Any current/future capex/capital investment/strategic investment?

APL Apollo Tubes is planning a capex of INR 500-600 crores for three new plants as part of its expansion to 5 million ton capacity by FY '27. New plants include Siliguri (to cater to East market), Gorakhpur (for Eastern UP, Bihar, Odisha), and Ahmedabad (to serve Gujarat). These plants will mainly involve shifting existing mills rather than adding new mills. The company has already incurred INR 200-250 crores related to land purchase and initial work for Siliguri and Gorakhpur. Capex for plant and building will proceed once land possession is complete. Focus on regional penetration strategy wi

Future growth expectations in sales/revenue/volumes?

Targeting sales volume of 3.2 million tons for FY '25 with 20-25% growth next year. Plan to reach 5 million tons sellable capacity by FY '27 through new plants in Siliguri, Gorakhpur, Ahmedabad, and ramping up existing plants. Dubai plant capacity of 300,000 tons expected to be fully utilized by FY '27. Exports currently at ~100,000 tons, with combined India and Dubai volumes expected to grow. EBITDA per ton target near INR 5,000 by FY '26, supported by higher utilization and value-added products. Expansion into high-diameter tube export markets using Dubai and India plants. Continued focus on

Future growth expectations in earnings/operating earnings/profits/EPS?

EBITDA per ton expected to reach near INR 5,000 by FY '26, driven by better utilization and operating leverage benefits. Ramp-up of new plants (Raipur and Dubai) and increased share of value-added products (VAP) are key growth drivers enhancing margins. Sales volume target set at 3.2 million tons for FY '25, with a planned 20-25% growth next year and 5 million tons capacity target by FY '27. Improved product mix and increased gross margin spreads quarter-on-quarter support margin expansion. Cost rationalization efforts in power, steel wastage, and consumables continuing to strengthen profitabi

Current/ Expected Orderbook/ Pending Orders?

On Slide 45 (referenced on Page 14), there is mention of ongoing inquiries requiring 220,000 tons of heavy structural steel tubes for about 42 million square feet of visibility. The company highlighted strong order inflow for the newly commissioned 300 x 300 mm mill at Dubai, indicating good current demand. Exports and orders are ramping up from the Dubai plant; full utilization of 300,000-ton capacity expected by FY '27. Promoting a broad product range (300x300 to 1,000x1,000 mm) internationally, with active booking of orders. Domestic export tonnage currently around 100,000 tons, with plans

Any current/future new fundraising through debt or equity?

No explicit mention of any current or planned fundraising through debt or equity in the provided transcript. Management indicated maintaining a near net-zero debt balance sheet for FY '25. They expect surplus cash visible on the balance sheet from FY '26 onwards. Capex of INR 500-600 crores for new plants (Siliguri, Gorakhpur, Ahmedabad) is partly underway, with INR 200-250 crores already spent mainly on land acquisition. No mention of raising funds through equity or debt to finance this expansion; payments are in progress for land and future capex will follow. The company aims to keep a conse

IN US

Sale is live|00:00:00left today

APL Apollo Tubes LtdQ2 FY24Industrial Products

APL Apollo Tubes Ltd Q2 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹1,818P/E: 43.6Market Cap: ₹52.5K CrSector: Industrial Products

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 2

→Targeting sales volume of 3.2 million tons for FY '25 with 20-25% growth next year.
→Plan to reach 5 million tons sellable capacity by FY '27 through new plants in Siliguri, Gorakhpur, Ahmedabad, and ramping up existing plants.
→Dubai plant capacity of 300,000 tons expected to be fully utilized by FY '27.
→Exports currently at ~100,000 tons, with combined India and Dubai volumes expected to grow.
→EBITDA per ton target near INR 5,000 by FY '26, supported by higher utilization and value-added products.
→Expansion into high-diameter tube export markets using Dubai and India plants.
→Continued focus on regional penetration with smaller plants to reduce freight costs and better serve local markets.
→Long-term strategy emphasizes market share gain from scrap steel segment and leveraging lower raw material costs.

Margin guidance

Category 3

→EBITDA per ton expected to reach near INR 5,000 by FY '26, driven by better utilization and operating leverage benefits.
→Ramp-up of new plants (Raipur and Dubai) and increased share of value-added products (VAP) are key growth drivers enhancing margins.
→Sales volume target set at 3.2 million tons for FY '25, with a planned 20-25% growth next year and 5 million tons capacity target by FY '27.
→Improved product mix and increased gross margin spreads quarter-on-quarter support margin expansion.
→Cost rationalization efforts in power, steel wastage, and consumables continuing to strengthen profitability.
→Working capital levels expected to remain low, aiding net debt near zero and improving cash flow from FY '26 onwards.
→Market share gains anticipated as pricing gap with scrap steel products narrows, boosting volume growth and profitability.

3 more insights locked — sign up free to unlock

Fundraise plans

→No explicit mention of any current or planned fundraising through debt or equity in the provided transcript.
→Management indicated maintaining a near net-zero debt balance sheet for FY '25.
→They expect surplus cash visible on the balance sheet from FY '26 onwards.
→Capex of INR 500-600 crores for new plants (Siliguri, Gorakhpur, Ahmedabad) is partly underway, with INR 200-250 crores already spent mainly on land acquisition.
→No mention of raising funds through equity or debt to finance this expansion; payments are in progress for land and future capex will follow.
→The company aims to keep a conservative and healthy balance sheet without additional net debt.

Order book

→On Slide 45 (referenced on Page 14), there is mention of ongoing inquiries requiring 220,000 tons of heavy structural steel tubes for about 42 million square feet of visibility.
→The company highlighted strong order inflow for the newly commissioned 300 x 300 mm mill at Dubai, indicating good current demand.
→Exports and orders are ramping up from the Dubai plant; full utilization of 300,000-ton capacity expected by FY '27.
→Promoting a broad product range (300x300 to 1,000x1,000 mm) internationally, with active booking of orders.
→Domestic export tonnage currently around 100,000 tons, with plans to ramp up combined exports from India and Dubai.
→Emphasis on market creation and promotional efforts underway to boost orderbooks for high-diameter tubes.

Capex plans

Yes

→APL Apollo Tubes is planning a capex of INR 500-600 crores for three new plants as part of its expansion to 5 million ton capacity by FY '27.
→New plants include Siliguri (to cater to East market), Gorakhpur (for Eastern UP, Bihar, Odisha), and Ahmedabad (to serve Gujarat).
→These plants will mainly involve shifting existing mills rather than adding new mills.
→The company has already incurred INR 200-250 crores related to land purchase and initial work for Siliguri and Gorakhpur.
→Capex for plant and building will proceed once land possession is complete.
→Focus on regional penetration strategy with these smaller plants rather than large new mills.
→Renewable power initiatives are underway for the Raipur plant, expected to reduce power costs starting FY '26.
→Further capacity additions and high-value product mills (e.g., 500x500 mm) may be installed depending on ramp-up success.

How does APL Apollo Tubes Ltd rank vs peers in Industrial Products?

Pro feature

1APL Apollo Tubes Ltd

Rev 2Mar 3

See full Industrial Products sector rankings

Want more stocks like APL Apollo Tubes Ltd?

Build an AI portfolio filtered by sector, market cap, and growth rank. Takes 2 minutes.

Build my portfolio