Apollo Tyres Stock Analysis – January 1, 2026

Geojit Investments has raised its outlook on Apollo Tyres, signaling a change in their investment view. They’ve upgraded the stock’s rating from “Hold” to “Accumulate,” based on positive information shared during a recent meeting with the company’s leadership. This suggests Geojit believes Apollo Tyres is poised for better performance.

Key Points

• Geojit upgraded Apollo Tyres rating to ‘Accumulate’.
• Target price set at ₹548 based on FY27 earnings.
• Stock currently trading at ₹495.25, down 0.95%.
• India operations EBITDA margin increased by 321 bps YoY.
• European operations EBITDA margin decreased by 213 bps YoY.
• Company focusing on premium tires and expanding capacity in Hungary.

The key details from the meeting showed Apollo Tyres is doing better than expected. Their profits, before accounting for certain expenses, are rising, and they’re carefully managing their costs. They are also making changes in the types of tires they sell, focusing on higher-quality ones.

Specifically, the company’s profits from its operations in India went up significantly, while profits from Europe went down a bit. Apollo Tyres is now selling more expensive tires, particularly high-performance ones, which is a smart move. They’re also building a bigger factory in Hungary to meet growing demand.

Sales in India are growing because of changes in taxes and because they’re selling more tires overseas. They’re also trying to sell more premium tires, using their two brands to reach different customers. Experts predict demand will continue to rise, especially for replacing old tires.

A problem is that one of their factories is closed, which caused a one-time expense. However, they expect to finish closing it by June 2026, which should help their profits. Costs for the materials they use are also stable, which is good news for their profits.

Geojit’s overall view is that Apollo Tyres will keep improving, thanks to more people buying tires and them continuing to cut costs. They believe this will lead to increased profits for the company.

“Apollo Tyres aims to complete the Enschede plant closure by June 2026, which is expected to positively impact profitability in its European operations.”