Apollo Tyres Ltd reported improved financial performance for the third quarter of FY26, with growth in profit, revenue and operating margins. 

Alongside its earnings announcement, the company declared an interim dividend and shared plans to expand manufacturing capacity at its Andhra Pradesh facility. 

The updates were received positively by the market, with the stock ending the session higher.

Financial Performance in Q3FY26

For the quarter ended December 2025, Apollo Tyres reported a net profit of ₹470.5 crore, marking a year-on-year increase of nearly 40% compared with ₹337 crore in the corresponding quarter last year. Revenue for the quarter rose 11.8% to ₹7,743 crore from ₹6,927 crore in Q3FY25.

Operating Profit and Margin Movement

Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 25.3% year on year to ₹1,185 crore, up from ₹946 crore in the same period last year. EBITDA margins expanded to 15.3% from 13.7%, reflecting improved operating performance during the quarter.

Interim Dividend Announcement

The company declared an interim dividend of ₹3.50 per equity share of face value ₹1 for FY26. Apollo Tyres has set February 10, 2026, as the record date to determine eligible shareholders. The dividend is expected to be paid within 30 days from the date of declaration.

Capacity Expansion Plans

Apollo Tyres announced plans to expand production capacity at its Andhra Pradesh manufacturing plant. The current installed capacity at the facility stands at 7.1 million passenger car radial (PCR) tyres per annum, with utilisation at 82%, and 1.6 million truck and bus radial (TBR) tyres per annum, with utilisation at 89%.

The proposed expansion will add approximately 3.7 million PCR tyres and 1.3 million TBR tyres annually by the end of FY2029.

Investment and Funding Structure

The company plans to invest around ₹5,810 crore towards the expansion project. This investment will be funded through a combination of internal accruals and borrowings. Apollo Tyres stated that the expansion aligns with expected short- to medium-term growth in both PCR and TBR segments.

Share Price Movement

Apollo Tyres shares traded at ₹512.40 on the BSE, gaining ₹7.45 or 1.48%. During the session, the stock moved between a high of ₹532 and a low of ₹502.25, compared with a previous close of ₹512.65.

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Conclusion

Apollo Tyres’ Q3FY26 results reflect steady growth in profitability and operating margins, supported by revenue expansion. The interim dividend and planned capacity increase indicate a focus on shareholder returns and future demand preparedness. The long-term impact of the expansion will depend on execution and market conditions over the coming years.

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