Noida, India
Event Participants
Executives
6
Ashok Kumar Gupta, CK Singh, Deepak Goyal, Rahul Gupta, Sanjay Gupta, Vinay Gupta
Analysts
0
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Sales Volume | 745,000 Ton | -6% YoY, -19% QoQ; soft demand due to geopolitical situation and challenging macroeconomic environment |
| Revenue | ₹56.1 Bn | +8% YoY, -11% QoQ; resilient mix and brand strength offset volume softness |
| EBITDA | ₹4.1 Bn | +11% YoY, -20% QoQ; strong per-ton performance drove growth |
| EBITDA/Ton | ₹5,522 | +18% YoY, Flat QoQ; improving sales mix and brand power |
| Net Profit | ₹2.6 Bn | +11% YoY, -26% QoQ; better margins supported profitability |
| ROCE | 32.0% | Annualized; FY26 was 37.3% |
| ROE | 19.4% | Annualized; FY26 was 25.3% |
| Net Working Capital | 0 days | FY26 was 0 days |
| Net Cash | ₹14.1 Bn | FY26 was ₹15.3 Bn |
Geographic & Segment Commentary
Domestic (APL Apollo Brand, SG Premium, Roofing Products):
APL Apollo Brand delivered 568,691 Ton; SG Premium 58,686 Ton; Roofing 91,516 Ton. Total domestic volume impacted by soft construction activity. Strong brand equity, 5,000+ SKUs, and 800+ dealers drove market share gains and highest price point positioning versus competitors.
UAE Operations:
25,929 Ton; contributed to overall export presence. Management highlighted pan-India distribution network and strategic focus on value-added products.
Company-Specific & Strategic Commentary
Capacity Expansion:
Existing 5 Mn Ton + greenfield/brownfield additions and debottlenecking to reach 8 Mn Ton by FY28, with new plants in East (Gorakhpur, Siliguri), South (Malur), and Western coastal areas plus plant modernization.
ESG and Steel for Green:
Committed to 25% Scope 1&2 reduction by 2030 and Net Zero by 2050; all plants now access green energy with 2 plants >85% dependent. First mover in readymade steel doorframes, fences, planks, and handrails replacing wood; products save 250,000 trees annually. Structural steel positioned as decarbonization solution (60% emission reduction vs RCC).
Solar Structure Opportunity:
830,000 Ton addressable market by 2030 from 33.3 GW solar installations; thicker colour-coated sheets, Alu-Zinc, and tracker solutions.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| 2HFY27 Performance | Significantly better than 1HFY27 | Improved government budget allocation for infrastructure; company ready with capacity, product range, distribution, and brand pull |
Risks & Constraints
| Risk | Context |
|---|---|
| Soft Demand / Macro Environment | Geopolitical situation and challenging macroeconomic conditions impacted Q1 volume; potential further slowdown if budget allocation disappoints |
| Raw Material Cost Volatility | Steel price exposure; management mitigates via pricing power and value-added mix |
| Capacity Utilization | New capacity ramp-up risk; currently operating at strong margins |
Q&A Highlights
Demand Outlook and 2HFY27 Guidance
- Question: (Management comment on soft Q1 and future outlook)
- Answer:
- Sanjay Gupta (Chairman & Managing Director): Volume below expectations due to geo/macro factors; EBITDA/ton strength from mix and brand; expect 2HFY27 improvement on infra budget; prudent working capital management.
Key Takeaway
APL Apollo Tubes reported Q1FY27 sales volume of 745,000 Ton (-6% YoY, -19% QoQ) and revenue of ₹56.1 Bn (+8% YoY) amid soft demand from geopolitical tensions and macro challenges. EBITDA rose 11% YoY to ₹4.1 Bn and EBITDA/ton jumped 18% YoY to ₹5,522 on superior mix and brand strength, while net profit grew 11% YoY to ₹2.6 Bn. The company remains net cash positive with 0 working capital days and delivered 32% ROCE and 19.4% ROE (annualized). Strategic priorities include expanding capacity to 8 Mn Ton by FY28, accelerating ESG initiatives with Net Zero by 2050 target, and capturing the 830,000 Ton solar structure opportunity through innovative Steel for Green products. Management guided for a significantly stronger 2HFY27 on expected government infrastructure spending, while highlighting prudent capital allocation and ongoing focus on decarbonization through steel structures.