Apollo Tyres Q1 Profit Dips 95% to ₹12.8 Crore

8 Aug 2025 , 10:36 AM

Apollo Tyres reported a steep fall in net profit for the June quarter, dragged down by exceptional costs tied to its European restructuring plans. The Gurugram-based tyre maker posted a consolidated net profit of ₹12.8 crore in Q1FY26. This is down nearly 95% from ₹253 crore in the same quarter last year.

The sharp drop in earnings was largely due to a ₹368.4 crore one-time expense booked for the planned closure of its manufacturing plant in Enschede, Netherlands. The company said it intends to wind down tyre production at the facility by the summer of 2026, with payouts expected to be made in FY27, in line with local regulations.

Revenue for the quarter rose modestly to ₹6,560 crore, a 3.6% increase over ₹6,334 crore reported a year earlier. Despite the revenue growth, the company’s operating performance weakened. EBITDA came in at ₹867.1 crore. This is compared to ₹909.3 crore in the corresponding quarter last year, a 4.6% decline.

Operating margins also felt the strain. This slipped to 13.2% from 14.3% over the same period, reflecting pressure on profitability amid restructuring. The subdued Q1 performance follows a weak March quarter, where Apollo Tyres had posted a 48% drop in net profit due to underwhelming sales.

For feedback and suggestions, write to us at [e-mail]