Apollo Tyres sells INR 500 crore debt as UBS upgrades Apollo Tyres stock

Published on 10/02/2026 at 16:02 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Q1 FY27 revenue reached INR 7.40 billion, up 12.76 percent year over year. UBS set INR 590 for Apollo Tyres stock on August 23, 2026.

Apollo Tyres, INE404A01024, Illustration mit AI erstellt.

Apollo Tyres sold INR 500 crore of non-convertible debentures on September 30, 2026, while UBS upgraded Apollo Tyres from Neutral to Buy and raised its price target to INR 590 on August 23, 2026. The combination puts funding and earnings recovery at the center of the stock story.

Debt placement adds funding capacity

Sahi Markets reported on September 30, 2026, that Apollo Tyres placed INR 500 crore of non-convertible debentures through a private placement. The report said the debt carried a CRISIL AA+/Stable rating assigned in August 2026, giving the company additional funding capacity as it expands production.

The financing decision also carries a cost risk. Sahi Markets said higher natural rubber and crude derivative prices were pressuring EBITDA margins, meaning the new borrowing supports operations while input inflation remains a key variable for profitability.

Revenue grows while margins tighten

For Q1 FY27, consolidated revenue rose 12.76 percent year over year to INR 73.98 billion, according to IndiaPulse on September 18, 2026. Consolidated net profit reached INR 3.49 billion, compared with INR 0.13 billion in Q1 FY26, while operating margin stood at 12.00 percent.

The comparison is powerful but uneven. Sahi Markets attributed much of the profit improvement to the low prior-year base, which included INR 2.73 billion of restructuring and impairment costs linked to the Netherlands plant.

UBS target stands above NSE price

Economic Times reported on August 24, 2026, that UBS upgraded Apollo Tyres from Neutral to Buy and raised its target to INR 590. The same report cited earnings recovery potential in India and Europe, alongside near-term rubber cost pressure.

A separate consensus page listed 24 analysts, including 17 Buy ratings, 4 Holds and 3 Sells, with an average 12-month target of INR 498.08 on September 3, 2026, according to Investing.com. That spread makes margin recovery and debt-funded expansion the key measures for the next results cycle.

NSE snapshot and yearly range

Apollo Tyres last traded at INR 404.00 on the NSE on October 1, 2026 at 3:30 p.m. IST. Its market capitalization was INR 256.6 billion, and the 52-week range was INR 365.30 to INR 540.50 on the same quote snapshot.