APL Apollo Tubes shares extended their winning streak for the second consecutive day, gaining over 3% in Friday's trading session. The stock had surged over 5% on Thursday following the release of quarterly results, helping it recover from a three-day losing streak. With these gains, the stock is up 7% in January, marking its best start to a calendar year since 2018 when it gained 8%.

Strong Quarterly Performance

The company delivered robust Q3 results across key operational metrics. Volume growth remained strong with the company reporting significant improvement in its product mix.

The increase in Value Added Products share to 57% of overall revenue from 55% previously demonstrates the company's focus on higher-margin products. While EBITDA per tonne remained relatively steady at ₹5,146.00 compared to ₹5,228.00 last year, the volume growth and improved product mix indicate strong operational performance.

Financial Position and Working Capital

APL Apollo Tubes maintained a strong balance sheet position at the end of the December quarter. The company reported a net cash balance of ₹560.00 crore, providing financial flexibility for growth initiatives. Additionally, net working capital days declined to just three days, indicating efficient cash management and operational efficiency.

Expansion Plans and Future Outlook

The company has outlined ambitious capacity expansion plans to support future growth. At the end of the first nine months of FY26, APL Apollo Tubes operated with an overall capacity of 5 MT. Management plans to double this capacity to 10 MT by FY30, representing a significant expansion to capture growing market opportunities.

Revised Guidance Signals Confidence

Management demonstrated strong confidence in the business outlook by substantially raising guidance for FY27. The company increased its EBITDA per tonne guidance significantly and revised volume growth expectations upward.

Analyst Sentiment and Market Performance

The stock enjoys strong analyst support with 15 out of 18 analysts maintaining "buy" ratings. Two analysts have "hold" recommendations while only one analyst has a "sell" rating, indicating broad confidence in the company's prospects.

Shares of APL Apollo Tubes traded 3.1% higher on Friday at ₹2,037.60. The stock has gained 22% in 2025, continuing its impressive track record of seven consecutive years of positive returns. This consistent performance reflects the company's ability to execute its growth strategy and deliver value to shareholders.

APL Apollo Tubes has announced an ambitious capacity expansion plan during its recent conference call, outlining significant growth targets for the coming years. The company is positioning itself for substantial scale-up in manufacturing capabilities to meet anticipated market demand.

Expansion Timeline and Targets

The company has revealed a two-phase expansion strategy with clearly defined milestones:

Current Capacity and Growth Strategy

APL Apollo Tubes currently operates with a capacity of 5 million tons. The planned expansion to 8 million tons within the next two years represents an aggressive growth trajectory, indicating the company's confidence in market opportunities and its ability to execute large-scale capacity additions.

Long-term Vision

The company's ultimate target of reaching 10 million tons capacity by 2030 demonstrates a comprehensive long-term growth strategy. This would effectively double the current manufacturing capacity over the next six years, positioning the company as a major player in the steel tubes and pipes sector.

The announcement reflects the company's commitment to aggressive expansion and its assessment of favorable market conditions that would support such significant capacity increases.