Apollo Tyres Q2 profit falls 13% amid restructuring cost hit
Apollo Tyres Ltd reported its consolidated profit after tax slipped 13 % year-on-year to ₹258 crore for the quarter ended September, as the company booked a sizable provision of ₹176 crore for restructuring its Netherlands-based plant. The Economic Times
Revenue from operations rose to ₹6,831 crore from ₹6,437 crore in the same quarter a year ago, reflecting modest growth in demand.
Chairman Onkar Kanwar highlighted that “favourable monsoon conditions, coupled with government initiatives to rejuvenate the rural economy, drove positive growth in both OEM and replacement segments”. At the same time, GST rationalisation towards the end of the quarter supported demand across market segments in India.
In Europe, however, the company’s restructuring charge weighed on profitability even though market growth remained steady. The provision tied to the Netherlands operations remains a key drag on the quarter’s outcome.
The results point to a mixed quarter for Apollo Tyres: while underlying revenues are trending positively, one-off costs and structural adjustments are impacting the bottom line. The company’s strategic move to raise up to ₹1,000 crore through non-convertible debentures (NCDs) to fund further growth initiatives has also been approved by the board.
Editor’s View
The announcement that Apollo Tyres’ Q2 profit falls underscores a broader lesson for the tyre industry: growth is incomplete without operational stability. While the company managed to grow revenue, the restructuring cost on the European front acted as a heavy anchor. For the tyre industry today, it is not just about niche margins or OEM deals; it’s about how effectively such manufacturing hurdles and geographic cost centres are managed.
From a sector angle, this result shows that even as tyre demand revives (especially in India’s rural and replacement segments), global complexities and legacy manufacturing footprints can erode gains. For companies operating in the Indian tyre market, keeping the product pipeline healthy must be matched with cost control and local optimisation. Apollo Tyres’ experience sends the message that managing overseas operations and maintaining a strong replacement segment are equally vital.
For industry watchers, the phrase “Apollo Tyres Q2 profit falls” will resonate, signalling caution. As competition intensifies and input inflation continues to bite, tyre makers need to be agile. In markets where replacement demand is still catching up, the ability to absorb headwinds without eroding profitability will define winners.
