On the brighter side, net debt dropped to about Rs1,600 crore in FY26 from Rs2,500 crore a year earlier, and net-debt-to-Ebitda improved to 0.4x from 0.7x. Apollo intends to proceed with its capex plan with more focus on domestic expansion. But Nomura Research cautions that significant capex of Rs3,500 crore/Rs3,000 crore for FY27/28 could impact free-cash-flow generation in FY27/28. The stock’s sharp drop means valuations now seem reasonable at about 13 times FY27 earnings estimates, as per Bloomberg data. But margin woes may keep meaningful upsides at bay in the near future.
