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...
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
58%Questions answered3Evaded / deflected12Questions auditedContradictedNumbers vs filing
Partial answer
Medium priority
Strategic vision beyond volume growth for next phase.
Asked by Sukrit Dartil, Isite Fine Trade Private Limited
Answered with capacity targets but did not address deeper market leadership or ecosystem influence.
no specific vision beyond capacity expansionvague on ecosystem influence
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Question
as APL AO continues to scale volume, what strategic vision do you see driving the next phase uh beyond just growth uh towards uh deeper market leadership or ecosystem in influence?
Mr. A (likely Chairman/CEO)
Our strategy is very clear. Right now we are close to a capacity of 5 million t and in the next two or three years we are going to build up the capacity of four 7 million t.
Partial answer
Medium priority
Cost management levers in volatile input cost environment.
Asked by Sukrit Dartil, Isite Fine Trade Private Limited
Mentioned three levers but only quantified salary cost target; lacked specifics on power and freight.
no quantification of power/freight savingsonly salary cost target given
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Question
my question is regards to margin especially in a volatile input cost environment looking ahead what internal levers or cost management plans do you see most important?
Mr. Kelwan (likely CFO)
Power how we release the unit per turn also and the cost of the unit also both the area is on the freight factor... and number three on the front of our salary cost we are targeting minimum My target is to bring down to 600 rupees per ton.
Answered
High priority
Quantify reasons for EBITDA per ton increase QoQ.
Asked by Niha Talija, Noama
Provided a clear quantified breakup of the 500 rupees per ton EBITDA improvement.
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Question
wanted to understand the Eida increase on a quarteronquarter basis. While we understand is of course this is missing but if at all you all can quantify what are the other reasons for you know margin improvement.
Sneha (likely CFO or IR)
One is the gross margin improvement which is around 200 rupees per ton... then 200 rupees per turn is coming from operating leverage benefits... and 100 rupees per ton was on account of lower expense which we booked in quarter one for ESOP.
Evasive
High priority
Why not upgrade EBITDA per ton guidance despite Q2 beat?
Asked by Niha Talija, Noama
Did not explain why guidance is not upgraded; gave a non-answer about volume.
no specific reason givenvague reference to pressureincomplete sentence
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Question
if this is a base level EIDA per ton of 5,200, you're still guiding for a number of 4600 to 5,000 on the EIDA per ton level on an annualized basis. any reason why you would want to maintain that or not upgrade the EVA per number.
Mr. A (likely Chairman/CEO)
we have lot of pressure so we don't want to increase but this I very sure almost 3.5 million plus almost God is great.
Evasive
High priority
Demand green shoots from government capex and spread impact.
Asked by Niha Talija, Noama
Avoided specifics on demand and spread; gave a general statement about sustainability.
did not answer about government capexvague on demanddid not address spread impact
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Question
are you seeing any improvement happening with respect to government capex any on ground green shoots that you can see... and secondly with respect to spreadsh... how do we you know see the spread going and impacting you?
Mr. A (likely Chairman/CEO)
very frankly I'm saying but due to our brand due to our size due to our systems we we are sustainable... is very bad all three demand steel prices.
Answered
Medium priority
Financing plan for 1,500 crore capex.
Asked by Agrin Kunga, AT investments
Clearly stated 100% internal funding and provided supporting metric.
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Question
it was mentioned in the PPP that we plan on spending 1,500 crores to expand the capacity. So just a question that how do we plan on financing this?
Sneha (likely CFO or IR)
100% will be funded from internal cash flows. If you look at our operating cash flow to I beta that's like above 90%. So this will help us to fund the 100% of KEX.
Evasive
High priority
Long-term vision and predicted EBITDA margins over 5 years.
Asked by Agrin Kunga, AT investments
Did not provide any margin forecast; answer was unclear and avoided the question.
no margin target givenincoherent answerdid not address predicted margins
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Question
what's the long-term vision of the company and what would be the predicted a better margins that we can expect over the next five years.
Mr. A (likely Chairman/CEO)
Because for 5 years we are talking if the everything is well the maybe we touched 10 million t... and when we cross 5 million and margin I don't think max000us I don't know what is the senate.
Partial answer
Medium priority
Impact of 12% safeguard duty on HRC and inventory restocking.
Asked by Adita Walakur, Access Securities
Confirmed duty makes imports unviable but did not explicitly address inventory restocking or benefit to APL.
did not directly confirm positive read-throughfocused on import parity rather than restocking
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Question
with the 12% safeguard duty, the downside to the HRC crisis is slightly now limited. So does that help us in means whatever we see the inventory restocking and restocking so with the volatility to the downside limited will it help us?
Mr. A (likely Chairman/CEO)
100 collected like right now the HR coil of for the month of October is close to 46,000 rupees per ton... if we do any import with the duties it's cost us to 52 or 53,000 per ton so this is not possible to import anything outside of the country.
Partial answer
High priority
Drivers of EBITDA per ton increase in general category and sustainability.
Asked by Kumar Swamia, Ambit Capital
Mentioned brand and size leverage but gave no numbers or timeframe for sustainability.
no quantification of driversdid not address sustainability
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Question
on the Ibida pattern in the German structure we have seen Ibida pattern move up from 2700 to 3,400. If you could please help me understand what is driving it and how sustainable they are.
Mr. A (likely Chairman/CEO)
Right now I think from January 2025 we are total focusing on our brand leverage and the size leverage we spread our margin or pricing from others.
Answered
High priority
Was there inventory gain in GP per ton improvement?
Asked by Aka Cha, Canada Roberto Mutual Fund
Clearly stated there was inventory loss, not gain, and explained the reason.
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Question
there is an expansion in GP per term. So was there any element of inventory gain or what justifies this sir?
Sneha (likely CFO or IR)
actually in fact there was some inventory loss only in this GP per ton which you are seeing because fuel prices came down okay in the second quarter versus Q1. So there is no inventory gain in fact there is some inventory loss.
Answered
High priority
Reconciliation of falling realization with rising EBITDA per ton.
Asked by Andre Purusham, Cog Advisers
Explained that NSR and raw material costs move together, and GP improvement is separate from steel price pass-through.
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Question
from quarter to quarter your realization per ton has come down... you also said that you took a price increase... So does that mean that the increasing IITA per ton is also explained by a further drop and a more benign raw material price environment?
Sneha (likely CFO or IR)
whatever steel price movement is there it is like 100% pass through... NSR decline by 5,000 per ton... raw material cost also came down by similar level... The only improvement in GP per ton is 200 rupees.
Answered
High priority
Is the worst behind for margins and will operating leverage kick in?
Asked by Sor Petra, Ask Investment Managers
Confirmed that past drags are behind and EBITDA growth will outpace volume growth going forward.
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Question
do you think things would not be the same in the coming next three years probably it should be much much higher right?
Sneha (likely CFO or IR)
last two years again we were ramping up our Dubai plant... now they have stabilized the utilization rates are above 70%... we will not have a negative operating leverage again... we are confident that ITA growth now will be superior than the volume growth.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Q3 and Q4 PAT target 450 crores each | ₹450 cr | ₹302 cr | Overstated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.