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.

APL Apollo Tubes Limited , India's leading branded structural steel tube manufacturer, has announced its financial results for the first quarter, showcasing robust growth despite challenging market conditions. The company reported a 23% year-over-year increase in both EBITDA and net profit, while also revising its volume growth forecast.

Financial Highlights

For the quarter ended June 30, APL Apollo Tubes reported:

• Sales volume of 794,350 tons, up 10% year-over-year (YoY)
• Revenue increased by 4% YoY to Rs 5,169.77 crore
• EBITDA grew by 23% YoY to Rs 372.00 crore
• EBITDA per ton improved to Rs 4,683, a 12% YoY increase
• Net profit rose by 23% YoY to Rs 237.17 crore

Revised Growth Forecast

Despite the strong quarterly performance, APL Apollo has adjusted its volume growth forecast. The company now projects a 10-15% growth rate, down from the previously estimated 15-20%. This revision comes in light of slower performance observed in the first half of the year.

Market Challenges and Outlook

Mr. 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."

He added, "Early onset of monsoon season across India impacted construction industry. We expect demand conditions to improve in second half of the current financial year on the back of an improved government budget allocation for the infrastructure sector."

Strategic Initiatives and Expansion

APL Apollo continues to focus on strategic growth initiatives:

1. Capacity Expansion: The company plans to increase its total capacity from 4.5 million tons to 6.8 million tons by FY28.
2. Product Innovation: Emphasis on developing new, environmentally friendly products.
3. Operational Excellence: Achieved a Return on Equity (ROE) of 21.9% and Return on Capital Employed (ROCE) of 28.6% in Q1.

Board Appointments

In a move to strengthen its leadership, APL Apollo has made several key appointments to its board:

1. Shri Chakram Kumar Singh as Whole Time Director and Chief Operating Officer
2. Shri Dukhabandhu Rath as an Independent Director
3. Shri Rakesh Sharma as an Independent Director

Employee Stock Option Plan

The company has approved the institution of the APL Apollo Tubes Employees Stock Option Plan 2025, with a pool of 50,00,000 options exercisable into an equal number of equity shares.

Despite the revised growth forecast, APL Apollo Tubes remains optimistic about its long-term prospects. The company's commitment to innovation, operational efficiency, and strategic expansion positions it well to capitalize on future growth opportunities in the structural steel tube market.