Apollo Tyres Limited — Q1FY27 earnings call summary

• Europe margin target post restructuring is high teens EBITDA; capacity shifts from Netherlands to Hungary and India ongoing
• Q1 FY27 consolidated revenue grew 12.8% Y-o-Y to INR 74bn; EBITDA margin 11.7%, down 150 bps y-y due to RM cost pressures
• Net debt INR 1,700+ Cr; Q1 CapEx INR 650 Cr; net debt to EBITDA ratio 0.4; CapEx ramping in H2 FY27
• Raw material costs rose ~17% in Q1; further 8% sequential inflation expected in Q2; price hikes ongoing but full pass-through pending
• Multiple analyst queries on price hikes, capacity ramp-up, and commodity inflation; management expects continued demand growth despite macro challenges
• India operations revenue INR 54.6bn, +15.6% Y-o-Y; EBITDA margin 12%, volume-led growth across segments
• Europe revenue EUR147m, +0.5% Y-o-Y; EBITDA margin 8.9%, impacted by Enschede closure transition costs
• Market share regained: TBR replacement >30%, passenger car replacement >21%

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