1. Apollo Tyres:
This tyres & rubber products company fell 4.6% in the past week as rising crude oil prices raised concerns about higher raw material costs. Tyre manufacturing relies heavily on crude-based inputs such as carbon black and synthetic rubber. Any sustained increase in oil prices can directly pressure margins for tyre makers.
In Q3FY26, revenue rose 12% YoY to Rs 7,743 crore, supported by demand from aftermarket tyre sales, exports and original equipment manufacturers (OEMs), which supply tyres directly to vehicle makers. Net profit surged 40%, helped by higher volumes and tighter cost controls. EBITDA margins expanded 160 bps to 15.3%. Management highlighted that export volumes during the quarter grew close to 20%, reflecting rising overseas demand.
MD & Vice Chairman Neeraj Kanwar said the company is focusing on “premiumisation of the portfolio and cost control initiatives” to drive profitable growth. He noted that the share of premium tyres in Europe rose 400 bps to 52%, supporting margins.
CFO Gaurav Kumar noted that the company’s plants in India are already operating in the high-80% capacity range and could start hitting capacity limits soon. “To address this, Apollo Tyres has approved a Rs 5,800 crore capex plan to expand car and truck tyre capacity at its Andhra Pradesh plant over the next three years,” he said.
The Middle East conflict could also create indirect pressure through shipping disruptions, and lower demand in export markets as oil prices rise. About 13% of Apollo Tyres’ revenue comes from exports; margin pressure as freight and insurance costs rise is also a factor.
Emkay Global reiterated its ‘Buy’ call on the stock with a higher target price of Rs 550. The brokerage raised its earlier target citing domestic demand, improving product mix and the company’s capacity expansion plans, which could support earnings growth over the next few years. It also noted that strong demand and limited supply in the tyre industry are helping companies maintain prices, which could support margins even if raw material costs rise.
2. Zydus Lifesciences:
This pharma company rose 2.1% on February 26 after announcing plans to launch semaglutide injections in India on March 21, aimed at weight loss and diabetes. The move comes as Novo Nordisk’s patent on the drug is set to expire, opening a potential Rs 50,000 crore market for generic drug makers over the next 12–15 months.
With over 10% of Indian adults living with diabetes, Zydus is targeting a significant market. Its once-weekly injection treats both diabetes and obesity, aiming to capture a major share of this growing segment. The Zydus option is 60–65% cheaper than the original (around Rs 3,000–4,000/month), and the drug comes in an easy-to-use reusable pen. This pricing and convenience should attract cost-conscious patients and doctors, boosting its presence in India's metabolic care market.
Zydus is executing a dual strategy: marketing its own brand while also supplying the drug to its competitors. This move lets Zydus “own the supply,” manufacturing for multiple rival brands. This approach sharpens its Indian business model and prepares the company for global regulatory challenges, with the launch expected about 12 months after its domestic debut.
In Q3FY26, strong sales in pharmaceuticals and consumer products drove revenue up 30.3% YoY. Net profit grew 1.8% to Rs 1,042.1 crore, beating Forecaster estimates by 2.7%.
The company is also expanding its vaccine business, aiming for Indian market leadership and winning global contracts. It recently won an Indian tender, a deal worth over Rs 100 crore, and sees strong demand for its Flu and Rabies vaccines. Managing Director Sharvil Patel is ambitious: “We eye very strong value out of vaccines. In the next 3–4 years, we want a Rs 1,000 crore-plus business, and that's our conservative target.”
Prabhudas Lilladhar maintains its ‘Accumulate’ rating on the stock. The firm warns that US sales could dip in FY27 from pricing pressure on older products. To sustain US growth, Zydus must successfully launch two to three high-value specialty injectables.
3. Gravita India:
This non-ferrous metals producer’s shares climbed 2% on February 26 after the company expanded its lead recycling capacity to 1.5 lakh tonnes per annum. However, it fell 5.4% last week due to supply chain fears linked to the Israel-Iran conflict. The Middle East contributes about 16% to total sales, with projects in Qatar, the UAE, and Saudi Arabia. Tensions in the Red Sea could raise freight costs and delay shipments.
To tackle these risks, management plans to source more scrap locally, targeting 43% of total inputs from domestic markets. Additionally, the company will expand into the US, the Dominican Republic, and Eastern Europe to reduce its reliance on the Middle East.
Gravita reported mixed Q3FY26 results. Net profit climbed 25.3% YoY, helped by lower finance costs and inventory sales. However, revenue stayed flat at Rs 1,028.8 crore. Higher lead sales failed to offset declines in aluminium and plastics. Both figures missed Forecaster estimates.
Aluminium production dropped as suppliers held onto scrap amid rising prices. The plastics segment also struggled with lower utilisation. Management expects volume growth in plastics to remain slow until the market embraces recycled materials.
CEO Yogesh Malhotra outlined the future roadmap, saying, “We target a 25% volume CAGR over the next three years, an aim to increase non-lead revenue contribution to over 30%.” Management expects better aluminium scrap availability to drive this growth.
The company plans to invest Rs 1,225 crore to more than double lead capacity to 7 lakh tonnes per annum by FY28. It also aims to enter the lithium-ion battery recycling market, with a new plant set to open later this quarter.
Following the results, Axis Direct retained a ‘Buy’ rating with a target price of Rs 2,200, implying a 42.9% upside. The brokerage likes the stock’s expansion plans. Analysts expect capacity additions and new market entries to fuel volume growth. They predict annual revenue growth of 20.4% and profit growth of 30% through FY28.
4. Petronet LNG:
This natural gas company has fallen by 8.4% this past week after the company announced a force majeure on its long-term liquefied natural gas (LNG) shipments. The move comes as the escalating US-Israel-Iran war severely freezes maritime transit through the Strait of Hormuz, a corridor that handles around 20% of global oil and LNG trade.
India imports roughly 50% of its total gas consumption, and Petronet is navigating a massive supply shock. The ongoing conflict has left its LNG tankers including the Disha, Raahi and Aseem unable to safely reach Qatar’s Ras Laffan export terminal, which was targeted by Iranian drones.
Petronet’s offtakers include GAIL, BPCL and IOCL. This disruption has pushed Asian spot LNG prices to more than double their recent levels. The supply squeeze also forces downstream fertilizer and industrial consumers to brace for capacity cuts.
Petronet’s force majeure with its primary supplier QatarEnergy while simultaneously issuing corresponding notices to its domestic buyers, lets it legally shield itself from delivery penalties and effectively pause the supply chain on both ends. These incidents arising from acts of war are not covered under its business interruption insurance.
In Q3FY26, higher capacity utilization and operational efficiencies drove net profit up 5% YoY to Rs 848 crore. While softer market demand and lower throughput volumes dragged revenue down 8.7%, the company's operating margins improved to 10.7%.
The company recently completed the capacity expansion of its Dahej plant to 22.5 million metric tonnes per annum (MMTPA) to capture future spot volumes. Petronet is also planning a massive Rs 9,000 crore capital expenditure for FY27, primarily targeted at developing non-LNG petrochemical projects to ensure long-term growth.
Motilal Oswal issued a Buy rating on Petronet, with an upside of 25%, although this call came in mid-Feb before the war broke out. To sustain its growth and fully utilize its increased capacity, Petronet must successfully navigate these geopolitical bottlenecks. Revival of industrial demand once gas spot prices stabilize will be key to the company meeting its targets.
5. TVS Motor Company:
The stock of this 2 and 3-wheeler manufacturing company rose to a new all-time high of Rs 3,960 on February 26, following its return to the South African market through a partnership with The Nexus Collective. By launching seven models, it has become the only brand there competing in multiple segments. International business now drives 25% of total sales, with Africa alone contributing nearly 70% of export volumes.
February saw record-breaking international sales of 1.6 lakh units, a 27% YoY jump. Total sales soared 31% to 5.3 lakh units, with three-wheeler sales spiking 77%. TVS’ robust performance propelled it past Yamaha to become the world’s third-largest two-wheeler manufacturer, selling 5.5 million units in 2025 compared to Yamaha’s 5 million.
It reported a strong Q3 anchored by EV expansion and robust exports, with revenue climbing 31.6% to Rs 14,745.2 crore. Net profit surged 48.6% to Rs 841.3 crore, reflecting high growth in the automotive vehicles and parts segment. It appears in a screener of stocks that have shown consistent high performance over the past five years.
Its Q3 revenue beat Trendlyne’s Forecaster estimates by 1.9% as it gained significant ground in the domestic EV sector, while competitors like Ola Electric lost momentum. TVS now commands a 28% market share in the electric two-wheeler space. In February alone, it sold 38,386 EV units, marking a steep 60% growth.
Management expects 15% industry growth in Q4, bringing the full-year average to 9%. Although a 0.4% rise in input costs has created some inflation risk for the final quarter, the outlook for H1FY27 remains positive. To keep pace with demand, CEO K.N. Radhakrishnan has earmarked Rs 1,700 crore for capacity expansion, noting, “We are increasing capacity given the growth we have seen,” as part of a broader Rs 2,900 crore investment strategy.
US-Iran tensions and Red Sea disruptions indirectly impact TVS through increased freight costs and currency volatility. Although the Middle East and North Africa (MENA) region accounts for less than 3% of total export volumes, the primary risk involves the blockage of critical shipping lanes, specifically the Red Sea and the Strait of Hormuz.
Trendlyne's analysts identify stocks that are seeing interesting price movements, analyst calls, or new developments. These are not buy recommendations.
