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Apollo Tyres may raise prices further as raw material costs surge, while strong demand and Q4FY26 growth support business momentum.
By Robin Kumar Attri
Apollo Tyres announced 6-8% price hikes for Q1FY27.
Raw material costs expected to rise in the high teens.
Natural rubber prices increased to nearly ₹250/kg.
India's business revenue rose 14% in Q4FY26.
Replacement tyre segments recorded over 20% growth.
Apollo Tyres is preparing for more price hikes in the coming months as rising raw material costs, higher energy expenses, and global logistics disruptions linked to the West Asia crisis continue to pressure the tyre industry.
The company has already announced a 6-8% price increase for Q1FY27. Out of this, around 3-5% has already been implemented in the Indian market, while the remaining hikes are expected to take effect in May. However, the company said the current increase is enough to cover only about half of the rising cost burden.
According to Apollo Tyres Chief Financial Officer Gaurav Kumar, raw material costs are expected to rise in the high teens sequentially during Q1FY27, making additional price hikes necessary.
The company said its raw material basket increased only 1% sequentially during Q4FY26, but the situation changed significantly in the current quarter.
During the March quarter, natural rubber prices stood at around ₹200 per kg, synthetic rubber at ₹170 per kg, carbon black at ₹110 per kg, and steel cord at ₹155 per kg. Since then, natural rubber prices have surged to nearly ₹250 per kg after starting Q1FY27 at around ₹220 per kg.
Apollo Tyres said it is trying to manage the pressure through calibrated price hikes and disciplined cost control measures.
The company said demand remains strong across key categories and sales channels, giving tyre makers room to pass on higher costs to customers.
Apollo Tyres reported strong volume growth in April and expects the momentum to continue throughout Q1FY27.
In India, the company recorded high-teen year-on-year volume growth in both original equipment manufacturer (OEM) and replacement segments during Q4FY26. Export growth remained in the mid-single digits due to weak overseas markets and geopolitical disruptions.
The replacement segment saw more than 20% growth in both truck-bus radial (TBR) and passenger car radial (PCR) tyre categories. In the OEM channel, TBR volumes rose over 20%, while PCR growth remained in single digits.
The company also stated that the entire 2% sequential revenue growth in India operations during Q4 came purely from higher volumes and not from pricing changes.
Apollo Tyres said the entire tyre industry is facing similar challenges due to increasing raw material costs.
CEAT has also indicated that further price hikes are becoming unavoidable. The company expects raw material costs to rise more than 15% in Q1FY27 and approach 20% by the end of the quarter. CEAT has already increased prices in the replacement market between March and April and plans additional hikes during May and June.
CEAT management also warned that demand could slow slightly in the near term due to the West Asia conflict, uncertainty in fuel prices, and rising input costs, although long-term demand trends remain positive.
Meanwhile, Balkrishna Industries has already implemented price hikes of 3-5% across major global markets and is preparing another round of increases in May. The company said raw material prices could rise another 7-8% in Q1FY27, while freight costs may also increase if geopolitical tensions continue.
Apollo Tyres reported consolidated net sales of ₹7,335.7 crore in Q4FY26, registering a 14% year-on-year increase compared to ₹6,423.6 crore in Q4FY25. However, revenue declined 5% sequentially from ₹7,743.1 crore reported in Q3FY26.
Consolidated EBITDA rose 28% year-on-year to ₹1,068.8 crore from ₹837.4 crore. On a sequential basis, EBITDA declined 10% from ₹1,185.9 crore.
The company’s EBITDA margin improved to 14.6% compared to 13% in the same quarter last year, though it was lower than the 15.3% margin reported in Q3FY26.
Apollo Tyres posted a consolidated profit after tax of ₹631 crore during Q4FY26, up 242% year-on-year and 34% sequentially.
The quarter also included a non-cash write-off of €43 million linked to fixed assets at the Enschede plant in Europe.
Apollo Tyres’ India business continued to perform strongly during the quarter.
The domestic business reported revenue of ₹5,237 crore, up 14% year-on-year and 2% sequentially. India EBITDA increased 48% year-on-year to ₹764 crore, while EBITDA margin improved sharply to 14.6% from 11.2% in the previous year.
According to Kumar, the India business managed to surpass its record Q3 performance despite higher brand activation spending related to cricket sponsorship activities.
Also Read: Amazon India to Deploy 1,000 Eicher Electric Trucks for Quick Commerce Deliveries by 2028
Apollo Tyres is preparing for additional price hikes as rising raw material, freight, and energy costs continue to pressure margins in Q1FY27. Despite the cost challenges, the company remains confident due to strong demand across OEM and replacement segments in India. The tyre maker delivered solid Q4FY26 financial performance with strong revenue, EBITDA, and profit growth. Industry peers like CEAT and Balkrishna Industries are also increasing prices, indicating broader inflationary pressure across the tyre sector.
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