APL Apollo Tubes Limited (APLAPOLLO) — Financial Results Announcement

APL Apollo Tubes reported Q4 FY26 revenue of INR 1,200 crores, up 9% YoY, driven by 9% volume growth and EBITDA per ton of INR 5,500. Management prioritized margin expansion over volume due to raw material shortages, geopolitical disruptions, and energy constraints, with Dubai operations at 40% utilization and potential to reach 80-85%. Capex remains on track for 8-million-ton capacity by FY28 with INR 500-600 crore annual investment. Strong cash generation of INR 20 billion operating cash flow and INR 15 billion net cash balance supported the outlook. Management reaffirmed FY27 guidance of 15-20% volume growth, 20-25% EBITDA growth, and 25-30% PAT growth, targeting INR 5,500 EBITDA per ton through premium pricing and product mix. Market share rose to 65% in FY26 from 55% in FY25, aided by gains from unorganized players. Inventory reductions of 30,000-40,000 tons and cash additions of INR 1,000 crores strengthened liquidity. ESG initiatives are cost-neutral, reducing power costs. Steel price increases of INR 3,000/ton for HR coils will impact realizations. Management expressed confidence in sustaining margins despite volatile demand, citing product innovation and market leadership. They indicated potential dividend increases or buybacks once net debt is reduced.