3 Tyre Stocks With a Strong Future Roadmap: MRF, Apollo Tyres and CEAT

MRF Rs 1,23,330.00, P/E 21.63. Apollo Tyres Rs 401.60, P/E 14.93. CEAT Rs 3,283.00, P/E 22.56. Closing prices of 5 Oct 2026.

Updated: 6 Oct 2026 • 9:47 am

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3 Tyre Stocks With a Strong Future Roadmap: MRF, Apollo Tyres and CEAT

Quick Answer

Tyre stocks with the clearest long-term roadmaps today include MRF in radial tyres for cars, trucks and two-wheelers, Apollo Tyres in passenger car, truck and agricultural tyres in India and Europe and CEAT in two-wheeler, passenger and commercial tyres. FY26 revenue growth was 10.8% at MRF, 9.1% at Apollo Tyres and 18.8% at CEAT. P/E stands at 21.63 for MRF (industry 19.34), 14.93 for Apollo Tyres (industry 19.34) and 22.56 for CEAT (industry 19.34). Demand cycles, input costs and valuation decide how much of that growth the market keeps paying for, so each company's risks need equal attention.

Tyre stocks give investors exposure to vehicle sales and, more importantly, to replacement demand, which supplies most tyre revenue. Margins depend on natural rubber and crude oil derivatives, which is why input costs and pricing matter as much as volume.

This list covers three tyre sector stocks: MRF for radial tyres for cars, trucks and two-wheelers, Apollo Tyres for passenger car, truck and agricultural tyres in India and Europe and CEAT for two-wheeler, passenger and commercial tyres. Every figure comes from the latest reported financials and the 5 October 2026 market close. Companies without complete current figures were left out.

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Table of Contents

What Are Tyre Stocks?

Tyre stocks are shares of companies that make tyres for cars, trucks, tractors and two-wheelers, both for OEM supply and for the replacement market. Results depend on replacement demand, natural rubber and crude oil derivative prices, and the shift to radial and premium tyres, so brand strength and mix separate the stronger names.

Tyre Stocks at a Glance

The table compares size, valuation, return on equity and debt for the three tyre stocks as of the 5 October 2026 close.

Company	CMP (Rs)	Market Cap (Rs Cr)	P/E	Industry P/E	ROE	Debt to Equity
MRF	1,23,330.00	52,287	21.63	19.34	11.57%	0.15
Apollo Tyres	401.60	25,502	14.93	19.34	12.39%	0.22
CEAT	3,283.00	13,288	22.56	19.34	13.83%	0.65

Among tyre sector stocks, Apollo Tyres trades below the industry P/E, while MRF and CEAT trade at a premium to the industry multiple.

Why Do Tyre Stocks Have a Strong Roadmap in India?

Tyre stocks have a strong roadmap in India because a growing vehicle base drives replacement demand, radial and premium tyres lift realisation per unit, and exports and capacity expansion add growth. Three drivers stand out.

Replacement demand: Tyres wear out, so a larger vehicle base supports steady replacement sales.
Radial and premium tyres: Buyers moving to radials and premium products lift price per tyre.
Exports and capacity expansion: New plants and overseas sales widen the market beyond domestic demand.

MRF: Radial Range and Replacement Demand Anchor the Roadmap

MRF's roadmap rests on its wide radial tyre range across passenger cars, trucks and two-wheelers, a large replacement market and added capacity.

Revenue grew from Rs 19,633.71 crore in FY22 to Rs 31,653.64 crore in FY26, a 61.2% rise, and FY26 revenue was 10.8% higher than FY25. FY26 net profit rose 29.5% to Rs 2,426.10 crore. Over four years, net profit rose from Rs 669.24 crore in FY22 to Rs 2,426.10 crore. In Q1 FY27, revenue grew 10.3% to Rs 8,610.56 crore, and net profit fell 1.3% to Rs 495.35 crore. Operating margin was 17.18% in FY26 and 14.09% in Q1 FY27 against 15.62% a year earlier.

Debt to equity is 0.15 and return on equity is 11.57%. FY26 operating cash flow was Rs 4,590.30 crore against capital expenditure of Rs 1,434.25 crore. MRF paid a dividend of Rs 235 per share for FY26, a yield of 0.19%. At a P/E of 21.63 against an industry P/E of 19.34, the stock trades above its industry multiple.

What to watch: Q1 FY27 operating margin of 14.09% was below the 15.62% of Q1 FY26, even as revenue grew 10.3%. Q1 FY27 net profit was 1.3% lower than a year earlier; the P/E of 21.63 sits above the industry P/E of 19.34, so earnings delivery matters for the valuation.

Apollo Tyres: Premium Mix and Europe Drive the Pipeline

Apollo Tyres' roadmap rests on its premium passenger car tyres, truck and agricultural tyres in India and Europe and a push to lift margins through better mix.

Revenue grew from Rs 21,071.06 crore in FY22 to Rs 28,604.01 crore in FY26, a 35.8% rise, and FY26 revenue was 9.1% higher than FY25. FY26 net profit rose 22.4% to Rs 1,372.42 crore. Over four years, net profit rose from Rs 638.60 crore in FY22 to Rs 1,372.42 crore. In Q1 FY27, revenue grew 13.3% to Rs 7,456.12 crore, and net profit rose from Rs 12.88 crore to Rs 348.87 crore. Operating margin was 15.05% in FY26 and 12.84% in Q1 FY27 against 7.87% a year earlier.

Debt to equity is 0.22 and return on equity is 12.39%. FY26 operating cash flow was Rs 3,667.37 crore against capital expenditure of Rs 1,403.30 crore. Apollo Tyres paid a dividend of Rs 6 per share for FY26, a yield of 1.49%. At a P/E of 14.93 against an industry P/E of 19.34, the stock trades below its industry multiple.

What to watch: FY26 operating margin of 15.05% is still below the 17.91% of FY24.

CEAT: Two-Wheeler Strength and Capacity Build the Next Leg

CEAT's roadmap rests on its strong two-wheeler tyre franchise, premium and radial products in cars and commercial vehicles, exports and capacity expansion.

Revenue grew from Rs 9,374.81 crore in FY22 to Rs 15,718.38 crore in FY26, a 67.7% rise, and FY26 revenue was 18.8% higher than FY25. FY26 net profit rose 47.9% to Rs 697.24 crore. Over four years, net profit rose from Rs 70.58 crore in FY22 to Rs 697.24 crore. In Q1 FY27, revenue grew 22.4% to Rs 4,324.00 crore, and net loss was Rs 1.00 crore against a profit of Rs 114.00 crore. Operating margin was 12.96% in FY26 and 8.43% in Q1 FY27 against 11.02% a year earlier.

Debt to equity is 0.65 and return on equity is 13.83%. FY26 operating cash flow was Rs 1,785.55 crore against capital expenditure of Rs 1,146.54 crore. CEAT paid a dividend of Rs 35 per share for FY26, a yield of 1.07%. At a P/E of 22.56 against an industry P/E of 19.34, the stock trades above its industry multiple.

What to watch: Q1 FY27 operating margin of 8.43% was well below the 11.02% of Q1 FY26. Q1 FY27 was a loss-making quarter; the P/E of 22.56 sits above the industry P/E of 19.34, so earnings delivery matters for the valuation.

Best Tyre Stocks in India: MRF vs Apollo Tyres vs CEAT on Key Financials

Among the best tyre stocks in India, MRF leads on FY26 operating margin; CEAT leads on Q1 FY27 revenue growth and five-year revenue growth; Apollo Tyres leads on the lowest P/E. The table puts the numbers side by side.

Metric	MRF	Apollo Tyres	CEAT
FY26 revenue (Rs Cr)	31,653.64	28,604.01	15,718.38
FY26 revenue growth	10.8%	9.1%	18.8%
Revenue growth FY22 to FY26	61.2%	35.8%	67.7%
FY26 net profit (Rs Cr)	2,426.10	1,372.42	697.24
FY26 net profit growth	29.5%	22.4%	47.9%
FY26 operating profit margin	17.18%	15.05%	12.96%
Q1 FY27 revenue growth (YoY)	10.3%	13.3%	22.4%
Q1 FY27 net profit growth (YoY)	-1.3%	27.1x	Turned to loss
Return on equity	11.57%	12.39%	13.83%
P/E ratio	21.63	14.93	22.56
Debt to equity	0.15	0.22	0.65
Dividend yield	0.19%	1.49%	1.07%
FY26 operating cash flow (Rs Cr)	4,590.30	3,667.37	1,785.55

Tyre makers pass on input costs with a lag, so one quarter should be read with the full-year margin trend.

How to Evaluate Tyre Company Stocks to Buy Before You Invest

A short checklist keeps the research consistent when you screen tyre stocks and shortlist tyre company stocks to buy.

Compare each stock's P/E with its industry P/E, which is 19.34 for all three here.
Track operating margin across several quarters, because input costs can move faster than prices.
Check whether revenue growth is turning into profit growth, not only sales.
Read operating cash flow against capital expenditure to see how growth is funded.
Watch debt to equity and interest cover before sizing a position.
Spread exposure across companies and business lines instead of one demand cycle.

Check the Univest Screener for live data on these tyre stocks

Risks to Consider Before Investing in Tyre Stocks

Input costs: Natural rubber and crude oil derivative prices can squeeze margins before price increases.
Imports and competition: Lower-priced imported tyres can limit pricing in some segments.
Valuation: MRF trades at 21.63 times earnings and CEAT at 22.56, against an industry multiple of 19.34, so a margin miss can weigh on the stocks.
Capital intensity: New capacity needs heavy spending, so returns depend on utilisation.

Download the Univest iOS App or Univest Android App to track MRF, Apollo Tyres and CEAT live.

Final Take: Which Stock Has the Strongest Roadmap?

These three tyre company stocks cover a wide radial range, premium mix in India and Europe, and two-wheeler strength with capacity expansion. MRF leads on FY26 operating margin; CEAT leads on Q1 FY27 revenue growth and five-year revenue growth; Apollo Tyres leads on the lowest P/E.

Across tyre sector stocks, each roadmap still has to turn growth into steady profit, so independent research and position sizing matter. Investors should consult a SEBI-registered advisor before acting on any of the tyre company stocks to buy discussed here.

Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).

FAQs on Tyre Stocks

Which are the best tyre stocks in India with a strong roadmap?

Ans. MRF, Apollo Tyres and CEAT stand out for their roadmaps in radial, premium and two-wheeler tyres. FY26 revenue growth was 10.8% at MRF, 9.1% at Apollo Tyres and 18.8% at CEAT, and return on equity ranges from 11.57% to 13.83%.

Is MRF a good stock to buy now?

Ans. MRF has a debt to equity ratio of 0.15, a return on equity of 11.57% and a P/E of 21.63 against an industry P/E of 19.34. Natural rubber and crude oil derivative prices move margins, and the stock trades above its industry multiple. This article is not investment advice, so consult a SEBI-registered advisor before deciding.

What is the P/E ratio of MRF, Apollo Tyres and CEAT?

Ans. The P/E ratio is 21.63 for MRF (industry 19.34), 14.93 for Apollo Tyres (industry 19.34) and 22.56 for CEAT (industry 19.34). Only MRF and CEAT trade at or above the industry multiple.

Which of these tyre stocks has the highest return on equity?

Ans. CEAT has the highest return on equity at 13.83%, followed by Apollo Tyres at 12.39% and MRF at 11.57%.

What are the risks of investing in tyre stocks?

Ans. The main risks are rising rubber and crude oil derivative costs, import competition, valuation and the cost of new capacity. CEAT reported a Q1 FY27 net loss of Rs 1 crore against a profit of Rs 114 crore a year earlier.

How did MRF, Apollo Tyres and CEAT perform in Q1 FY27?

Ans. MRF reported revenue of Rs 8,610.56 crore, up 10.3% year on year, and net profit fell 1.3% to Rs 495.35 crore. Apollo Tyres reported revenue of Rs 7,456.12 crore, up 13.3% year on year, and net profit rose from Rs 12.88 crore to Rs 348.87 crore. CEAT reported revenue of Rs 4,324.00 crore, up 22.4% year on year, and net loss was Rs 1.00 crore against a profit of Rs 114.00 crore.

Do tyre stocks pay dividends?

Ans. Yes, all three companies pay dividends. The dividend yield is 0.19% for MRF, 1.49% for Apollo Tyres and 1.07% for CEAT, based on dividends declared for FY26.

How can I invest in tyre stocks in India?

Ans. You can buy tyre stocks through a demat and trading account on NSE or BSE after checking each company's financials, margins and valuation. The Univest Screener lets you compare fundamentals before placing an order. Investments in securities are subject to market risk, so consider your risk profile first.