Apollo profits hit by ‘unprecedented’ raw materials costs

Gurugram, India – Apollo Tyres Ltd has been impacted by a sharp rise in raw materials costs in the first half of its fiscal year 2024-25, ending 31 March 2025.

In the second quarter, the Indian tire maker saw a 24% year-on-year decline in operating profit to INR8.78 billion (€95 million), on 3% higher sales of INR64 billion.

For the half-year, operating profit fell 19% to INR17.8 billion, on a 2% increase in revenue to INR128 million, the Indian group reported 13 Nov.

Apollo witnessed weak demand in the OEM segment in India, which offset strong growth in the replacement segment, said chairman Onkar Kanwar.

In Europe, he said, Apollo registered positive revenue growth in the passenger vehicle segment, the largest segment for the company in that geography.

Kanwar went on to note that an “unprecedented increase” in raw material prices, particularly natural rubber, had significantly impacted profitability in the first half.