Apollo Pipes Limited has filed its monitoring agency report for the quarter ended December 31, 2025, under Regulation 32 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The report, prepared by CARE Ratings Limited and approved by the company's Audit Committee on January 29, 2026, provides details on the utilization of proceeds from the company's preferential issue of warrants.

Issue Details and Fund Status

The monitoring report covers Apollo Pipes' preferential issue of warrants worth Rs. 110.00 crore, with an 18-month conversion period from the allotment date. The warrants are convertible into equity shares at Rs. 550.00 per share, significantly above the current market price of approximately Rs. 295.00.

Fund Utilization Progress

According to the monitoring agency report, no funds were received or utilized during Q3FY26. The company has received Rs. 27.50 crores in Q1FY26 and is yet to receive the balance amount of Rs. 82.50 crores from the allottee.

Project Implementation Status

The warrant proceeds are earmarked for two primary objectives: capital expenditure for expansion projects and working capital requirements. The company has made significant progress on its expansion initiatives:

• Dadri Brownfield Expansion: Already operational since July 2025
• Varanasi Greenfield Project: Expected to be commissioned by March 2026, progressing as per scheduled timeline

The capital expenditure component of Rs. 33.00 crores has been fully utilized with the Rs. 27.50 crores received, while the working capital requirement of Rs. 77.00 crores awaits the balance fund receipt.

Compliance and Monitoring

The monitoring agency report confirms no deviations from the disclosed objects of the issue. All utilization has been as per the disclosures in the offer document, with no material deviations requiring shareholder approval. The company has obtained all necessary government and statutory approvals related to the project objectives.

Financial Performance Context

The report notes that Apollo Pipes reported a total operating income of approximately Rs. 1,182 crores in FY25 compared to Rs. 989 crores in the previous year. However, during H1 FY26, the company reported total operating income of approximately Rs. 511 crores against Rs. 559 crores in H1 FY25, with operating margins declining to 7.14% from 8.65% due to weaker demand in private real estate and government infrastructure segments, along with increased competitive intensity.

The monitoring agency report has been submitted to both NSE and BSE as per regulatory requirements, with CARE Ratings Limited continuing its role as the monitoring agency for the preferential issue.

Apollo Pipes Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, revealing a challenging quarter with revenue decline and net losses. The plastic pipes and fittings manufacturer's Board of Directors approved the results at a meeting held on January 29, 2026.

Financial Performance Overview

The company's consolidated financial performance showed significant year-over-year decline in the third quarter. Revenue from operations decreased substantially, while the company moved from profitability to losses compared to the previous year.

Nine-Month Performance

For the nine-month period ended December 31, 2025, the company maintained profitability despite lower revenues. The consolidated results showed revenue decline but positive net profit, though significantly reduced from the previous year.

Standalone Results

The standalone financial results for Q3FY26 showed revenue of ₹19,482.29 lakhs compared to ₹24,463.53 lakhs in Q3FY25. The company reported a standalone net loss of ₹123.79 lakhs against a profit of ₹597.47 lakhs in the corresponding quarter of the previous year. For the nine-month period, standalone revenue was ₹60,892.13 lakhs versus ₹68,546.42 lakhs, with net profit of ₹894.91 lakhs compared to ₹2,132.95 lakhs.

Manufacturing Expansion Update

The Board of Directors reviewed the status of the new manufacturing plant at Mirzapur (near Varanasi), Uttar Pradesh. The plant is expected to be commissioned and commercial production is anticipated to commence towards the end of financial year 2025-26, subject to operational readiness. This expansion represents the company's continued investment in manufacturing capabilities.

Regulatory Compliance

The company recognized a provision of ₹127.51 lakhs in consolidated results and ₹61.68 lakhs in standalone results towards incremental liability for past periods following the Government of India's notification of four Labour Codes on November 21, 2025. The provision was made in accordance with Ind AS 19, and the company will re-evaluate the impact upon notification of corresponding rules and regulations.

Capital Structure

The company's paid-up equity share capital remained unchanged at ₹4,404.82 lakhs, comprising 440.48 lakh shares of ₹10 each. The results were reviewed by the Audit Committee and approved by the Board of Directors in their respective meetings held on January 29, 2026.