Apollo Tyres falls nearly 2% as crude oil surge sparks margin worries amid Israel-Iran tensions
By Aditya Bhagchandani Published on June 13, 2025, 09:41 IST
Shares of Apollo Tyres Ltd declined 1.56% to ₹450 in Friday's session, slipping from a previous close of ₹457.15, as investors turned cautious following a sharp rise in crude oil prices after Israel launched a military strike on Iran.
The tyre sector, including companies like Apollo Tyres, is highly sensitive to crude price movements since synthetic rubber—one of the main raw materials—is derived from petroleum. A surge in crude prices raises input costs, tightening operating margins for tyre makers.
Crude benchmarks like WTI and Brent jumped over 10% amid concerns of wider regional escalation, adding pressure across oil-linked sectors. With Apollo Tyres already operating at a competitive margin environment, this external shock could weigh on short-term profitability unless offset by price hikes or volume gains.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions.
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Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
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