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Informist, Sunday, Feb. 1, 2026

 

By Prateem Rohanekar

 

MUMBAI – Apollo Tyres Ltd. is expected to post a substantial on-year rise in its bottom line for the December quarter, according to brokerages. Despite weak exports, brokerages said a dip in natural rubber prices, appreciation of the euro, and high demand in the domestic market would drive the bottom line growth for the tyre manufacturer. Apollo Tyres operates five domestic and two manufacturing plants in Europe.

 

The company is likely to report a consolidated net profit of INR 5.35 billion, according to the average of estimates of 10 brokerages, which will be nearly 57% higher than in the year-ago quarter. This also represents a sequential rise of over 22%. The company is expected to report net sales of INR 75.75 billion, according to the average of estimates, up over 9% on year.

 

The highest estimate for the company's net profit is INR 7.18 billion by Elara Securities (India) Pvt. Ltd. and the lowest is INR 4.62 billion by HDFC Securities Ltd. The highest estimate for net sales is INR 78.98 billion by Nomura Financial Advisory and Securities (India) Pvt. Ltd., while the lowest is INR 73.70 billion by JM Financial Institutional Securities Pvt. Ltd.

 

Citing Bloomberg Finance, Nomura said flat domestic natural rubber prices during the reporting quarter and a weak base at the beginning of the reporting quarter would support the rise in net profit. Brokerages also noted a rise in domestic demand for tyres in the replacement and original equipment manufacturer segments driving net sales and boosting net profit growth.

 

"Revenue to grow in high-single digit YoY led by growth in India replacement/OEM business, exports and EUR appreciation. EBITDA margin to expand on lower input cost. Key variables to watch are domestic replacement demand, Europe demand and input cost outlook," Nuvama said in its earnings-preview report.

 

"Tyre manufacturers are set to post a healthy performance in Q3FY26, led by stronger OEM and replacement demand and softer natural rubber (NR) prices," Nirmal Bang Equities Pvt. Ltd. said.

 

"In tyres, replacement demand has gained good traction and OE recovery should further benefit them, especially in the CV segment," Nomura said. It agreed with other brokerages that lower rubber prices would support a rise in the earnings before interest, tax, amortisation, and depreciation margin.

 

The company will announce its earnings on Wednesday. On Sunday, shares of Apollo Tyres Ltd. ended at INR 487.45 on the National Stock Exchange, down nearly 1%. The stock has declined over 7% since the company announced its September quarter earnings.

 

Of the nine brokerage reports on the company available with Informist, six have a 'buy' or equivalent recommendation on the stock with an average target price of INR 607 per share. This is nearly 22% higher than the current market price. Two brokerages have a 'hold' or equivalent recommendation on the stock with an average target price of INR 548 per share, while one has a 'sell' or equivalent recommendation with a target price of INR 438 per share.

 

Following are the December quarter earnings estimate for Apollo Tyres Ltd. from 10 brokerages in descending order of the estimate of net profit in INR billion:

 

Brokerage	Net sales	Net profit	EBITDA
Elara Securities (India) Pvt Ltd	77.80	7.18	11.80
Nomura Equity Research	79.00	5.88	12.54
Emkay Global Financial Services Ltd	74.18	5.74	12.55
ICICI Securities Ltd	78.50	5.38	12.46
Nuvama Wealth Management Ltd	74.84	5.10	11.44
JM Financial Institutional Securities Pvt Ltd	73.70	5.05	11.42
Kotak Securities Ltd	74.71	5.02	11.42
Nirmal Bang Equities Pvt Ltd	75.52	4.80	11.52
Motilal Oswal Financial Services Ltd	75.08	4.69	11.57
HDFC Securities Ltd	74.22	4.62
Average	75.75	5.35	11.86

 

End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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