Mumbai, Feb. 12 -- Apollo Tyres Ltd plans to increase its capital expenditure in fiscal year 2026 to address capacity constraints, particularly in its passenger car segment, as the Indian tyre maker sees raw material costs stabilising after recent pressures.

The company expects to spend approximately INR 8 billion on growth capital expenditure in FY26, above its capex of INR 7-7.5 billion for FY 25, Chief Financial Officer Gaurav Kumar told investors during an earnings call.

"We are extremely tight on passenger car tyre capacity," Kumar said, adding that the expansion would increase capacity by about 7-8% in India and slightly more in Europe, with the European growth focused on the Hungarian plant.

Raw material costs, which rose 15 per...