Apollo Tyres profit jumps, but operating margin falls for a second quarter
Revenue rose 12.76% year on year, while faster expense growth and a higher sequential tax rate weakened operating performance.
Filed 06 Aug 2026, 17:42 IST · after market close · Apollo Tyres Ltd (APOLLOTYRE)
Key takeaways
- Consolidated revenue grew 12.76% year on year, but expenses grew faster at 14.70%, reducing operating margin by 1.50 percentage points.
- Net profit rose 2,608.62% year on year to Rs 348.87 cr, helped by a 41.02-percentage-point fall in the tax rate and a reversal in other income.
- Operating margin fell to 11.73% from 14.57% sequentially, its second straight quarterly decline and 0.94 percentage points below the 105-peer sector median.
Price around the results
Revenue grew, but operating profit was flat year on year
Consolidated revenue increased 12.76% year on year, while operating profit was nearly unchanged at a 0.03% increase. The 14.70% rise in expenses exceeded revenue growth, pulling operating margin down 1.50 percentage points to 11.73%. Sequentially, revenue grew 0.85%, but operating profit fell 18.79% as expenses rose 4.20%.
Profit benefited from tax and other income movements
Net profit was helped by the tax rate falling to 25.41% from 66.43% a year earlier, a decline of 41.02 percentage points. Other income contributed 17.52% of pre-tax profit, so reported earnings were not solely driven by operations. Sequentially, pre-tax profit rose 189.32% as other income moved from negative Rs 420.66 cr in Q4FY26 to Rs 81.93 cr, but the tax rate increased 315.74 percentage points and net profit fell 44.71%.
Margin has declined for two consecutive quarters
Operating margin rose through Q3FY26 to 15.32%, then declined to 14.57% in Q4FY26 and 11.73% in Q1FY27. The current margin was 0.94 percentage points below the 12.67% median for the 105 Consumer Discretionary peers that had reported the quarter.
No immediate market reaction after the post-close filing
The results were filed after market close, so there was no market reaction to report. After the previous eight results, the stock rose three times and fell five times, with a median absolute move of 1.82%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹7,398 cr | ₹7,336 cr | +0.85% | +12.76% |
| Other income | ₹82 cr | ₹-421 cr | — | — |
| Expenses | ₹6,530 cr | ₹6,267 cr | +4.20% | +14.70% |
| Operating profit | ₹868 cr | ₹1,069 cr | -18.79% | +0.03% |
| Operating margin (%) | 11.73% | 14.57% | — | — |
| Interest | ₹91 cr | ₹90 cr | +1.89% | -9.07% |
| Depreciation | ₹391 cr | ₹397 cr | -1.51% | +3.49% |
| Profit before tax | ₹468 cr | ₹162 cr | +189.32% | +1119.21% |
| Tax | ₹119 cr | ₹-469 cr | — | +366.33% |
| Net profit | ₹349 cr | ₹631 cr | -44.71% | +2608.62% |
| EPS (₹) | ₹5.52 | ₹9.97 | -44.63% | +2660.00% |
Operating margin of 11.73% compares with a Consumer Discretionary sector median of 12.67% across 105 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.08% | -0.81% |
Volume on the results session was 2.66× its 20-day average.
What to watch
- Whether operating margin recovers from 11.73% after its second consecutive quarterly decline.
- Whether expenses grow more slowly than revenue after rising 14.70% year on year against 12.76% revenue growth.
- Whether other income remains a material contributor after accounting for 17.52% of pre-tax profit.