The company reported healthy growth across both its India and Europe businesses, with both segments registering nearly 15% year-on-year growth during the quarter.
For Q4FY26, Apollo Tyres reported revenue of ₹7,336 crore, up 14% from ₹6,424 crore in the year-ago period.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) rose 28% year-on-year to ₹1,069 crore from ₹837 crore, while EBITDA margin expanded to 14.6% from 13% last year.
What brokerages say
Brokerage firm Morgan Stanley maintained an ‘Equalweight’ rating on the stock with a target price of ₹535.
The brokerage said consolidated revenue, EBITDA and adjusted profit after tax grew 14%, 28% and 69% year-on-year respectively. Consolidated EBITDA of ₹1,070 crore came 5% ahead of Morgan Stanley’s estimates, led by stronger-than-expected performance in the India business.
Morgan Stanley also said that margins in the Europe business, including manufacturing and distribution operations, were better than expected.
However, Europe revenue at ₹2,180 crore came in 10% below its estimates, though EBIT of ₹140 crore and margin of 6.6% were marginally ahead of expectations.
Meanwhile, JPMorgan Chase maintained a ‘Neutral’ rating on Apollo Tyres with a target price of ₹445.
The brokerage said consolidated revenue and EBITDA were 5% and 6% below its estimates respectively, although results remained broadly in line with Street expectations.
JPMorgan highlighted that the India business outperformed forecasts, with EBITDA coming in 10% higher than expected and EBITDA margin remaining stable sequentially at 14.6%, compared to its estimate of 13.7%.
However, the brokerage said consolidated EBITDA was impacted by lower-than-expected margins in Europe and losses in the “Others” segment.
Apollo Tyres’ standalone business reported revenue of ₹7,340 crore, up 14% year-on-year, while EBITDA increased 28% to ₹1,070 crore. EBITDA margin expanded 153 basis points year-on-year, though it declined 75 basis points sequentially.
Reported profit after tax stood at ₹630 crore, up 242% year-on-year, aided by a tax write-back during the quarter.
