APL Apollo Tubes Limited — Q3 FY26
APL Apollo delivered a strong Q3 FY26 with record monthly volume of 375,000 tons in December, implying an annualized run rate of 4.4 million tons.
bullish
high
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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.
83%Questions answered1Evaded / deflected12Questions audited
Partial answer
High priority
Asked about 20% volume growth in Q4 and FY27, and reasons for EBITDA per ton guidance increase.
Asked by Niha Talija, Noama
Management gave volume targets but did not explain the EBITDA per ton guidance increase clearly.
vague on strategy detailsno clear explanation for EBITDA guidance increase
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Question
did we hear it correctly that you said 20% volume growth in Q4 as well as FI27... what's changed between in the last I would say 3 to four months or 6 months where your ebitter per guidance has suddenly moved up significantly like you said from 48 100 to 5,000 to now 5500
Sanjay (management, role not specified)
Our mainly volume growth is coming from our strategy... we have decided could go with the other brand also... This trial is totally successful... Q4 we are targeting 10 to 11 target you can say 10.25 925 or 10.5 we can easily achieve fixed cost
Answered
High priority
Asked about strategic focus on profit pool and interpretation of zero debt balance sheet.
Asked by Bat Sisha, Barat Sisha
Management confirmed the strategic focus and explained the working capital target.
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Question
I think fundamentally the most important change in strategical strategic focus that we have now steered... is to focus on overall growth of the profit pool... So want to want to uh uh get your perspective on the matter.
Anuho (management, role not specified)
That's that's right. Uh so so the working capital which right now stand at three it it will go to negative. Now that is the most worthy objective because liability is a way of funding assets.
Evasive
High priority
Asked if revenue can reach 3,000 crore plus in FY27.
Asked by Bat Sisha, Barat Sisha
Management did not directly answer the revenue question, instead gave volume and margin targets.
did not confirm or deny revenue targetgave volume and EBITDA per ton instead
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Question
will it be uh will it be possible to see uh a bit of 3,000 cr plus in 27 or am I being greedy?
Sanjay (management, role not specified)
No you are right now you are greedy brother you frankly you ask me I'm 42 million 4.2 2 million 5500... My mind also 4.2 million volume 5500.
Answered
Medium priority
Asked about capacity expansion from 4.5 to 5 million tons and specialty tubes target.
Asked by Adit Talikar, Access Securities
Management clearly explained the capacity increase breakdown.
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Question
in the last quarter's presentation we have existing capacity of 4.5 million tons. So now we have 5 million tons. So the increment has come from Dubai. And what else uh apart from Dubai?
Anuho (management, role not specified)
So so this 4 and a half to five capacity one is super heavy we had added. So that got added plus um some capacity we added through deep bottlenecking only... 4 and a half to five uh new capacity got added by 100 200,000 ton and rest to 300,000 t is through the bottlenecking only.
Partial answer
Medium priority
Asked about demand drivers for higher capacity additions.
Asked by Adit Talikar, Access Securities
Management did not provide specific demand drivers but explained market capture strategy.
did not give specific demand driversfocused on brand strategy
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Question
So what gives us I mean if you can throw some uh use cases or uh demand pointers that mean we are now projecting higher uh capacity additions. So anything on that front?
Sanjay (management, role not specified)
No no demand is not substitute. We are selling the material in one segment. Now we are straight ourself... ATL Apollo brand is the highest selling price point. SG brand is at the lowest selling price point... So that way we have captured the market um heavily.
Answered
Medium priority
Asked about EBITDA per ton range for specialty tubes.
Asked by Onar Gural, Shri Investment
Management provided a clear range for EBITDA per ton.
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Question
I just wanted to know this speciality tubes which you're talking about from FI28 to FI30 what kind of like aida per ton is there? You can give a range that would be fine.
Anuho (management, role not specified)
So uh so if you look at the specialtity tubes some of the Indian companies are present and some of the global companies which we are studying um the IVA spreads are in the range of 10,000 to 15,000 rupees per turn.
Answered
High priority
Asked about volume and EBITDA per ton guidance for FY27.
Asked by Onar Gural, Shri Investment
Management confirmed the volume guidance.
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Question
the second one is on the capacity you mentioned I guess you'll be doing around 3.6 uh million t this year and then 42 43 million t 4.2 to 4.3 million t in FY27. So is the understanding correct?
Anuho (management, role not specified)
Yes, very correct. Minimum 4.2 million minimum.
Answered
High priority
Asked about target ROCE and dividend payout.
Asked by Onar Gural, Shri Investment
Management gave a specific ROCE target of 40%.
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Question
And with all the efforts you are doing and with the free cash we'll be generating, what kind of ROC's you are targeting?
Anuho (management, role not specified)
It it it can could hit 40%. How in 27 right?... so depreciation for 50% uh 3200 3200 40% 40 so 40% is what you can see um within FI27
Answered
Medium priority
Asked about HRC price assumption for 5,500 EBITDA per ton target.
Asked by Dashin Maha, Access Capital
Management clearly stated HRC is pass-through, no assumption needed.
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Question
when we uh target for 5,500 per 10 AITA. So what uh uh what HRC price are we working with for this uh uh unit 3 AITA?
Anuho (management, role not specified)
No Dashan. So HRC is passed through for us, right? So there is no assumption on the HR coil pricing whatever price is up or down uh it will it will be fully passed on to our customers.
Answered
Medium priority
Asked about increase in interest cost despite debt reduction.
Asked by Dashin Maha, Access Capital
Management explained the interest cost increase due to rate movement and bank charges.
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Question
we saw increase in interest calls this quarter. However, I think uh debt our total uh debt quarter on quarter which you grew in the presentation has decreased. So just wanted to know why did we see this increase in overall interest cost.
Anuho (management, role not specified)
So it is u so if you see like uh the uh the uh debt we have on the books right the gross debt let's not talk about the net debt if we talk about the gross debt on uh March 25 uh it used to be around 600 K rupees 615 crores okay March 25 and uh 9 months we closed at 548 crores... There was interest rate movement during the year.
Answered
Medium priority
Asked about consolidated tax rate reduction with Dubai and Raipur plants.
Asked by Dashin Maha, Access Capital
Management gave a specific tax rate target of 20%.
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Question
can we can we assume uh lower tax rate going ahead once this Dubai facility comes into play... Would there be any uh more uh reduction in tax rate going forward?
Anuho (management, role not specified)
So so Darian both Dubai and Rifle plants are at low tax rate... so eventually we expect our tax rate to be around 20%.
Answered
High priority
Asked about exit capacity at FY27 end and volume growth for FY28.
Asked by Harwasa, SBI Capital Securities
Management provided clear capacity and volume growth guidance.
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Question
like currently we have a capacity of 5 million tons uh at the end of FI26. So by the time of FI27 uh so what would be our like exit capacity at the end of FI27 and what would be our FI28 uh like volume growth?
Anuho (management, role not specified)
So, FI26 the exit capacity will be 6 million ton. FI28 target is 8 million uh 8 million tons... we should continue 20% we should maintain 20% growth rate for FI27 and FI28.