Apollo Tyres profit slumps despite modest revenue growth

New Delhi, India — Apollo Tyres Ltd. reported a sharp decline in net profit for the fourth quarter of fiscal year 2024–25, despite a modest increase in revenue, as the company grappled with exceptional losses and margin pressures.

In the fourth quarter, revenue rose 2.6% to ₹6,423.6 crore (approximately $769.3 million), up from ₹6,258 crore in the same period last year. However, EBITDA dropped 19% to ₹836.9 crore (around $100.2 million), compared to ₹1,027.6 crore a year earlier. The EBITDA margin narrowed to 13% from 16.4%. Net profit plunged 48% to ₹185 crore (about $22.2 million), down from ₹354 crore. The company also incurred a one-time exceptional loss of ₹119 crore (roughly $14.3 million).

Apollo attributed the margin contraction primarily to steep raw material inflation, which rose 11% year-on-year. The OEM (original equipment manufacturer) segment remained soft, particularly in the commercial vehicle category, where a shift in product mix impacted performance.

Regionally, sales in the Asia Pacific, Middle East & Africa (APMEA) segment remained flat at ₹4,449 crore, while sales in Europe grew 1.4% to ₹1,891 crore. The company also reported its highest-ever quarterly volumes for its premium Vredestein brand in Europe, signaling strong traction in the replacement market.

Apollo Tyres’ board recommended a dividend of ₹5 per share, subject to shareholder approval at the upcoming AGM. If approved, the dividend will be paid within 30 days of the meeting.

Despite the challenging quarter, analysts remain cautiously optimistic. Of the 27 analysts tracking the stock, 19 maintain a “buy” rating, with a 12-month average price target implying a potential upside of 4.9%.