Apollo Tyres Limited — Q4 FY26
Apollo Tyres reported a strong Q4 FY26 with consolidated revenue of INR 7,340 crore, up 14% YoY, and EBITDA margin of 14.6% (+160bps YoY).
neutral
medium
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
83%Questions answered1Evaded / deflected12Questions auditedContradictedNumbers vs filing
Answered
High priority
Volume growth in Q4 standalone, exports, and replacement trends for TBR and PCR.
Asked by Raghu Nandan
Management provided specific growth rates for each segment.
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Question
Firstly, sir, if you can talk about, within standalone, how has been the total volume growth in Q4? Within that, how has exports done? If you can also give some color that within replacement, TBR, PCR, how are you seeing the growth trends?
Gaurav Kumar, CFO
Raghu, as mentioned, for both OE and replacement, the volume growth was high teens. Exports were impacted by events through the year, so the overseas markets were muted. We had mid-single digit growth in the export volumes and a high teens in both OE and replacement.
Partial answer
Medium priority
Market share movement in replacement for FY 2026.
Asked by Raghu Nandan
Management gave directional view but lacked precise numbers.
no official datainternal estimates only
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Question
Sir, given that there has been lot of focus on A&P spends and market activation, and you are seeing the benefits in terms of better growth, can you talk about how has been the market share movement in recent months and for FY 2026 in replacement?
Gaurav Kumar, CFO
We don't have the official data, Raghu, now published or it comes with a significant lag. For the full year, we believe we have gained market share in TBR replacement and even in TBR overall. Passenger car replacement we would have gained share, not in passenger car OEM.
Evasive
Medium priority
Export outlook for FY 2027 by region and segment.
Asked by Raghu Nandan
Management did not provide a clear forecast for export growth.
no specific outlookcapacity constraints cited
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Question
On the export outlook side, for FY 2027, how do you expect the trend to pan out and, which regions, segments, how do you focus? How are you thinking about it?
Gaurav Kumar, CFO
We will continue to look at exports strategically. Keeping in mind, as I said, our capacity utilizations are at a high. In certain product categories, particularly on truck, we would need capacity allocation decisions given the strong demand in India.
Answered
High priority
Commodity inflation impact in Q1 and further price hikes needed.
Asked by Siddhartha Bera
Management quantified cost inflation and price hike gap.
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Question
Sir, first question is on the commodity inflation. You mentioned about a mid-teens increase in quarter one. Does it factor in the entire cost increase till now, or you think there can be further cost inflation in quarter two given the current scenario? Also how much price hike do you need further to pass on the entire cost inflation and go back to the earlier margin trends which we were operating?
Gaurav Kumar, CFO
Mid to high teens is the current reality. It can change because the situation, even as we have progressed about a month and a half into the quarter, has kept changing. The current estimate is around mid to high teens. We've taken about half the price increase that is needed, so at least a couple of more rounds of price increases would be needed to negate all the cost push that is there.
Answered
High priority
CapEx split between India and Europe for FY 2027.
Asked by Siddhartha Bera
Management provided specific split of CapEx.
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Question
On the CapEx, you mentioned about INR 35 billion for the year. How does it sort of spread out in terms of the India and Europe business?
Gaurav Kumar, CFO
Close to INR 3,000 crores out of the INR 3,500 crores would be in India, where we are expanding capacity both in truck and car tires. In Europe, in the Hungary plant, there is only a passenger car tire expansion, which is also already well underway, so the balance would be in Europe.
Answered
High priority
Timeline for European margin improvement post restructuring.
Asked by Siddhartha Bera
Management gave a clear timeline for margin improvement.
Read the exchange
Question
Last question on the European margins. Now, we have sort of restructured the plant. By when do you think we should start seeing benefits on the margins with this restructuring what we have done?
Gaurav Kumar, CFO
Siddharth, the last day for the Enschede plant would be June 30th, which has been a tough, difficult emotional decision for us. Take about another quarter as we stabilize things. In H2 of FY 2027, the positive impact of margins as we become more cost competitive for our European operations should start flowing in.
Answered
High priority
Sequential volume growth in Q4 and price hikes in Q1.
Asked by Basudeb Banerjee
Management provided sequential volume growth and price hike details.
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Question
What is the overall standalone volume growth if I wish to look from a sequential basis? Specifically, it's a seasonally strong quarter for commercial vehicles, just wanted to understand, given a commodity inflation scenario, QOQ revenue is up 2%, what has been the price hikes in Q4, volume growth sequentially, and how are you looking at price hikes in Q1 and going ahead?
Gaurav Kumar, CFO
Basudeb, the entire top line growth of 2% Q4 over Q3 has been through volume growth. The volume growth in Q4 has been 2% on a sequential basis. As I mentioned, we have announced price hikes of 6%-8%, of which 3%-5% have already been implemented in the India market, and the others are coming through in May.
Answered
High priority
Commodity prices in Q4 and current situation.
Asked by Basudeb Banerjee
Management gave specific commodity prices for Q4.
Read the exchange
Question
Second thing, sir, as usual you say commodity-wise price, during Q4, and what is the situation as of today?
Gaurav Kumar, CFO
For Q4, the prices and the current situation is very different. Natural rubber was at INR 200, synthetic rubber at INR 170, carbon black at INR 110, and steel cord at INR 155.
Answered
High priority
Reason for lower European margins compared to historical levels.
Asked by Amyn Pirani
Management explained the reasons for margin decline.
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Question
What would you attribute it to the reason, you know, why, you know, the margins are Because last year 4Q was also lower than the previous year 4Q and the years before that. What is, you know, going on there if you can help us understand?
Gaurav Kumar, CFO
That's at the core of the decision regarding the Enschede plant. You've correctly pointed out that the 14.3, 14.6, et cetera, are lower than our previous few years' historical levels, which used to be a 16%+. The reason is that the European market conditions have been sluggish, flattish to a negative now for two years running.
Answered
High priority
Price hike in Europe and ability to reach 16% EBITDA margin.
Asked by Vijay Pandey
Management provided specific price hike percentage for Europe.
Read the exchange
Question
Firstly on Europe. The commodity inflation there, you will be seeing there also the impact. I wanted to understand how much price hike can we take in Europe, both on the commodity inflation as well as the higher energy prices. Have we taken any increase there or how is it?
Gaurav Kumar, CFO
We've announced a 2% price increase in Europe also, Vijay Pandey. Europe, we are more a follower given our size relative to some of the global majors. We follow their pricing actions based on their announcements.
Answered
Medium priority
Advertising expense as percentage of sales for Q4 and FY 2027 outlook.
Asked by Vijay Pandey
Management provided specific percentage and future guidance.
Read the exchange
Question
If you can just let us know the advertising and sales and marketing expense. How much was it for this quarter in terms of as a percentage of sales? I think generally it's at around 2.5%, should we expect this level for FY 2027 also? What was for this quarter?
Gaurav Kumar, CFO
The advertisement and sales promotion, which as I mentioned, reflected the recent sponsorship of the jersey and then the activation, was higher by more than INR 100 crores in terms of usual. Against a typical 2% of sales, we were at 4% of sales for the current quarter.
Partial answer
High priority
Revenue loss from Enschede closure and cash outflow in FY 2027.
Asked by Rishi Vora
Management described impact qualitatively but did not quantify revenue loss.
no quantified revenue loss
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Question
On the Europe business, you know, this year we did around EUR 670 million of manufacturing operation revenues. Post the closure of Enschede, how should we think about revenue drop that can happen?
Gaurav Kumar, CFO
There, there could be a potential revenue loss on only one product category, which is the agricultural stroke OHT, which was a small capacity that we did not manufacture in any of the other plants. And in some of those cases, we may lose some of the OE business, which anyway was a loss-making business, so it would be a conscious choice.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Volume growth high teens for OE and replacement in Q4 | 17% | 14% | Overstated vs filing |
| Export volumes mid-single digit growth in Q4 | 5% | 14% | Understated vs filing |
| TBR replacement and PCR replacement 20% plus growth in Q4 | 20% | 14% | Overstated vs filing |
| Sequential volume growth 2% in Q4 over Q3 | 2% | 14% | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.