Apollo Tyres to reduce prices to pass on GST rate cut benefit to customers; check details

Shares of Apollo Tyres settled to close 0.69% lower at ₹482.90 apiece on the National Stock Exchange (NSE). The announcement, however, came after market hours.

The passenger vehicle tyres will see a price reduction between ₹300 and ₹1,500, while the prices for truck/bus radial tyres will decline by around ₹2,000.

The GST Council has reduced the Goods and Services Tax (GST) on new pneumatic tyres from 28% to 18%, and on tractor tyres and tubes from the previous rate to 5%. In line with this policy change, Apollo Tyres will pass on the full benefit of the reduced tax rates directly to its customers, it said in a statement.

"The revised pricing will be applicable across all product segments, including passenger car tyres, commercial vehicle tyres, agricultural and two-wheeler tyres," Apollo Tyres Vice President, Commercial (India, SAARC and Southeast Asia) Rajesh Dahiya said.

The price cut is expected to lower vehicle ownership and operation costs, providing a significant boost to fleet operators, farmers and everyday motorists alike, he added.

"The company has already begun working closely with its distribution network to ensure the seamless implementation of the new pricing structure across the country," Dahiya said.

Apollo Tyres stock performance

The stock gained 0.80% over the previous week. The scrip has advanced 11.8% in the last month. It soared 8.6% in the last three months and zoomed 20.2% for the six month period.

The stock touched its 52-week high of ₹584.90 apiece on the NSE on September 26, 2024, and it hit its 52-week low of ₹370.90 on the NSE on March 3, 2025.

Apollo Tyres has a total market capitalisation of ₹130,669.02 crore, as of September 17, 2025, as per data on the NSE.

Apollo Tyres Q1 results

For the first quarter of FY2025-26, Apollo Tyres reported consolidated revenue of ₹6,560.76 crore, reflecting a modest 3.6% increase year-over-year (YoY). However, consolidated net profit dropped sharply by 95.7% YoY to ₹12.88 crore. This steep decline was primarily due to an exceptional loss of approximately ₹368 crore, arising from the planned discontinuation of tyre production at the company’s Enschede plant in the Netherlands.

In terms of financial performance, revenue stood at ₹6,560.76 crore, up 3.6% YoY. Net profit (PAT) came in at ₹12.88 crore, marking a 95.7% decline YoY. The restructuring cost included an exceptional loss of about ₹368.5 crore from the Enschede plant exit, which significantly weighed on profitability. Operating profit was reported at ₹868 crore, down 4% YoY, while the EBITDA margin compressed to 13.2% YoY due to higher staff and overhead expenses.