APL Apollo Tubes LtdQ1 FY27
APL Apollo Tubes Ltd Q1 FY27 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹2,135P/E: 48.3Market Cap: ₹59.4K 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 analysisRevenue guidance
Category 2- →Targeting 15% to 20% volume growth for FY27, with Q2 and subsequent quarters showing improving momentum.
- →Q1 volume was around 7.5 lakh tons; aiming for 10 lakh tons in Q2, 10.5 lakh tons in Q3, and full capacity (5 million tons) plus new plants in Q4 targeting 12 lakh tons.
- →Expansion includes new plants at Gorakhpur, Siliguri, and Malur, adding approximately 2 million tons over 2.5 years, plus 1 million tons from debottlenecking.
- →Aim to increase value-added product share from 65% to 75-80% by end of FY28, improving margins and reducing commodity pricing volatility impact.
- →EBITDA growth target is 20%+ absolute growth for FY27, with margins stable around INR5,000-5,500 per ton, improving as operational leverage increases.
- →Long-term outlook includes capacity expansion and improving profitability from FY28 to FY30.
Margin guidance
Category 3- →Targeting 20% absolute EBITDA growth for FY27 compared to FY26.
- →Volume growth guidance for FY27 is 15% to 20%.
- →EBITDA per ton targeted to be stable between INR5,000 to INR5,500 for FY27.
- →Expecting gradual improvement in EBITDA per ton by INR100 to INR200 yearly, driven by rising share of value-added products.
- →Aim for EBITDA per ton to reach INR6,000 at 8 million ton volumes within the next 2-3 years.
- →New capacity expansions (Gorakhpur, Siliguri, Malur plants) will increase volumes and share of value-added products to 75-80% by December 2027.
- →Return on capital (ROC) target is to improve from 30% to 40%.
- →Expect more stable, predictable profitable growth starting FY28 Q4 onwards with completion of capacity expansions.
- →Overall financial performance expected to improve over next 3-4 years (FY28 to FY30).
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Fundraise plans
The document does not mention any current or future plans of fundraising through debt or equity by APL Apollo Tubes Limited as of the August 03, 2026 call. Key points related to financials are:
- The company is focused on operational improvements and capacity expansion.
- New plants coming online: Gorakhpur (200,000 tons), Siliguri (300,000 tons), Malur (1 million tons), plus contemplated 0.5 million tons plant.
- Cash on books remains strong at around INR14-15 billion.
- Working capital days remain below zero, indicating efficient capital management.
- No specific mention of raising new funds via debt or equity in the near future.
Therefore, based on the provided information, there is no indication of planned debt or equity fundraising at this time.
Order book
The transcript does not explicitly mention specific details on the current or expected order book or pending orders for APL Apollo Tubes Limited. However, from the discussions the following points can be inferred:
- July volumes reached 3 lakh tons with continued momentum expected in August and September, indicating strong demand.
- New capacities at Gorakhpur (200,000 tons) and Siliguri (300,000 tons) plants are starting/restarting soon, expected to contribute to volume ramp-up in Q3 and Q4.
- Expansion includes a new Malur plant (~1 million tons) and another ~0.5 million-ton plant planned in Maharashtra or North Karnataka.
- Export market, especially Dubai, is recovering after logistics disruptions, contributing to volume growth.
- The company is targeting full-year volume growth of 15%-20% and is confident of achieving 20% EBITDA growth.
- Strong dealer restocking is driving demand, indicating a healthy order environment.
No exact order book or pending order values are provided in this transcript.
Capex plans
Yes- →APL Apollo Tubes is putting up a 5 lakh ton plant around the Pune corridor to reduce freight cost (INR200 to INR300 per ton for Pune market) (Page 15).
- →New capacity expansions include:
- → - Gorakhpur plant (200,000 tons)
- → - Siliguri plant (300,000 tons)
- → - New Malur plant (1 million tons; value-added products with targeted EBITDA margin of INR8,000+ per ton)
- → - Another 0.5 million ton plant contemplated in either Maharashtra or North Karnataka
- →These new capacities totaling around 2 million tons are expected to come online over the next two and a half years (Page 4 and Page 18).
- →Capacity expansions are aimed at increasing share of value-added products to 75-80% and improving profitability.
- →A Group Shared Services company has been started to consolidate HR, IT, branding functions to reduce costs (Page 15).
How does APL Apollo Tubes Ltd rank vs peers in Industrial Products?
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