Powered by: Motilal Oswal
2025-09-04 10:50:02 am | Source: Motilal Oswal Financial Services Ltd
Company Update : Apollo Tyres Ltd By Motilal Oswal Financial Services Ltd
Company Update : Apollo Tyres Ltd By Motilal Oswal Financial Services Ltd

India performance impresses, Europe disappoints

  • Apollo Tyres’ 1QFY26 consolidated performance was in line with our estimates. Standalone performance was much ahead of our estimates, whereas Europe performance was weaker than expected.
  • Consolidated revenue grew ~4% YoY to INR65.6b (in line).
  • Gross margins contracted 140bp YoY (+70bp QoQ) to 44.1% (above our estimate of 43.6%), primarily due to higher commodity pricing.
  • EBITDA margins remained flat YoY at 13.2% (in line). EBITDA contracted 4.6% YoY (up ~4% QoQ) to INR8.7b (in line).
  • In 1Q, Apollo booked exceptional expenses related to the restructuring costs of INR3.7b at its Netherland unit. Adjusted for these costs, PAT declined 13% YoY to INR2.8b (est. INR3.1b), primarily due to lower-than-expected other income.
  • Standalone business revenue was in line with our estimate at INR47.2b, up ~3% YoY and QoQ. Gross margins contracted by 380bp YoY (+220bp QoQ) to 36.7% (est. 35%). EBITDA margin sharply improved 240bp QoQ (down 20bp YoY) to 13.6% (ahead of our estimate of 12%), likely due to lower input costs.
  • On the other hand, Europe EBIT margins hit a multi-quarter low of 2.6% (down 170bp YoY).
  • Valuation: The stock trades at 17.4x/14.6x FY26E/FY27E consolidated EPS.

 

For More Research Reports : Click Here 

For More Motilal Oswal Securities Ltd Disclaimer
http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html
SEBI Registration number is INH000000412

Disclaimer: The content of this article is for informational purposes only and should not be considered financial or investment advice. Investments in financial markets are subject to market risks, and past performance is not indicative of future results. Readers are strongly advised to consult a licensed financial expert or advisor for tailored advice before making any investment decisions. The data and information presented in this article may not be accurate, comprehensive, or up-to-date. Readers should not rely solely on the content of this article for any current or future financial references. To Read Complete Disclaimer Click Here