Apollo Tyres Ltd

Sustainability has always been a key pillar of Apollo Tyres' long-term strategy and in FY25, we made significant strides in advancing this commitment. I am pleased to share that Apollo Tyres was honoured with the Excellence in CSR Award, recognising our exceptional policies, practices and outcomes in the pursuit of sustainable business excellence.

DEAR SHAREHOLDERS,

"Challenges are what make life interesting and overcoming them is what makes life meaningful."

As I reflect on FY25, this quote aptly captures the spirit with which your company navigated a complex and evolving global landscape. Your unwavering trust has been our greatest strength, inspiring us to stay steadfast in our journey of Driving Progress, Together.

While the year brought its share of headwinds, what remained constant was our commitment to the core principles that define Apollo Tyres — Profitable Growth, Market Expansion and a relentless Focus on Cost and Quality. These principles continue to anchor our actions, even in an unpredictable world.

FY25 was undeniably a challenging year for the company. As a team, we did not meet our own expectations and underperformed versus our expectations in both India and Europe. Despite this, we remained true to our philosophy of prioritising sustainable and profitable growth, not growth at any cost. We closed the year with consolidated revenue from operations of H 26,123 crores, compared to H 25,378 crores in FY24, reflecting a 3% growth. Net profit stood at H 1,121 crores, against H 1,722 crores in the previous fiscal. Even as external conditions proved difficult, we remained focused on protecting our margins through a robust product mix and strengthening the market pull for our brands, Apollo and Vredestein. This discipline remains central to our long-term vision and to ensuring the resilience and sustainability of our business.

India remains our largest and most critical market and the year saw us further consolidating our leadership position. In Europe, despite a volatile environment, we sustained revenue levels while steadily enhancing our premium portfolio mix — a work in progress that continues to deliver encouraging results. Our premium mix in the passenger car business has now crossed the mid-40% range, a significant improvement from the early 40s in recent years and a substantial leap from the 20% levels six years ago. This progression reflects our consistent focus on upgrading the product mix. To support future demand, we have initiated strategic capacity expansions at our facilities in Hungary and Andhra Pradesh. Simultaneously, we continue to nurture newer geographies such as North America and the Middle East, reinforcing our strategy to diversify and deepen our global footprint. Sustainability has always been a key pillar of Apollo Tyres' long-term strategy and in FY25, we made significant strides in advancing this commitment. I am pleased to share that Apollo Tyres was honoured with the Excellence in CSR Award, recognising our exceptional policies, practices and outcomes in the pursuit of sustainable business excellence. Our Chennai plant continued to set benchmarks, securing first prize in the Industrial Water Use Efficiency category at the prestigious 12th edition of the FICCI Awards.

Further advancing our commitment to energy conservation, the Chennai facility was conferred the 2024 Energy Management Insight Award by the Clean Energy Ministerial (CEM), a global forum headquartered in Paris. This recognition celebrates the plant's exemplary integration of energy management systems, resulting in a 4% year-on-year improvement in energy efficiency and the avoidance of 5,969 tonnes of carbon emissions. Our sustainability journey has also been validated by notable improvements in external ratings. We achieved a significant increase in our S&P Global ESG score, reflecting continued progress across key environmental, social and governance parameters. Additionally, we were awarded the prestigious Gold Rating from EcoVadis, placing Apollo Tyres among the top 5% of companies globally across industries. This recognition underscores our unwavering commitment to sustainability, ethical business practices and social responsibility — values that are integral to the way we operate and grow.

We view these achievements not as an endpoint, but as a strong foundation to drive further progress, fully integrating sustainability into every aspect of our operations and future growth.

Looking ahead, we remain optimistic about the opportunities that lie before us. As we sharpen our execution and invest in future-ready capabilities, we are confident in steering the company toward achieving our Vision. Key initiatives are already in motion to drive performance. Among these, we have announced the expansion of our passenger car radial (PCR) capacities at our Hungary and Andhra Pradesh plants, with an estimated capex of H 1,500 crores. I maintain a strong conviction in the capability and resilience of our teams. When we operate with focus and alignment, I have no doubt that we will deliver exceptional outcomes. As always, we will continue to build on our core strengths while embracing new ideas that will shape the future of mobility.

In closing, I would like to express my deepest appreciation to all our employees, network partners and business associates whose dedication propels Apollo Tyres forward. I also extend my heartfelt thanks to you — our valued shareholders — for your enduring trust and belief in our journey. We are equally grateful to our banking partners, financial institutions and government bodies across all geographies for their continued support.