India tax cuts spur demand, boost Apollo Tyres' quarterly profit

JK Tyre & Industries

04/02/2026 13:26

Feb 4 (Reuters) - India's Apollo Tyres APLO.NS reported a 39.5% rise in quarterly profit, as tax cuts spurred demand both from automakers as well as buyers looking to replace older tyres.

The company's net profit rose to 4.71 billion rupees ($52.1 million) for the quarter ended December 31, compared with 3.37 billion rupees a year earlier.

Revenue from operations rose 11.8% to 77.43 billion rupees, while total expenses grew 8.9%.

For further earnings highlights, click (nFWN3Z013M)

KEY CONTEXT

New vehicle sales remain a key driver of revenue for tyre makers like Apollo Tyres, which supply to automakers such as Maruti Suzuki India MRTI.NS, Mahindra & Mahindra MAHM.NS and TVS Motor Company TVSM.NS.

Indian auto sales got a boost from the government's sweeping September tax cuts. Tax on most tyres was also reduced to 18% from 28%.

Analysts say that Apollo's revenue growth was led by a pickup in replacement and new vehicle demand.

Peer CEAT CEAT.NS reported a jump in its third-quarter profit last month, while MRF MRF.NS has yet to report its results.

PEER COMPARISON

Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Revenue growth (%)
Profit growth (%)
Mean rating*
# of analysts
Stock to price target**
Div yield (%)
Apollo Tyres Ltd
APLO.NS
16.34
7.34
7.17
31.13
BUY
23
0.86
1.04
CEAT Ltd
CEAT.NS
17.46
7.73
13.52
28.92
BUY
14
0.88
0.80
JK Tyre & Industries Ltd
JKIN.NS
15.12
8.82
7.97
23.11
HOLD
5
1.08
0.57
MRF Ltd
MRF.NS
22.17
10.73
8.55
20.92
SELL
4
0.92
0.18

* The mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

OCTOBER-DECEMBER STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 90.4100 Indian rupees

Apollo Tyres Q3 stock performance https://tmsnrt.rs/4au4dq3

 (Reporting by Meenakshi Maidas and Anuran Sadhu in Bengaluru; Editing by Mrigank Dhaniwala)

 ((Meenakshi.Maidas@thomsonreuters.com; +91 8921483410;))