Claim Ledger
79% answered
Did management answer the analysts?
12 analyst questions audited, 1 evaded or deflected.
View Claim Ledger →Apollo Pipes Ltd — Q4 FY26
Apollo Pipes reported FY26 revenue of ₹1,100 crore with standalone sales volume up 7% YoY, crossing 1 lakh tons annual sales.
bullish
medium
✓ Verified against BSE filing
2-Minute Summary
✦ AI-Generated from Full Transcript
Apollo Pipes reported FY26 revenue of ₹1,100 crore with standalone sales volume up 7% YoY, crossing 1 lakh tons annual sales. Consolidated EBITDA declined 30% due to inventory write-downs, aggressive pricing, and new business costs. Management guided for 35% revenue CAGR to ₹5,000 crore by FY31, backed by three plants with ₹1,000 crore capacity each and a new South India plant. Q1 FY27 revenue target is ₹400 crore (+15% QoQ). Margins are expected to improve gradually as operating leverage kicks in. Key risk: sustained PVC price volatility and competitive intensity could pressure margins.
Promises0 met · 1 missedRisks4 trackedTranscriptfull text
Research workspace
Focused Modules
Promises
1 promise
Promise Tracker
0 delivered, 0 close, 1 missed.
View Promises →
Risks
4 risks
Risk Intelligence
PVC Price Volatility
View Risks →
Transcript
Full text
Call Transcript
Full transcript text is available on this route.
Read Transcript →Quarter Snapshot
Annual Sales Volume
1,00,000 tons
+7% YoY
Apollo Pipes standalone crossed 1 lakh tons annual sales volume for the first time.
Q4 FY26 Revenue
₹350 crore
+13% QoQ
Q4 revenue was ₹350 crore, driven by aggressive pricing and volume push.
Q1 FY27 Revenue Target
₹400 crore
+15% QoQ
Management targets ₹400 crore revenue in Q1 FY27, implying double-digit volume growth.
Market Share
2.2%
+1.3pp target in 3-4 years
Current market share of 2.2% in a ₹55,000 crore industry; targeting 3.5% in 3-4 years.
What Changed vs Last Quarter
NEW
35% Revenue CAGR to ₹5,000 crore by FY31
Management targets 35% revenue CAGR over 5 years, reaching ₹5,000 crore by FY31, driven by capacity expansion and new products.
NEW
Q1 FY27 Revenue Target of ₹400 crore
Management expects Q1 FY27 revenue of ₹400 crore, up 15% QoQ from Q4 FY26's ₹350 crore.
NEW
Capex of ₹100 crore for FY27
Total capex for FY27 is estimated at ₹100 crore, primarily for Kisan brownfield expansion and existing plant upgrades.
NEW
Working Capital Cycle Below 35 Days by FY27 End
Management targets net working capital cycle below 35 days by March 2027, down from 46 days in FY26.
DROPPED
Double-digit volume growth for FY26
Management expects low-to-mid double-digit volume growth for the full year, with clarity after Q2.
DROPPED
CPVC contribution to exceed 20% in 1-2 years
CPVC volume share to rise from 15% to over 20% within 1-2 years, aided by a co-marketing agreement with a major resin supplier.
DROPPED
Total capacity to reach 286,000 tons in 2 years
Installed capacity to increase from ~230,000 tons to 286,000 tons over the next two years, funded without debt.
DROPPED
UPVC doors and windows revenue target of ₹50 crore in FY26
New UPVC segment expected to generate ₹50 crore revenue in FY26, primarily in H2.
NEW RISK
PVC Price Volatility
PVC prices have been highly volatile, dropping 15% then rallying 75% and falling again. Management expects ±5% fluctuations near-term, which could impact margins.
NEW RISK
Aggressive Pricing and Margin Pressure
Management adopted aggressive pricing to gain volume, leading to lower gross margins. This strategy may persist, delaying margin recovery.
NEW RISK
Kissan Molding Margin Recovery Delays
Kissan's margins remain near breakeven due to underutilization. Management expects improvement only after 1-2 quarters, posing risk to consolidated profitability.
NEW RISK
Increased Competition from New Entrants
Analyst noted a large competitor planning a new plant. Management acknowledged rising competition but expressed confidence in strategy.
RISK GONE
Prolonged government infrastructure spending slowdown
Weak government capex has persisted for 18-20 months, delaying demand recovery for pipes and construction materials.
RISK GONE
Intense competitive pressure and price aggression
Competitors are cutting prices aggressively to fill capacity, compressing margins across the industry.
RISK GONE
Low capacity utilization dragging profitability
Current utilization of ~45-50% leads to high fixed cost absorption issues, especially at the Kissan plant.
RISK GONE
Warrant conversion dilution risk
₹110 crore warrants issued to Kitara Capital; 25% received, balance due in 18 months, potentially diluting equity.
🤫 Topics management stopped discussing
Mentioned in Q1 FY26, Q3 FY26
CPVC volume share is targeted to rise from current 15% to above 20% within 1-2 years, supported by a co-marketing agreement with a leading resin supplier.
Mentioned in Q1 FY26, Q3 FY26
Management expects low to mid double-digit volume growth for the full year, with potential for high double-digit growth in the remaining 8 months if macro improves.
Mentioned in Q1 FY26, Q3 FY26
Competitors are reducing selling prices aggressively to fill capacity, compressing margins. Management acknowledged this is a mix of low demand and excess capacity.
Mentioned in Q1 FY26, Q3 FY26
Management noted that government spending on infrastructure has been subdued for 18-20 months, impacting demand across construction materials including PVC pipes.
Mentioned in Q1 FY26, Q3 FY26
Capex of ~₹150 crore residual spend to expand capacity from current ~230,000 tons to 286,000 tons over the next 1-1.5 years, funded without debt.
Fast read
Guidance and risk preview
Management targets 35% revenue CAGR over 5 years, reaching ₹5,000 crore by FY31, driven by capacity expansion and new products.
PVC prices have been highly volatile, dropping 15% then rallying 75% and falling again.
View Risks →