Apollo Tyres Q3 Results Review — Normalising Raw Material Improves Margin Outlook; Nirmal Bang Maintains 'Buy'

Over the past few years Apollo Tyres has gained market share and built a brand for its product and in-turn gained pricing power..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.It was a better quarter for Apollo Tyres Ltd. in terms of operating performance in both India and Europe. Standalone revenue came in ~5% YoY, limited by 10% volume decline in original equipment manufacturers offset by the replacement segment across categories, up 5% YoY. Ebitam of 11.1% was down 700 bps YoY (the highest margin compression amongst peers due to the higher share of truck-bus-radial). Europe revenue stood at €181 million and Ebitda stood at €32 million with margins at 17.7%. Consolidated revenue came in at ~Rs 69 billion largely in line up 5% YoY. Margins came in at 13.7% versus our estimate of 14.5% <465bps YoY. Earnings came in at Rs 3.4 billion versus our estimate of Rs 3.8 billion. We maintain Buy on the stock valued at 16x Dec’26E EPS (17x earlier due to the revision in volume outlook) to come to a target price of Rs 529, Our positive stance is hinged on the improving margin and domestic volume outlook, entering into new export markets, outperformance in EU and moderate capex intensity, overall improving return ratios. We have cut our EPS estimate by ~4.6%/4.9% for FY26/27..Click on the attachment to read the full report:.Apollo Tyres Q3 Results: Profit Falls 32%, Misses Estimates.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Apollo Tyres Q3 Results Review — Normalising Raw Material Improves Margin Outlook; Nirmal Bang Maintains 'Buy'

Nirmal Bang maintains Buy on the stock valued at 16 times Dec’26E EPS to come to a target price of Rs 529.

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