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Earnings Call Transcript

Apollo Tyres Earnings Call Transcript: Key Takeaways

Apollo Tyres closed Q4 FY26 with 14% consolidated revenue growth and 14.6% EBITDA margins. Management focused on deleveraging, reducing net debt/EBITDA to 0.4x and improving ROCE to 13.4%.

Highlights
Revenue growth14% Y-on-Y for Q4 FY26.
MarginsNear-term pressure from RM inflation; pricing actions to mitigate.
Demand visibilityStrong Q1 momentum; April volumes show continued strength.
Management confidenceHigh, citing strong fundamentals and strategic direction.

Growth

Q4 revenue reached INR 73.4 billion, up 14% Y-on-Y. India replacement and OE volumes grew in high teens.

Outlook

FY27 CapEx planned at INR 35 billion (80% growth/expansion). Targeting 16%+ long-term European EBITDA margins.

Risks

Geopolitical issues in West Asia causing volatility in raw material, energy, and logistics costs; 20% sequential RM inflation.

Last quarter's promises, checked

Delivered

  • Guided India net debt/EBITDA improvement → delivered 1.1x to 0.7x (= BEAT)
  • Guided consolidated net debt/EBITDA improvement → delivered 0.7x to 0.4x (= BEAT)
  • Guided ROCE improvement → delivered 13.4% vs FY25 (= BEAT)

Partly delivered

  • Guided 6-8% price hikes to offset RM → delivered 3-5% implemented so far (= PARTIAL)

Missed

  • Guided A&P spends at 2% of sales → delivered 4% of sales (= MISS)
Source

Earnings Call Transcript filed with NSE, NSE: APOLLOTYRE. Summary written with AI assistance from the document.

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Apollo Tyres Ltd: key numbers

Share price
₹400.10
Market cap
₹25,410 Cr
Revenue (annual)
₹28,471 Cr
Net profit (annual)
₹1,372 Cr
P/E (TTM)
14.9×Sector 33.6×
Promoter holding
36.93%+0.00% QoQ
FII holding
10.09%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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