Shares of Apollo Tyres Ltd. jumped 4% in early trade on Monday, Aug. 24 after global brokerage UBS upgraded its rating on the stock to 'buy' from 'neutral', while also raising the target price to Rs 590, from Rs 580 earlier. The brokerage believes that the market is underappreciating the tyre-maker's medium term earnings recovery potential, as the stock continues to trade at a discount to peers. Following the brokerage upgrade, investors showed greater interest in the counter after the opening bell.
On Monday, shares of Apollo Tyres opened at Rs 465.05 against a previous close of Rs 439.70 and rose upto 4% to hit an intraday high of Rs 467.40 apiece on the NSE. The stock last traded 1.97% higher at Rs 448.40 apiece on the NSE. This compares to 0.11% rise in the Nifty 50 benchmark. The stock has delivered nearly 7% returns in one month but shed 10% on a year-to-date basis. The company commands a market cap of Rs 28,477.93 crore, according to stock exchange data.
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Apollo Tyres Share Price Intraday
UBS Upgrades Apollo Tyres
Apollo Tyres' India operations are approaching inflection point, while Europe will see a "better road ahead", according to UBS. Overall outlook for the company is improving as management takes concrete steps to strengthen the India business, even though second quarter of fiscal 2027 may endure further pressure considering the rising natural rubber prices.
Even so, the brokerage thinks that investors are "overly focused" on near-term commodity cost headwinds and recent execution challenges. The global brokerage expects a meaningful improvement in earnings thereafter, with earnings before interest, taxes, depreciation and amortisation rising 21% year-on-year in the next financial year.
ALSO READ: Apollo Tyres Bags 'Buy' Upgrade And Price Target Hike From UBS On 'A Better Road Ahead'
Apollo Tyres Q1 Results
Apollo Tyres posted a consolidated net profit of Rs 349 crore for the quarter ended June 2026, compared with Rs 12.8 crore in in the year-ago period. The sharp rise was helped by the change in exceptional items. The leading tyre manufacturer reported a one-time gain of Rs 24 crore, compared with a loss of Rs 370 crore a year ago. Revenue from operations increased 12.8% year-on-year to Rs 7,398 crore, from Rs 6,561 crore in the year-ago quarter.
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