Apollo Tyres ups ad spends 14%

Apollo Tyres increased its advertising and publicity expenditure by 14% year-on-year in FY25 to Rs3,799 million. The spend accounted for 2.1% of standalone sales, up from 1.9% last year. In FY 24, the advertising and publicity expenditure stood at Rs 3324 million.

The tyre major reported a modest 3% growth in consolidated revenue from operations at Rs 2,61,234 million for FY25. However, rising raw material costs and competitive pressures weighed on margins, with consolidated EBITDA margin declining sharply from 17.5% in FY24 to 13.7% in FY25. Operating cash flow also fell to Rs 18.2 billion, nearly halving from Rs 34.4 billion the previous year.

Reflecting on the year, Apollo Tyres’ management said:

“FY25 was undoubtedly a challenging year for the company. The company fell short of internal expectations and underperformed in both the Indian and European markets. Nevertheless, the company remained committed to its philosophy of prioritising sustainable and profitable growth over ‘growth at any cost’.”

Apollo is pressing ahead with expansion plans, including ?Rs 15 billion in capex for boosting passenger car radial (PCR) capacity in Hungary and Andhra Pradesh, and continued brand-building investments as it eyes premiumisation and global growth.

Digitalisation remains a strategic focus, with AI-driven manufacturing systems achieving a 30% reduction in scrap and productivity gains of 3-5%. Meanwhile, Apollo is strengthening its footprint in new geographies like North America, highlighted by its ‘Demand a Better Tire’ campaign in the U.S. and expanded presence in Canada through the launch of the Pinza AT at 1,700 Canadian Tire outlets.