APL Apollo Tubes Limited , India's leading structural steel tube manufacturer, has announced record-breaking financial results for the second quarter of fiscal year 2026, demonstrating resilience in the face of challenging market conditions.

Key Highlights

• Record quarterly volume, EBITDA, and PAT despite challenging market conditions
• EBITDA spread exceeded INR 5,000 per ton
• Management maintains guidance of 10-15% volume growth for the year
• EBITDA spread guidance of INR 4,600-5,000 per ton for the year
• Working capital days remain at zero as of September 2025
• Return on Capital Employed (ROCE) boosted to 32-33%

Financial Performance

APL Apollo achieved impressive results in Q2 FY26, with EBITDA spreads surpassing INR 5,000 per ton. This performance was driven by several factors:

1. Brand Power: The company demonstrated strong brand leverage in general category products, with EBITDA doubling to INR 3,400 per ton.
2. Value-Added Mix: Improved product mix from Raipur and Dubai plants contributed to EBITDA above INR 5,500-6,000 per ton.
3. Operating Leverage: Gains from achieving over 850,000 tons in quarterly sales volume.

Capacity Utilization and Expansion Plans

The company currently operates at 70% capacity utilization across its 5 million ton capacity. APL Apollo has expansion plans, aiming to add 7 million tons over the next 2-3 years:

• 1 million ton capacity in the Middle East
• 6 million ton capacity in India

This expansion is planned to be funded entirely through internal cash flows, showcasing the company's strong financial position.

Market Outlook and Strategy

Despite challenging market conditions, including heavy monsoons and weak construction activity, APL Apollo maintains its guidance of 10-15% volume growth for the year.

The company is focusing on:

1. Expanding into new markets, particularly in Eastern India and international locations
2. Developing new product applications, especially in heavy construction and renewable energy sectors
3. Leveraging brand power to maintain premium pricing in general category products

Financial Management

APL Apollo continues to demonstrate strong financial management:

• Working capital days remain at zero as of September 2025
• ROCE has improved to 32-33%
• The company plans to use excess cash to reduce liabilities and potentially increase dividends or conduct share buybacks in the future

Conclusion

Despite a challenging market environment, APL Apollo Tubes has shown resilience and growth. The company's focus on brand leverage, value-added products, and expansion into new markets positions it for continued operations in the coming years. Investors may want to monitor the company's ability to maintain its strong EBITDA spreads and execute its expansion plans.

APL Apollo Tubes , a leading structural steel tube manufacturer, has announced ambitious growth targets, focusing on heavy construction and renewable sector products. The company aims to significantly boost its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) performance in the coming years.

Key Financial Targets

Strategic Focus

APL Apollo Tubes is strategically targeting the heavy construction and renewable sector products, which could potentially drive their growth in the coming years. The company's management expressed optimism about exceeding their forecasts if GDP conditions improve, indicating a strong correlation between their performance and overall economic growth.

Near-Term Outlook

For the immediate future, APL Apollo has set its sights on achieving an EBITDA of ₹450.00 crore in both the third and fourth quarters of the current fiscal year. This target suggests a consistent performance expectation across these two quarters.

Long-Term Projections

Looking ahead to the fiscal year 2026 (FY26), the company has outlined ambitious volume growth targets:

• Volume Growth: 10-15%
• EBITDA per Ton: ₹4,600.00-5,000.00
• Monthly Volume (Q3 FY26): 325,000.00 tons
• Total Volume (Q3 FY26): 900,000.00 tons

These projections indicate APL Apollo's confidence in its ability to significantly scale its operations and improve profitability over the next few years.

Conclusion

APL Apollo Tubes' announcement of these targets demonstrates the company's aggressive growth strategy and its focus on improving operational efficiency. The emphasis on heavy construction and renewable sector products aligns with current market trends and could potentially position the company well for future growth. However, investors should note that these are forward-looking projections and actual results may vary based on market conditions and economic factors.