Apollo Tyres Opens Higher, Then Gives Up Gains Despite 3-Fold Q4 Profit Jump

Apollo Tyres Limited touched a day’s high of Rs 428.75 on the NSE on 15 May before giving back all gains, as investors weighed a sharp jump in reported profit against the impact of a one-time deferred tax reversal. By mid-session, the stock was trading marginally below its previous close.

The headline numbers were impressive. Consolidated net profit for Q4 FY26 came in at Rs 630.97 crore, more than three times the Rs 184.62 crore reported in the same quarter last year. Revenue from operations grew 14% to Rs 7,335.67 crore from Rs 6,423.59 crore a year ago.

A big part of the profit jump came from a tax benefit, not operations alone. The company adopted a concessional tax regime under the Income Tax Act, which reversed Rs 573.67 crore of deferred tax liabilities. This one-time gain significantly lifted the reported profit figure.

Excluding the one-time tax impact, the operational performance remained solid. EBITDA rose 28% to Rs 1,069 crore, with margins expanding to 14.6% from 13% a year earlier. Both the India and Europe businesses grew roughly 15% year-on-year during the quarter.

For the full year FY26, consolidated revenue grew 9% to Rs 28,470.60 crore. Annual net profit rose 22% to Rs 1,372.42 crore.

Apollo Tyres is closing its Enschede manufacturing plant in the Netherlands. The company recognised impairment charges and closure-related costs of Rs 1,000.12 crore for FY26 as an exceptional item. The actual cash payout for the closure is expected in FY 2026-27 as per local legal requirements.

On dividends, the board proposed a final payout of Rs 2.50 per equity share for FY26. Combined with the Rs 3.50 interim dividend already paid in February 2026, the total FY26 dividend works out to Rs 6.00 per share.

During late morning trade on 15 May, shares were at Rs 398.00 on the NSE, down 0.95% on the day. The stock’s 52-week high is Rs 540.50 and 52-week low is Rs 392.05.

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