APL Apollo Tubes Limited has announced the issuance of commercial papers worth ₹200.00 crores, as disclosed in its regulatory filing dated January 9, 2026. The company has issued these short-term debt instruments under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Commercial Paper Details

The commercial papers carry several key specifications that define their investment characteristics:

Investment and Listing Information

The commercial papers have been issued in favor of UTI-Liquid Fund, indicating institutional participation in the company's short-term funding requirements. The papers will be listed on BSE Limited, providing transparency and regulatory compliance for the debt instruments.

The [ICRA] A1+ credit rating reflects the highest degree of safety regarding timely payment of financial obligations on the instrument. This rating indicates that the commercial papers carry very low credit risk and strong capacity for timely payment of debt obligations.

Regulatory Compliance

The issuance has been conducted in accordance with applicable SEBI regulations, with the company fulfilling its disclosure obligations under Regulation 30. The filing was signed by Vipul Jain, Company Secretary and Compliance Officer, ensuring proper authorization and documentation of the commercial paper issuance.

The 68-day tenure positions these commercial papers as short-term financing instruments, typically used by companies to meet immediate working capital requirements and manage cash flow cycles effectively.

Motilal Oswal has maintained its BUY rating on APL Apollo Tubes with a target price of ₹2,260.00, citing the company's strong market position and consistent growth trajectory despite industry headwinds.

Market Leadership and Operational Performance

APL Apollo Tubes holds a dominant position as India's undisputed market leader in structural steel tubes with significant operational scale:

The company has demonstrated remarkable consistency, delivering volume growth across the last eight quarters and achieving record sales in Q3FY26.

HRC Price Impact and Margin Outlook

Hot Rolled Coil (HRC) price movements have created both challenges and opportunities for the company:

The recent HRC price increase follows the imposition of safeguard duty on steel imports. However, the Q3 price decline is expected to result in inventory losses, with Motilal Oswal projecting EBITDA per MT of ₹5,000.00 for Q3 compared to ₹5,228.00 in Q2.

Growth Strategy and Market Positioning

Despite industry softness, APL Apollo Tubes has maintained strong momentum with 11% YoY volume growth in 9MFY26. The company's growth strategy encompasses several key initiatives:

• Capacity expansion in high-growth regions, including Dubai
• Launch of sub-premium brand 'SG Premium'
• Leveraging healthy private-sector demand across infrastructure, solar, and manufacturing segments
• Maintaining FY26 volume growth guidance of 10-15%

Financial Projections and Valuation

Motilal Oswal expects robust financial performance over the forecast period:

The brokerage's target price of ₹2,260.00 reflects confidence in the company's ability to capitalize on market opportunities and execute its expansion strategy effectively, maintaining its position as the structural steel tubes market leader.