APL Apollo Tubes Reports 10% Volume Growth and 23% Profit Surge in Q1 FY26
By ScanX News Team
APL Apollo Tubes Limited announced Q1 FY26 results with sales volume up 10% YoY to 794,350 tons. Revenue increased 4% to Rs 5,169.77 crore, EBITDA grew 23% to Rs 3.72 billion, and net profit surged 23% to Rs 2.37 billion. The company faced challenges from geopolitical tensions, USA tariff uncertainty, and slowdown in government spending. Management expects improved demand in 2HFY26 due to increased government budget allocation for infrastructure. The board approved new director appointments and a new employee stock option plan.
*this image is generated using AI for illustrative purposes only.
APL Apollo Tubes Limited , India's leading branded structural steel tube manufacturer, has announced its financial results for the first quarter of fiscal year 2026, showcasing robust growth despite challenging market conditions.
Financial Highlights
| Metric | Performance |
|---|---|
| Sales volume | Increased by 10% year-over-year to 794,350 tons |
| Revenue | Rose by 4% to Rs 5,169.77 crore |
| EBITDA | Grew by 23% to Rs 3.72 billion |
| EBITDA per ton | Improved by 12% to Rs 4,683 |
| Net profit | Surged by 23% to Rs 2.37 billion |
Operational Performance
The company's performance reflects its resilience in the face of a tough macroeconomic environment. Despite challenges such as geopolitical tensions, USA tariff uncertainty, and a slowdown in government spending, APL Apollo managed to deliver solid results.
Management Commentary
Sanjay Gupta, Chairman of APL Apollo, commented on the results: "The company reported 10% YoY growth in sales volume, which was below our own expectations. The demand conditions for the structural steel tube industry were tough due to challenging macroeconomic environment, geopolitical tension, USA tariff uncertainty and slowdown in government spending. Early onset of monsoon season across India impacted the construction industry."
Future Outlook
Despite the current challenges, the company remains optimistic about the future. Mr. Gupta added, "We expect demand conditions to improve in the second half of the current financial year on the back of an improved government budget allocation for the infrastructure sector. We are ready with our capacity, product range, distribution network and brand pull. Henceforth we expect 2HFY26 to perform much better than 1HFY26."
Strategic Initiatives
APL Apollo continues to focus on operational excellence and innovation. The company's board has approved several key initiatives:
Appointment of new directors:
- Chakram Kumar Singh as Director & Chief Operating Officer
- Dukhabandhu Rath and Rakesh Sharma as Independent Directors
Employee Stock Option Plan:
- Termination of the previous 2015 scheme
- Institution of a new APL Apollo Tubes Employees Stock Option Plan 2025
These strategic moves are aimed at strengthening the company's leadership and aligning employee interests with long-term growth objectives.
Conclusion
Despite facing headwinds in Q1 FY26, APL Apollo Tubes has demonstrated its ability to navigate challenging market conditions. With a strong focus on operational efficiency, product innovation, and strategic expansion, the company is well-positioned to capitalize on the expected improvement in demand conditions in the latter half of the fiscal year.
Investors and industry observers will be keenly watching APL Apollo's performance in the coming quarters, as the company continues to play a crucial role in India's infrastructure and construction sectors.
Historical Stock Returns for APL Apollo Tubes
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -8.50% | -7.40% | -14.08% | +1.79% | +5.65% | +720.06% |
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