Apollo Tyres Commits ₹3,500 Crore to Growth While Battling Margin Stress.

Apollo Tyres is moving ahead with a ₹3,500-crore expansion programme despite mounting pressure from rising rubber prices and the planned closure of its final manufacturing facility in the Netherlands, factors that could weigh on profitability in the coming quarters.

The tyre maker said strong demand and elevated capacity utilisation across its India and Europe operations had reinforced confidence in its growth strategy after it posted its best-ever quarterly performance in the domestic market.

“With capacity utilisation at a high of 90 per cent across both our India and Europe operations, we expect to remain at full utilisation and continue to progress on our planned expansion initiatives,” Chief Financial Officer Gaurav Kumar said during the company’s post-results conference call.

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

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

For FY26, consolidated revenue grew 9 per cent to ₹28,470 crore, while EBITDA climbed 16 per cent to ₹4,140 crore, according to the company’s investor presentation.