operate at healthy levels as demand remains firm.
This could support operating leverage if volumes continue to increase, although sustained increases in raw material prices could continue to affect margins.
Raw Material Costs Remain the Biggest Near-Term Challenge
One of the key messages from the Q1 FY27 presentation is the pressure from raw material costs.
At the consolidated level, raw material costs increased to ₹4,222.1 crore in Q1 FY27 from ₹3,668.4 crore in Q1 FY26.
This increase was significantly faster than the growth in EBITDA, which remained almost unchanged at ₹868 crore.
As a result, consolidated EBITDA margin declined by 149 basis points to 11.7%.
Apollo Tyres said it has initiated positive pricing actions to mitigate the impact of higher raw material costs.
The effectiveness of these pricing actions will be an important factor to watch in the coming quarters.
Strong Balance Sheet and Stable Leverage
Despite the increase in business activity and cost pressures, Apollo Tyres maintained a stable leverage position.
The company’s Net Debt/EBITDA ratio remained at 0.4x, based on trailing-twelve-month figures.
The presentation also showed net debt of approximately ₹17 billion as of June 2026.
A 0.4x Net Debt/EBITDA ratio indicates that the company’s leverage remains relatively controlled, providing financial flexibility for future investments and business requirements.
Cash Flow and Capital Expenditure
Apollo Tyres also highlighted its cash-flow and capital expenditure position.
Free cash flow increased from approximately ₹14 billion in FY25 to ₹20 billion in FY26, while capital expenditure stood at approximately ₹14 billion in FY26, compared with ₹8 billion in FY25.
The company continues to balance investments in its manufacturing capabilities with maintaining a stable balance sheet.
FY26 Provides a Strong Base
The Q1 FY27 performance comes after a strong FY26.
For the full financial year FY26, Apollo Tyres reported:
| Particular | FY26 |
| Revenue | ₹28,470.6 crore |
| EBITDA | ₹4,143.2 crore |
| EBITDA Margin | 14.6% |
| EBITDA Growth | +16.0% |
| Revenue Growth | +9.0% |
| ROCE | 13.4% |
| Net Debt/EBITDA | 0.4x |
The FY26 performance provides a strong base for the company’s FY27 growth plans.
Outlook: Demand Remains Strong, Margins Need Monitoring
Apollo Tyres’ management remains positive about demand across its major categories and channels.
For India, the company expects the strong growth momentum to continue, particularly in the replacement segment. The company also expects good growth in Q2 FY27.
At the same time, raw material inflation remains the major risk to margins.
The company is attempting to address this through pricing actions, but there could be a time lag between increases in input costs and the ability to fully pass them on to customers.
Therefore, investors will need to watch two key indicators in the coming quarters:
- Whether strong volume growth continues, particularly in India’s replacement market.
- Whether pricing actions can offset raw material inflation and protect EBITDA margins.
What Investors Should Watch
Apollo Tyres enters FY27 with several positive factors working in its favour.
Strong revenue growth: Consolidated revenue grew 12.8% in Q1 FY27, while India revenue increased 15.6%.
Healthy replacement demand: The replacement segment, particularly passenger car tyres, continues to show good momentum.
High capacity utilisation: India and Europe reported capacity utilisation of 91% and 94%, respectively.
Controlled leverage: Net Debt/EBITDA remained at just 0.4x.
Brand strengthening: Apollo Tyres said its BCCI sponsorship helped improve brand equity and visibility.
The key concern remains margin pressure from higher raw material costs.
Apollo Tyres’ Q1 FY27 performance presents a mixed but largely positive picture.
The company’s topline growth was strong, particularly in India, where revenue increased 15.6% year-on-year. Replacement demand remained healthy, and the company reported double-digit growth across replacement, OE and export markets.
However, profitability at the operating level did not grow at the same pace. Consolidated EBITDA was almost flat year-on-year, while the EBITDA margin fell to 11.7% due to raw material cost pressures.
The company’s relatively low leverage, strong capacity utilisation and healthy demand outlook provide a solid foundation for FY27. The biggest question for the next few quarters will be whether Apollo Tyres can convert its strong volume growth into improved profitability through pricing actions and cost management.
For investors tracking Apollo Tyres, Q2 FY27 should therefore be particularly important for assessing whether the company’s growth momentum can be sustained while margins recover from the current input-cost pressure.
This article is based on Apollo Tyres Ltd.’s Q1 FY27 investor presentation dated August 7, 2026. It is intended for informational purposes only and should not be considered investment advice.