Apollo Pipes Ltd

- Apollo Pipes raised Rs. 110 crores through issuance of warrants to an Oman-based fund, Kitara Capital. - 25% of the warrant money was received last quarter, with the remaining 75% expected within the next 18 months. - The purpose of this equity raising is to fund ongoing CAPEX without straining the balance sheet. - The company is committed to expanding capacity and funding the growth primarily through internal cash flows and this equity infusion. - No current plans for new debt raising were mentioned; the company emphasizes avoiding balance sheet strain. - Future CAPEX and expansions, such as a potential Greenfield plant in South India, are planned to be funded through internal accruals and the raised equity.

- Current capacity is around 230,000 tons; target to increase to 285,000 tons in 1-1.5 years. - Residual CAPEX of around Rs. 100 crores to achieve this capacity; Rs. 68-69 crores spent in Q1, balance Rs. 70-80 crores over next 3 quarters, with some residual Rs. 30-40 crores in FY '26. - No new Greenfield plant immediately planned, but a plant in South India is a future wish, potentially requiring Rs. 150-200 crores, to be funded from internal cash flows. - Installed new machinery for newer product categories like DWC pipes using Brownfield CAPEX (small investments without Greenfield CAPEX) to diversify portfolio. - New Varanasi plant (East India) to start towards end of current calendar year to capture new market. - Rs. 110 crores investment commitments from warrant proceeds raised to fund ongoing CAPEX without stretching balance sheet. - Continuous strategic investments to develop new product channels like UPVC doors/windows, gas pipes, with goal of 5%-10% revenue contribution from new products.

- Apollo Pipes targets long-term revenue growth of 20%-25% by continuously introducing new products that can contribute 5%-10% to overall revenue. - For the UPVC door and window segment, commercial production began recently, with expected full-year revenue of around Rs. 50 crores, mainly in the second half. - The company plans double-digit sales volume growth for FY '26, expecting low to mid double-digit growth depending on how Q2 pans out. - Capacity will increase from around 230,000 tons to 285,000 tons in the next 1-1.5 years, aiming for Rs. 3,000 crore revenue in 3-4 years, translating to a market share of about 5%. - Expansion into new geographies like East India via the Varanasi plant and entry into new product categories like DWC pipes without major Greenfield CAPEX are part of growth plans. - The company expects improvement in demand and pricing from Q3 onwards as industry competitive intensity eases.

- Apollo Pipes aims for 20%-25% long-term revenue growth driven by new product introductions and channels (Page 15). - Operating margins expected to improve as capacity utilization rises from current low levels (Page 13). - EBITDA is projected to grow sharply as revenue moves from ~Rs. 1,200-1,300 crores towards Rs. 2,500-3,000 crores in 2-3 years, with minimal incremental capital employed (Page 13). - Kisan Pipes’ EBITDA and PAT expected to improve with capacity utilization growth from Rs. 280-300 crores revenue to Rs. 500-600 crores (Page 13). - CPVC segment contribution expected to increase from ~15% to above 20% in next 1-2 years, supporting margins (Page 7). - Moderate to high double-digit volume growth expected for FY '26, dependent on macro environment improvement (Page 8). - Focus on rupees-per-ton margin expansion rather than percentage margins indicates steady per ton profitability growth (Page 9). - No major balance sheet stress expected as remaining CAPEX (~Rs. 100 crores) will be funded internally, supporting sustainable growth (Page 11).

- UPVC door and window segment: Commercial production started about 15 days ago. Order booking is in the initial phase as the company is aggressively pitching to contractors, real estate companies, and government agencies. - Full-year revenue from UPVC segment is expected around Rs. 50 crores, mostly coming in the second half of the fiscal year. - New product lines such as DWC pipes are being introduced through Brownfield CAPEX (installation of machines in existing plants without Greenfield investments). This strategy is aimed at portfolio diversification with small investments. - The company expects these new product segments to start contributing meaningfully in the coming quarters. - Additional volumes are expected from the upcoming Varanasi plant to cater to East India market, which begins operations towards the end of the calendar year. - Overall, order book across new products is building up gradually with a focus on long-term growth.