Motilal Oswal has issued a buy rating on Apollo Tyres with a target price of ₹597 in its research report dated February 05, 2026. According to reports from Moneycontrol, the brokerage firm's recommendation comes after the company's Q3FY26 earnings of ₹4.9 billion, which delivered a 44% year-on-year growth. The stock's valuations at 17.0x/14.8x FY27E/FY28E EPS appear attractive when compared to industry peers.
As reported by Moneycontrol, Apollo Tyres' Q3FY26 performance was boosted by the standalone entity, which posted strong revenue growth across segments. However, Europe's performance remained stable due to subdued demand. The brokerage projects a steady 8% revenue CAGR over FY25-28E and models the company to deliver a 160 basis points expansion in margin over the same period, driving a 21% PAT CAGR over a corrected base.
Latest financial data shows Apollo Tyres' standalone December 2025 net sales at ₹5,138.99 crore, representing a 13.2% year-on-year growth. The company's consolidated September 2025 net sales reached ₹6,831.09 crore, up 6.12% year-on-year, while standalone September 2025 net sales stood at ₹4,714.91 crore, growing 5.67% year-on-year. This consistent growth trajectory across different reporting periods supports the brokerage's positive outlook on the company's operational performance.
According to the research report, Motilal Oswal values the stock at 18x December 2027E consolidated EPS to arrive at the ₹597 target price. The brokerage's analysis suggests that the current valuations represent an attractive entry point compared to industry peers. The target price reflects confidence in the company's projected margin expansion and revenue growth trajectory over the forecast period.
