New Delhi, Dec. 30 -- Apollo Tyres Ltd is navigating a rocky patch. Its India business remains on relatively firm ground, supported by a demand boost following cuts in goods and services tax (GST) rates and a recovery in exports, while Europe continues to be a drag amid persistently weak demand.

In a recent interaction with analysts at Motilal Oswal Financial Services, Apollo's management said demand in India across most key segments stayed healthy in Q3, spanning both replacement and original equipment manufacturer (OEM) channels. Europe, however, told a different story: October saw some growth, but demand weakened in November, with momentum in core markets remaining subdued.

Over the longer term, profitability in Europe is expected to...