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 May said 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
