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View Claim Ledger →Apl Apollo Tubes Ltd — Q4 FY26
APL Apollo reported a strong Q4 FY26 with 9% volume growth YoY and EBITDA per ton exceeding ₹5,500, driven by market leadership, product innovation, and steel shortages.
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APL Apollo reported a strong Q4 FY26 with 9% volume growth YoY and EBITDA per ton exceeding ₹5,500, driven by market leadership, product innovation, and steel shortages. Full-year operating cash flow was ₹20 billion and free cash flow ₹13 billion, with net cash of ₹15 billion+. However, the Middle East crisis, gas shortages, and steel price volatility disrupted operations, particularly in Dubai (40% utilization) and domestic galvanized lines. Management maintains FY27 guidance of 15-20% volume growth and 20-25% PAT growth, focusing on margin protection over volume. Risks include prolonged geopolitical disruption, energy shortages, and potential demand slowdown from construction site halts.
Promises0 met · 2 missedRisks4 trackedTranscriptfull text
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Promises
2 promises
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0 delivered, 0 close, 2 missed.
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Risks
4 risks
Risk Intelligence
Prolonged Middle East crisis
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Transcript
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Read Transcript →Quarter Snapshot
Quarterly Volume Growth
9%
+9% YoY
Volume increased 9% year-over-year in Q4 FY26 despite disruptions.
EBITDA per Ton
₹5,500+
+₹500+ YoY
EBITDA per ton exceeded ₹5,500, up from guided ₹5,000-5,500 range.
Net Cash Balance
₹15 billion+
+₹10 billion QoQ
Net cash increased from ₹5.5 billion in Q3 to over ₹15 billion in Q4.
Market Share
60-65%
+5-10pp YoY
Market share improved from 55% to 60-65% in FY26, aided by disruption.
What Changed vs Last Quarter
NEW
PAT growth 20-25% in FY27
PAT growth target of 20-25% for FY27, supported by margin expansion.
NEW
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.
NEW
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.
UPDATED
Volume growth 15-20% in FY27
Management targets 15-20% volume growth for FY27, with a focus on margin protection.
DROPPED
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.
DROPPED
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.
DROPPED
RoCE target of 40% in FY27
Return on capital employed expected to improve to ~40% in FY27 from current 33%.
NEW RISK
Prolonged Middle East crisis
The ongoing war has disrupted global supply chains and impacted Dubai operations at 40% utilization.
NEW RISK
Energy shortages in India
Gas shortages caused temporary shutdowns in March; fear of recurrence may limit production to 80-85%.
NEW RISK
Demand slowdown from construction halts
Construction sites halted due to labor shortages and raw material price inflation, delaying purchases.
NEW RISK
Steel price volatility and inventory risk
Rapid steel price increases may lead to destocking; however, low inventory days mitigate mark-to-market risk.
RISK GONE
Sharp commodity price swings
A sudden 10%+ move in HRC prices could temporarily impact margins before pass-through, though management notes this is rare.
RISK GONE
Execution risk in greenfield expansions
Four greenfield plants and debottlenecking require timely execution; delays could impact volume growth targets.
RISK GONE
Market share sustainability at 65%
Competitors are also adding capacity; maintaining 65% share may become challenging as the market grows.
Fast read
Guidance and risk preview
Management targets 15-20% volume growth for FY27, with a focus on margin protection.
The ongoing war has disrupted global supply chains and impacted Dubai operations at 40% utilization.
View Risks →