Apollo Tyres Q3 Profit Surges 39.5%, Declares ₹3.5 Dividend

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AuthorAnanya Iyer|Published at:
Apollo Tyres Q3 Profit Surges 39.5%, Declares ₹3.5 Dividend
Overview

Apollo Tyres posted a strong third quarter, with profit surging 39.5% to ₹471 crore and revenue growing 11.8% to ₹6,928 crore. The company also declared an interim dividend of ₹3.50 per share, setting February 10 as the record date. Operating income jumped 25.2% quarter-on-quarter.

Robust Q3 Performance Drives Profit Growth

Apollo Tyres reported a significant 39.5% year-on-year rise in net profit for the third quarter, reaching ₹471 crore. This marks a substantial improvement from the ₹337 crore profit recorded in the same period last fiscal. The company's top line also expanded, with revenue climbing 11.8% to ₹6,928 crore for the three months ending December.

Operational Efficiency Boosts Margins

Underpinning the profit growth was a notable improvement in operational efficiency. Earnings before interest, taxes, depreciation, and amortization (EBITDA) saw a 25.2% quarter-on-quarter increase, totaling ₹1,186 crore. This surge also led to an expansion in the EBITDA margin, which moved to 15.3%. The company highlighted plans for a substantial capital expenditure of ₹5,810 crore at its Andhra Plant.

Dividend Announcement and Record Date

In a move to reward shareholders, Apollo Tyres' board announced an interim dividend of ₹3.50 per equity share for the fiscal year 2026. This distribution is set to disburse approximately ₹222 crore to shareholders. The company has fixed February 10 as the record date for determining eligible shareholders for this dividend payment. Dividends are expected to be paid within 30 days of declaration.

Market Reaction

The financial results were released after market hours. Following the announcement, Apollo Tyres' stock closed 1.48% higher on the BSE, mirroring the performance of the broader market, with the Nifty 50 also registering a 1.48% gain.

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