The global economy demonstrated steady performance during CY25, with growth estimated at 3.4%, broadly in line with CY24. The year was characterised by stable economic activity across major regions, supported by continued resilience in emerging markets and gradual recovery in select advanced economies, even as geopolitical developments contributed to elevated uncertainty during the year. According to the International Monetary Fund (IMF), advanced economies grew at 1.9% during CY25, reflecting moderate expansion across key markets including the United States and the Euro Area. Emerging markets and developing economies continued to outperform, registering growth of 4.4%, led by strong momentum in Asia. India remained among the fastest-growing major economies, recording growth of 7.6% during CY25, while China witnessed relatively moderate expansion at around 5.0%.
Overall, global economic conditions during the year reflected stability and resilience, with growth remaining broadly balanced across regions and supported by continued strength in emerging markets.
India Market Overview
The Indian economy continued to demonstrate strong momentum during the year, supported by robust domestic demand and stable macroeconomic fundamentals. As per the latest assessment by the Reserve Bank of India (RBI), GDP growth for FY26 is estimated at around 7.6%, reinforcing Indias position as one of the fastest-growing major economies globally. The growth momentum during the year remained supported by domestic demand conditions, with consumption and investment activity continuing to play a key role. While sectoral trends remained broadly stable, economic activity reflected continued strength across key segments of the economy.
India also witnessed sustained momentum across sectors such as technology, healthcare and automobiles, contributing to overall economic performance. In addition, a structural shift towards premium and high-value consumption remained evident, driven by the expanding middle-income segment and increasing urbanisation. This trend continues to support demand for premium products across categories.
Auto Segment Industry
The Indian automobile industry demonstrated strong and broad-based growth during FY26, achieving a significant milestone with all major segments recording their highest-ever annual sales simultaneously for the first time since FY19. This performance was supported by sustained demand across both consumer and infrastructure-linked segments, reflecting the continued strength of the domestic economy.
As per data released by the Society of Indian Automobile Manufacturers (SIAM), total vehicle sales across categories reached a record 28.27 million units during the year, representing a growth of 10.4% over the previous fiscal.
Passenger vehicle sales grew by 7.9% to 4.64 million units, driven by continued demand for utility vehicles and a growing preference for higher-value and premium offerings.
The commercial vehicle segment recorded strong growth of 12.6%, supported by improved freight movement, infrastructure development and replacement demand, reflecting sustained momentum in economic activity.
The two-wheeler segment witnessed a strong recovery, with sales reaching 21.7 million units, growing by 10.7% over FY25 and regaining pre-pandemic levels. The three-wheeler segment also recorded robust growth of 12.8%, driven by increased mobility and last-mile connectivity demand.
In addition, Electric Vehicle (EV) adoption continued to gain traction during the year, supported by increasing registrations across segments, particularly in two-wheelers and passenger vehicles. While EV penetration remains at a relatively nascent stage, the segment continues to witness steady growth, reflecting evolving consumer preferences and increasing focus on sustainable mobility solutions.
Overall, the Indian automobile industry witnessed a year of strong growth, underpinned by favourable macroeconomic conditions, improving consumer sentiment and continued recovery across key demand segments. The trend towards premiumisation remained evident, particularly in the passenger vehicle segment, driven by changing consumer preferences and rising disposable incomes.
Tyre Segment
The tyre industry continues to play a critical role in the automotive value chain, with demand driven by both Original Equipment Manufacturers (OEMs) and the replacement segment, which remains closely linked to overall economic activity and vehicle usage patterns.
During FY26, the industry witnessed steady growth, supported by improving domestic demand and recovery in the replacement segment. As per industry estimates, domestic tyre demand is expected to grow by 6–8% during the year, driven by improving affordability and favourable rural demand conditions. Growth in the replacement segment strengthened, particularly in the second half of the year, supported by GST rationalisation and improved consumption trends. While OEM demand remained relatively moderate across passenger vehicle and commercial vehicle segments, growth in two-wheelers continued to support overall volumes. Overall, the Indian tyre industry demonstrated stable growth during FY26, supported by domestic demand resilience, improving replacement trends and a gradual shift towards premium products.
Europe Market Overview
Economy
The European economy demonstrated modest growth during CY25, supported by stable domestic demand and a strong labour market. As per the European Commissions Autumn 2025
Economic Forecast, real GDP growth is estimated at 1.4% in the European Union and 1.3% in the euro area during the year. Inflationary pressures moderated during the year, with headline inflation in the euro area declining to 2.1% in CY25 from 2.4% in the previous year, aligning closely with the European Central Banks target. The labour market remained robust, with continued real wage growth supporting household consumption.
However, the macroeconomic environment continued to face certain structural and external challenges, including pressures on manufacturing activity and evolving fiscal dynamics across member states. In addition, rising energy costs and global uncertainties contributed to a more cautious outlook towards the end of the year.
Auto Segment
In CY25, the European automotive market recorded modest growth, with new car registrations increasing by 1.8% to approximately 11 million units, marking the strongest annual performance since 2019, although volumes remain below pre-pandemic levels, as per data released by the European Automobile Manufacturers Association (ACEA).
The growth in passenger vehicles was supported by gradual recovery in demand across key markets, alongside a continued shift in powertrain mix. Battery Electric Vehicles (BEVs) gained traction during the year, with market share increasing to 17.4%, up from 13.6% in the previous year. Hybrid vehicles remained the dominant choice among consumers, accounting for 34.5% of registrations, while the combined share of petrol and diesel vehicles declined significantly, reflecting the ongoing transition towards electrified mobility. In contrast, the commercial vehicle segment witnessed a decline during the year, reflecting weaker freight activity. Van registrations declined by 8.8%, while truck registrations fell by 6.2%. The bus segment, however, recorded growth of 7.5%, indicating continued recovery in public mobility and institutional demand. Electrification trends were also visible in select subsegments, with electrically chargeable vans gaining share, albeit from a relatively low base. Overall, the European automotive industry remained characterised by moderate recovery in passenger vehicle demand, a continued shift towards electrified powertrains, and softness in commercial vehicle segments, reflecting uneven economic activity across the region.
Tyre Segment
For CY25, the European replacement tyre market remained weak, with subdued demand across key segments. As per Tyres Europe (formerly ETRMA), volumes across all major categories - Consumer, Truck and Bus Radial (TBR) and Off-Highway (OHT) – declined compared to the previous year, reflecting softer underlying demand conditions.
In the Consumer segment, volumes remained marginally lower year-on-year. However, the segment witnessed a notable shift in product mix, with growing preference for all-season tyres, which registered growth of approximately 5% during CY25. This was accompanied by a decline in summer tyre volumes, reflecting evolving consumer preferences and changing usage patterns across the region.
The Truck and Bus Radial (TBR) segment recorded a decline of around 4% during the year, primarily impacted by muted freight activity and subdued industrial output. In addition, increased imports exerted further pressure on volumes across the segment.
A key structural trend during the year was the continued rise in imports into the EU and UK markets. Increased demand for lower-cost products, coupled with relatively higher production costs in Europe, particularly energy costs, contributed to higher import penetration and intensified competitive pressures within the region.
Industry Structure and Developments
During FY26, raw material costs for the tyre industry witnessed moderation during most of the year, supported by softening trends in crude-based inputs, before witnessing an uptick towards the end of the year. Overall, the Company benefited from a decline in input costs during the first three quarters, followed by renewed pressure in the fourth quarter.
Crude-based raw materials, including carbon black, synthetic rubber, fabric and chemicals, remained relatively stable during the initial part of the year, supported by lower crude prices. Brent crude averaged approximately USD 69 per barrel during FY26, compared to USD 78 per barrel in the previous year. However, prices witnessed a sharp increase in the last quarter, crossing USD 100 per barrel, driven by geopolitical developments impacting global energy markets.
Natural rubber prices remained elevated during the year, largely in the range of _190–200 per kg, before increasing beyond _220 per kg in the final quarter due to rising demand and supply constraints. Domestic availability remained tight, with continued reliance on imports to bridge the gap. The prevailing duty structure and port restrictions on imports continued to influence supply dynamics. The Indian Rupee depreciated during the year, moving from approximately _86 to _94 against the US Dollar, resulting in higher import costs for key raw materials.
In response to these dynamics, the Company continued to strengthen its sourcing strategy through supplier collaboration, diversification and onboarding of new suppliers, supporting both cost efficiency and supply chain resilience.
The Company also continued its focus on sustainable procurement. It renewed its ISO 20400:2017 certification and remained actively engaged with the Global Platform for Sustainable Natural Rubber (GPSNR), strengthening sustainability practices across its supply chain.
As part of its long-term commitment to domestic sourcing, the Company continued to support the INROAD (Indian Natural Rubber Operations for Assisted Development) initiative, contributing to the development of natural rubber plantations in Northeastern India and supporting livelihood generation in the region. During the year, the Company further strengthened supplier engagement through initiatives such as the Sustainable Procurement Summit and the Apollo Tyres Global Partners Summit, focused on collaboration across business strategy, manufacturing excellence and sustainability priorities.
Strengths
The Company benefits from a diversified geographic presence across India, Europe and other international markets, enabling it to mitigate risks associated with dependence on a single market and leverage growth opportunities across regions.
Its dual-brand strategy, anchored by Apollo Tyres and Vredestein, provides strong positioning across mass, premium and luxury segments, supported by growing global brand recognition.
Apollo Tyres has established a comprehensive product portfolio across key categories, including passenger vehicles, commercial vehicles, off-highway tyres and two-wheelers, positioning it as a full-range tyre manufacturer in India.
The Company has built a strong distribution network across its key markets, enabling deep market penetration and efficient last-mile connectivity.
Its state-of-the-art manufacturing facilities across India and Europe, supported by a robust global supply chain, enable efficient production and distribution of products across geographies.
In India, the Company maintains a strong market position in the commercial vehicle and passenger vehicle segments, which constitute a significant share of industry demand.
The Company benefits from a global and culturally diverse management team, enabling effective execution of its growth strategy across markets.
Apollo Tyres continues to invest in research and development, with dedicated facilities supporting innovation in product design and performance across passenger and commercial vehicle segments.
The Company has established longstanding relationships with leading global OEM manufacturers and continues to strengthen its presence in premium OEM segments.
The Company has strengthened its brand positioning through strategic marketing initiatives, including its partnership with the Board of Control for Cricket in India
(BCCI) as the official jersey partner for Team India, enhancing brand visibility and consumer connect across key markets.
The Company has also taken early initiatives in the electric vehicle segment, including development of specialised tyre ranges, enabling it to participate in emerging mobility trends.
Products under the Vredestein brand have consistently received top rankings and recognition from leading independent testing agencies and automotive media, reinforcing the Companys strong credentials in the premium and performance tyre segment.
Weaknesses
The Companys profitability remains sensitive to volatility in raw material prices, particularly in scenarios of sharp cost escalation. In a highly competitive market environment, the ability to pass on such cost increases to customers in a timely manner may be constrained, resulting in pressure on margins.
Opportunities
The Company is well positioned to benefit from structural growth drivers across its key markets and segments.
In India, increasing radialisation in the commercial vehicle segment presents a significant opportunity, supported by the Companys strong brand equity in the Truck Bus Radial (TBR) category.
The passenger vehicle segment continues to offer growth opportunities, driven by rising vehicle parc and increasing demand for premium products, where the Company maintains a strong market position.
The Company also has the opportunity to scale its presence in the two-wheeler segment in India, supported by growing market acceptance and favourable demand dynamics in this fast-growing category.
The Companys modern, highly automated manufacturing facilities across India and Europe provide a strong foundation for cost-competitive production and support growth across both domestic and international markets.
In Europe, the premium positioning of the Vredestein brand, supported by its manufacturing footprint and increasing OEM engagements, provides opportunities to improve product mix and drive replacement demand.
The Companys expansion into North America offers additional avenues for growth and diversification of revenue streams.
The Vredestein brand continues to strengthen its presence in India, gaining traction in the premium segment, while the expansion of truck tyre offerings in Europe provides opportunities to enhance market presence and drive revenue growth across segments.
Threats
Economic slowdown in key markets such as India and Europe may impact demand for tyres across segments, given the industrys dependence on overall economic activity and mobility trends.
Continued inflationary pressures and volatility in raw material prices may impact cost structures and exert pressure on margins.
Fluctuations in foreign exchange rates, particularly depreciation of the Indian Rupee, may increase the cost of imported inputs and affect profitability.
The Companys operations are also exposed to geopolitical developments and global uncertainties, which may disrupt supply chains, increase input costs and impact demand conditions across markets.
Structural changes in the distribution landscape, including consolidation of dealer networks and increasing influence of digital and online channels, may impact traditional distribution models and profitability.
Segment-wise performance
During the year, the Company continued its focus on strengthening its premium product portfolio, expanding its distribution network and investing in brand building and research and development. These efforts were complemented by steady progress in its transformation initiatives, which remained aligned with the Companys strategic roadmap and focused on driving operational efficiency, improving product mix and unlocking long-term value.
As part of its brand-building efforts, the Company launched the "Har Safar Mein Dum Hai" campaign, which reinforced its positioning around performance, resilience and trust. The campaign was rolled out across multiple platforms and markets, strengthening brand connect with consumers and enhancing overall brand equity.
India
The fiscal saw the continued push of bettering the product mix, aimed at catering to evolving customer preferences and positioning the Vredestein brand as a premium and luxury choice for consumers. Significant investments were made in brand building, network expansion, and enhancing the overall customer experience.
Passenger Car Radial Tyres
The Passenger Car Radial (PCR) segment continued to deliver strong growth during FY26, supported by robust demand in both replacement and OEM channels. The Company maintained its leadership position in the replacement market, registering healthy volume growth during the year, while also strengthening its presence across premium and emerging vehicle segments. During the year, Apollo Tyres further strengthened its premium portfolio with the launch of the Aspire 5 range in the Ultra High-Performance segment, catering to the fast-growing premium and luxury car market in India. The Companys flagship Amazer 4G Life continued to be enhanced to deliver improved comfort and fuel efficiency, premium segment.
The Company continues to offer a comprehensive product portfolio across rim sizes, vehicle categories and evolving platforms, including electric vehicles. This wide coverage enables Apollo Tyres to effectively address diverse consumer requirements across price points and applications.
Apollo Tyres further strengthened its OEM presence during the year, expanding fitments across leading automotive manufacturers. Key developments include fitments on models from MG, VinFast and BMW, including the BMW 2 Series, marking a significant milestone as one of the first such fitments by an Indian tyre manufacturer in the premium segment. The Companys dual-brand strategy continues to gain traction, with Vredestein further consolidating its position as a premium and luxury tyre brand in India. The portfolio has expanded significantly, offering a wide range of products across premium hatchbacks, sedans and luxury SUVs, supported by increasing acceptance among discerning consumers in urban markets.
Vredestein also strengthened its presence in the luxury OEM segment, with fitments on models such as BMW X3 and Mercedes E-Class. These partnerships reinforce the brands positioning in the premium segment and reflect its ability to meet the stringent performance and quality requirements of global automotive manufacturers.
Overall, the PCR segment performance was supported by a continued focus on premiumisation, portfolio expansion and strengthening of OEM partnerships, enabling the Company to enhance its competitive position across both mass premium and luxury segments.
Commercial Vehicles tyres
The Commercial Vehicle (CV) segment comprising Medium and Heavy Commercial Vehicles (M&HCV) and Light Commercial Vehicles (LCV) delivered a resilient performance during FY26, supported by steady demand in replacement markets and improving momentum across key application segments. The Company continued to strengthen its competitive position through a focused approach on product performance and deeper market penetration.
In the M&HCV segment, the Company delivered steady growth, with strong performance in the Truck Bus Radial (TBR) category, supported by sustained demand across long-haul, regional and mixed-use applications. The shift towards radialisation continued, while bias demand remained relatively stable despite broader industry softness. Growth was further supported by improved traction in the coach segment, driven by increased mobility and tourism activity.
The Company continued to enhance its product portfolio through technology-led improvements and next-generation offerings, strengthening its value proposition across applications. In the LCV segment, the Company delivered strong outperformance compared to industry growth, driven by robust demand across last-mile connectivity, e-commerce and infrastructure-linked applications. The radial portfolio witnessed significant growth, supported by increasing adoption across segments, while the bias segment remained stable.
The Company continued to benefit from structural trends such as premiumisation and increasing adoption of higher rim sizes across LCV categories. Focused portfolio upgrades, supported by strong warranty offerings and product reliability, contributed to enhanced customer acceptance and growth in this segment.
The Company further strengthened its presence in specialised and high-performance segments through targeted product development and OEM collaborations. This includes expanding its footprint in long wheelbase haulage applications through advanced front-fitment solutions, development of indigenised products aligned with defence requirements under the Government of Indias Atmanirbhar Bharat initiative and introduction of EV-specific tyre patterns designed to meet evolving performance requirements of electric commercial vehicles. These initiatives reflect the Companys focus on addressing emerging mobility trends and strengthening its position in high-value and future-ready segments.
Off-highway Tyres and Industrial Tyres
The Off-highway Tyres (OHT) segment comprising Farm and Industrial categories delivered a stable performance during FY26, supported by focused portfolio expansion, premiumisation, impact of GST and improved demand capture across applications. Growth was primarily driven by the Farm segment, while the Industrial segment demonstrated resilience despite a relatively subdued industry environment during the first half of the year. In the Farm segment, the Company delivered strong growth in the domestic replacement market, supported by a recovery in demand during the second half of the fiscal. Improved rural fundamentals, including favourable monsoons, higher farm incomes and policy support such as reduction in GST on tractor tyres, contributed to increased tractor utilisation and demand.
The Company continued to strengthen its product portfolio with expansion of the VIRAT range across key applications, including Compact, Row Crop and Front tyre segments. The introduction of advanced offerings such as steel breaker tyres in the Tractor Rear segment enhanced durability, puncture resistance and load-bearing capabilities, addressing critical customer requirements in demanding farming conditions.
The Company also expanded its presence in application-specific segments such as puddling through product extensions, enabling deeper penetration in region-specific agricultural markets. Tractor Rear tyres continued to be a key driver of value within the category.
In the Industrial segment, the Company delivered steady growth, supported by focused expansion in application-specific and premium product offerings. Key developments during the year included introduction of products such as the 16.00–25 Terra MT tyre for mining and dump truck applications, designed to offer enhanced durability and performance in demanding operating environments.
The Company further strengthened its presence in the grader segment through premium high NSD tyres such as Terra G3, enhancing performance and lifecycle value for customers.
Two-wheelers
The Company continued to strengthen its presence in the two-wheeler segment during FY26, delivering strong growth supported by focused portfolio expansion and increasing traction in premium categories. Growth was driven by continued momentum in the scooter segment and steady expansion across motorcycle categories, supported by improved distribution and targeted market interventions. The Company maintained its focus on premiumisation through its dual-brand strategy, with Apollo Tyres and Vredestein catering to distinct segments within the market. The Apollo Tyres brand continued to strengthen its position in the premium and mid-premium segments, while Vredestein further expanded its presence in the ultra-high-performance category, particularly in the 400cc+ motorcycle segment.
The Company further strengthened its OEM partnerships in the premium motorcycle segment, with continued fitments across leading brands, reinforcing its capabilities in delivering high-performance and technology-driven tyre solutions.
Brand Building
During FY26, Apollo Tyres continued to strengthen its brand presence in India through a focused and integrated approach across mass media, digital platforms and on-ground activations. The Companys brand initiatives were aligned to drive awareness, deepen consumer engagement and support premiumisation across both Apollo Tyres and Vredestein brands. The Company further strengthened its sports marketing strategy during the year through its partnership with the Board of Control for Cricket in India (BCCI), becoming the official jersey partner for Team India. This marked a significant milestone in expanding its presence from global sporting associations such as Manchester United F.C. to one of the most widely followed sporting platforms in India.
The partnership generated strong momentum, further amplified by the
"Har Safar Mein Dum Hai" campaign launched around the ICC T20 World Cup. Featuring leading cricket icons such as Sachin Tendulkar, Virat Kohli, Rohit Sharma, KL Rahul, Shubman Gill and Arshdeep Singh, the campaign reinforced the brands positioning around performance, resilience and trust. The campaign witnessed strong visibility across television, digital and social platforms, enhancing brand recall and consumer connect across key markets. High visibility across matches, including prominent presence on team jerseys, significantly enhanced brand recall among audiences in India and across the global cricket-following countries and Indian diaspora. Within the country, the efforts were complemented by dealer-led programmes, digital activations and consumer outreach initiatives aimed at strengthening last-mile influence and conversion. In addition to mass media campaigns, the Company continued to invest in on-ground activations and trade engagement programmes across urban and rural markets. These initiatives included participation in key industry events, dealer engagement programmes and targeted consumer outreach activities, enabling deeper market penetration and stronger brand advocacy across the distribution network.
For the Vredestein brand, the focus remained on strengthening its premium positioning through targeted experiential and digital initiatives. Global partnerships, including association with Manchester United Football Club, were leveraged to enhance brand salience among premium consumers, supported by curated experiences and digital amplification across key geographies.
Overall, the Companys brand-building efforts during the year were focused on creating a strong and differentiated brand identity, driving consumer preference and supporting business growth across segments.
Europe
During the year, the Companys operations in Europe were shaped by a mixed market environment, with modest recovery in passenger vehicle demand and continued softness in the commercial segment. Against this backdrop, Apollo Tyres strengthened its premium positioning through targeted portfolio expansion, product innovation and sustained brand investments. The Vredestein brand continued to gain traction across key segments, supported by growth in higher-value categories such as Ultra High Performance (UHP) and Ultra-Ultra High Performance (UUHP), along with continued OEM engagements and recognition in independent tyre tests. However, the business faced operational challenges during the year, including supply chain constraints that impacted its ability to fully capitalise on market opportunities. The announced closure of the Enschede manufacturing facility was a major development for the operations leading to need for significant transition planning. In response, the Company focused on strengthening supply chain resilience, optimising its manufacturing footprint and enhancing operational efficiency to support recovery of market share and long-term growth in the region.
Passenger Car Radial Tyres
In the European Passenger Car Tyre (PCT) segment, the Company continued to strengthen its positioning despite a subdued replacement market environment, supported by a focused portfolio strategy and improved product mix across both Vredestein and Apollo Tyres brands.
The Vredestein brand delivered robust performance across key segments, supported by targeted portfolio enhancements and strong demand in seasonal categories such as summer and winter tyres. Growth was further driven by specialised segments including all-season, EV, all-terrain and light truck applications. The Company continued to enhance its presence in higher-value segments, particularly Ultra High Performance (UHP) and Ultra-Ultra High Performance (UUHP) categories, supported by effective price, mix and volume management.
The brands strong product credentials were reinforced through multiple recognitions in independent tyre tests and industry platforms. In addition, the Company strengthened its original equipment (OE) presence in Europe, further endorsing its premium positioning and product performance. During the year, the Company expanded its product portfolio through targeted size additions and new product introductions. Under the Vredestein brand, key launches included Ultrac Pro and Ultrac+, along with expansion in the summer van segment through Comtrac 2+. These initiatives enhanced market coverage and strengthened relevance at the point of sale.
The Apollo Tyres brand also continued to strengthen its presence in the European PCT segment, driven by portfolio expansion and focused product development. The launch of the Aspire 5 summer tyre for premium vehicles, along with multiple size extensions, supported improved competitiveness and growth across key markets.
Apollos PCT and light truck ranges delivered steady performance in the replacement market, particularly in the all-season and summer segments. Growth in the premium UHP and UUHP categories reflects continued customer confidence in the brands product offerings and positioning.
Brand Building
The Company continued to strengthen its brand visibility and consumer engagement across Europe through a combination of strategic partnerships, targeted marketing initiatives and product-led advocacy.
Under the Vredestein brand, the Company maintained a strong presence across high-visibility platforms and events, connecting with diverse consumer segments. Key partnerships included associations with Manchester United F.C., the Mille Miglia, the FIS Ski World Cup and the 20 km of Paris, along with participation in leading automotive and heritage events such as the ADAC Classic Rally and Ennstal Classic. These associations enabled the brand to engage with performance-oriented and lifestyle-driven audiences across key markets.
Digital engagement remained a key focus area, with targeted social media campaigns executed across priority markets during the year, significantly enhancing brand visibility at the retail level and supporting awareness-led objectives.
The Company also strengthened customer and stakeholder engagement through experiential initiatives. During the year, it hosted a pan-EMEA customer event in the Netherlands, offering hands-on exposure across product categories through on-road and off-road demonstrations. In addition, the launch of the Vredestein Quatrac Pro 2 provided early engagement with B2B customers, media and influencers, supporting product awareness and advocacy ahead of market rollout.
Influencer collaborations continued to play a role in amplifying brand visibility, enabling authentic storytelling and deeper engagement with target consumer segments.
Apollo Tyres further strengthened its presence in the commercial segment through participation in Solutrans, providing a platform to showcase its truck and bus tyre portfolio and engage with fleet operators and industry stakeholders across the region.
The Companys product performance continued to receive strong external validation, with multiple Vredestein products achieving leading rankings in independent tyre tests conducted by prominent automotive publications across Europe. These recognitions reinforce the brands positioning in the premium and high-performance segments and support consumer confidence in its offerings.
Americas
The North American tyre market exhibited mixed trends during the year, with growth concentrated in select segments. The medium truck replacement segment emerged as the strongest-performing category, while original equipment (OE) demand in the truck and bus segment remained under pressure.
In the passenger car and light truck (PCLT) segment, the all-weather category continued to gain traction, driven by increasing consumer preference for year-round usability and convenience. In addition, the market continued to shift towards larger rim-size tyres, reflecting ongoing premiumisation and driving demand for higher-value and technologically advanced products.
Against this backdrop, the Company continued to strengthen its market presence through a combination of brand building and go-to-market expansion. The "Demand a Better Tire" campaign remained a key pillar of its strategy in North America, supporting brand visibility, improving consumer recall and reinforcing the premium positioning of the Vredestein brand in the United States.
The Company also expanded its distribution footprint during the year, adding over 250 associate dealers across the United States and Canada. This expansion, built on the existing direct dealer network, enhanced market reach, improved product availability and supported deeper penetration across key regions.
Outlook
The global economic outlook for CY26 remains moderately stable, though subject to evolving macroeconomic and geopolitical developments. Global growth is expected to remain in the range of ~3.2%–3.3%, supported by resilience in services and gradual stabilisation in inflation across major economies. Advanced economies are expected to witness modest growth, while emerging markets continue to drive global expansion, albeit at a moderated pace.
However, the outlook continues to be influenced by external factors, including trade policy shifts, energy price volatility and geopolitical developments across key regions. These factors may impact supply chains, inflation trajectories and overall demand conditions across markets.
In this environment, Apollo Tyres remains focused on driving sustainable and profitable growth through disciplined capital allocation, cost optimisation and continued investments in product innovation, brand building and operational efficiency The Company will continue to strengthen its balance sheet and maintain a strong focus on return on capital employed (RoCE), while remaining agile in responding to evolving market conditions.
Risks and Concerns
The Company has in place a robust risk management framework designed to identify, assess and mitigate risks and opportunities across its operations. The framework enables timely identification of risks, structured evaluation and implementation of mitigation plans to safeguard stakeholder interests, support achievement of business objectives and enable sustainable growth. The risk management processes focus on proactive identification of risks, prioritisation based on impact and likelihood, and continuous monitoring of mitigation actions. The framework also facilitates assessment of risk appetite and provides early warning mechanisms where thresholds are approached. The Companys Risk Management Policy is aligned with the requirements of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and clearly defines the risk management approach, governance structure, roles and responsibilities.
1. Financial and Market Risks
The Companys performance is influenced by macroeconomic conditions across geographies. Any slowdown in key international markets, particularly in Europe and North America, may impact demand and exports. In addition, the tyre industry remains closely linked to economic activity, making it sensitive to cyclical fluctuations.
Raw material price volatility continues to be a significant risk, with natural rubber prices subject to agricultural factors and other key inputs influenced by movements in crude oil prices. These factors may impact cost structures and profitability.
The Company is also exposed to foreign exchange volatility, given its global operations and dependence on imported raw materials and export markets. Adverse currency movements may impact margins and earnings.
2. Operational and Supply Chain Risks
Supply chain risks remain a critical area of focus in an increasingly interconnected global environment. Factors such as geopolitical developments, disruptions to global logistics, climate-related events and rising input costs may impact supply continuity and increase transportation costs.
The industry also faces intense competition from both global and domestic players, requiring continuous innovation, product differentiation and cost competitiveness to sustain market position.
Cybersecurity risks continue to increase, with growing threats from cyberattacks including ransomware and phishing attempts, which may impact business continuity and data security.
3. Regulatory and Strategic Risks
The Company operates in a dynamic regulatory environment, with evolving norms related to sustainability, emissions and safety. In addition, rapid shifts in market trends, including increasing adoption of electric vehicles, require continuous adaptation in product development and business strategy.
4. Human Resource Risks
The Companys operations are dependent on availability of skilled manpower. Challenges related to talent retention, labour availability and potential labour disruptions may impact manufacturing operations and productivity.
Internal controls and systems
The Company considers internal controls as one of the key pillars of governance, enabling management to operate within a framework of appropriate checks and balances. Apollo Tyres has a robust internal control framework, designed considering the nature, size and complexity of its operations and associated business risks. The framework comprises a well-defined organisation structure, clearly articulated roles and responsibilities, documented policies and procedures, financial delegation of authority, ERP controls and a code of conduct. IT policies and processes further support mitigation of business risks. These are complemented by a management information and monitoring system that ensures compliance with internal processes as well as applicable laws and regulations.
The internal control environment ensures adherence to policies and procedures, compliance with laws and regulations, efficient conduct of operations, safeguarding of assets, prevention and detection of frauds and errors, timely remediation of deficiencies and accuracy and completeness of accounting records along with timely preparation of reliable financial information. The Company uses SAP as its core enterprise resource planning system. ERP controls are periodically evaluated and systems and processes are continuously strengthened through adoption of best practices, automation and advanced technology tools. The Company maintains a strong culture of internal controls wherein operating management is responsible not only for revenue and profitability but also for maintaining financial and commercial discipline.
The Company has a well-established, independent and objective in-house Internal Audit function that provides reasonable assurance on compliance with operating systems, internal policies and legal requirements while also recommending improvements to systems and processes. The Internal
Audit function monitors and evaluates the adequacy and effectiveness of internal control systems and reports operational deficiencies and key risks to management and the Audit Committee.
Key internal financial controls have been identified and documented for critical processes across plants, warehouses and offices where financial transactions are undertaken. These controls are evaluated for operating effectiveness through ongoing management review as well as independent assessment by Internal Audit.
The Head of Internal Audit reports functionally to the Audit Committee and administratively to the Chairman. Key audit findings are presented to the Audit Committee on a quarterly basis. Senior management continued to set a strong tone at the top with zero tolerance for non-compliance while promoting a culture of accountability, continuous improvement and sound governance practices.
Sustainability
Apollo Tyres continues to position sustainability as a core strategic pillar of its business, embedding Environmental, Social and Governance (ESG) principles into its long-term growth strategy. The Companys Sustainability Management Framework integrates ESG priorities with the United Nations Sustainable Development Goals (SDGs) and digitalisation initiatives, enabling a holistic and future-focused approach to responsible growth. Aligned with ISO 26000 standards, the Company has established a comprehensive sustainability governance model to drive consistent implementation across its operations and value chain.
The Company remains committed to long-term sustainability, with a clear ambition to achieve net-zero greenhouse gas emissions across its value chain by FY50.
Apollo Tyres 16-point ESG framework provides a structured approach to managing and monitoring sustainability performance. The Environmental pillar focuses on climate, energy, water, waste, product stewardship and sustainable material sourcing. The Social pillar addresses people engagement, human rights, diversity, equity and inclusion, community development, health and safety and supply chain engagement. The Governance pillar covers strategy, policy, benchmarking, training, certification and auditing.
During FY26, the Company strengthened the integration of sustainability across its operations. A key milestone was the validation of its emission reduction targets by the Science Based Targets initiative (SBTi), reinforcing alignment with globally recognised climate benchmarks. The Company has defined clear near-term targets, including a 58.8% reduction in Scope 1 and Scope 2 emissions and a 37.5% reduction in key Scope 3 categories by FY35, demonstrating its commitment to measurable climate action.
Progress during FY26 reflects continued focus on key ESG priorities:
A reduction of 38.83% in scope 1 emission intensity was achieved in FY26, relative to the baseline year of FY20.
A reduction of 52.70% in the scope 2 emission intensity was achieved in FY26 as compared to baseline year FY20.
Improvement of 30.79% in the water withdrawal intensity was achieved in FY26 as compared to FY19.
Achieved 38.26% sustainable raw material input, incorporating both renewable and recycled materials in FY26, moving toward the 40% target by FY30.
Achieved 43.97% renewable electricity share in total electricity in FY26.
Zero Liquid Discharge certification achieved at plants in Tamil Nadu and Andhra Pradesh, in line with applicable regulatory requirements. These achievements reflect the Companys continued efforts to integrate sustainability into its operations while strengthening long-term business resilience.
For further information on the Companys FY26 progress against its sustainability targets and its FY30 targets, please refer to the FY26 Sustainability Report.
Governance
Apollo Tyres adopts ISO 26000:2010 as a guiding framework for social responsibility and aligns its disclosures with globally recognised reporting standards such as the Global Reporting Initiative (GRI).
The Companys sustainability agenda is overseen by a dedicated Sustainability Council, comprising senior leadership members who report to the Board and are supported by their respective management teams. This governance structure ensures strong accountability, strategic oversight and effective implementation of sustainability initiatives. The Council meets on a quarterly basis to review progress and guide key priorities.
The Companys sustainability approach through FY30 is anchored around six strategic focus areas, each supported . by cross-functional working groups to drive execution across the organisation:
Sustainable Governance
Combating Climate Change
Embracing Circular Economy
Building a Responsible Value Chain
Fostering a People-Centric Approach
Engaging with Communities This approach enables the Company to integrate sustainability considerations into core business functions while driving measurable outcomes across its ESG priorities.
Materiality
Apollo Tyres undertakes a comprehensive Double Materiality Assessment (DMA) every three to five years, with the most recent assessment completed in FY24. In addition, the Company conducts annual validations of its material topics to ensure continued alignment with its evolving business environment and sustainability priorities.
During FY26, this validation process, supported by stakeholder engagement, internal assessments and risk evaluation procedures, reaffirmed the relevance of the 18 material topics identified in the previous assessment.
This structured approach enables the Company to maintain a focused and responsive materiality framework, aligned with:
Evolving stakeholder expectations
Regulatory developments
Emerging sustainability risks
Strategic business priorities In line with the European Unions Corporate Sustainability Reporting Directive (CSRD), the Company continues to strengthen ESG integration across its operations and value chain, supported by ongoing monitoring through its risk management framework.
ESG Rating Performance
Apollo Tyres continued to strengthen its sustainability credentials through improved performance across leading global ESG rating platforms. During the year, the Company achieved an A- Leadership rating from the CDP in both Climate Change and Water Security, reflecting the strength of its governance framework and climate risk management practices.
The Company also improved its EcoVadis score to 84 (98th percentile), earning a Gold Medal, highlighting its continued focus on responsible business practices and sustainability excellence. This improvement reflects sustained efforts across operations, including engagement with employees, suppliers and business partners.
Apollo Tyres continues to benchmark its ESG performance against global industry peers, reinforcing its commitment to transparency, accountability and continuous improvement.
Environment
Apollo Tyres adopts a structured and proactive approach towards environmental stewardship, integrating sustainability considerations across its operations and value chain.
The Company remains focused on:
Optimising energy consumption
Conserving water and natural resources
Reducing greenhouse gas emissions
Managing waste responsibly
Advancing circularity initiatives
Ensuring compliance with environmental regulations During the year, the Company further strengthened its approach to nature-related risk management by aligning with the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD), enhancing its ability to identify, assess and manage nature-related risks and opportunities. A dedicated cross-functional Environment Committee continues to play a critical role in driving environmental priorities, implementing mitigation strategies and supporting the transition towards climate-resilient operations.
Energy Performance and Emissions Reduction
Apollo Tyres continues to advance its decarbonisation strategy across Scope 1, Scope 2 and Scope 3 emissions, with a focus on improving operational efficiency, increasing renewable energy adoption and strengthening sustainable supply chain practices. The Companys efforts are aligned with its Science Based Targets initiative (SBTi) commitments and supported by its engagement with the World Business Council for Sustainable Development (WBCSD) through the Global Platform for Natural Rubber, with a focus on sustainability across supply chains, operations and products.
Scope 1 and Scope 2 Emissions
During FY26, the Company has achieved a 38.83% reduction in Scope 1 emissions intensity and a 52.70% reduction in Scope 2 emissions intensity compared to the FY20 baseline year. This was driven by the adoption of biofuels, increased use of renewable energy sources such as solar and wind, and implementation of energy efficiency initiatives across operations.
Scope 3 Emissions
Apollo Tyres continues to strengthen emissions management across its value chain through enhanced supplier engagement and responsible sourcing practices.
Through the EcoVadis platform, the Company has assessed over 130 suppliers across key ESG parameters, including Environment, Labour and Human Rights, Ethics and Sustainable Procurement. In addition, the Company renewed its ISO 20400 certification, reinforcing its commitment to sustainable procurement and circularity.
The Company has also committed to reducing Scope 3 emissions across key categories, including purchased goods and services, logistics, waste, business travel, employee commuting, leased assets and end-of-life product management.
Social
Apollo Tyres remains committed to creating long-term social value through responsible stakeholder engagement, diversity and inclusion, and community development initiatives. The Company engages with key stakeholders to understand their expectations, mitigate risks and build sustainable relationships that support long-term resilience. This approach is guided by a Board-approved Stakeholder Engagement Policy, which enables structured interaction with key stakeholder groups, including employees, customers, suppliers, communities, NGOs, government bodies and investors.
Diversity, Equity and Inclusion (DE&I)
The Company continues to make progress towards its gender diversity goals and achieved its FY26 target of 12% women in its permanent employees. Focused initiatives are being undertaken to strengthen enabling infrastructure and policy frameworks, aimed at increasing participation of women across functions, including frontline sales and manufacturing roles.
Human Rights and Employee Well-being
Apollo Tyres is committed to upholding human rights and ensuring fair and respectful treatment of all individuals. This commitment is embedded in the Companys Code of Conduct and Human Rights Policy.
The Company maintains a comprehensive policy framework covering equal opportunity, prevention of sexual harassment, diversity and inclusion, grievance redressal and employee welfare, aligned with applicable laws and global best practices.
Communities
Apollo Tyres remains committed to creating long-term social value through its Corporate Social Responsibility (CSR) initiatives across India and Europe, aligned with national priorities and the United Nations Sustainable Development Goals (SDGs). During FY26, the Companys CSR programmes positively impacted
1.69 million beneficiaries, taking the cumulative reach since 2013 to nearly 15 million individuals.
CSR in India
In India, CSR programmes are implemented through the Apollo Tyres Foundation (ATF) and the Taru Foundation, focusing on four key thematic areas:
Healthcare for the Trucking Community
Environment Conservation
Livelihood Opportunities for Rural Women
Local Community Development
Healthcare for the Trucking Community
Apollo Tyres continues to operate one of its flagship CSR programmes focused on the health and well-being of the trucking community.
During FY26:
The healthcare network expanded to 35 centres across 21 states
Over 1.4 million beneficiaries were reached The programme provides preventive and primary healthcare services, including awareness on communicable and non-communicable diseases, vision care and general medical support. FY26 also marked 25 years of this initiative, which has evolved into a comprehensive healthcare ecosystem supported by 1,150 peer educators across transport hubs. The Company further enhanced accessibility through the pilot launch of the Swasth Saarthi mobile application, enabling teleconsultation and access to nearby healthcare services.
Environment Conservation
Apollo Tyres continues to implement environmental initiatives across biodiversity, water conservation and waste management, benefiting over 230,000 individuals.
Key initiatives include:
Biodiversity Conservation
Restoration of mangrove ecosystems and plantation of over 120,000 saplings across key geographies
Watershed Management Restoration of water bodies and installation of RO plants, improving access to potable water
Waste Management and Sanitation Collection of 374 metric tonnes of waste, construction of sanitation facilities and maintenance of ELT-based community infrastructure Construction of 254 toilets benefiting over 1,000 individuals
Livelihood for Rural Women – Navya Programme
The Company continues to empower rural women through the Navya programme, focused on financial inclusion and entrepreneurship.
During FY26:
1,717 women were engaged
1,298 women initiated income-generating activities
3,995 women were given income-generation training
5,774 women were linked to government schemes, unlocking benefits worth _7.4 crores The programme also introduced digital market linkages through partnerships, enhancing access to broader markets and income opportunities.
Local Community Initiatives
The Company undertakes local development initiatives around its manufacturing locations, including infrastructure support, healthcare initiatives and digital literacy programmes.
During FY26, these initiatives benefited over 3,700 individuals.
CSR in Europe
In Europe, the Companys CSR initiatives focus on environmental sustainability and local community engagement.
Netherlands
Plantation initiatives under the Trees for All programme
Employee-led environmental clean-up drives
Internship programmes and Toy Bank initiatives supporting underserved communities
Hungary
Biodiversity initiatives including development of ecological zones and water conservation projects
Employee participation in national environmental campaigns
Community engagement through donation drives and blood donation initiatives
Information Technology and Digital Transformation
Apollo Tyres Information Technology and Digital function continues to play a pivotal role in enabling enterprise-wide transformation, driving operational excellence and supporting the Companys global growth ambitions. During FY26, the function focused on scaling digital platforms, embedding artificial intelligence across business processes, strengthening customer-centric capabilities and enhancing enterprise applications. With a strong emphasis on in-house innovation, data-driven decision-making and agile execution, the function has evolved from a deployment-led approach to one centred on value realisation and measurable business impact.
The Company is currently undertaking one of the largest technology transformation programmes in its history, aimed at re-engineering core business processes across customer relationship management, order-to-cash, procure-to-pay, hire-to-retire, supply chain management and record-to-report. This transformation includes the implementation of modern enterprise platforms such as SAP S/4HANA, SuccessFactors, Salesforce and o9 Solutions, enabling standardisation of processes, establishment of common data standards and readiness for AI-led automation.
Digital Manufacturing and Execution
The Advanced Manufacturing Execution System (AMES), a cloud-based Manufacturing Execution System developed in-house, continues to be a cornerstone of Apollo Tyres digital manufacturing strategy. It provides real-time operational visibility, end-to-end traceability, and seamless integration with enterprise and shop-floor systems.
The rollout of AMES has been completed across all major manufacturing plants. The programme has transitioned from deployment to a value realisation phase, delivering improvements in productivity, quality governance and operational discipline. A key milestone achieved during the year is 100% tyre-level barcode traceability across multiple product categories, positioning Apollo Tyres among the first in the Indian industry to implement end-to-end traceability across both radial and bias tyre segments. This capability enhances quality assurance, compliance readiness and warranty management, while enabling future smart manufacturing initiatives.
Artificial Intelligence and Digital Innovation
The Company made significant progress in scaling artificial intelligence across enterprise functions through the establishment of a dedicated AI Innovation Unit. This unit is focused on developing a sovereign AI layer integrated within the Companys digital architecture, enabling deployment of AI-driven solutions across business functions. Several AI and ML platform concepts incubated during FY26 are set to progress into product development in FY27. Key focus areas include AI assistants for simulation and strategic planning, powered by Generative AI and Agentic AI, enabling smarter and faster enterprise decision-making. The Digital Innovation Hub (DIH) continued to drive large-scale AI adoption, successfully scaling multiple AI-led use cases across manufacturing, supply chain and R&D functions. These initiatives have delivered tangible business outcomes, including improvements in productivity, energy efficiency, yield optimisation and decision-making speed. Some these include Over _1 crore savings in power bidding within three months at the Andhra Pradesh plant and over 90% reduction in root cause analysis time, significantly improving decision velocity The Company has also advanced the adoption of next-generation technologies, including predictive and generative AI, digital twins, AIoT, and immersive technologies such as AR/ VR. A structured governance model has been established to accelerate execution and enable scalable deployment of AI solutions across the organisation.
During the year, DIH received several prestigious industry recognitions, including the AWS AI Award 2025, AI/ ML Market Disruptor 2025, Apollo ANexx Momentum Maker 2026, Excellence in New Age Technology, and ATQM India League 2026.
Customer-Centric Digital Platforms
Apollo Tyres continues to strengthen its customer-first approach through digital platforms designed to enhance customer engagement and service delivery. Key initiatives during the year include expansion of digital touchpoints, enhancement of complaint resolution through AI-enabled systems, and progress towards an integrated end-to-end customer relationship management ecosystem. The Company scaled its B2B digital platform across India and Europe, onboarding a large network of dealers and partners, while also introducing capabilities such as warranty registration for sub-dealers and last-mile shipment tracking.
The rollout of the Sales Force Automation platform has further strengthened customer engagement by enabling structured interactions and improving service efficiency. These initiatives have enhanced partner experience, improved operational transparency, and strengthened the Companys digital ecosystem.
Supply Chain and Enterprise Applications
Apollo Tyres continues to enhance its enterprise applications to drive efficiency and strengthen supply chain performance.
The Apollo Transport Operations Management (ATOM 2.0) platform, co-developed with internal teams, has improved transportation planning, delivery reliability, and cost optimisation. The platform has delivered measurable improvements in On-Time In-Full (OTIF) performance and logistics efficiency, with global rollout progressing across manufacturing plants and distribution centres.
In parallel, the Company has partnered with o9 Solutions and Deloitte to transform its enterprise-wide planning capabilities through the ‘Edgility – Intelligence in Action programme. This initiative aims to establish a unified, data-driven planning platform integrating demand, supply, inventory, and scenario planning. The transformation is expected to enhance forecast accuracy, improve decision-making speed, and strengthen responsiveness to market dynamics, thereby enabling a more agile and resilient supply chain.
HSE Governance and Management Framework
Apollo Tyres follows a structured and systematic approach to HSE management across all manufacturing locations and offices. The governance framework includes strong oversight by senior leadership, supported by site-level HSE Apex Committees, corporate sub-committees, and business steering committees.
Clearly defined roles, responsibilities, and accountability mechanisms ensure effective implementation, while regular reviews form an integral part of operational and management processes.
The Companys operations are aligned with internationally recognised standards, including:
ISO 45001: Occupational Health and Safety Management System
ISO 14001: Environmental Management System These systems enable a risk-based, data-driven, and continuous improvement approach to HSE performance.
Strengthening Safety Culture
During FY26, the Company launched
Apollo Safe Way 2.0 as a global initiative aimed at accelerating safety culture transformation. This initiative is being implemented in collaboration with dss+, with external benchmarking support from the British Safety Council.
As part of this transformation journey, the Company undertook significant enhancements to its Occupational Health and Safety systems, including revisions to key processes such as Incident Management, Hazard Identification and Risk Assessment (HIRA), and Safety Interaction. In addition, critical risk standards covering permit-to-work systems, electrical safety, contractor safety, and material handling were implemented across manufacturing locations to strengthen operational safety. These initiatives are aligned with advancing safety culture maturity and embedding a proactive safety mindset across the organisation.
Recognition and External Benchmarking
During the year, the Chennai and Limda plants achieved a Five-Star rating in the British Safety Council audit and were awarded the prestigious Sword of Honour in London. This recognition reflects the Companys commitment to global safety standards and continuous improvement in HSE performance.
Employee Engagement and Safety Initiatives
The Company continues to drive strong employee engagement in safety through various initiatives across manufacturing locations. Activities such as National Safety Week celebrations, safety awareness programmes, and shop-floor engagement initiatives have contributed to strengthening a culture of safety ownership and accountability.
Key Performance Indicators
The Company continues to track and strengthen its HSE performance through defined key metrics:
Lost Time Injury Frequency Rate (LTIFR) stood at 0.74 during FY26, decreased compared to the previous year
Over 30,000 safety interactions were conducted by internal safety champions
More than 1,090 HSE Gemba walks were undertaken by senior leadership
Over 128,000 training manhours were recorded across locations
More than 70,000 unsafe conditions were identified and addressed These metrics reflect the Companys continued focus on proactive risk identification, prevention, and continuous improvement in workplace safety.
Risk Management and Incident Prevention
The Company follows a robust Hazard Identification and Risk Assessment (HIRA) framework aligned with ISO 45001 standards. This enables systematic identification, prioritisation, and mitigation of risks across operations. The HIRA framework remains dynamic, incorporating learnings from incidents, process changes, and operational improvements.
A structured Incident Management system is in place across manufacturing units, ensuring timely investigation and root cause analysis using globally recognised methodologies such as the 8D approach. Learnings from incidents are systematically shared across locations to prevent recurrence and minimise operational risks.
Training and Capability Building
Apollo Tyres places strong emphasis on HSE training as a critical enabler of workplace safety. Training programmes are aligned with employee roles and responsibilities, beginning with comprehensive HSE induction and extending to specialised modules such as hazard identification, job safety analysis, electrical safety, emergency response, lockout-tagout procedures, material handling, and chemical safety.
These initiatives ensure that employees are equipped with the necessary knowledge and skills to identify risks and perform their roles safely, contributing to a safe and resilient work environment.
Development in human resources and industrial relations
Apollo Tyres continues to place strong emphasis on its people, recognising them as a key driver of sustained growth and organisational success. During FY26, the Company further strengthened its human capital practices, with a focused approach towards employee engagement, capability building, leadership development and fostering an inclusive and high-performance culture aligned with its long-term strategic priorities. This people-centric approach is anchored in the Companys belief that every individual journey contributes to collective success, reflecting its core ethos of "Har Safar Mein Dum Hai.
Strategic Recognition and Employee Engagement
During the year, the Company achieved significant milestones in external recognition of its people practices. Apollo Tyres was certified as a Top Employer by the Top Employers Institute, a globally recognised authority on excellence in human resource practices. India secured this certification for the first time, while the United Kingdom, the Netherlands, and Hungary continued to retain their certifications for multiple consecutive years.
The Company also received a Gold award at the Brandon Hall HCM Excellence Awards 2025 for advancements in Rewards and Recognition Technology. This recognition highlights the continued evolution of the Apollo Recognition Hub (ARH), a unified digital platform enabling real-time, peer-to-peer recognition across geographies. Anchored in our values of "Following Passion," "One Family," and "Taking Responsibility," the ARH has recorded over 27,000 recognition moments, with an employee being recognized every 15 minutes.
Apollo Tyres continues to strengthen its holistic Rewards and Recognition framework, integrating compensation, benefits, career development and recognition into a cohesive and globally consistent philosophy. The framework emphasises meritocracy and differentiation of high performance, while reinforcing a culture of appreciation across the organisation. Employees actively acknowledge contributions through badges, appreciation messages and milestone celebrations, fostering a culture where recognition is embedded in day-to-day work practices. The ARH platform has seen strong adoption, with a significant number of recognition interactions recorded during the year. During the year, close to 12,500 recognition badges were exchanged, with over 1,200 employees recognizing more than 2,600 colleagues, reflecting strong participation and a culture of appreciation.
The Companys global recognition programs celebrate diverse aspects of employee contributions across performance, tenure, appreciation and key milestones. Flagship initiatives such as Roll of Honour, Chairmans Employee of the Year, Apollo Pillars, and Recognition Badges reinforce a culture of appreciation, while curated experiences and recognition platforms enhance employee motivation and pride.
Employee Engagement and Voice
The Company continued to strengthen its employee listening framework through the Apollo Voice survey.
In FY26, the survey recorded a participation rate of 95%, reflecting strong employee engagement and trust in organisational processes.
The engagement scores demonstrated continued improvement, aligning with global manufacturing benchmarks and exceeding industry standards. Employees reported strong alignment with organisational objectives, a deep sense of pride in the Company and a strong connection with the ‘One Apollo philosophy.
Insights from the survey continue to support the company with targeted interventions across culture and workplace practices, enabling the Company to build a responsive, inclusive and performance-driven work environment.
During the year, employee engagement was further strengthened through the Companys brand philosophy of "Har Safar Mein Dum Hai", which was brought to life through a large-scale integrated campaign. Anchored by a brand film featuring icons such as Sachin Tendulkar, Virat Kohli, Rohit Sharma, KL Rahul, Shubman Gill and Arshdeep Singh, the campaign celebrated journeys of resilience and perseverance.
Internally, the campaign served as a powerful engagement platform, with employees across geographies participating through launch events, digital interactions, and shared storytelling. These initiatives enabled employees to connect their personal journeys with the broader organisational narrative, fostering a deeper sense of belonging and collective pride. The campaign also drove meaningful engagement across internal digital platforms, where employees actively shared experiences and reflections, reinforcing a culture of recognition, inclusivity, and shared purpose across the global workforce.
Wellness and Well-being
Employee well-being remains a key priority for Apollo Tyres. During FY26, the Company further strengthened its
‘Wheels of Wellness (WOW) framework, focusing on physical, mental, social and financial well-being.
A key initiative during the year was the introduction of a fully Company- sponsored Group Mediclaim policy, covering 100% of premium costs and eliminating co-payment requirements.
Enhancements were also made to maternity benefits, reinforcing support for employees and their families.
The Employee Assistance Program continued to provide 24/7 access to mental health support through digital platforms and counselling services.
Partnerships with platforms such as Cult.fit and Practo enabled employees in India to access fitness and healthcare
services in a convenient and accessible manner. Group term life insurance coverage also continued to strengthen financial security for employees and their families. The Company conducted a range of awareness and engagement initiatives focused on mental health, nutrition and lifestyle habits. These interventions have contributed to an improvement in employee perception of work-life balance and overall well-being, as reflected in internal survey feedback.
Participation in running events such as the Dam2Dam Run reflects the Companys emphasis on physical fitness and active lifestyles. Such initiatives promote overall well-being, build resilience, and contribute to a healthier and more engaged workforce.
WORKFORCE, CULTURE & INCLUSION
Apollo Tyres remains committed to fostering an inclusive workplace characterised by respect, equity, and equal opportunity.
Insights from the Apollo Voice Survey FY26 indicate sustained strength in employee experience, with continued improvement in perceptions of fairness, inclusion, and access to career opportunities, reinforcing the Companys commitment to building a supportive and high-performance work environment.
The Company continues to promote diversity across its workforce, with women representing 7.7% of the Board and 33% of Senior Management Personnel. Focused interventions have been undertaken to enhance participation of women across functions, including manufacturing, R&D and frontline sales, supported by structured hiring, capability development and career progression initiatives.
In manufacturing locations, targeted steps have been taken to increase representation of women employees, including deployment of women trainees on shop floors and in operational roles involving machinery. These efforts are supported by investments in enabling infrastructure such as dedicated accommodation facilities, secure transportation, and gender-sensitive workplace amenities. Sensitisation programmes and leadership engagement initiatives have further strengthened an inclusive culture, encouraging women to build long-term careers within the organisation.
The Apollo Women Network continued to play a key role in strengthening inclusion efforts, particularly within technical and R&D functions, through capability-building sessions, external collaborations, and community initiatives. In addition, the Company marked International Womens Day through a series of engagements including leadership interactions, global town halls, and employee-led initiatives focused on dialogue, recognition, and empowerment.
The Companys global footprint continues to be reflected in a vibrant and inclusive culture shaped by local representation and shared experiences. Employees across locations actively participate in cultural celebrations, global observances, and organisation-wide engagement initiatives, fostering collaboration and strengthening cross-cultural understanding.
Employee engagement initiatives across geographies continue to reinforce the ‘One Apollo philosophy, promoting a strong sense of belonging and alignment with organisational values. These efforts have contributed to building a cohesive global workforce that is engaged, inclusive, and aligned with the Companys long-term vision. The Company remains focused on achieving its gender diversity targets and continues to undertake sustained interventions to strengthen enabling infrastructure, policies, and inclusive practices, particularly in non-traditional roles and emerging business areas.
Governance and Employee Relations
Apollo Tyres maintains a strong governance framework to uphold ethical practices, employee rights and regulatory compliance. The Companys
Human Rights Policy and Code of Conduct reinforce its commitment to dignity, fairness and non-discrimination across its operations and value chain. In line with principles of the International Labour Organization (ILO), the Company ensures freedom of association, elimination of forced and child labour and safe and secure working conditions.
Apollo Tyres adheres to all applicable Indian labour laws, including the Factories Act, Occupational Safety, Health and Working Conditions Code and other relevant regulations governing wages, working conditions and employee welfare. The Company maintains zero tolerance for child labour, forced labour, and human trafficking, ensuring ethical employment practices across its operations and value chain.
Robust grievance redressal mechanisms are in place, enabling employees to raise concerns through multiple channels, including line managers, HR business partners and formal reporting systems. Regular engagement with employee representatives and trade unions continues to support a collaborative and harmonious industrial relations environment.
In India, employment terms are governed by applicable labour laws, while in Europe, the Company adheres to Collective Labour Agreements and works closely with recognised Works Councils to safeguard employee interests.
Capability Building and Learning Ecosystem
Apollo Tyres continues to invest in building a future-ready workforce through a structured learning and development ecosystem. During FY26, the Company strengthened its focus on technical capability, digital learning, and manufacturing excellence.
The launch of DoJo Centres at manufacturing locations marked a significant step in enhancing skill development. These centres leverage immersive technologies, including virtual and augmented reality,
Industry–Academia Partnerships
As part of its commitment to strengthening the talent pipeline, Apollo Tyres Limited entered into a strategic partnership with the Kalinga Institute of Industrial Technology (KIIT), Bhubaneswar, to introduce a specialised elective on Tyre Technology for engineering students. This initiative integrates industry-relevant knowledge of tyre science, design, and manufacturing into the academic curriculum.
The collaboration includes curriculum development, internships, and practical exposure at manufacturing facilities, enabling students to gain hands-on experience and industry insights. This initiative enhances employability, strengthens technical capabilities, and contributes to building a future-ready talent pipeline aligned with the Companys ESG focus on skill development and sustainable workforce growth.
In addition, the Company strengthened its engagement with academia through formalised partnerships with institutions such as Woxsen University, SRM University, and MIT Chennai. These collaborations focus on curriculum co-creation, integrating tyre manufacturing modules into academic programmes, thereby enabling ‘Day Zero readiness for graduates and strengthening the Companys positioning as a preferred employer. To enhance customer-centric capabilities, the Company established the Apollo Sales and Marketing Academy, a unified platform focused on building world-class commercial skills. The academy is structured around three flagship programmes:
ASPIRE: Focused on induction and foundational business learning for campus hires and entry-level professionals
ACE: Designed to build product knowledge and customer management capabilities for experienced hires and internal transitions
ADMIRE: Aimed at strengthening leadership, negotiation, and strategic capabilities for Territory Managers and Sales Leaders
These programmes are aligned with the Companys focus on delivering value-based solutions and strengthening customer engagement across markets.
Operational and Warehouse Capability Enhancement
The Company also strengthened its logistics and operational capabilities through a structured Warehouse Capability Programme, conducted in partnership with IIM Mumbai. This six-month programme is designed to enhance managerial, operational, and technological capabilities of warehouse professionals, with a focus on optimising efficiency and adopting best practices in logistics management. Through this initiative, employees are equipped to drive performance, improve operational effectiveness, and lead high-performing teams within the warehousing ecosystem, thereby supporting the Companys broader supply chain transformation objectives.
Talent and Leadership Development
Apollo Tyres remains committed to building a future-ready leadership pipeline by investing in high-potential talent and capability development across functions. Through structured, business-aligned programmes, the Company continues to strengthen leadership depth, accelerate readiness, and support long-term organisational success.
Building Leadership for Tomorrow
During FY26, the Company launched LEAP (Leaders of Tomorrow), a leadership accelerator programme designed to future-proof the Commercial function. Aligned with the Apollo 2.0 framework, the programme integrates high-potential talent development with mission-critical business priorities, enabling the creation of a strong pipeline of future-ready leaders.
As part of this initiative, participants are driving key strategic focus areas, including strengthening market leadership through Mission 300K to reinforce Truck Bus Radial (TBR) dominance in the Indian replacement market; enabling rural expansion through the ‘One District, One ARD multi-channel strategy; accelerating premium growth by enhancing brand equity in the 16-inch and above passenger car radial segment; and advancing fleet excellence through the Truck Trek 15 initiative.
Manufacturing Leadership Development Programme (MLDP)
As part of the Apollo 2.0 transformation, the Company launched the Manufacturing Leadership Development Programme (MLDP), an 18-month flagship initiative aimed at developing next-generation leaders within manufacturing functions.
Curated in partnership with IIM Mumbai, Tata Institute of Social Sciences, and Toyota, the programme focuses on strengthening business acumen, ownership mindset, and operational excellence.
Key areas of focus include benchmarking against global manufacturing leaders, integration of advanced technologies such as AI and analytics, and capability building in lean manufacturing practices. The programme also equips participants with expertise in labour laws and strategic negotiations, enabling readiness for evolving workplace dynamics.
Strengthening Field Workforce Engagement
In parallel, the Company undertook a focused Field Engineers Engagement Initiative, including a structured training programme and direct HR interactions. This initiative enabled identification of engagement gaps in remote working environments and highlighted the need for stronger integration with R&D and central teams.
The insights derived have supported more targeted and business-aligned HR interventions, improving engagement, collaboration, and support for field employees.
Discussion on financial performance with respect to operational performance
The financial statements have been prepared in accordance with the requirement of the Companies Act, 2013 and applicable accounting standards issued by the Institute of Chartered Accountants of India. The management of Apollo Tyres Ltd accepts the integrity and objectivity of these financial statements as well as the various estimates and judgments used therein. The estimates and judgments relating to the financial statements have been made on a prudent and reasonable basis, in order that the financial statements are reflected in a true and fair manner and also reasonably present the Companys state of affairs and profit for the year.
| Year Ended | Year Ended | |||
| Sl. No. Particulars | March31, 2026 Standalone | March31, 2025 Consolidated | March31, 2026 | March31, 2025 |
| 1 Revenue from operations | ||||
| Sale of Products | 195,792.06 | 178,706.01 | 282,144.67 | 257,802.57 |
| Sale of Services | - | - | - | 7.16 |
| Other operating income | 2,370.22 | 3,030.11 | 2,561.33 | 3,424.44 |
| Total (1) | 198,162.28 | 181,736.12 | 284,706.00 | 261,234.17 |
| 2 Expenses | ||||
| a) Cost of materials consumed | 112,615.19 | 111,630.20 | 132,219.96 | 128,645.52 |
| b) Purchase of stock in trade | 10,349.29 | 10,034.08 | 24,786.54 | 24,689.91 |
| c) Changes in inventories of finished goods, stock-in- | (308.59) | (4,597.24) | (1,470.35) | (6,389.98) |
| trade and work-in-progress | ||||
| d) Employee benefits expense | 13,179.50 | 11,360.10 | 35,415.59 | 31,297.44 |
| e) Other expenses | 33,567.43 | 31,401.86 | 52,321.93 | 47,275.97 |
| Total (2) | 169,402.82 | 159,829.00 | 243,273.67 | 225,518.86 |
| 3 Operating profit (EBITDA excluding other income) | 28,759.46 | 21,907.12 | 41,432.33 | 35,715.31 |
| (1 - 2) | ||||
| 4 Other income | 3,127.13 | 1,155.34 | 1,334.05 | 881.00 |
| 5 Less: Finance costs | 3,288.43 | 3,657.68 | 3,914.98 | 4,466.17 |
| 6 Less: Depreciation & amortization expenses | 9,423.21 | 9,291.74 | 15,430.15 | 14,983.72 |
| 7 Profit before share of profit/ (loss) in associate / | 19,174.95 | 10,113.04 | 23,421.25 | 17,146.72 |
| joint venture, exceptional items & tax | ||||
| 8 Share of profit / (loss) in associates / joint venture | - | - | 5.90 | 6.73 |
| 9 Exceptional items | (333.87) | (509.22) | (10,335.11) | (1,686.73) |
| 10 Profit before tax | 18,841.08 | 9,603.82 | 13,092.04 | 15,466.42 |
| 11 Less: Provision for tax | ||||
| Current tax | 3,312.45 | 1,637.14 | 4,236.94 | 2,717.36 |
| Deferred tax | (2,989.06) | 1,672.40 | (4,869.06) | 1,535.86 |
| Total | 323.39 | 3,309.54 | (632.12) | 4,253.22 |
| 12 Profit after tax | 18,517.69 | 6,294.28 | 13,724.16 | 11,213.20 |
KEY FINANCIAL RATIOS
In accordance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company is required to give details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios. Please note that there is no significant change of 25% or more in Key Ratios viz. Debtors Turnover, Inventory Turnover, Current Ratio, Operating Profit Margin as compared to the previous year other than the following:-
| Sl.No Particulars | FY26 | FY25 | % Change | Explanation |
| 1 Interest Coverage Ratio | 10.31 | 5.60 | 84.11% | Higher profit after tax (including reversal of deferred tax liability on account of proposed adoption of the concessional tax regime) |
| 2 Net profit margin (in %) | 9.34% | 3.46% | 169.81% | Higher profit after tax (including reversal of deferred tax liability on account of proposed adoption of the concessional tax regime) |
| 3 Debt Equity Ratio | 0.20 | 0.27 | -27.88% | Reduction in debt level and improved profitability |
CHANGE IN RETURN ON NET WORTH
| Sl.No Particulars | FY26 | FY25 | % Change |
| 1 Return on Net Worth* | 16.41% | 5.96% | 175.20% |
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
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IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132 (Member ID - NSE: 10975 BSE: 179 MCX: 55995 NCDEX: 01249), DP SEBI Reg. No. IN-DP-185-2016, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, Merchant Banker SEBI Regn. No. INM000010940, RA SEBI Regn. No: INH000000248, BSE Enlistment Number (RA): 5016, AMFI-Registered Mutual Fund Distributor & SIF Distributor
ARN NO : 47791 (Date of initial registration – 17/02/2007; Current validity of ARN – 08/02/2027), PFRDA Reg. No. PoP 20092018, IRDAI Corporate Agent (Composite) : CA1099
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.
