Apollo Tyres Bags BCCI Sponsorship Rights Till 2027 SEBI Analysts See Over 15% Upside Above ₹510

Apollo Tyres' shares edged lower on Wednesday even as the company secured the lead sponsorship rights for India's men's and women's cricket teams. 

The Board of Control for Cricket in India (BCCI) confirmed that Apollo will replace online gaming platform Dream11 as the jersey sponsor for the next two and a half years, starting with the Women's ODI World Cup on September 30.

The winning bid was valued at ₹579 crore, higher than Canva's ₹544 crore and JK Tyres' ₹477 crore.

The BCCI set a base price of ₹3.5 crore for bilateral matches and ₹1.5 crore for ICC tournaments, with Apollo's winning bid amounting to ₹4.5 crore and ₹1.72 crore per match, respectively. 

Technical View

SEBI-registered analyst Rajneesh Sharma said Apollo Tyres has been consolidating within the ₹465–₹507 range, with ₹510 as the key breakout level. He noted that an upside breakout from this zone can create space towards ₹560–₹565, backed by improving momentum indicators and volume patterns.

Sharma mentioned that supports are placed at ₹475, ₹465 and ₹420–₹425, while failure to breach ₹510 could see a retest of lower levels.

Meanwhile, SEBI-registered analyst Mayank Singh Chandel said the weekly chart shows Apollo has been moving higher since the early 2000s with only a few pullbacks, and the long-term trendline remains intact. 

With relative strength index (RSI) around 58, indicating the stock is neither overbought nor oversold, Chandel said this neutral zone often signals further upside if buying interest continues. 

He added that the long-term uptrend still looks healthy and the stock shows potential to move higher from current levels.

Fundamental View

On fundamentals, Sharma highlighted Apollo's first quarter (Q1) results, where revenue was flat year-on-year at ₹6,746 crore due to European restructuring, while profit after tax rose 60% to ₹383 crore. 

EBITDA came in at ₹1,077 crore, with margins of 16% compared to 13.3% a year ago. Net debt stood at ₹3,529 crore, down 15% sequentially.

He pointed to stable demand in India's two-wheeler and commercial vehicle segments, benign raw material costs, and margin-focused restructuring in Europe as key drivers.

Growth Priorities

Management, Sharma said, reiterated focus on premiumisation, deleveraging, and sustainable growth, with progress on renewable energy usage and emissions reduction. 

He added that while the Hungary plant ramp-up and stable domestic operations provide support, European margins will take a couple of quarters to improve.

What Is The Retail Mood?

On Stocktwits, retail sentiment was 'neutral' amid 'normal' message volume.

Apollo Tyres' stock has declined 8% so far in 2025.

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