Whalesbook
Apollo Tyres reported a strong September quarter (Q2FY26) with higher-than-expected profitability, driven by a 90 basis points sequential expansion in Ebitda margins. This improvement was fueled by a 3% decline in raw material costs, including natural rubber and synthetic rubber. The company anticipates stable or lower input costs in Q3FY26, with structural cost benefits expected from the closure of its Netherlands plant. India volumes grew 4%, with healthy growth in agriculture and two/three-wheeler segments, while export volumes also rose double-digits. However, analysts at Nomura note slow commercial vehicle replacement demand, and intense competition from Balkrishna Industries entering key segments poses a risk to future volume and profitability.