Apollo Tyres Share Price in Focus; Announces ₹3,500 Crore Expansion Plan Amid Cost Challenges

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. 

Expansion Strategy in India and 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. 

Financial Performance Boosts Capacity for Investment 

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. 

Optimising European Footprint 

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! 

Rising Raw Material Costs 

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. 

Impact of Geopolitical Tensions 

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. 

Apollo Tyres Share Price Performance  

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. 

Conclusion 

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. 

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