Apollo Tyres Ltd (BOM:500877) Q4 2025 Earnings Call Highlights: Navigating Challenges and ...

GuruFocus News

Fri, May 16, 2025, 12:04 AM 3 min read

• Consolidated Revenue Growth: 3% YoY for Q4 '25.

• Consolidated EBITDA: INR8.4 cardinal with a borderline of 13%.

• Net Debt to EBITDA (Consolidated): 0.8x arsenic of March '25.

• India Revenue: INR45.8 billion, 84% maturation implicit the aforesaid 4th past year.

• India EBITDA Margin: 11.2% for the quarter.

• Net Debt to EBITDA (India): 1.2x arsenic of March '25.

• European Revenue: EUR176 million, a diminution of 4% YoY.

• European EBITDA Margin: 14.3% for the quarter.

• Impairment Charge: EUR14 cardinal connected fixed assets owed to planned closure of Enschede plant.

• CapEx for Fiscal Year '26: INR1,500 crores, divided arsenic betwixt maturation and mean CapEx.

• Warning! GuruFocus has detected 5 Warning Sign with DAO.

Release Date: May 15, 2025

For the implicit transcript of the net call, delight notation to the afloat net telephone transcript.

• Apollo Tyres Ltd (BOM:500877) achieved a consolidated top-line maturation of 3% YoY successful Q4 '25.

• The institution maintained its yearly top-line successful Europe contempt a challenging environment.

• Apollo Tyres Ltd (BOM:500877) has secured further exemplary wins from salient German TV manufacturers, showcasing the spot of its R&D.

• The institution launched a flagship run targeting SUV owners, emphasizing premium tyres and reliability.

• Apollo Tyres Ltd (BOM:500877) received an excellence successful CSR grant and improved its S&P Global ESG score, highlighting its committedness to sustainability.

• The company's EBITDA borderline decreased to 13% from 13.7% successful the erstwhile quarter, and importantly from 16.4% successful the aforesaid 4th past year.

• Apollo Tyres Ltd (BOM:500877) underperformed compared to its peers successful some India and Europe.

• The European operations faced a 4% diminution successful gross and a alteration successful EBITDA borderline to 14.3% from 17.7% successful the past quarter.

• The institution experienced a diminution successful the OE conception successful India, impacting wide home growth.

• Apollo Tyres Ltd (BOM:500877) had to sacrifice volumes successful the non-UHP class successful Europe owed to capableness constraints, starring to underperformance.

Q: Can you supply much clarity connected the areas wherever Apollo Tyres is lagging and the steps being taken to amended maturation momentum? A: Neeraj Kanwar, Vice Chairman and Managing Director, explained that the institution has underperformed, peculiarly successful the OEM segment, owed to strategical decisions to exit definite low-quality merchandise sizes. Efforts are present focused connected caller merchandise improvement for OEMs and expanding shares successful niche export segments. The replacement marketplace remains robust, and improvements are expected successful Q1 of the existent year.