📌 At a Glance
Apollo Tyres may have added EV tyres, global OEMs, and a thousand product lines… but one thing it forgot to add? Profit growth. After peaking post-COVID, the company’s net profit deflated like a cheap tubeless tyre. And despite launching “Vredestein Cargo” and “Tramplr” (which sound like dating apps for tractors), FY25 ended with a -47.9% YoY crash in Q4 PAT.
🏢 About Apollo Tyres
- Incorporated: 1972
- Headquarters: Gurugram, India
- Core Products: Tyres (Passenger, Commercial, Agricultural, Off-Highway, Two-Wheeler)
- Major Brands: Apollo, Vredestein, Endurace, Tramplr, Amazer
- Presence:
- India: 5 plants
- Europe: 2 plants (Netherlands & Hungary)
- R&D: India (Chennai), Netherlands (Enschede)
👨💼 Key Managerial Personnel
| Name | Role | Remuneration (FY24) |
|---|---|---|
| Neeraj Kanwar | Vice Chairman & MD | ₹64.28 Cr |
| Onkar S. Kanwar | Chairman (Non-Executive) | ₹62.6 Lac |
| Sunam Sarkar | Non-Executive Director | ₹63.8 Lac |
| Akshay Chudasama | Independent Director | ₹65.2 Lac |
🥇 CEO earning ₹64 Cr in a year when PAT fell 35%?
That’s the real rubber resilience.
📊 Financials: FY21–FY25
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 16,955 | 20,948 | 24,476 | 25,481 | 26,310 |
| YoY Growth (%) | – | +23.6% | +16.8% | +4.1% | +3.3% |
| EBITDA (₹ Cr) | 2,051 | 2,912 | 4,380 | 4,054 | 3,569 |
| EBITDA Margin (%) | 12.1% | 13.9% | 17.9% | 15.9% | 13.6% |
| PAT (₹ Cr) | 350 | 639 | 1,105 | 1,722 | 1,121 |
| PAT Margin (%) | 2.1% | 3.1% | 4.5% | 6.8% | 4.3% |
| EPS (₹) | 6.7 | 12.3 | 20.6 | 28.3 | 17.7 |
🚨 FY25 PAT fell 35% YoY after peaking in FY24. Margin compression, weak exports, and higher costs deflated bottom line.
💸 Balance Sheet Highlights (FY25)
- Net Worth: ~₹14,800 Cr
- Debt: ~₹6,800 Cr (High, but manageable)
- D/E Ratio: ~0.46
- Cash Equivalents: ~₹600 Cr
🧯 Capex-Heavy Beast: Between Hungary, AP plant, and new EV test track tie-up with NATRAX — Capex hasn’t stopped, but ROCE has.
🏁 Key Business Milestones (2021–2025)
- FY21–22: Andhra Pradesh greenfield plant inaugurated
- FY23:
- Launched Tramplr two-wheeler tyres
- Crossed 10 million units of Endurace LD
- FY24:
- Launched Avolve for fleet analytics
- Introduced low-rolling resistance EV tyres
- FY25:
- Major PAT fall despite stable revenues
- Manufacturing execution system (AMES) deployed
- European OEMs picked EnduRace RT2 for trailers
📉 Stock Performance Snapshot
- CMP (June 6, 2025): ₹471.20
- 52W Range: ₹370.90 – ₹584.90
- 1-Year Return: +0.2%
- 3-Month Return: +20.9%
- Beta (1Y): 0.8
🚥 Stock is range-bound, mirroring revenue — going somewhere, but slowly.
📦 Shareholding (Mar 2025)
| Category | Holding (%) |
|---|---|
| Promoters | 37.34 |
| Institutions | 41.51 ↓ |
| Retail & Others | 21.15 |
FIIs trimmed stake by 0.39% — not a huge red flag, but shows institutional caution.
📈 Forward-Looking Fair Value Estimate (FY27E)
- Assumptions:
- FY27E EPS: ₹27–₹30
- PE Range: 18x–22x
🎯 FV Range: ₹486 – ₹660
🧮 Current CMP of ₹471 suggests undervaluation only if FY26 PAT rebounds sharply — otherwise this is tyre tread gone smooth.
🔍 Industry Outlook
- Headwinds:
- Replacement demand weak
- EV disruption hitting traditional tyre SKUs
- Europe exposure = currency risk + geopolitical pressures
- Tailwinds:
- Indian infra demand strong
- OEM orders from Tata, Kia, Hyundai, Volkswagen etc.
- Smart retail expansion (Apollo Zones, Farm Points)
🤯 EduInvesting Take
Apollo Tyres is not a dud. But it’s in midlife crisis mode.
🛞 They have EV tyres, tractor tyres, motorsport tyres, tubeless, supercross…
But where’s the profit tyre?
You sell tyres globally, but your net margin is stuck in Gurgaon traffic.
🔥 Final Word:
“This company sells tyres for Porsche Cayenne… but its EPS rolled back to Maruti 800.”
🧨 Risks & Red Flags
- 🧾 PAT crash in Q4 FY25 (-47.9% YoY)
- 📉 Negative PEG ratio (-0.8) — signaling earnings degrowth
- 📉 ROE at 7.6% — barely better than a PSU
- 🧃 Management salary spike even as profits fall
💰 Dividend History (Recent)
Apollo Tyres is not a dividend hero. Payout ratios are modest as cash gets reinvested.
🧾 Verdict
| Metric | Reality Check |
|---|---|
| Revenue Growth | ✅ Steady but slow |
| Profit Growth | ❌ Reversing |
| Balance Sheet | ⚠️ Capex-heavy |
| Valuation | 🤷♂️ Reasonable on hopes |
| Institutional Love | 💤 Decreasing |
Apollo is still one of the strongest brands in the tyre space, but its numbers feel more like a hard compound tyre — lasts long, grips okay, but doesn’t win races.
Tags: Apollo Tyres, FY25 Results, Tyre Industry, EV Tyres India, Europe Auto Parts, Midcap Stock Review, Neeraj Kanwar Salary, Avolve, Vredestein, AP Greenfield
Author: Prashant Marathe
Date: 7 June 2025
Meta Description: Apollo Tyres 5-Year Recap: Revenue grew, but net profit deflated in FY25. Read full EduInvesting-style breakdown on India’s largest tyre maker.
