Apollo Tyres Ltd Management Discussions

GLOBAL ECONOMY

The global economy demonstrated resilience throughout Calendar Year (CY) 2024, despite persistent challenges from supply chain disruptions, geopolitical tensions and inflationary pressures carried over from CY23. Additionally, the U.S. presidential election and the victory of former President Donald Trump in November 2024 added new economic and political uncertainties, which began influencing market forecasts.

Advanced Economies

According to the International Monetary Fund (IMF), advanced economies, including the United States, Euro Area and Japan, experienced moderate growth. The IMF estimates growth in these economies at 1.8% in CY24, slightly up from 1.6% in CY23. The U.S. economy is projected to grow by 2.8% in 2024, a marginal decline compared to 2.9% in the previous year. Despite internal economic adjustments, energy concerns and trade tensions, the Euro Area is expected to show growth of 0.8%, up from 0.4% in CY23.

Emerging Markets and Developing Economies

Emerging markets and developing economies are projected to grow at a steady 4.3% in CY24, slightly down from 4.4% in CY23. India remains a growth leader with 6.5% growth for CY24, though significantly lower than the 8.5% growth in CY23. China is expected to maintain a growth rate of 5%, a slight decline from 5.2% in CY23. Overall, global growth for CY24 is estimated at 3.3%, aligning with the pace seen in CY23.

INDIA MARKET OVERVIEW

According to the second advance estimate by the Ministry of Statistics, Indias full-year GDP growth rate for FY25 is estimated to be 6.5%, down from 9.2% in FY24.

The robust performance of the services and agriculture sectors continues to fuel Indias GDP growth. While the manufacturing sector shows a slower growth rate of 4.3% for FY25, a decline from 12.3% in FY24, the construction sector remains strong, with an estimated growth of 8.6%. The agriculture sector also showed resilience, estimated to grow by 4.6% in FY25, up from 2.7% for FY24, following favourable monsoon conditions and increased output.

A significant factor contributing to this growth is the continued rise in private consumption. Private final consumption expenditure (PFCE) is expected to grow by 7.6% in FY25, up from 5.6% in FY24, reflecting strengthened consumer demand, particularly in the middle and upper-income demographics. With rising disposable incomes, this trend is expected to continue, further driving private expenditure growth.

Despite some challenges faced by the manufacturing sector, India has seen growth in sectors like technology, healthcare and automobiles, which has provided a buffer to the overall economic performance. There is a noticeable shift in consumer spending towards luxury and high-end products. This trend, driven by the growing middle-income demographic, is expected to further intensify, boosting demand for premium goods and sustaining private consumption growth.

AUTO SEGMENT INDUSTRY

Amid a year marked by both global and domestic challenges, the Indian automobile industry displayed resilience, continuing its growth trajectory despite moderate economic headwinds. According to the Society of Indian Automobile Manufacturers (SIAM), total vehicle sales across all categories reached a new record of 23.85 million units in FY25, representing a 7.3% increase from the previous fiscal year. The Indian passenger vehicle (PV) segment exhibited small growth in FY25, with total sales reaching a record 4.3 million units, growing by 2% compared to the previous fiscal year. However, this growth rate was significantly lower from the 8.4% recorded in FY24. Promotional offers and discounts played a significant role in supporting demand throughout the fiscal year. In absolute volumes, though, automakers in India reported record sales in the PV segment for the third consecutive year, underscoring the continued strength of the market. The two-wheeler segment in India continued its strong growth in FY25, with total sales reaching 19.6 million units, marking a 9.1% increase over FY24. This growth is largely attributed to improved demand for Scooters from semi-urban and rural areas, as connectivity and affordable transportation options are gaining ground. Another noteworthy trend is the rise of electric two-wheelers (EVs), which now account for over 6% of the total two-wheeler sales in India in FY25. This reflects the growing shift toward more sustainable and eco-friendly mobility solutions, especially with government incentives and increasing awareness of environmental concerns. The Indian three-wheeler segment achieved its highest-ever sales in FY25, reaching 7.4 lakh units, with a growth of 6.7% compared to the previous year.

The commercial vehicle segment saw a slight de-growth of (-1.2%) in FY25 compared to the previous year, although the last quarter showed a positive growth of 1.5%. While the overall truck segment faced a slight decline, demand for freight movement was met through a shift toward higher GVW (Gross Vehicle Weight) vehicles. The expanding highways and expressway networks have reduced logistics costs and improved regional connectivity, positively influencing the CV sector. Additionally, infrastructure development has boosted sales of buses for inter-city travel, while growing focus on mass mobility within cities has also contributed to the segments performance.

From an export perspective, the Indian automobile sector saw strong growth in the fiscal. Passenger vehicle exports hit a record 0.77 million units, rising by 14.6%. This sharp growth has been driven by demand of global models being manufactured from India in markets of Latin America and Africa. Two-wheeler exports grew by 21.4%, reaching 4.2 million units, while commercial vehicle exports rose by 23% to 0.81 lakh units.

EUROPE MARKET OVERVIEW

Economy

The European economy demonstrated modest growth in CY24. According to the European Commissions Winter 2024 Economic Forecast, the European Union (EU) is projected to achieve a Gross Domestic Product (GDP) growth of 0.9%, while the Euro area is anticipated to grow at 0.8%. This marks a slight improvement from the 0.5% each for the EU and the Euro area in 2023, indicating a gradual recovery from previous economic challenges. The modest growth seen last year can primarily be attributed to the residual momentum from the post-pandemic recovery over the past two years. The economy entered CY24 on a weaker footing, given the that 2023 was defined by declining household purchasing power, shrinking external demand, aggressive monetary

Tyre Segment

The tyre industry is a key player in the automotive sector, especially within the original equipment manufacturer (OEM) segment. Furthermore, the performance of the replacement segment is closely linked to the broader economic activities of the country. According to data from the Automotive Tyre Manufacturers Association

(ATMA), the industry witnessed a strong growth of 10% over a three-month period from April 2024 to June 2024. Notably, scooters and motorcycle tyre categories emerged as the frontrunners.

The other segments also saw good growth during the period as passenger car tyre category grew by 6% and commercial tyre category notched up 9% growth during the period. tightening and the gradual reduction of fiscal support. However, the year saw a steep decline in energy prices followed by a broad and quicker-than-expected reduction in overall price pressures.

Auto Segment

In CY24, the European automotive market exhibited modest growth. New car registrations increased by 0.8%, totalling approximately 10.6 million units, compared to the previous year. This growth was primarily driven by Spain, which reported a solid 7.1% increase in registrations. In contrast, major markets like Germany and France saw a decline by 1% and 3.2% respectively. The battery-electric vehicle (BEV) segment saw a slight decline, with its market share dropping to 13.6% from 14.6% in 2023. This decrease is attributed to factors such as reduced consumer incentives, increased competition from Plug-in hybrid electric (PHEV) which increased in market share to 30.9% from 25.8% in CY23. In the commercial vehicle sector, van registrations rose by 8.3%, totalling 1.7 million units, driven by strong demand in key markets like Germany, Spain and France. Conversely, truck registrations declined by 6.3% to 327,896 units, reflecting a slowdown in freight transport demand. The bus segment experienced a rebound, with registrations increasing by 9.2% to approximately 35,579 units, indicating a recovery in public transport services and a growing focus on mass mobility solutions.

Tyre Segment

The European tyre market in CY24 demonstrated a generally positive performance, marked a return to growth, with a uptick in volumes compared to the previous year. According to data from European Tyre and Rubber Manufacturers Association (ETRMA), total tyre sales in the Consumer segment were up by 5% on the back of strong performance in the All Seasons segment which grew by 16%. Winter tyres also saw single digit growth for the year, while summer tyres declined by 2% for the calendar year. The truck and bus tyre segments, however, experienced challenges throughout the year. While the market showed some resilience in certain areas, volumes remained lower than expected, reflecting the subdued freight demand and logistical issues in Europe. Despite efforts to mitigate these challenges, the truck tyre market faced ongoing pressure due to increased competition from non-EU imports and price sensitivity.

Industry Structure and Developments

After a softer raw material environment in FY24, with a 12% reduction in overall raw material costs, FY25 saw a reversal with an 11% increase. This was driven by higher Natural Rubber prices, rising Crude-based materials (especially Synthetic Rubber) and a weakening of the INR against the USD.

Natural Rubber prices hit a 10-year high of H 247/kg in Q2 FY25, with supply disruptions in India due to erratic weather and labour shortages. In Kerala, the leading rubber-producing state, a shortage of skilled labour for tapping further impacted production. The Northeastern states have emerged as a potential growth area for rubber production. Additionally, port restrictions on Natural Rubber imports remained, with access limited to Nhava Sheva and Chennai ports. The inverted duty structure on natural rubber (25% or H 30/kg, whichever is lower) continued throughout the year. Brent Crude Oil softened from USD 82/bbl to USD 78/bbl, driven by weak global demand and geopolitical tensions, including the Russia-Ukraine war and the Middle East crisis. OPEC+ members decision to exceed production quotas also supported the market correction. Meanwhile, prices for Crude-based raw materials like Carbon Black, Synthetic Rubber and Fabric saw inflation. Synthetic Rubber prices surged over 20%, driven by higher butadiene costs. In September 2024, antidumping duties were imposed on Butyl Rubber imports from China, Singapore, USA, Russia and Saudi Arabia.

SWOT ANALYSIS

Strengths

Apollo Tyres has the advantage of a diversified market base across geographies and therefore, it is not completely dependent on the Indian market alone. Further, the Company is working towards establishing and growing operations in other large markets, including North America.

With its reasonable presence in the two-wheeler segment, the Company is now a full-range tyre player in India and can service the large and growing two-wheeler tyre segment in India.

The Company is powered by well-established product brands in its key markets – Apollo and Vredestein.

Apollo Tyres enjoys an extensive distribution network for its products across its two key markets.

The Company has state-of-art manufacturing facilities in India and Europe and with a robust network, it can easily distribute and sell its products across the globe.

In India, the Company is a leading brand in the CV and PV segment, which account for the bulk of the industrys revenue. The Company is best positioned to maintain its leadership position in the PV segment and drive growth through the same.

Apollo Tyres has a global and culturally diversified management team driving growth across geographies.

The Companys research and development (R&D) facilities for PV and CV tyres will play a key role in bringing cutting-edge technology and innovation to drive growth.

Increased spends on building the corporate brand has made Apollo a stronger brand in India and a recognised one globally.

Apollo Tyres has long established relationships with global OEM manufacturers, present in India and has further forayed into the premium OEM segments in India.

The Company is taking a leadership position in the EV tyres segment. it was amongst the first in India to introduce an exclusive range of EV tyres - Amperion which catered to the emerging EV segment and is an OEM fitment already.

The Companys ranges like Vredestein Wintrac Pro and Vredestein Quatrac Pro have been given top ratings by multiple external media and tyre testing agencies.

Weaknesses

In a rapidly rising raw material cost scenario, the Company was unable to pass on cost escalations to consumers in India, in a timely fashion, due to intense competition and various market dynamics, resulting in pressure on margins.

Opportunities

In India, the Company has a lead over its competition in terms of product brand equity in the truck bus radial segment. This implies growth prospects with increasing ‘radialisation.

Apollo Tyres has a leadership position in passenger car tyres segment with healthy growth prospects.

In India, the Companys two-wheeler tyre product has been widely accepted by the market and there are prospects of scaling up the market share in a fast-growing and profitable segment.

The Companys highly automated state-of-the-art plants in India and Europe are scaling up and are well-positioned to drive growth in the European and Indian market due to cost-competitive manufacturing facility.

Apollo Tyres has started deliveries to European OEM manufacturers endorsing the premium position of its Vredestein brand. This will help to generate replacement demand.

With the premium positioning of the Vredestein brand in Europe and now with the modern state-of-the-art plant in Hungary, the Company has good prospects for improving its product mix towards a more premium car tyre segment.

The Company has introduced the Vredestein brand in India catering to the premium segment of the market.

The Company continues to increase its focus on new geographies such as North America and in geographies where it has already made some inroads, such as in the Middle East. These geographies will be the growth avenues for the future.

The Company has launched truck tyres in Europe and US, which will further enhance revenue and market presence.

Threats

Economic downturn or slowdown in the key markets (India and Europe) can lead to reduced demand.

Continuing high inflation and raw material cost escalation will add to pressure on margins.

A weak Indian currency can result in pressure on margins, since the Company is a net importer.

Consolidation in the distribution landscape as independent dealers are disappearing, wholesalers and company-owned networks are growing. Internet is playing a major role in this change and this can impact the Company network and profitability.

Segment-wise performance

To further enhance customer focus and deliver exceptional service on a global scale, the Company implemented a strategic organisational restructuring by creating the Commercial Organisation, with responsibility for sales and marketing. This restructuring aims to streamline operations and sharpen the Companys focus on its key regions: India, Europe and North America. The realigned structure ensures greater agility and alignment with market needs, enabling the Company to drive growth, strengthen its presence and continue delivering superior products and services to customers worldwide. Investments in all key markets were focussed on brand building, R&D and network expansion were key drivers in supporting the Companys strategy to fortify its premium product portfolio and accelerate its journey towards sustained leadership and growth. Additionally, the Company launched a transformation initiative to address key challenges and unlock value across its operations. This initiative focuses on optimising processes, improving efficiency and creating long-term sustainable growth, ensuring the Company remains competitive and resilient in the evolving market landscape.

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. However, the fiscal year also saw the Company losing ground to increased competition in the Indian market, impacting its ability to fully leverage the opportunities available.

Passenger Car Radial Tyres

In the PCR category, the fiscal was largely about strengthening the Vredestein brand as a premium and luxury choice for consumers. To achieve this, the brand significantly expanded its PCR portfolio, now covering a wide spectrum from 14-inch to 22-inch rim sizes, solidifying Vredestein as a full-range premium car tyre brand. New product launches included the high-performance Pinza HT for SUVs, the comfort-focused T-Trac 2 for compact cars and the 21"-22" UHP tyres for ultra-luxury SUVs, designed to meet the demands of premium-minded consumers across segments.

Vredesteins strong value proposition in the premium segment is further reinforced by tyres manufactured locally in India, offering best-in-class performance, backed by a comprehensive warranty and a robust after-sales service network across the country. This local manufacturing advantage ensures enhanced availability and support for Indian consumers, making Vredestein a top choice for those seeking premium, luxury tyres.

As part of its strategy to position Vredestein as a premium brand, the Company made significant strides in the luxury OEM segment during the fiscal. Vredestein tyres are now featured as original equipment on the BMW 5 Series (LWB), fitted with the Ultrac Vorti-i.

These partnerships highlight

Companys ability to deliver products with performance, precision and quality, meeting the high standards expected by premium automotive brands. By securing such collaborations, Vredestein brand reinforces its position as a trusted choice for luxury and high-performance vehicles.

In addition to these strategic partnerships, the Companys other brand - Apollo Tyres - continued to be the #1 choice for car and SUV OEMs in FY25, catering to their advanced and evolving tyre requirements. Notable contracts secured this fiscal year include Apterra HP for the MG Windsor EV, Apterra Cross for M&M 3X0 and Alnac 4G for the Hyundai i20. These additions highlight Apollo Tyres growing footprint and its leadership in providing cutting-edge tyre solutions for both traditional and electric vehicles.

Commercial Vehicles tyres

In FY25, Apollo Tyres TBR segment delivered strong growth, driven by high demand for its EnduTrax range and the successful launch of premium products like EnduRace RA and EnduTrax MD+, bolstered by targeted marketing campaigns.

The Company expanded its tubeless portfolio under the nRG range, introducing new SKUs that offer up to 10% better fuel efficiency compared to conventional tyres, aligning with the evolving needs of fleet operators. In the TBB category, the X Range continued to build operator trust with its proven cost-effectiveness, while the Terra BT mining range gained traction through focused promotions in key mining regions.

The LCV category saw robust growth. Its flagship Endumaxx LT HD pickup tyre further strengthened brand equity and accelerated momentum. In the bias segment, Vihaan and BHIM earned accolades for both product performance and promotional success.

Off-highway Tyres and Industrial Tyres

In FY25, Apollo Tyres implemented multiple strategies in the OHT segment. The introduction of the Krishak Gold X range played a pivotal role in driving growth. Targeting extra savings for farmers, the product was launched just in time for the season, with strategic pricing that helped the Company capture market share in Northern states. Additionally, the fiscal saw the introduction of the Steel Breaker Tyres in the farm segment, addressing a critical pain point for customers—punctures. Leveraging Steel Belted Technology, the Company enhanced tyre durability, providing customers with a reliable solution.

In the Harvester Combine segment, the VIRAT Harvest Plus product helped gain significant traction. Known for its high durability, puncture resistance and ride comfort, the Company value added with 24/7 service support, strengthening its position in this market. The product launches were complemented with the introduction of a farm-specific dealer engagement platform, which created a buzz in the market, focusing on business partners with high fitment shares. In the industrial segment, the Company introduced premium high NSD tyres for the Grader segment (Terra G-3) and the

Terra-3 mining pattern for the Concrete Mixer segment, further expanding its footprint in industrial applications.

Two-wheelers

The Company continued its premiumisation strategy in the two-wheeler segment, with both Apollo Tyres and Vredestein brands further distinguishing themselves by serving the premium segment of the market. The fiscal year saw its brands being selected for several high-performance models, including the Husqvarna Svartpilen 401 fitted with TRAMPLR XR, the Triumph Speed 400 with Vredestein CENTAURO and the KTM Duke 390 and KTM Adventure 390 models, both equipped with ALPHA H1 and TRAMPLR XR, respectively. Additionally, the KTM Adventure 390X also chose the TRAMPLR XR.

These collaborations underscore Apollo Tyres commitment to delivering performance, reliability, reinforcing its growing presence in the high-performance two-wheeler segment and further cementing its position as a premium choice for discerning consumers.

Brand Building

Brand is a key pillar in the Companys vision and throughout the fiscal year, it remained steadfast in its commitment to investment in both its brands – Apollo and Vredestein and leverage multiple channels to amplify its message. Apollo Tyres reinforced its brand vision by investing in its core brands—Apollo and Vredestein - through strategic campaigns and activations during the fiscal. It utilised diverse channels to amplify its message, focusing on premiumisation and performance. The fiscal year began with the companys partnership with cricket icon Sachin Tendulkar, launching the #BringOutTheSUV campaign promoting the Apterra SUV tyres. Featuring Tendulkar, the campaign highlighted the tyres off-road capabilities through a brand film and influencer-driven content, resonating with SUV enthusiasts across digital platforms. In the passenger car segment, the Company leveraged influencer marketing, collaborating with automotive influencers to deliver authentic tyre performance reviews, enhancing credibility and engagement. Sports and experiential initiatives also played a key role in building awareness, particularly in focused geographies for its premium tyre attributes. Under the ‘Bad Road Buddies programme, SUV and 2W expeditions and glamping tours were organised, fostering brand affinity among adventure seekers by showcasing the Apterras all-terrain capabilities. As a global partner of Manchester United, it maximised its ‘United We Play campaign, a grassroots football talent-scouting programme, engaging SUV-owning families through interactive trials and digital promotions across social media. The Company created vernacular content to strengthen its connection with audiences across India. Meanwhile, the Vredestein brand targeted premium audiences through a digital-first advocacy campaign, collaborating with lifestyle platforms to position Ultrac tyres as a symbol of style and performance.

In the commercial vehicle (CV) segment, the Company launched the Endutraxx Experiential Drive, a first-of-its-kind event that allowed fleet owners to test tyre durability and toughness firsthand. The Apollo Tyres CV Magazine Awards 2025 celebrated outstanding contributions in the CV industry, reinforcing its leadership by engaging fleet operators, manufacturers and dealers. The TBB segment saw intensified promotion of BHIM and Vihaan products through roadshows and digital campaigns, emphasising reliability. The Companys ‘Bharat Ka Safar - Indias Endumaxx Expedition campaign, showcased the durability and performance of Apollo Endumaxx LT HD tyres.

For 2W category, the Alpha H1 and Tramplr series drove premiumisation through multiple rides organised under ‘Bad Road Buddies programme. The ongoing ‘Road to Old Trafford initiative will culminate in June 2025, with winners earning a trip to Manchester Uniteds iconic stadium. The Company also sponsored marathons in five cities, promoting tyre endurance to urban runners through the #GoTheDistance campaign, which offered exclusive New Delhi Marathon 2025 registrations with tyre purchases. Across social media platforms, the Company maintained a robust digital presence, blending real-time campaign updates, influencer content and fan interactions to drive engagement. These initiatives reinforced Apollo Tyres position as a performance-driven, aspirational brand in the global tyre market. It successfully maintained and strengthened its market perception, achieving steady performance in Top-of-Mind awareness and Good Opinion over time.

Europe

Over the past year, the Companys Europe operations have been driven by strategic expansion of its product portfolio helping it to make forays into promising new markets. Nevertheless, the fiscal saw its business in Europe facing supply chain challenges resulting in lost sales, impacting its ability to fully capitalise on market opportunities. It focussed on enhancing its supply chain resilience and efficiency to better meet customer demands and strengthen market positioning in the region and regain its market share.

Passenger Car Radial Tyres

During the fiscal, Apollo Tyres significantly enhanced its European portfolio by expanding size availability and updating its core Vredestein offerings in the High Performance (HP), Ultra High Performance (UHP) and Ultra-Ultra High Performance (UUHP) segments. Key milestones included the launch of the Wintrac Pro+ winter range and the updated Ultrac+ and Ultrac Pro Phase II summer lines. Additionally, the Quatrac Classic, Apollos first All-Season tyre in the Classic segment, was introduced. These and more launches highlight its ongoing commitment to innovation and strengthen its competitive position in the premium performance market.

For summer tyres, the fiscal saw the Vredestein brand launching the Ultrac Pro Phase II with 54 sizes and are top notch options for high-performance vehicles, including hypercars and sports cars, with sizes from 18 to 22 inches, even as it added 70 sizes to the best-in-class Ultrac+ range. The Ultrac+ delivers up to 30% improved mileage and 30% reduced abrasion loss, while maintaining the comfort and handling of its predecessor. With 3% reduced rolling resistance, it enhances driving range and lowers total lifecycle cost. In the winter tyre category, Vredestein expanded the range of its Wintrac Pro+ by 126 sizes. Additionally, it introduced the Quatrac Classic, the first All-Season tyre in the Classic segment, offering year-round performance and convenience.

The ‘Apollo Tyre brand saw equal action in Europe with the introduction of 73 new sizes across various product lines, including 25 All-Season, 10 Winter and 38 Summer fitments, expanding market coverage and addressing a broader range of vehicles. The increased market presence helped both brands to register strong performance across key segments. The Company saw growth in the Winter line driven by seasonal demand and brand preference. The Classic, EV and Light Truck segments also saw growth, fuelled by portfolio enhancements and targeted market activation. Focus on higher-value segments like UHP and UUHP contributed to an improved product mix, strengthening the Companys competitive edge and long-term value creation.

Off-highway Tyres

The fiscal saw the introduction of the Apollo Terra MPT 1 range of all-steel radial tyres for 20-inch wheels on multi-purpose trucks operating both on-and off-road. Featuring a self-cleaning tread pattern, these tyres deliver exceptional off-road performance while maintaining comfort and quiet operation on highways. In addition, the Company expanded its AWE 723+ dual excavator tyre range with two new sizes (280/70-22.5 and 220/80-17.5) for mid-size excavators up to 16 tonnes and compact models between 6 and 10 tonnes. Furthermore, Apollo Tyres made its entry into the row crop tyre segment with its first VF (Very-High Flexion) sprayer tyre. This tyre is specifically designed for trailed and self-propelled crop sprayers, where a narrow tread is required to navigate between crop rows.

Commercial tyres

With a strong focus on the TBR segment, the fiscal year began with the launch of the 385/55 R22.5 variant of the EnduMile LHT long-haul trailer tyre, Apollo Tyres most fuel-efficient truck trailer product. This marks the companys first dedicated LHT tyre, setting new benchmarks in performance and efficiency. Rated A for rolling resistance, it is the most fuel-efficient truck tyre produced by Apollo. The Company also expanded its regional transport tyre portfolio with the launch of two new products for heavy-duty trucks and trailers: the EnduRace RD HD drive tyre and the EnduRace RT HD+ trailer tyre. Both tyres exceed the European regulatory durability standard.

Brand Building

To enhance visibility and recognition of the Vredestein brand across Europe and beyond, Apollo Tyres invested in strategic communication and sponsorship initiatives.

The fiscal year kicked off with a pan-European out-of-home (OOH) marketing campaign for the new Vredestein Ultrac Pro ultra-ultra-high-performance summer tyre. The campaign began with a striking 3D-effect animated display on the iconic Piccadilly Lights at Piccadilly Circus in London, showcasing the tyres performance and comfort. The animation, visible 24/7, included periodic takeovers of Europes largest digital billboard, ensuring significant engagement.

The Company partnered with French champion Yann Schrub for a two-year sponsorship deal, promoting the Vredestein brand at the annual Les 20km de Paris mass-participation race. Expanding its sports sponsorship portfolio, the Company continued its collaboration with Manchester United and added new partnerships, including BEAT Cycling (Netherlands), AS Monaco, FIS Alpine and La Liga. Vredestein brands presence was enhanced through pitch-side LED boards at La Liga matches and a shirt-sleeve sponsorship deal with AS Monaco, boosting its visibility in Spain, France and across the global. Additionally, it signed Thomas Dre?en, the retired German World Cup downhill skier, as an ambassador for Vredestein brand and renewed its sponsorship of the FIS Alpine World Ski Championships 2025.

OE Journey

As part of its ongoing strategy to engage with OEMs, Apollo Tyres achieved significant milestones this fiscal year by being selected as the original equipment supplier for several prestigious automotive models. BMW Group has chosen a range of Vredestein summer, all-season and winter tyres for the all-new MINI

Cooper, including its Cabrio, three- and five-door variants. This follows a deal from the previous year to supply the Vredestein Ultrac for the X1, X2 and 5 Series models. Additionally, Vredestein Ultrac tyres are now available in three sizes for the BMW 2 Series Active Tourer. ASTRA, a premium manufacturer of construction and mining equipment and part of the IVECO Group, has selected EnduTrax tyres as original equipment for its heavy-duty off-road trucks, marking the second partnership between Apollo Tyres and IVECO Group. These tyres were rigorously tested to meet the extreme demands of ASTRAs trucks, designed for challenging terrains and heavy loads.

Americas

Apollo Tyres continued to strengthen its brand presence through strategic partnerships and impactful marketing initiatives. The partnership with the Petersen Museum at the Pebble Beach Concours dElegance reinforced Apollos credibility, aligning the brand with one of the most respected names in the automotive industry at the worlds premier celebration of the automobile. In Canada, the launch of the Pinza AT at Canadian Tire, with its 1,700 retail locations, marked a significant milestone, enhancing the brands footprint in the region. Further, the North American Brand Campaign, ‘Demand a Better Tire, challenged industry norms, driving a surge in website traffic and retail footfall, positioning Vredestein as a premium alternative in the U.S. market.

The Company also showcased its premium tyres at the Audrain Newport Concours dElegance, an event where high-performance, classic and young-timer vehicles were admired by enthusiasts and industry experts alike. Building on the success of the ‘Smart Tires Apollo Tyres CV brand launch campaign, the Company extended it throughout the Fall season, leveraging new media opportunities to drive increased awareness of the Apollo Tyres brand.

Outlook
The economic outlook for CY25 remains uncertain, with US tariffs continuing to impact global trade flows. In addition, ongoing geopolitical tensions such as the Russia-Ukraine conflict, instability in the Middle East and shifting global trade dynamics contribute to economic disruptions. Chinas firm stance on its economic and trade policies, including its continued resistance to concessions and trade negotiations with the West, has further exacerbated global trade uncertainties, impacting supply chains and international relations.	that will likely influence global economic trends in CY25.
CY24 to 3.7% in 2025.The Middle East also remains a source of instability, with tensions around Irans nuclear programme, regional power struggles and fluctuations in oil supply and pricing posing risks for global markets. Energy market volatility, especially involving OPEC+ decisions, continues to influence global economic stability. These geopolitical challenges, along with US tariffs and the ongoing impact of the Russia-Ukraine war, have created an environment of uncertainty	With such uncertainties, IMF in its April 2025 update has projected a decline in the global, advanced and Emerging markets and developing economies. It estimates the global economy to grow at 2.8% in CY25, a sharp decline from the 3.3% estimated for CY24. Advanced economies are expected drop to 1.4% as against 1.8% for CY24. Emerging markets and developing economies are projected to face a relative slowdown, with growth declining from 4.3% in
	In light of these ongoing uncertainties in the economic landscape, Apollo Tyres has adopted a cautious fiscal approach. The focus remains on strategic investments, cost optimisation, ensuring employee safety and prioritising cash conservation. Apollo Tyres will continue to pursue sustainable, profitable growth, with a strong focus on RoCE and strengthening its balance sheet.

Risks and Concerns

Apollo Tyres has a robust Risk Management framework in place to identify, evaluate and mitigate risks, protecting shareholder and stakeholder interests while fostering sustainable growth. The framework ensures timely identification of risks, implementation of mitigation actions and periodic monitoring. Its objectives include:

Proactively identify and highlight risks to the right stakeholders

Facilitate discussions around risk prioritisation and mitigation

Provide a framework to assess risk capacity and appetite; develop systems to warn when the appetite is getting breached The list of key risks and opportunities identified by the Management are the following:

FINANCIALS

Weaker international markets and economic downturn

The uncertain economic conditions in international markets, especially in North America and Europe, may negatively impact overseas operations and exports from India.

Demand in the tyre industry is dependent on economic growth and/or infrastructure development. Any slowdown in the economic growth across regions, impacts the industry.

Supply chain risks

In a globally interconnected world, supply chain resilience is crucial. Global economic situation, ongoing uncertainty about tariffs by USA, continuing Russia-Ukraine war, political/ economic instability in suppliers country, etc. can disrupt supply chain and increase transportation costs.

Raw material price volatility

The industry is raw material intensive. Natural rubber, which is a major raw material, is an agricultural commodity and is subject to price volatility and production concerns.

Most other raw materials are affected by the movement in crude prices. Rising crude oil prices increase raw material costs and may affect the profitability of the company.

Both natural rubber and crude prices depends on external environment and are, therefore, beyond reasonable control of the management.

Competition

Continuing intense competition from both global and domestic players create continuous pressure to create winning products and retain market share.

Cyber Attacks

Cyberattacks are on the rise and ransomware and phishing scams are now a common occurrence. The cyber-attack threat of unauthorised access and disruption of business operations continues to increase across the globe.

Rapidly Changing Market Trends and Regulatory Environment

Market trends driven by sustainability and regulatory/ legislative landscape continue to change. The company must continue to keep pace with the changing market trends and regulatory obligations and implement strategies to remain compliant and relevant which also invariably push up costs.

SOCIAL

Manpower and Labour

Retaining skilled personnel may become increasingly difficult across the globe with the increasing demand for talent.

Tyre manufacturing is significantly dependent on availability of skilled labour. Any shortage of labour, diversion of labour to other industries may impact tyre production

Internal controls and systems

The Company believes that internal control is one of the key pillars of governance, which provides freedom to the management to operate, within a framework of appropriate checks and balances. Apollo Tyres has a robust internal control framework, which has been instituted considering the nature, size and complexity of its operations and risks in the business. The framework comprises, inter alia, a well-defined organisation structure, roles and responsibilities, documented policies and procedures, Financial Delegation of Authority, ERP controls, code of conduct etc. IT policies and processes also ensure that they mitigate the current business risks. These policies are complimented by a management information and monitoring system, which ensures compliance with internal processes, as well as with applicable laws and regulations. The Companys internal control environment ensures adherence to policies and procedures, compliance with laws and regulations, efficient conduct of operations, security of assets, prevention and detection of frauds/errors, timely remediation of deficiencies, accuracy and completeness of accounting records and the timely preparation of reliable financial information. The Company uses SAP as its core Enterprise Resource Planning (ERP) software. The ERP controls are regularly evaluated and systems and processes are continuously improved by adopting best-in-class processes and automation and implementing the latest IT tools. The company has a strong culture of internal controls such that the operating management is not only responsible for revenue and profitability, but also for maintaining financial and commercial discipline within an internal control framework. The Company has a well-established, independent and objective in-house Internal Audit function designed to provide reasonable assurance on compliance with operating systems, internal policies and legal requirements, as well as suggest improvements to systems and processes. The Internal Audit function monitors and evaluates the efficacy and adequacy of internal control systems in the Company and reports on the operational deficiencies and key process risks to the Audit Committee and the management. The Company has also identified and documented key internal financial controls for critical processes across all plants, warehouses and offices wherein financial transactions are undertaken. The financial controls are evaluated for operating effectiveness through managements ongoing monitoring and review process and independently by Internal Audit.

The Head of Internal Audit reports functionally to the Audit Committee and administratively to the Vice Chairman and Managing Director of the Company. Key internal audit findings are presented to the Audit Committee at its quarterly meetings. Most importantly, the senior management sets the tone at the top for no tolerance to non-compliance and promotes a culture of continuous innovation and improvement. Management supports independent and objective internal auditing and implementation of internal audit recommendations.

Sustainability

Apollo Tyres has embraced

Sustainability a core pillar of its Vision 2026. Its Sustainability Management Framework integrates environmental, social and governance (ESG) factors with the Sustainable Development

Goals (SDGs) and digitalisation. The Company has developed a comprehensive Sustainability Governance Model aligned with ISO 26000 standards to drive sustainability across its operations and value chain. The Company is committed to long-term sustainability, aiming for net-zero emissions by 2050. Its 15-point ESG model tracks key performance areas like emission reduction, water efficiency, diversity, inclusion and human rights. In FY24, it had aligned with the Science Based Targets Initiative (SBTi) and is working towards finalising its emissions reduction targets, with validation expected by FY26. This reinforces the Companys steadfast commitment to achieving net-zero emissions by 2050.

As a responsible player in the tyre manufacturing industry, the Company has made significant strides in its Environmental, Social and Governance (ESG) commitments, as it exceeds several critical targets ahead of its FY26 timeline:

1. Scope 1 Emissions: Achieved a 35% reduction in emission intensity, surpassing the 25% target by FY26. This has been driven by enhanced biomass utilisation at manufacturing facilities in India.

2. Scope 2 Emission: Achieved a 39% reduction in emission intensity, surpassing the 35% target by FY26. This has been derived by the acceleration of our renewable electricity consumption.

3. Renewable Energy: Increased the share of renewable electricity to 33% of total electricity consumption, surpassing the 30% target for FY26 through power purchase agreements, solar installations and by implementing energy saving projects.

4. Water Withdrawal: Improved water withdrawal intensity by 28%, surpassing the 25% reduction target through Zero-liquid discharge systems and water-saving initiatives.

5. Recycled and Renewable Materials: Achieved 36% usage of recycled and renewable input materials in products, in line with the 40% target by 2030.

6. Diversity, Equity & Inclusion (DE&I): Achieved 11.6% of diversity within our permanent employees against the target of 12% by FY26.

7. Beneficiaries Impact: Reached over 12.6 million beneficiaries, progressing towards the 15 million target by FY26 through core programs.

These accomplishments demonstrate the Companys strong commitment to sustainability and its ongoing efforts to drive meaningful, measurable impact in the ESG space.

Governance

The Company adopts ISO 26000:2010 as a benchmark for Social Responsibility, enhancing its Sustainability Governance Model. By embracing Global Reporting Standards (GRI), Apollo effectively discloses its sustainability progress. Under the guidance of the Sustainability Steering Committee, comprising Apollos leadership team and reporting to the Board, the Company is dedicated to driving impactful sustainability initiatives with focused rigor.

Looking ahead, the sustainability Framework for FY26 has been crafted around the six areas, each supported by cross-functional working groups. The six core areas of focus are:

1. Sustainable Governance

2. Combatting Climate Change

3. Embracing a Circular Economy

4. Building a Responsible Value Chain

5. Fostering a People-Centric Approach

6. Engaging with Communities

Materiality

In line with the Companys sustainable governance goals, it has conducted a Double Materiality Assessment (DMA) as part of its Sustainability Roadmap for FY26. This strategic initiative identifies and prioritises key ESG topics, assessing their impact on both business performance and stakeholder interests. Further, in line with the European Unions Corporate Sustainability Reporting Directive (CSRD), it is embedding ESG principles deeply into its operations and value chain, ensuring continuous monitoring through its risk management framework.

ESG Rating Performance

The Companys commitment to sustainability is reflected in its transparent disclosures with leading ESG rating platforms such as CDP and S&P Global. In the latest CDP assessments, it has made significant progress, particularly in areas like water security and climate change. Its CDP score has improved notably, earning a B rating in the FY24 submission, up from a B- rating in the previous year. The Company has retained its B rating for climate change, securing its position in the respected Management band. Additionally, S&P Global recognised its sustained efforts by elevating its ESG score from 44 in FY23 to an impressive 53 in FY24.

This year, we have attained a Gold Rating in the EcoVadis Sustainability Assessment by elevating our overall performance score to the 95th percentile across the dimensions of environment, labour & human rights, ethics and sustainable procurement.

Environment

The Company considers environment as a key stakeholder and it has adopted a proactive approach in engaging its stakeholders both within its plant boundaries and beyond. It is committed to evaluating its energy consumption, preserving water and natural resources and reducing greenhouse gas emissions. It also focuses on the responsible management of waste, working towards circularity and ensuring compliance with environmental regulations.

It is dedicated to pioneering climate-resilient operations with a long-term vision. The cross-functional Environment Working Group plays a crucial role in developing innovative strategies to address environmental challenges. Based on identified priorities, it has formulated robust mitigation strategies and actionable plans, ensuring a decisive and impactful response to promote sustainability.

Energy performance and Emission Reduction

The Company is committed to a decarbonisation strategy that aims for significant emissions reductions across Scopes 1, 2 and 3. In partnership with the World Business Council as part of its Global Platform for Natural Rubber project, it prioritises three pivotal areas: supply chain, operations and products and services, all seamlessly aligned with the Sustainable Development Goals (SDGs). This strategic approach not only reflects its dedication to sustainability but also paves the way for a greener, more resilient future.

Scope 1: The Companys Andhra Pradesh plant has adopted and continues with 100% biofuel instead of coal in its manufacturing process since FY23, even as its Chennai plant uses alternative green fuels.

Scope 2: The Company envisions all its production facilities to run on 100% renewable electricity in alignment with its Net Zero commitment by 2050. Its manufacturing sites use a mix of sustainable sources, Solar, Wind and Hybrid energy enabling it to lower the scope 2 emissions.

Scope 3: The Company diligently monitors its emissions and has engaged its global supply chain in a comprehensive ESG assessment of its supplier partners. Leveraging the ECOVADIS rating platform, it has evaluated over 100 suppliers on four core pillars: Environment, Labour & Human Rights, Ethics and Sustainable Procurement. This approach ensures the supply chain partners aligns with the Companys values and its commitment to a greener future. Furthermore, it has renewed its ISO 20400 certification, solidifying its resolve to lead by example in the pursuit of sustainable procurement practices to establish circularity.

100%

Coal is replaced by biofuel in AP plant manufacturing process since FY23

Social

The Company is committed to understanding their concerns and actively engaging its stakeholders in risk management to foster lasting sustainability. This commitment is underscored by a robust Stakeholder Engagement Policy, designed and approved by the Board. By identifying and prioritising key stakeholder groups—including employees, customers, supply chain partners, communities, NGOs, government and corporate partners and investors—it cultivates a collaborative environment that drives collective success and resilience.

Diversity, Equity and Inclusion (DE&I)

The fiscal year saw some significant achievements in the DE&I endeavours of the Company as it onboarded women employees in the field sales team as well as at the manufacturing facility across diverse functions.

Apollo Tyres Foundation (ATF), an arm of the Company, has made significant strides in inclusivity by integrating LGBTQIA+ community members into its health programme as peer volunteers. In FY25, 102 transgenders participated as peer volunteers across 34 locations, playing an essential role in the outreach efforts. These peer volunteers were instrumental, contributing to 54% of the total outreach achieved. Moreover, the Company is empowering 20 LGBTQIA+ individuals through training in jute bag making in Auto Nagar, Hyderabad, India. This initiative comprising 20 Transgenders in the first batch, enabling them to earn an income and uplift their communities. The fiscal also saw it initiate an awareness session on Human Rights through e-learning module, which highlighted the importance of Human Rights implementation practices. It has conducted human right risks assessment at corporate level, which will be extended across its plant locations in the next financial year. Also, it ensures human rights in its value chain by evaluating supplier partners on ECOVADIS platform.

Communities

The Company remains steadfast in its commitment to corporate social responsibility and implements its CSR initiatives in India and Europe in accordance with national and global priorities aligned with United Nations Sustainable Development Goals (UNSGDs).

CSR In India

In India, ATF is designated by the Company as the driving force behind its CSR initiatives. ATF diligently adheres to all relevant rules and regulations of the CSR act. With a keen eye for meaningful change, the ATF actively identifies and executes projects in close collaboration with stakeholders, ensuring their involvement from the initial design phase through to execution. The Company embraces five key thematic areas including

1) Healthcare for the Trucking Community,

2) Solid Waste Management and Sanitation,

3) Livelihood Opportunities for Rural Women,

4) Biodiversity Conservation and

5) Local Initiatives.

In FY25, the initiatives have successfully touched the lives of over 1.6 million beneficiaries. Since 2013, The Company has positively impacted over 12.6 million individuals, demonstrating its dedication to fostering positive change in communities.

Healthcare for Trucking Community

The Company continued to provide its Healthcare services to its key stakeholder, the ‘trucking community. In FY25, ATF opened two new centres in Jammu and Haridwar, taking the total to 34 centres across 21 states in India. These centres offer a wide range of comprehensive healthcare services designed to promote well-being and preventive care. The services include preventive measures and awareness campaigns targeting diseases such as AIDS, vision care, tuberculosis and management of non-communicable diseases such as diabetes, hypertension and general medical treatments.

In the fiscal year, over 1.3 million beneficiaries were outreached through healthcare services.

Apollo Tyres supports the Government of Indias ambitious initiative to eradicate TB in the country by 2025. To amplify this cause, it has joined hands with USAID, the Union and Central TB Division and the Ministry of Health and Family Welfare. During the fiscal, it launched three targeted campaigns to commemorate World Lung Day, World TB Day and the 100 Days TB campaign, with the objective of achieving a tuberculosis-free India for the trucking community. Additionally, it provided nutritional support to individuals diagnosed with tuberculosis. The outreach of these campaigns was significant, engaging over 240,000 participants.

Solid Waste Management and Sanitation

The Company continued its efforts to provide waste management services in the villages around its manufacturing locations and around the Delhi transhipment hub. The four major projects of its SPARSH programme include Clean My Village, Clean MY Transport Nagar, Sanitation Management and End of Life Tyre (ELT). These projects align with the Clean India Campaign and Sustainable Development Goals (SDGs).

A total of 2,47,031 beneficiaries benefited from SPARSH initiatives in FY25. In this financial year, the Company constructed 105 toilets.

Livelihood for Rural Women – Navya Project

The programme design of Navya empowers rural women through access to microfinance and the creation of Self-Help Groups (SHGs).

In the reporting period, the livelihood programme has positively impacted the lives of 2,185 beneficiaries. There were 14 new SHGs formed, where 1,605 women received invaluable training in income-generating activities. Furthermore, the Company through Apollo Tyres Foundation (ATF) successfully linked 1,800 women to various income generation initiatives, opening doors to new opportunities. In total, 7,513 women have been connected to essential government welfare schemes, collectively benefiting from an impressive sum of over H 7.2 crores. As a part of Navya Programme, ATF held an event on International Womens Day in collaboration with The French Institute in India, featuring distinguished guests such as Dr. Thierry Mathou, the Ambassador of France to India and Onkar Kanwar, Chairman of Apollo Tyres and honoured eight women entrepreneurs. This transformative campaign uplifts and empowers rural women, shining a spotlight on their incredible achievements.

Biodiversity conservation

At Apollo Tyres, the commitment to biological diversity has emerged as a global initiative, aiming to positively impact nearly half a million beneficiaries by FY26 through dedicated biodiversity conservation efforts. The initiative also emphasises on innovative, nature-based solutions that tackle the pressing challenges of climate change.

This financial year marks a significant milestone, as it embarked on Biodiversity Risk Assessment Projects across India, Hungary and the Netherlands. These efforts align seamlessly with the Taskforce on Nature-related Financial Disclosures (TNFD), striving to evaluate the nature-related impacts, dependencies and risks inherent in its operations. To date, Apollo Tyres has successfully planted over 430,000 trees through its biodiversity initiatives with a target to plant 1.05 million trees in collaboration with 1t.org, in association with the World Economic Forum. As part of mangrove conservation, the Company has initiated a remarkable project in the Ernakulam district of Kerala, India unveiling the first-ever Mangrove Park in Ernakulam, for public to explore and appreciate this vital ecosystem. This supports the livelihoods of over 1 million fishermen while safeguarding the vulnerable smooth-coated otters that call this habitat home.

Under Local initiatives, the Company has conducted activities towards Climate Change Mitigation and Watershed Management across the manufacturing locations in India. In this financial year, the Company continued to support the community around its manufacturing plant in Chennai and AP by installing 5 drinking water plants ensuring access to clean and safe drinking water. As a result, an impressive total of 12,239 beneficiaries have benefited from this initiative.

Initiatives in Europe

The core areas of its work under CSR in Europe are;

1) Road safety,

2) Biodiversity conservation and

3) Local initiatives.

Biodiversity Conservation In the Netherlands, employees in Enschede gathered to plant trees in the Lemelerbossen, collaborating with Trees for All. This initiative not only nurtures the environment but also underscores a collective dedication to biodiversity and the health of the planet.

Local Initiatives

At the Hungary plant, a group of 36 Apolloites were part of the a blood donation drive. In Germany, employees participated in the Weihnachten im Schuhkarton‘ campaign, spreading joy to children in need across various regions with offering over 50 shoeboxes with essential items and delightful gifts.

In the Netherlands, employees participated in the ‘Speelgoedbank, the Toy Bank initiative and helped sort and organise donated toys.

Information technology

Digitalisation is a key growth driver for Apollo Tyres and the Company continues to invest in modernising business processes and IT infrastructure globally. It has largely completed its cloud migration, with its primary IT infrastructure now hosted on the public cloud through major hyperscalers, enhancing agility and scalability. In FY25, the Company focussed on accelerating AI in manufacturing to drive efficiency gains and rolling out our customer digitalisation programme to deliver a superior experience. It is also building modern application infrastructure in its plants, launching the Apollo 2.0 process transformation programme and enhancing its cybersecurity posture to ensure industry-leading protection and maturity.

At Apollo Tyres, customer-centricity is at the heart of its operations. The digital transformation of the customer experience enhances both pre- and post-sales interactions, driving greater satisfaction, efficiency and convenience. The Companys B2B e-commerce portal serves as a one-stop shop for its business partners, improving product availability and ensuring seamless service through an extensive distribution network. Partners can access a wide range of products and track tyre orders in real time. The B2B e-commerce platform, equipped with AI and ML capabilities, enhances customer interactions. Currently, approximately 10% of partners in India are covered, with a goal to achieve 100% global rollout by year-end FY26. Additionally, tools like AI-driven warranty and claim management are streamlining processes, allowing claims to be processed in minutes, compared to the industry norm of days.

In manufacturing, a robust foundation has been established with state-of-the-art MES (Manufacturing Execution Systems), running on the public cloud to enhance resiliency and performance at lower costs. This has led to a nearly 30% reduction in scrap, a 40% improvement in process material availability and a 3% to 5% increase in productivity. Additionally, the launch of a global R&D and laboratory management system will integrate all R&D locations, driving efficiency and reducing lead times for product development.

The IoT programme is well advanced, with over 750 data points from major production machines globally, streamed in near real-time to a centralised cloud data lake. This data is fuelling self-service deep analytics in plants and forming the core of the AI programme in manufacturing. This progress is driven by ‘micro language models tailored to specific machine types, enabling real-time identification and resolution of production losses. Additionally, Agentic AI models are being used to proactively detect emerging issues, further enhancing manufacturing efficiency.

Supporting Apollo Tyres AI initiatives, the Digital Innovation Hub (DIH) in London and Hyderabad has created a strong network of over 175 experts and start-ups. In the past fiscal year, the DIH collaborated with 10+ start-ups on various projects and ran two ‘bottom-up innovation programs, resulting in 1,000 ideas and 40 prototypes. Apollo Tyres launched the Apollo 2.0 core process transformation to modernise and future-proof key business processes, including Plan to Deliver, Order to Cash, Source to Pay, Manufacturing Execution, Hire to Retire and Record to Report. This major investment involves re-implementing SAP S/4 HANA, selecting O9 as the next-generation advanced supply chain management system and implementing SAP SuccessFactors as the core HR system.

The ‘greenfield implementation of SAP S/4 HANA will form the foundation for optimising core business processes, enhancing sales excellence, streamlining manufacturing and improving global procurement. The programme will focus on key areas such as customer touchpoint optimisation, manufacturing operations and HR systems.

Supporting the deployment has been the ‘cloud first strategy which it adopted 3 years ago and now has reached a very mature level. This strategy has allowed it to avoid Capex investments but more importantly provide agility and enhanced security for infrastructure. The cloud-first strategy has enabled the migration of 180 TB of data to the cloud, making it globally accessible and securely managed. The Company now operates 211 virtual machines, 50 of which are modernised legacy systems and hosts critical databases in the cloud, ensuring scalability, regular updates and reduced maintenance. By utilising high-performance computing

(HPC) solutions from AWS, Apollo Tyres has reduced product design time by 30%, enhancing overall efficiency. The global data lake, now storing over 10 TB of data, supports AI/ML applications and executive reporting. As cyber threats evolve, Apollo Tyres has prioritised cybersecurity given that it continues to adopt advanced technologies like industrial IoT, Generative AI and interconnected supply chains. The focus has been on enhancing security resilience while optimising existing investments and following industry best practices. The Company successfully completed a three-year IT cybersecurity roadmap, achieving key milestones:

Security Maturity: Implemented Zero Trust architecture and tools from Palo Alto and CrowdStrike, blocking 6 million threats, including 133,000 malicious websites and 192 zero-day attacks. Response time was reduced from 4 days to 30 minutes.

Security Posture: Reduced endpoint incidents by 90% and spam emails from 40% to 2%.

Cloud Security: Deployed a Cloud-Native Application Protection Platform (CNAPP), closing 100+ attack paths and enhancing cloud visibility.

Governance and compliance were strengthened with certifications for Chennai, AP plants and TISAX for European locations. The Generative AI Ethics Body was set up to ensure responsible AI use.

The Companys training initiatives, including phishing simulations, data security awareness, etc reduced human error-related security incidents. These efforts have transformed its security posture, enabling rapid threat response and laying the foundation for a resilient, future-ready security strategy.

Health, safety and environment (HSE)

Apollo Tyres prioritises Health & Safety as a core element of its culture, embedding it into its operations and way of working. Progress is evident in two key areas: Systems & Processes and Mindset & Behaviours. Continuous learning and risk management, supported by Rules & Standards, drive improvements. Employees are empowered to take ownership and actively contribute to safety.

Functional scorecard audits across Indian manufacturing ensure compliance with Apollo Safe Way and highlight areas for improvement in safety engagement, risk reduction and inspections. All units are ISO 45001:2018 certified, demonstrating high safety standards. The Company plans to launch the next phase of safety audits to further enhance workplace safety culture.

The Lost Time Injury Frequency Rate (LTIFR) reported for FY25 was 0.78, with no serious incidents documented, indicating a successful reduction in severe workplace injuries. The LTIFR experienced an increase in FY25 compared to FY24. This increase can be attributed to strategic changes, which included the implementation of more stringent definitions of incidents to align with global standards, as well as the introduction of a new Incident categorisation framework. In FY25, 185,217 manhours of risk-based training were conducted to enhance workplace safety and emergency preparedness.

The fiscal saw the Company accelerate its Health and Safety culture transformation through the Apollo Safe Way 2.0 initiative, in partnership with dss+. Key initiatives included the Global Safety Perception Survey, establishing robust HSE governance, drafting One Apollo Global HSE Standards and leadership coaching.

The AP plant achieved a Five Star rating in the British Safety Council Audit and received the prestigious Sword of Honour in London. In Enschede, multiple HSE events showcased the Companys commitment to a Safety First mindset, including initiatives like the Vitality Calendar for health and fitness, Biodiversity initiatives and the Chairmans Safety Award.

At the Gy?ngy?shal?sz plant, over 300 employees participated in HSE Day, which included engaging activities focused on safety involvement and dedication. In India, National Safety Week was celebrated across all plants, fostering an ownership mindset toward safety. Events included leadership messages, poster competitions, safety device exhibitions and recognition of employee efforts in H&S

Development in human resources and industrial relations

Elevating Apollo: Cultivating Talent in a Competitive Landscape

The Company has long been a frontrunner in the tyre industry, leveraging its strong reputation to attract top talent. However, in a rapidly evolving and competitive landscape, it is essential to establish a robust employee value proposition to differentiate from competitors and effectively attract and retain skilled employees.

The Top Employers Institute is globally recognised as the leading authority in acknowledging excellence in HR practices. To qualify for certification, companies must demonstrate advanced HR practices and employ at least 2,500 people globally. The certification process covers six key HR domains across 20 topics, including People Strategy, Talent Acquisition, Diversity & Inclusion and Wellbeing. The process is rigorous, with audits ensuring data accuracy and successful companies receive detailed feedback and benchmark reports.

This year, the Companys Singapore and UK offices celebrate their third consecutive year of certification, a testament to their continued HR excellence. Similarly, the Netherlands and Hungary offices have earned this recognition for the second consecutive year, reflecting their dedication to fostering exceptional employee conditions.

Being certified as a Top Employer underscores Apollo Tyres commitment to creating a better work environment, highlighting the pivotal role of Apolloites and the HR team in driving business success through outstanding HR policies and practices.

Further, the Company has been recognised for excellence in the manufacturing sector, further reinforcing its People-first culture. In addition to its Top Employer certification, it ranked among the Top 25 Large Manufacturing Companies in India for 2025, awarded by the Great Place to Work Institute. It also received the WOW Workplace Award 2025 in Manufacturing from Jombay, based on AI-driven feedback from platforms like Glassdoor and AmbitionBox. These accolades highlight Apollo Tyres focus on performance, well-being, leadership development and inclusivity in its workplace culture.

Workforce Overview

In FY25, Apollo Tyres maintained a diverse talent pool of 17,517 workforce across the globe.

Our Belief in Diversity & Inclusion

Diversity and inclusion are key to Apollo Tyres success, fostering creativity, innovation and improved decision-making. By embracing diverse perspectives, the Company enhances problem-solving, better connects with global customers and drives growth. Apollo Tyres governance body includes 8% female Board members and 33% female Key Management Personnel, reflecting its commitment to gender inclusion. It values a multicultural, multigenerational workforce and ensures equal opportunities for all, regardless of personal identities. With a global target of 12% gender diversity by FY26, it maintains a work environment free from discrimination and harassment, with no cases of discrimination reported in India for the fiscal.

The Company prioritises local representation within its team, recognising the value of connecting with the communities where it operates. By hiring talent from these regions, it strengthens community ties and gains diverse perspectives in leadership. Local offices celebrate diversity through events such as International Womens Day, cultural exchanges and local festivities, allowing Apolloites to embrace and learn from the global cultures present across its offices. It ensures all workers, regardless of gender, receive compensation at or above the fair wage as mandated by local governments.

Human Right

The Company ensures its people are treated with dignity and respect, with policies and systems in place to protect human rights in the workplace. The Code of Conduct outlines human rights principles, available through the Companys Human Rights Policy on its official website. In line with the International Labour Organisation (ILO), it addresses key fundamental rights at work, including:

Freedom of association and collective bargaining

Elimination of forced or compulsory labour

Abolition of child labour

Elimination of employment discrimination

Ensuring workplace security

The Company also upholds human rights for all stakeholders, including communities, consumers and supplier partners. Regular audits are conducted by the Internal Audit team across manufacturing facilities, ensuring compliance. Employees and workers can raise grievances through line managers, HR partners, or via email at coc.report@apollotyres.com.

Collective Bargaining Coverage

Regular meetings with employee representatives, trade union leaders and management address welfare and productivity concerns, offering a platform for grievance redressal. In Europe, it adheres to the Collective Labour Agreement, while in India, worker contract terms are governed by the India Contracts Act of 1872.

drives innovation and growth. It also attracts diverse perspectives through internship programs with prestigious global institutions, ensuring a dynamic and innovative workforce.

In Hungary, participation in the largest job fair (Jobverse) allowed it to connect with young job seekers, showcasing career development opportunities. The event highlighted its support for long-term career growth. By focusing on multi-generational diversity and talent development, it fosters innovation, driving the Company to new heights.

WELLNESS & WELL BEING

Employee engagement is vital to fostering workplace well-being by promoting a positive environment, transparent communication and a shared sense of purpose. This year, the Company strengthened its commitment to employee well-being through the ‘Wheels of Wellness (WOW) framework, which is tailored to the unique cultural and professional contexts of its global offices. The framework addresses employees Physical, Mental, Social and Financial well-being through nuanced programs while maintaining a cohesive organisational philosophy. Various benefits and initiatives were also introduced to support our employees in their wellness journey, to enable a positive and productive workplace, keeping in mind the Companys ethos of One Family: Always Healthy and Absolutely Safe.

Hiring Future Talent

The Company is committed to internal talent mobility while actively infusing fresh perspectives to stay ahead of industry trends. By engaging industry experts, it

The WOW calendar was refreshed with year-round seminars to educate and engage Apolloites on various wellness topics. Notably, a new partnership was launched to offer fitness services at local gyms or at home, extended to one family member to promote shared wellness.

The Purple Door initiative, a 2,800-square-foot recreational space for the office in Gurgaon, was introduced to enhance physical and mental well-being. The space supports the ‘One Family spirit by encouraging relaxation and stronger connections.

The Company continues to offer baseline benefits, including life insurance, healthcare and disability coverage, extending to temporary employees under ESIC or the WCA Act. Furthermore, as part of the Companys retirement provisions, temporary employees are covered under the PF and Gratuity Act. Parental leave is provided to all permanent employees, with nearly 100% returning to work post-leave. The Apollo Voice Employee Engagement Survey reflected positive feedback, with wellness initiatives scoring above industry benchmarks.

80%

of Apolloites believe that Apollo makes it possible for employees to have a healthy work-life balance

80%

of Apolloites believe that Apollo fosters an environment where wellness and well-being is prioritised

Global Engagement

The Company is committed to fostering a positive workplace culture through proactive employee engagement and feedback. Its Apollo Voice employee engagement survey is a vital tool, allowing it to gather insights from its workforce to inform decisions on culture, benefits and operations. By actively listening to employees, the Company aims to cultivate a more productive and happier work environment.

In FY25, global participation in the engagement survey reached an impressive 95%, underscoring its commitment to open communication and continuous improvement. The Companys global engagement score increased to 88, aligning with global manufacturing benchmarks and exceeding global auto industry standards.

Notable improvements were seen in key areas such as Alignment to Apollo Objectives, the One Apollo Spirit and Pride for Apollo. In particular, response to feedback in Rewards and Recognition led to an increase in scores, reaching 77, driven by the launch of the Apollo Recognition Hub and a more unified approach to rewards. Efforts to enhance managers support roles also resulted in an increase in scores from 87 to 89. Targeted training opportunities, along with increased communication from management were some of the efforts contributing to the positive uptick.

The Company promotes a healthy work-life balance by organising local celebrations and sporting activities across its global offices. These events, such as Family Day, Diwali, Pongal and Christmas, encourage Apolloites to strengthen their relationships beyond work, fostering a strong One Apollo Family bond. It also recognises personal accomplishments and honours, extending congratulations through the internal newsletter, Whats New, to celebrate individual achievements across offices.

We run together

The Companys commitment to building a strong One Family culture was evident at two major marathon events this year. In Europe, Apolloites participated in the annual #VredesteinLes20KMdeParis marathon, where teammates had the unique opportunity to connect and run together, embodying its ethos of unity. In India, the 10th edition of the ‘Apollo Tyres New Delhi Marathon saw over 20,000 participants joining the Full Marathon, Half Marathon, 10K and 5K runs under the theme #GoTheDistance. Both events provided a platform for camaraderie, achievement and building stronger connections among colleagues.

We play together

The Company continues to foster teamwork and community spirit through engaging sports initiatives. Its employee initiative, ‘Apollo Cricket League brought together India-based offices, with 13 inter-departmental teams competing in a spirited cricket tournament. This event encouraged sportsmanship and teamwork, reinforcing its ‘One Family ethos. Meanwhile, in Amsterdam, Apolloites participated in the Padel Business League, where 10 employees bonded outside of work while representing the Company in friendly competition with regional businesses.

We give back together

During the fiscal, the Dutch team participated in various volunteering activities to give back to the community. Apolloites sorted food at the Foodbank (Voedselbank), organised toys at the Toybank (Speelgoedbank) and cooked lunch with the elderly at Cordaan, fostering cross-functional connections through meaningful, hands-on contributions. Earlier this year, the Hungary team organised a blood donation drive, with Apolloites donating blood to help save over 100 lives, embodying the commitment to ‘Taking Responsibility and positively impacting the community.

Rewards and Recognition

The Company adopts a comprehensive approach to employee compensation, combining monetary and non-monetary rewards, benefits, work-life balance, recognition and career development opportunities. This model is designed to attract, retain and motivate talented individuals by offering a well-rounded rewards package globally. It emphasises performance-based rewards through a merit-based pay system, ensuring top performers are appropriately incentivised. To further enhance job satisfaction and loyalty, it maintains a strong framework for rewards and recognition, balancing both extrinsic rewards (such as material benefits) and intrinsic rewards (including global mobility and career advancement).

The Companys global recognition programs are designed to align with the journey of Apolloites, celebrating various aspects of their contributions, including Performance (Roll of Honour, Chairmans Employee of the Year), Long Service (Apollo Pillars), Appreciation (Recognition Badges) and Celebration (Chairmans Recognition Week). This year, top performers were rewarded with a memorable trip to Georgia or Azerbaijan as part of the Roll of Honor initiative.

The Company continues to honour long-term commitment, celebrating milestones such as 5, 10, 15, 20 and 25 years of service. The Apollo Recognition Hub (ARH), launched last year, has evolved into a sophisticated platform for appreciation and motivation. In FY25, over 14,000 appreciation badges were exchanged across 18 countries, with 88% participation.

The recognition system, which includes both monetary and non-monetary rewards, has been further refined to ensure meaningful global recognition. In addition to existing awards, new categories celebrating innovation, customer excellence and cross-functional collaboration have been introduced to reinforce Apollo Tyres core values and drive positive workplace morale.

GLOBAL TALENT BUILDING

The Company prioritises internal talent development, offering ample opportunities for learning and growth through its robust talent management framework. It actively advertises internal mobility opportunities via its career portal. The APEX (Apollo People Excellence) initiative identifies and nurtures internal talent, aligning with the Apollo Leadership Competency Framework to build a strong pipeline for pivotal roles. Further, it conducts annual performance reviews for all permanent white-collar employees on the Horizon platform.

Through the Apollo Laureate

Leadership Development programme, the Company empowers future leaders, with over 350 laureates graduated globally since its launch in 2022. This year, 17 leaders graduated in Europe through the Established Managers Programme. Additionally, the Apollo Managers Essentials Programme, developed in partnership with Lee Hecht Harrison (LHH), engaged over 90 leaders globally, focusing on key themes such as trust-building, performance feedback and career development.

Local and regional leadership initiatives continue to be tailored to address specific leadership priorities. This years highlight was the launch of leadership programs in the manufacturing function. The Manufacturing Excellence Technical Leadership Development Programme and the Manufacturing Leadership Development Programme engaged 28 Apolloites, partnering with institutions like IIM Mumbai and industry leaders such as Toyota and Birla. These programs aim to build a future-ready manufacturing leadership pipeline.

Apollo Tyres was also honoured as one of Indias "Top Leadership Factories" by the Great Managers Institute, recognising its ongoing commitment to leadership development and fostering a unified One Family culture.

A LEARNING ORGANISATION

The Company strives to be a learning organisation, fostering a work culture that leverages diverse skills and promotes an innovation mindset at the core of its values. By emphasising continuous learning and development, it creates opportunities for employees to grow, evolve and acquire new skills. It also offers a comprehensive transition assistance programme, addressing wellness, financial planning and counselling support. Retiring employees can receive extensions of fixed-term contracts based on business needs, while eligible employees may have the opportunity to become business partners.

Learning Benchmarks and Accolades

The Company experienced a productive learning year, surpassing industry benchmarks in engagement and learning outcomes. Its commitment to development is reflected in its strong performance across several Percipio metrics, including learner retention, participation and course application rates.

Apollo Tyres was recognised by the Ministry of Skill Development and Entrepreneurship, Government of Gujarat, for its outstanding contributions to skill development. To maintain its competitive edge, it continues to foster a culture of continuous learning, integrating it into both the personal and professional growth of its people.

Learning Highlights – Apollo Capability Academy

The Apollo Capability Academy, launched last year, leverages internal experts to institutionalise learning through global webinars on vital topics, building capabilities across functions. The Apollo Financial Acumen initiative, in collaboration with the Finance team, enabled Apolloites to enhance their understanding of key financial ratios used in business.

Additionally, a new partnership with the Product Technical Services, Commercial and R&D teams piloted the Apollo Tyre Acumen series, focusing on basic tyre technology and key products. Together, these initiatives reached over 1,800 employees globally and the Company plans to expand collaboration with more internal experts to develop and deliver additional learning topics.

Learning Highlights – Developing a Culture of Excellence

The Company is deeply committed to Total Quality Management (ATQM), embedding quality principles throughout its operations. This year, the focus was on familiarising Apolloites with the Apollo Problem Solving Approach (APSA), starting with senior management sessions and followed by workshops for Apolloites. The workshops elaborate on the key principle of how cultivating continuous improvement can build a culture of excellence in day-to-day operations, especially amongst cross-functional teams and partnerships.

The Companys dedication to quality is reflected in multiple accolades, including the Gold Award at the International Convention on Quality Circles (IQCC), the Best Organisation Award from the Quality Circle Forum of India (QCFI) and several Gold Awards for its India plants. These achievements reinforce the Companys leadership in the tyre industry.

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.

(Rs. Million)

	Year Ended		Year Ended
Particulars	March 31, 2025	March 31, 2024	March 31, 2025	March 31, 2024
	Standalone		Consolidated
1 Revenue from operations
Sale of Products	178,706.01	172,351.84	257,802.57	250,199.92
Sale of Services	-	-	7.16	3.69
Other operating income	3,030.11	3,041.46	3,424.44	3,573.54
Total (1)	181,736.12	175,393.30	261,234.17	253,777.15
2 Expenses
a) Cost of materials consumed	111,630.20	95,208.29	128,645.52	110,559.02
b) Purchase of stock in trade	10,034.08	9,473.71	24,689.91	23,763.03
c) Changes in inventories of finished goods, stock-	(4,597.24)	229.41	(6,389.98)	2,309.04
in-trade and work-in-progress
d) Employee benefits expense	11,360.10	11,087.15	31,297.44	29,640.01
e) Other expenses	31,401.86	28,428.65	47,275.97	43,032.60
Total (2)	159,829.00	144,427.21	225,518.86	209,303.70
3 Operating profit (EBITDA excluding other income) (1 - 2)	21,907.12	30,966.09	35,715.31	44,473.45
4 Other income	1,155.34	1,357.97	881.00	1,535.73
5 Less: Finance costs	3,657.68	4,034.92	4,466.17	5,059.41
6 Less: Depreciation & amortisation expenses	9,291.74	9,165.04	14,983.72	14,778.30
7 Profit before share of profit/ (loss) in associate / joint venture, exceptional items & tax	10,113.04	19,124.10	17,146.72	26,171.47
8 Share of profit / (loss) in associates / joint venture	-	-	6.73	3.61
9 Exceptional items	(509.22)	(757.93)	(1,686.73)	(773.04)
10 Profit before tax	9,603.82	18,366.17	15,466.42	25,402.04
11 Less: Provision for tax
Current tax	1,637.14	3,079.20	2,717.36	4,208.79
Deferred tax	1,672.40	3,746.72	1,535.86	3,974.59
Total	3,309.54	6,825.92	4,253.22	8,183.38
12 Profit after tax	6,294.28	11,540.25	11,213.20	17,218.66

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, Interest Coverage Ratio, Current Ratio, Debt Equity Ratio as compared to the previous year other than the following:-

Particulars	FY25	FY24	% Change	Explanation
1 Operating profit margin (in %)	3.46%	6.58%	(47.36%)	Higher raw material costs led to decrease in profits.
2 Net profit margin (in %)	12.05%	17.66%	(31.72%)	Higher raw material costs led to decrease in profits.

CHANGE IN RETURN ON NET WORTH

Sl.No Particulars	FY25	FY24	% Change
1 Return on Net Worth*	5.96%	11.52%	(48.23%)

* Reason for change- Higher raw material costs led to decrease in profits.