Apl Apollo Tubes FY26 Annual Earnings Summary
3 quarters covered · ₹17,457 Cr revenue · ₹966 Cr PAT · 0.0% average EBITDA margin.
Quarter-by-quarter progression
Management promises made during the year
Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY26Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY26Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY26Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY26Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY26Risks flagged during the year
The ongoing war has disrupted global supply chains and impacted Dubai operations at 40% utilization.
Q4 FY26 · highGas shortages caused temporary shutdowns in March; fear of recurrence may limit production to 80-85%.
Q2 FY26 · mediumManagement acknowledged that demand is 'very bad' due to weak government spending and extended monsoons, which could pressure volumes.
Q2 FY26 · mediumSteel prices fell 5,000 rupees per ton in Q2, causing minor inventory losses; further declines could impact margins.
Q2 FY26 · mediumAnalyst raised concern about 1 million tons of new capacity from competitors; management downplayed but did not quantify impact.
Q3 FY26 · mediumA sudden 10%+ move in HRC prices could temporarily impact margins before pass-through, though management notes this is rare.
Q3 FY26 · mediumFour greenfield plants and debottlenecking require timely execution; delays could impact volume growth targets.
Q4 FY26 · mediumConstruction sites halted due to labor shortages and raw material price inflation, delaying purchases.
Q4 FY26 · mediumRapid steel price increases may lead to destocking; however, low inventory days mitigate mark-to-market risk.
Q2 FY26 · lowPlanned capacity addition of 1.5 million tons in new geographies (East India, Dubai) may face ramp-up challenges.
Q3 FY26 · lowCompetitors are also adding capacity; maintaining 65% share may become challenging as the market grows.
What changed through the year
Q2 FY26 · FY26 volume growth of 10-15%
Management reiterated guidance for 10-15% volume growth for the full year, with H2 expected to be stronger than H1.
Q2 FY26 · FY26 EBITDA spread of 4,600-5,000 rupees per ton
Annual EBITDA per ton guidance maintained at 4,600-5,000 rupees, despite Q2 achieving 5,200 rupees.
Q2 FY26 · Q3 FY26 volume target of 900,000 tons
Management targets monthly volume of 270,000-275,000 tons in October, implying Q3 volume of ~900,000 tons.
Q2 FY26 · Capex of 1,500 crore fully funded internally
Capacity expansion of 1.5 million tons over 2-3 years will be entirely funded through internal cash flows.
Q3 FY26 · Volume growth 20% for Q4 FY26 and FY27
Management upgraded volume growth guidance to 20% for Q4 FY26 and full year FY27 over FY26.
Q3 FY26 · EBITDA per ton guidance raised to ₹5,500
EBITDA per ton target increased from ₹4,800-5,000 to ₹5,500, driven by cost controls and mix improvement.
Q3 FY26 · Capacity expansion to 8 million tons by FY28
Capex of ₹1,500 crore to add 3 million tons capacity (2 million greenfield/brownfield, 1 million debottlenecking) by FY28.
Q3 FY26 · RoCE target of 40% in FY27
Return on capital employed expected to improve to ~40% in FY27 from current 33%.
Q4 FY26 · Volume growth 15-20% in FY27
Management targets 15-20% volume growth for FY27, with a focus on margin protection.
Q4 FY26 · PAT growth 20-25% in FY27
PAT growth target of 20-25% for FY27, supported by margin expansion.
Q4 FY26 · EBITDA per ton sustainable at ₹5,000-5,500
Management expects EBITDA per ton to remain in the ₹5,000-5,500 range going forward.
Q4 FY26 · Capex of ₹14,500 crore for 8 MTPA capacity by FY28
Total capex of ₹14,500 crore over next 2.5 years to reach 8 million tonnes capacity by FY28.