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Apollo Tyres Share Price: Shares of Apollo Tyres were under pressure on Monday's trading session. As of 3 pm, the stock was trading at Rs 514, down by 0.95 per cent from the previous close of Rs 518.95. The scrip gained and reached its intraday high of Rs 539.20 in the early hours of trade before declining further.

Morgan Stanley has maintained an 'equalweight' rating on Apollo Tyres, with the target price raised to Rs 542 from Rs 503.

Nomura has maintained a 'neutral rating on Apollo Tyres, while revising its target price to Rs 538 from Rs 490. The brokerage noted that the recovery in demand is still slow, particularly due to weak commercial vehicle (CV) demand, which is likely to keep overall growth modest.

However, soft commodity prices should help support margins. In its management commentary, Apollo Tyres highlighted that in Q2, overall volumes rose 4 per cent year-on-year (YoY), supported by 2 per cent growth in the replacement market, 4 per cent growth in OEM sales, and double-digit export growth.

The company expects the replacement segment to strengthen further in the second half, likely growing in the mid-to high-single digits, which should improve operating leverage and support profitability.

CLSA has reiterated its 'buy' rating on Apollo Tyres and has raised its target price to Rs 650 from Rs 586, reflecting improved margin visibility and operational strength.

The brokerage highlights that Apollo Tyres’ standalone gross margin expanded by 140 basis points (bps) quarter-on-quarter (QoQ), supported by easing raw material costs, which are expected to decline further in the coming quarters.

This helped lift the EBITDA margin by 164 bps QoQ to 15.3 per cent, and CLSA remains confident that the company can achieve over 16 per cent standalone EBITDA margin in the second half of FY26CL.

Despite a tough economic environment in Europe, Apollo Tyres managed 4 pr cent YoY volume growth in its EU business, while the EU EBITDA margin improved by 190 bps QoQ to 12.7 per cent.

Looking ahead, CLSA has factored in 5 per cent revenue CAGR for standalone operations and 8 per cent revenue CAGR for EU operations over FY25–27CL, supported by strong margin trends and stable demand momentum.

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