Apollo Pipes Limited convened its Q4 FY26 Earnings Conference Call on May 08, 2026, hosted by Emkay Global Financial Services. The call was attended by Chairman and Managing Director Mr. Sameer Gupta, Joint Managing Director Mr. Arun Agarwal, CFO Mr. Ajay Kumar Jain, and Group Chief Strategy Officer Mr. Anubhav Gupta. Management reflected on a turbulent FY26 shaped by sharp PVC price swings and subdued end-market demand, while laying out an ambitious multi-year growth roadmap.

FY26 Performance: Navigating PVC Volatility and Demand Headwinds

FY26 proved to be a year of significant operational challenges for Apollo Pipes. PVC prices dropped 15% in the first 8 months, then rallied 75% over the next 4 months, before falling again by 25% over 2 months, settling at approximately INR84 per kg. Demand remained subdued throughout the year due to a slowdown in both the private real estate sector and government infrastructure spending. The company's consolidated EBITDA declined 30% for the full year, impacted by inventory write-downs, aggressive pricing strategies, and fixed expenses associated with new business verticals.

Despite these headwinds, Apollo Pipes crossed 1 lakh ton of annual sales volume. Standalone sales volume increased by 7% on a year-on-year basis, while Kisan Mouldings remained flat year-on-year. The company reported INR1,100 crores in FY26 consolidated revenue.

Q4 FY26 Quarterly Highlights

For Q4 FY26, revenue came in at approximately INR350 crores, with a net selling realization (NSR) of INR110 per kg for the full quarter. Gross margins deteriorated both on a quarter-on-quarter and year-on-year basis, attributed to three key factors: continued aggressive pricing to maintain dealer confidence, costs associated with the ramp-up of the window profile business (including sampling at showrooms), and write-downs on unsold finished goods inventory to create space for volume ramp-up. Management noted that inventory gains from the sharp rise in PVC prices during the quarter were minimal, as the company was actively clearing inventory.

For Kisan Mouldings specifically, Q4 FY26 revenue was INR80 crores, up from INR60 crores in Q3 FY26. Volume also improved from approximately 5,000 tons in Q3 to 7,000 tons in Q4 on a quarter-on-quarter basis. However, margin performance was below expectations, as demand only recovered towards the end of February and March, leading to push sales in January and February.

Q1 FY27 Guidance and Near-Term Outlook

Management expressed confidence in carrying forward the volume momentum into Q1 FY27, which is typically a seasonally strong quarter. The company is targeting INR400 crores or more in revenue for Q1 FY27, implying approximately 15% quarter-on-quarter growth. Volume growth for the quarter is expected to be in double digits, with NSR expected to remain broadly in line with Q4 FY26 levels, varying by INR2 to INR4 per kg.

On the demand side, management noted that rural demand, driven by the agricultural season, is outperforming urban demand. Construction-related projects that spilled over into Q4 are now being pursued by contractors, supporting near-term demand. Channel inventory, which had built up towards end of March due to rising PVC prices, is described as currently at normal to below-normal levels following subsequent destocking.

Regarding PVC resin prices, management indicated that Reliance prices (Delhi landing) are around INR84–INR85 per kg, while the local trade market is around INR79 per kg. Near-term price movement is expected to remain within a plus/minus 5% range. An import duty exemption currently in place is expected to expire on June 30, after which an 8.25% duty will apply, which management believes will support domestic PVC prices.

Five-Year Growth Strategy: INR5,000 Crores by FY31

Management outlined a comprehensive 5-year growth plan targeting 35% revenue CAGR to achieve INR5,000 crores in revenue by FY31. The strategy is built around the following pillars:

• Existing capacity: Three plants already operational, each capable of generating INR1,000 crores in revenue (North India, West India, and Varanasi)
• South India expansion: A new plant in the Tumkur/Malur/Bangalore belt, expected to come online towards FY28, adding INR1,000 crores in capacity
• Allied products: INR1,000 crores targeted from window profiles, water tanks, and bath fittings
• Group synergies: Leveraging APL Apollo's dealer network, with large group dealers already taking up PVC pipe dealerships
• Brand investment: Renewal of Mr. Amitabh Bachchan as brand ambassador
• Leadership: Mr. Sanjay Gupta joining the Board as Group Chairman

Management noted that current market share stands at approximately 2%–2.5% of an estimated INR55,000 crores industry, with a target to reach 3%–3.5% market share over the next 3–4 years, assuming industry growth of 7%–8%.

Margin Targets and Segment-Wise EBITDA Outlook

Management provided detailed EBITDA per ton targets across segments:

For Apollo standalone, a 10% EBITDA margin is the stated target, with gradual improvement in spreads from INR8,000 towards INR8,500–INR9,000 per ton expected. Kisan Mouldings, currently barely EBITDA-positive, is expected to show improvement from Q1 FY27 as operating leverage benefits materialize with plant ramp-up.

Kisan Mouldings: Merger Plans and Capacity Expansion

Management confirmed that Apollo Pipes intends to eventually merge Kisan Mouldings into Apollo Pipes Limited, with work already underway on the timeline and process. In the interim, the strategy for Kisan is to first ramp up to INR500 crores in revenue, supported by INR30–INR40 crores of capex already incurred, and then expand capacity to INR1,000 crores through an additional INR50–INR60 crores of brownfield capex within the existing premises. The target EBITDA margin for Kisan at scale is 10%–12%.

Capital Expenditure and Working Capital

For FY26, the company spent INR150 crores in capex. For FY27, total capex requirements are guided at approximately INR100 crores, focused on Kisan plant capacity expansion and brownfield expansions at existing plants. The South India plant capex is not included in FY27 guidance, with land acquisition work expected to begin after approximately one year.

On working capital, the net working capital cycle increased from 35 days in FY25 to approximately 45–46 days in FY26, primarily driven by inventory days rising from 70 days to 80 days. Management targets a return to below 35 days by end of FY27, with an internal target of 30 days as of March 2027.

Product Mix and Business Diversification

Management provided an overview of the current sales mix and growth expectations by product segment:

• Construction plumbing: Approximately 60%–65% of total sales
• Agriculture and government infrastructure: Approximately 35% of total sales
• CPVC: Grew 10% in FY26; targeted to grow more than 20% in FY27, supported by a tie-up with Lubrizol
• Water tanks: Growing at 20%–30%
• Window profiles: Currently contributing approximately 1.5% to total sales; targeted to reach 4%–5% of construction plumbing revenue in FY27; currently present in North India and South India

Management reiterated that government infrastructure demand remains subdued, with no significant on-ground activity observed despite announcements, and that near-term growth confidence is primarily driven by core products, dealer network expansion, and group synergies.

Apollo Pipes has published newspaper advertisements of its audited financial results for the quarter and year ended March 31, 2026, in the Business Standard (English and Hindi editions) on May 08, 2026. The advertisements were filed pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and submitted to both the National Stock Exchange of India Limited and BSE Limited. The filing was made by Gourab Kumar Nayak, Company Secretary and Compliance Officer. The advertisement includes a Quick Response (QR) code and a weblink to access the complete financial results, also available on the company's website at www.apollopipes.com .

Standalone Financial Results

The audited standalone financial results for the quarter and year ended March 31, 2026, were approved at the Board of Directors' meeting held on May 07, 2026. The figures below are in Rs. Lakhs, except EPS.

Consolidated Financial Results

The audited consolidated financial results for the same period reflect the broader group performance. The figures below are in Rs. Lakhs.

The full format of the quarterly financial results is available on the websites of the stock exchanges ( www.bseindia.com and www.nseindia.com ) as well as on the company's website at www.apollopipes.com .

Conference Call Details

Following the Board meeting, Apollo Pipes held a conference call with analysts and investors on May 08, 2026, to discuss the audited financial results. The audio recording of the call is accessible at www.apollopipes.com/conference-call-audio-recording , filed under Regulation 30 of the SEBI (LODR) Regulations, 2015.

Corporate Actions

During the Board meeting held on May 07, 2026, a final dividend of ₹0.70 per equity share was recommended for FY26. The Board also approved the "Apollo Pipes Limited Stock Appreciation Rights Scheme–2026" and appointed Mr. Sanjay Gupta as the new Chairman of the Board. The company's registered office is located at 37, Hargobind Enclave, Vikas Marg, Delhi-110092, with its corporate office at A-140, Sector 136, Noida (U.P.) - 201301, and manufacturing units across Dadri (U.P.), Sikandrabad (U.P.), Ahmedabad (Gujarat), Tumkur (Karnataka), and Raipur (Chhattisgarh).