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Weak government capex and demand slowdown
View Risks →APL Apollo Tubes Limited — Q2 FY26
APL Apollo reported its highest-ever quarterly volume of 850,000 tons and EBITDA per ton of 5,200 rupees in Q2 FY26, driven by brand premiumization, value-added mix improvement from Raipur and Dubai plants, and operating leverage.
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APL Apollo reported its highest-ever quarterly volume of 850,000 tons and EBITDA per ton of 5,200 rupees in Q2 FY26, driven by brand premiumization, value-added mix improvement from Raipur and Dubai plants, and operating leverage. The company maintained its FY26 guidance of 10-15% volume growth and EBITDA spread of 4,600-5,000 rupees per ton, with H2 expected to be stronger due to seasonal demand recovery. Management highlighted a strategic shift from volume to profitability, targeting EBITDA per ton of 6,000 rupees over the next 4-5 years. Capacity expansion plans (1.5 million tons) are fully funded by internal accruals. Key risks include sustained weak demand from government capex and potential steel price volatility causing inventory losses.
APL Apollo ने Q2 FY26 में अब तक का सबसे अधिक 8.5 लाख टन उत्पादन बेचा और प्रति टन 5,200 रुपये का मुनाफा (EBITDA) कमाया। यह ब्रांड की मजबूती, रायपुर और दुबई के प्लांट से बेहतर उत्पाद और कम लागत के कारण हुआ। कंपनी ने FY26 में 10-15% बिक्री बढ़ोतरी और प्रति टन 4,600-5,000 रुपये मुनाफे का लक्ष्य रखा है। दूसरी छमाही में मांग बढ़ने से और अच्छा प्रदर्शन होगा। प्रबंधन अब मात्रा से ज्यादा मुनाफे पर ध्यान दे रहा है और अगले 4-5 साल में प्रति टन 6,000 रुपये मुनाफा कमाना चाहता है। नए प्लांट के लिए पैसा कंपनी के अपने फंड से आएगा। जोखिम: सरकारी खर्च कम होने और स्टील की कीमतों में उतार-चढ़ाव से नुकसान हो सकता है।
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Quarterly Sales Volume
850,000 tons
+70% YoY
All-time high quarterly volume, up from ~500,000 tons in Q2 FY25.
EBITDA per Ton
5,200 rupees
+500 rupees QoQ
Sequential improvement from 4,700 rupees in Q1 FY26, driven by brand and mix.
General Category EBITDA Spread
3,400 rupees/ton
+600 rupees QoQ
Doubled from 1,700 rupees/ton two years ago due to brand pricing power.
Dubai Plant Utilization
80%
+15pp QoQ
Improved from 65% in Q1 FY26, contributing to higher value-added mix.
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Guidance and risk preview
Management reiterated guidance for 10-15% volume growth for the full year, with H2 expected to be stronger than H1.
Management acknowledged that demand is 'very bad' due to weak government spending and extended monsoons, which could pressure volumes.
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