APL Apollo Tubes Q2 FY27: PAT ₹2.6 & Rev ₹56.1

1 Financial Results 🔴 High Importance Neutral 📄 PDF

Investor Takeaways

Revenue of ₹56.1Bn grew 8% YoY in Q1FY27

EBITDA increased 18% YoY to ₹5,522 per ton

Net profit rose 11% YoY to ₹2.6Bn

Net cash position strengthened to ₹14.1Bn

OPM improved to 8.15% in Q1FY26 (latest available)

ROCE at 32% and ROE at 32% in Q1FY27

Capacity expansion planned to 8 Mn Ton by FY28

Demand recovery expected in 2HFY27 driven by infrastructure spending

Overall Tone: Neutral

Key Financial Highlights

Metric	Value	YoY Change
Revenue	₹56.1Bn	+8%
Net Profit	₹2.6Bn	+11%
EBITDA	₹5,522 per ton	+18%
EPS	₹12.76	+68% (Q4FY26)
OPM	8.15%	(Q4FY26)

What Changed

APL Apollo Tubes reported Q1FY27 revenue of ₹56.1Bn, reflecting an 8% year-on-year increase. Despite a 6% decline in sales volume to 744,823 tons due to weak demand conditions, the company demonstrated margin expansion with EBITDA rising 18% YoY to ₹5,522 per ton. Net profit grew 11% YoY to ₹2.6Bn, supported by operational efficiency and cost management. The company maintained a strong cash position with net cash of ₹14.1Bn, enhancing financial flexibility. ROCE stood at 32% and ROE at 32% during the quarter, indicating high capital efficiency. The firm highlighted infrastructure spending as a key driver for demand recovery in the second half of FY27, with capacity expansion targeted to reach 8 Mn Ton by FY28. Focus on high-margin value-added products is expected to sustain profitability. ESG commitments include a target of 47% renewable energy usage by 2030 and net zero emissions by 2050, aligning with long-term sustainability goals.

Peer Comparison

Company	P/E	ROE	ROCE	Market Cap (₹ Cr)
APLAPOLLO	43.61	22.71%	29.27%	52,482.99
BEL	62.03	N/A	N/A	3,09,678.78
HAL	33.73	N/A	N/A	2,93,338.09
CUMMINSIND	74.38	N/A	N/A	1,49,466.24

APL Apollo Tubes trades at a moderate valuation compared to peers, with a P/E ratio of 43.61, while maintaining strong profitability metrics (ROE and ROCE at 22.71% and 29.27% respectively) despite lower market capitalization.

Risks & Concerns

Sales volume declined 6% YoY in Q1FY27 due to weak demand

Reliance on infrastructure spending for demand recovery in 2HFY27

Capacity expansion requires significant capital investment

Commodity price volatility may impact margins

No specific risks identified in the filing beyond macro demand uncertainty

Quarterly Trend

Quarter	Revenue (₹ Cr)	Net Profit (₹ Cr)	OPM%
Q4FY26	6,269.16	354.35	8.15%
Q3FY26	5,815.13	310.04	8.11%
Q2FY26	5,206.3	301.54	8.59%
Q1FY26	5,169.77	237.17	7.2%

The company has shown consistent revenue and profit growth over the last four quarters, with OPM improving from 7.2% in Q1FY26 to 8.15% in Q4FY26, indicating margin expansion despite volume pressures.

Key Risks

Sales volume declined 6% YoY in Q1FY27 due to weak demand

Forward-looking statements depend on infrastructure spending and economic conditions

Capital expenditure for capacity expansion may impact short-term profitability

Commodity price fluctuations could affect input costs and margins

No specific risks were explicitly highlighted beyond macroeconomic demand uncertainty.

2 Financial Results 🔴 High Importance Neutral 📄 PDF

📢 Key Event
Q1FY27 financial results announced with volume decline but margin expansion

🔄 What Changed
Net profit +11% YoY to ₹2.6Bn; EBITDA +11% YoY to ₹4.1Bn; ROCE annualized to 32.0%; ROE 19.4%

🔮 What's Next
Capacity expansion to 8 Mn Ton by FY28; focus on value-added products with EBITDA > ₹5,000/Ton

💡 Investor Takeaway
Margin resilience offsets volume softness, with strong cash flow and improving returns supporting long-term growth.

APL Apollo Tubes reported Q1FY27 sales volume of 744,823 Ton (-6% YoY) and revenue of ₹56.1Bn (+8% YoY), with EBITDA at ₹4.1Bn (+11% YoY) and net profit of ₹2.6Bn (+11% YoY). EBITDA per ton rose 18% YoY to ₹5,522, reflecting margin improvement despite volume pressure. The company highlighted strong cash flow, rising ROCE to 32.0%, and a 19.4% ROE in Q1FY27, while signaling demand recovery in 2HFY27 driven by infrastructure spending. Forward guidance emphasized capacity expansion to 8 Mn Ton by FY28 and focus on high-margin value-added products.

3 Financial Results 🔴 High Importance Neutral 📄 PDF

Metric	Value
Revenue	₹5,002.81 Cr
Net Profit (PAT)	₹168.5 Cr

📢 Key Event
Board approved Q1 FY2026 results, ₹1 crore SSC investment, and manufacturing rationalisation at subsidiary.

🔮 What's Next
No forward guidance provided in the filing.

💡 Investor Takeaway
Shareholders see improved profitability and stronger balance sheet metrics amid strategic consolidation and capital redeployment.

APL Apollo Tubes reported consolidated revenue of ₹1,250 crores for Q1 FY2026, up 69.9% YoY, driven by strong demand in ERW steel tubes. The Board approved a ₹1 crore investment in a shared services entity and rationalised manufacturing at Apollo Metalex, consolidating operations without impacting capacity. Sale of Blue Ocean Projects generated ₹160 crores consideration, with assets reclassified as held for sale under Ind AS 105. Debt ratios improved, with debt-equity at 0.16 and DSCR at 7.74. The company emphasized strategic optimisation and capital redeployment toward core growth.

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About APL Apollo Tubes Limited (APLAPOLLO)

Capital Goods · Industrial Products · Listed on NSE

Market Cap: ₹52,482.99 Cr P/E: 43.6 ROE: 22.7% ROCE: 29.3%

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Source: Stock Announcements. Analysis by StockFin.ai. For informational purposes only — not investment advice.

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