Apollo Tyres Limited — Q3 FY26
Apollo Tyres reported a strong Q3 FY26 with consolidated revenue of ₹7,740 crore (+12% YoY) and EBITDA margin of 15.3% (+160 bps YoY), driven by robust domestic demand across al...
bullish
high
✓ 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 answered0Evaded / deflected12Questions auditedContradictedNumbers vs filing
Answered
High priority
Why is CapEx per ton higher than previous expansions?
Asked by Raghunandhan NL, Nuvama
Management confirmed the number and explained the reasons for the increase.
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Question
Roughly, if I calculate, there would be about 370 tons per day getting added... the CapEx per ton seems to be around INR 16 crore-INR 17 crore. I was trying to understand, this is further higher compared to the previous CapEx which we have done.
Gaurav Kumar, CFO
It is about a 350 tons capacity addition leading to about INR 17 crore per metric ton of CapEx. The increase comes as a result of both the inflationary pressures... and also because the technology keeps moving.
Answered
High priority
What is the volume growth breakup by channel?
Asked by Raghunandhan NL, Nuvama
Provided specific growth rates for each channel.
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Question
Sir, my second question was on the India volume growth, and if you can give a break-up between OEM, replacement, and export, and also your thoughts on how do you look at the outlook for replacement and exports for FY 2027.
Gaurav Kumar, CFO
Our volume growth for OEM and replacement was in mid-teens, and in exports it was just short of 20%. So we've had a healthy growth, as I mentioned, across all the three channels.
Answered
Medium priority
What is A&P spend as percentage of sales and outlook?
Asked by Raghunandhan NL, Nuvama
Provided historical and target percentages.
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Question
on A&P spends, how much was A&P in Q3 as percentage of your standalone, and how do you see this ratio panning out over a year period?
Gaurav Kumar, CFO
We used to be roughly around 2% spend of A&P as a percentage of sales. In a normalized scenario, we would be upping it to about 2.5% to drive the top-line growth, and that is where it should settle as we go forward.
Answered
Medium priority
What was the exact A&P spend this quarter?
Asked by Basudeb Banerjee, CLSA
Provided the exact amount.
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Question
How much was the A&P this quarter, exactly?
Gaurav Kumar, CFO
A&P, along with certain sales promotion, was of the order of INR 150 crore.
Partial answer
Medium priority
Will elevated A&P last till Q4?
Asked by Basudeb Banerjee, CLSA
Acknowledged elevated spend but did not confirm if Q4 would be elevated.
no specific Q4 number given
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Question
You were saying that elevated number will last till Q4?
Gaurav Kumar, CFO
In the short term, because even as we take our call on what are the A&Ps we want to continue... it will take some time, Basudeb, because of existing contracts. And that's why I said the FY 2027 scenario would be a more normalized scenario for our A&P spend.
Partial answer
High priority
How to look at gross margin risk from raw materials?
Asked by Basudeb Banerjee, CLSA
Provided raw material prices but did not directly address gross margin risk.
no margin guidance given
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Question
whether gross margin can play spoilsport as such, or you don't think there is any chance of that under current outlooks?
Gaurav Kumar, CFO
Based on the international scenario, the current outlook given by our procurement team is a flattish scenario. So as of now, that's the best estimate we have.
Answered
Medium priority
When will debt reduction reflect in P&L interest?
Asked by Basudeb Banerjee, CLSA
Gave a clear timeline.
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Question
when should we see the reflection of the reduction in debt at the P&L level?
Gaurav Kumar, CFO
It will start reflecting fairly in the next quarter.
Answered
High priority
What is the capacity utilization for India overall?
Asked by Amyn Pirani, JPMorgan
Clarified that overall utilization is high 80s.
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Question
the capacity utilization that you mentioned in your release of 82% for PCR and 89% for TBR, is it just the Andhra capacity that you're talking about, or is this your full company capacity in India?
Gaurav Kumar, CFO
For us, what is more relevant is the overall India operations capacity utilization. That, as I mentioned, is in the high 80s, both for car tires and truck tires.
Answered
High priority
What is the total CapEx for next year?
Asked by Amyn Pirani, JPMorgan
Provided a specific number.
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Question
Next year, you've talked about a growth CapEx of INR 2,000 crore. So then would it be fair to say that overall CapEx... could inch in excess of INR 2,500?
Gaurav Kumar, CFO
I would put the overall CapEx number for next year closer to INR 3,000 crore, Amyn.
Partial answer
High priority
What is the current ROCE and outlook?
Asked by Amyn Pirani, JPMorgan
Provided current ROCE but deferred on future outlook.
deferred future ROCE guidance
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Question
what is your ROCE right now? As we're getting closer to the end of the 26th plan period, any initial thoughts on how we should think of ROCE?
Gaurav Kumar, CFO
Our current year ROCE, we are running at 13.5%, Amyn. It is in the band where we had set out our targets, but still not reaching that 15% target... We'll have to come back to you on that.
Partial answer
Medium priority
When will tax rate move to 25%?
Asked by Joseph
Confirmed likely move but no exact date.
no specific timeline given
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Question
do you expect to go to a 25%-26% tax soon?
Gaurav Kumar, CFO
Yes, Joseph. The tax team is examining, and with the change, most probably we would be moving to that tax bracket.
Answered
High priority
Why announce large CapEx now after years of bite-sized?
Asked by Joseph
Explained the operational necessity for large CapEx.
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Question
I want to understand what takes us away from the practice that we have had for the last three, four years and coming and announcing a very big CapEx.
Gaurav Kumar, CFO
We reached a stage where we could not further increase the capacity by line balancing, and hence, any further increase in capacity needed civil. And the moment you go reach that stage, it has to be of a certain quantum.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Reifencom revenue EUR 82 million, EBITDA margin 8% | 82 | 7,740 | Understated vs filing |
| India volume growth mid-teens for OEM/replacement, ~20% exports | 15% | 12% | Overstated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.