APL Apollo Tubes Limited , the world's largest branded structural steel tube company, has reported a significant increase in sales volume for the second quarter. The company achieved an all-time high quarterly sales volume, demonstrating strong growth both sequentially and year-over-year.

Performance Highlights

• Sales volume reached 855,037 tons in Q2
• 7.6% increase from 794,350 tons in Q1
• 12.8% growth compared to 758,267 tons in Q2 of the previous year

Half-Year Performance

For the first half of the fiscal year, APL Apollo reported a cumulative sales volume of 1,649,387 tons, marking an impressive 11% year-on-year increase.

Product Category Breakdown

APL Apollo's building material product range showed varied performance across different categories:

Key Observations

• The 'Apollo Structural' category saw significant growth in the 'Heavy' segment, increasing from 62,888 tons to 77,491 tons year-over-year.
• 'Apollo Z' rust-proof products showed strong performance, with sales volume increasing from 150,052 tons to 192,743 tons compared to the same quarter of the previous year.
• The 'General' segment under 'Apollo Structural' remained the largest contributor to overall sales volume.

APL Apollo Tubes Limited operates 11 manufacturing facilities across India with a total capacity of 4.5 million tons. The company's multi-product offerings include over 3,000 varieties for various building material structural steel applications, serving sectors such as urban infrastructure, real estate, rural housing, commercial construction, greenhouse structures, and engineering applications.

The company's robust performance in Q2 reflects its strong market position and the growing demand for its diverse product range in the structural steel tube segment.

APL Apollo Tubes Limited , a leading structural steel tube manufacturer, reported its financial results for the first quarter of fiscal year 2026, falling short of expectations due to macroeconomic challenges and geopolitical tensions. The company has revised its full-year volume growth guidance downward while maintaining its EBITDA spread outlook.

Q1 FY26 Financial Highlights

• Total income from operations stood at ₹5,169.77 crore, up 3.9% year-over-year
• EBITDA (including other income) reached ₹397.57 crore, a 21.8% increase from Q1 FY25
• Net profit after tax grew by 22.8% to ₹237.77 crore
• Earnings per share (EPS) improved to ₹8.55, compared to ₹6.96 in the same quarter last year

Factors Affecting Q1 Performance

APL Apollo's management cited several reasons for the lower-than-expected performance:

1. Continued slowdown in the macro environment, evidenced by weak industrial production data
2. Elevated geopolitical tensions, including India-Pakistan conflicts and Middle East unrest, impacting volumes in northern states and export markets
3. Early onset of monsoon, halting construction activities
4. Reduced money supply affecting dealer and stockist buying power

Revised Guidance and Strategy

The company has adjusted its full-year volume growth guidance:

• FY26 volume growth revised to 10-15%, down from the previous 15-20% forecast
• EBITDA spread guidance maintained at ₹4,600-₹5,000 per ton

APL Apollo continues to focus on its brand premium strategy, emphasizing EBITDA spread maintenance over volume growth. The company remains confident in its capacity, product line, distribution network, and brand pull to capitalize on demand recovery.

Expansion Plans and ESG Initiatives

Despite the current challenges, APL Apollo is proceeding with its long-term capacity expansion plans:

• Aim to increase capacity from 4.5-5 million tons to 7 million tons over the next 2-3 years
• Expansion in new markets including Eastern India and Dubai
• Addition of new product lines such as heavy structural tubes and coated products

On the sustainability front, APL Apollo reported that its plants have achieved 72% power consumption from renewable energy sources, demonstrating a strong commitment to ESG goals.

Financial Position

The company maintains a net cash position with single-digit working capital days, indicating a strong balance sheet and efficient operations.

APL Apollo Tubes remains optimistic about the second half of FY26, expecting improvements in government infrastructure spending, private sector investments, and a potential revival in retail demand for home renovations and improvements. The management believes that once the demand environment recovers, the company is well-positioned to capitalize on growth opportunities with its expanded capacity and product offerings.