Company Overview
Apollo Tyres Ltd reported exceptional financial performance for FY26 with consolidated net profit surging 194% year-over-year to ₹13,724 million. The company achieved consolidated revenue of ₹284,706 million and maintained strong credit ratings of CRISIL AA+/Stable and IND AA+/Stable.
Financial Performance
Profitability: The remarkable profit growth was significantly aided by the company's decision to adopt the concessional tax regime under Section 200 of the Income Tax Act, 2025, reducing the applicable tax rate from 34.94% to 25.17%. This resulted in a net positive impact of ₹5,736.71 million from remeasurement of deferred tax liabilities.
Exceptional Items: The company recognized exceptional items totaling ₹10,335 million, primarily comprising ₹10,001 million in impairment costs related to the closure of manufacturing operations at Apollo Tyres (NL) B.V.'s Enschede plant in the Netherlands, scheduled for completion by summer 2026.
Dividend Declaration: The Board recommended a final dividend of ₹2.50 per equity share, following an interim dividend of ₹3.50 per share already paid during the year. This brings the total FY26 dividend to ₹6.00 per share, demonstrating strong shareholder returns.
Subsidiary Operations
Apollo Tyres disclosed consolidated financial data for 32 subsidiaries with aggregate total assets of ₹187,702.57 million and combined profit of ₹9,606.57 million for FY26. Key subsidiaries include Apollo Tyres Europe B.V. (assets: ₹51,420.60 million, profit: ₹2,616.15 million) and Apollo Tyres Hungary Kft. (assets: ₹30,754.90 million, profit: ₹1,696.89 million).
Corporate Governance & Compliance
The company held its 53rd AGM virtually on July 29, 2026, addressing agenda items including dividend declaration, re-appointment of directors, and ratification of auditor remuneration. The board composition includes 12 directors with 6 non-executive independent members. Apollo Tyres received reasonable assurance on BRSR Core sustainability reporting from S.R. Batliboi & Co. LLP and confirmed compliance with all statutory requirements including no benami transactions, crypto currency dealings, or fund routing through intermediaries.
Operational Highlights
The company maintained five manufacturing plants in India and international operations in Netherlands and Hungary. R&D expenditure totaled ₹1,824.23 million (1% of turnover) focused on advanced tyre technologies, sustainable materials, and AI-powered compound development. Customer complaints management handled 766,631 cases with zero complaints in data privacy or product recalls.
CSR Initiatives
Through Taru Foundation, Apollo Tyres impacted 1.69 million beneficiaries in FY26 with cumulative reach of nearly 15 million since 2013. Key programs included climate-resilient agriculture in Gujarat, vocational training for neurodivergent women in Delhi, flood relief in Punjab, and critical medical interventions through Koshika Foundation.
Subsequent Events
Mr. Berjis Desai resigned as Independent Director effective April 7, 2026 due to appointment as Member of the National Commission for Minorities. The company continues to maintain adequate internal financial controls with no significant deficiencies identified.