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Gurugram-based Apollo Tyres Limitedon Thursday (August 7) reported a 95% year-on-year fall in consolidated net profit to ₹12.8 crore for the quarter ended June 30, 2025. The massive drop in profit comes on the back of expenses
related to the imminent shutdown of manufacturing plant in the Netherlands, among others things.
Apollo Tyres, Netherlands, has a manufacturing plant in Enschede, and the company intends to discontinue tyre production and production-related operations by the summer of 2026. During the June quarter, the subsidiary recorded an exceptional expense amounting to ₹368.4 crore for the restructuring, according to a stock exchange filing.
Also read: Apollo Tyres to stop production at Netherlands unit as costs
mount
The payout for the closure is expected to happen in FY27 as per the local legal requirements in the Netherlands, the company said.
The company's topline grew 3.6% to ₹6,560 crore in Q1FY26 from ₹6,334 crore in the year-ago period. However, the operating performance fell 4.6% YoY to ₹867.1 crore from ₹909.3 crore, and the EBITDA (earnings before interest, taxes, depreciation, and amortisation) margins contracted to 13.2% from 14.3% in the same period last year.
After reporting weak numbers in the
fourth quarter last year, the Apollo Tyres management in Maysaid the first quarter numbers might outperform its peers as well. It added that the company would see growth in both OEM and exports in the June quarter.
In Q4FY25, Apollo Tyres reported a 48% decline in its consolidated net profit at ₹184.5 crore due to "underperformance" in terms of sales. In the previous year, it had reported a net profit of ₹354 crore.
Share of Apollo Tyres closed almost flat at ₹435.9apiece on the BSE today (August 7).
The stock has declined as much as 17% in the year so far.
Apollo Tyres, Netherlands, has a manufacturing plant in Enschede, and the company intends to discontinue tyre production and production-related operations by the summer of 2026. During the June quarter, the subsidiary recorded an exceptional expense amounting to ₹368.4 crore for the restructuring, according to a stock exchange filing.
Also read: Apollo Tyres to stop production at Netherlands unit as costs
The payout for the closure is expected to happen in FY27 as per the local legal requirements in the Netherlands, the company said.
The company's topline grew 3.6% to ₹6,560 crore in Q1FY26 from ₹6,334 crore in the year-ago period. However, the operating performance fell 4.6% YoY to ₹867.1 crore from ₹909.3 crore, and the EBITDA (earnings before interest, taxes, depreciation, and amortisation) margins contracted to 13.2% from 14.3% in the same period last year.
After reporting weak numbers in the
In Q4FY25, Apollo Tyres reported a 48% decline in its consolidated net profit at ₹184.5 crore due to "underperformance" in terms of sales. In the previous year, it had reported a net profit of ₹354 crore.
Share of Apollo Tyres closed almost flat at ₹435.9apiece on the BSE today (August 7).
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