Apollo Tyres plans a ₹3,500 crore investment to enhance its production capacity in India and Europe, despite surging rubber prices and restructuring in Europe.
Apollo Tyres' expansion focuses on increasing capacity in India and Hungary. With an investment 2.5 times the previous year's, the company aims to maintain its 90% capacity utilisation.
Nearly ₹3,000 crore will be invested in India, with the remaining in Europe, enabling Apollo to navigate rising raw material costs.
In the January-March quarter, Apollo Tyres reported revenue of ₹7,340 crore, up 14.2% from the previous year.
EBITDA rose 27.6% to ₹1,070 crore, with margins improving to 14.6%. For FY26, revenue increased by 9% to ₹28,470 crore, and EBITDA climbed 16% to ₹4,140 crore.
Net debt was reduced by ₹900 crore to ₹1,600 crore, enhancing the company's financial strength for the planned expansion.
The closure of its Enschede plant in the Netherlands marks a significant shift in Apollo's European strategy, resulting in a non-cash write-off of €43 million and a cash payout of about €50 million.
This restructuring is expected to restore European profitability, with EBITDA margins projected to return to over 16% in a normalised scenario.
Read More: Apollo Tyres FY26 Results: Profit Rises YoY, Total Dividend Declared at ₹6 Per Share!
Natural rubber prices have increased from ₹200 per kg to ₹250 per kg, impacting Apollo's cost structure.
To counteract this, the company has implemented price increases of 6-8% in India and 2% in Europe, though further adjustments may be necessary.
Geopolitical tensions in West Asia have introduced volatility in crude, freight, and commodity markets. Apollo's management acknowledges the challenges but remains committed to its expansion strategy, supported by robust domestic demand and a resilient balance sheet.
As of May 20, 2026, at 10:08 AM, Apollo Tyres share price on NSE was trading at ₹370.00 down by 0.51% from the previous closing price.
Apollo Tyres is moving forward with a significant ₹3,500 crore expansion plan, primarily focusing on enhancing its manufacturing capabilities in India and Europe. This approach is part of a broader strategy to manage cost pressures and sustain growth in key markets, addressing both internal and external challenges effectively.
Want to track these market movements in Hindi? Visit Angel One News for daily updates and comprehensive share market news in Hindi.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: May 20, 2026, 10:15 AM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
