New Delhi, Nov. 18 -- Apollo Tyres Ltd saw a higher-than-anticipated improvement in profitability in the September quarter (Q2FY26), buoyed by easing raw material costs.

Consolidated Ebitda margin expanded 90 basis points (bps) sequentially, led by 170 bps sequential gross margin increase to 14.9%. It exceeded the consensus estimate of 14% on this metric.

On a sequential basis, raw material cost declined 3% in Q2FY26. Key input materials natural rubber is trading at Rs.210 per kilogram, synthetic rubber at Rs.175 per kg, and carbon black at Rs.115 per kg, the management said.

Benefits from lower input costs are likely in Q3FY26 as the company expects these costs to remain stable or even move slightly lower. Benign raw material cost, an...