Apollo Tyres Q2 Shock: Profit Dips 13% Despite Revenue Surge! Fundraising Plan Revealed!

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Updated on 13 Nov 2025, 02:20 pm

Apollo Tyres announced its second-quarter financial results, revealing a net profit of ₹258 crore, which is a 13% decline compared to ₹297 crore in the same period last year. This drop in profit was registered even as the company's revenue saw a healthy 6% increase, reaching ₹6,831 crore. Operational performance also improved, with Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) rising by 16.2% year-on-year to ₹1,020 crore from ₹878 crore. This operational growth was bolstered by consistent demand in European and Asian markets, coupled with beneficial lower raw material prices. Consequently, Apollo Tyres' profit margins expanded by 130 basis points to 14.9% from 13.6%.

The primary reason for the dip in net profit, despite better operational performance, was an exceptional expense of ₹180 crore incurred during the quarter, a substantial jump from ₹5.17 crore in the prior year's quarter. This one-time expense significantly impacted the bottom line.

Furthermore, the board of Apollo Tyres has approved a plan to raise ₹1,000 crore by issuing Non-Convertible Debentures (NCDs) through a private placement. This move indicates a strategy to secure additional capital.

Impact This news directly affects investor sentiment for Apollo Tyres. While operational performance shows strength, the exceptional expense masked profit growth. The fundraising plan indicates a need for capital, which could dilute equity or increase debt burden. Rating: 6/10.

Difficult terms: Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA): A measure of a company's operating performance before accounting for interest expenses, taxes, depreciation, and amortization. It provides a clearer picture of the company's core operational profitability.