Apollo Pipes

Apollo Pipes Limited reported 8% consolidated sales volume growth in Q2 FY26, though margins remained under pressure due to lower capacity utilization and heightened competition. The company faced challenges from weak end-user demand and volatile PVC resin prices, impacting both private real estate and government infrastructure spending. Apollo is executing a four-pronged strategy including product portfolio expansion with PLB ducts, DWC pipes, PE gas pipes and PVC-O pipes, plus entry into UPVC doors and windows. The company increased focus on CPVC pipes (currently 15% of volume) through a tie-up with Lubrizol for TempRite brand, targeting 25% mix over next 2-3 years. Apollo incurred capex of INR 92 crores in H1 following INR 166 crores in FY25, remaining committed to expanding total installed capacity to 286,000 tons over next 2 years without debt. The West India facility acquired last year is seeing steady production ramp-up, while the new Varanasi plant is expected to commence operations soon. Management expects more favorable demand environment from November onwards post-monsoon, with increased government infrastructure spending anticipated to boost liquidity. The company maintains guidance of achieving around 100,000 tons sales volume for the full year, hoping for macro turnaround support.

Apollo Pipes has lowered its sales volume growth guidance following below-expected performance during the first seven months of the fiscal year. The company's revised outlook reflects weaker-than-anticipated sales volumes during this period.

Apollo Pipes announced a ₹280 crore investment to increase capacity by 15% at its Chennai unit. The expansion aims to meet rising demand in water infrastructure and agriculture sectors. The company will fund this expansion through term loans and is focusing on backward integration and brand-led retail growth strategies.