Archive · 30 Dec 2025
Apollo Tyres' Profitability Constrained by Cricket Sponsorship
Apollo Tyres is a company that makes tires.
They recently decided to sponsor the Indian cricket team, which will cost them a lot of money over the next two and a half years.
This big expense might make it harder for the company to increase its profits in the short term.
However, in the long term, they expect to make more money in Europe because they are closing one of their factories there.
The impact of the sponsorship on their finances will start showing from the third quarter of the financial year.
Apollo Tyres' profitability may be constrained by its ₹580 crore sponsorship of the Indian cricket team.
The sponsorship commitment is spread over two and a half years and will impact financials from Q3 onwards.
Long-term profitability in Europe is expected to improve following the closure of the Enschede facility by the end of June.
Overall margin expansion is likely to be limited in the near term due to the sponsorship expenses.
Analysts from Motilal Oswal noted the potential financial impact of the sponsorship.
- Who
- Apollo Tyres
- What
- Sponsorship of Indian cricket team
- When
- Impact from Q3 onwards
- Where
- India and Europe
- Why
- Sponsorship commitment and facility closure
- Company
- Apollo Tyres
- Sponsorship Commitment
- ₹580 crore
- Sponsorship Duration
- Two and a half years
- Impact Period
- From Q3 onwards
- Facility Closure
- Enschede facility by end of June