No Braking: Apollo Tyres Gears Up for ₹3,500-Crore Expansion

Apollo Tyres is proceeding with a ₹3,500-crore expansion programme despite increasing pressure from rising rubber prices and the planned closure of its last manufacturing facility in the Netherlands, developments that could impact profitability in the coming quarters.

The company said strong demand and high capacity utilisation across its operations in India and Europe have strengthened confidence in its long-term growth strategy following its strongest-ever quarterly performance in the domestic market.

Chief Financial Officer Gaurav Kumar stated during the company’s post-results conference call that capacity utilisation has reached around 90 per cent across both Indian and European operations, with the company expecting to maintain near-full utilisation while continuing its planned expansion initiatives.

Apollo Tyres plans to allocate nearly 80 per cent of the proposed capital expenditure towards growth and capacity expansion projects. Of the total ₹3,500-crore outlay, close to ₹3,000 crore will be invested in India, while the remaining amount will be directed towards operations in Europe.

For the January–March quarter, the company reported consolidated revenue of ₹7,340 crore, reflecting a 14.2 per cent increase compared to ₹6,420 crore in the corresponding period last year. EBITDA rose 27.6 per cent to ₹1,070 crore, while EBITDA margins improved to 14.6 per cent from 13.0 per cent a year earlier.

For FY26, Apollo Tyres recorded a 9 per cent rise in consolidated revenue to ₹28,470 crore, while EBITDA increased 16 per cent to ₹4,140 crore, according to the company’s investor presentation.

News by Rahul Yelligetti.