APL Apollo Tubes Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript APL Apollo Tubes Ltd filed with BSE on 05 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
APL Apollo Tubes reported Q1 FY27 volume of 745,000 tons, a decline from Q4 FY26, which management attributed to disruption in UAE operations, softer SG Premium volumes, an energy crisis affecting some product lines, and destocking amid high commodity prices. Despite lower volumes, gross profit per ton rose by Rs 1,000 quarter-on-quarter and EBITDA per ton remained flattish above Rs 5,500 per ton. Management said July volumes were up 20% month-on-month and reiterated targets of 15% to 20% volume growth and more than 20% EBITDA growth for the full year.
Numbers mentioned
Volume: 745,000 tons (Q1 FY27)
p. 3
“we have to decode the volume of 745,000 tons for the quarter”
Anubhav Gupta, page 3 of the filed PDF · View the filing
EBITDA per ton: above INR5,500 per ton (Q1 FY27)
p. 4
“our EBITDA per ton was flattish above INR5,500 per ton on Q-o-Q basis despite the negative operating leverage which arose because of 20% decline in volume on Q-o-Q basis”
Anubhav Gupta, page 4 of the filed PDF · View the filing
Gross profit per ton increase: INR1,000 (Q1 FY27 vs Q4 FY26)
p. 4
“our gross profit per ton increased by INR1,000 on quarter-on-quarter basis”
Anubhav Gupta, page 4 of the filed PDF · View the filing
Cash on books: INR14 billion (June quarter)
p. 4
“the cash on books which we hit INR15 billion in March '26, it remains at similar level at INR14 billion in June quarter as well”
Anubhav Gupta, page 4 of the filed PDF · View the filing
July volume growth: up 20% month-on-month (July)
p. 4
“in month of July, the volumes are up by 20% on month-on-month basis”
Anubhav Gupta, page 4 of the filed PDF · View the filing
General product mix: 35% (Q1 FY27)
p. 16
“It was around 35%.”
Sanjay Gupta, page 16 of the filed PDF · View the filing
SG Premium pricing: around INR58,000 per ton
p. 13
“for SG Premium right now, I mean the current pricing will be around INR58,000 per ton which is almost 6% to 7% lower than brand APL Apollo products”
Anubhav Gupta, page 13 of the filed PDF · View the filing
Q1 volume: around 7.5 lakh tons (Q1 FY27)
p. 18
“Q1 was around 7.5 lakh tons.”
Sanjay Gupta, page 18 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Volume growth — 15% to 20% · FY27
stated firmly by Sanjay Gupta
p. 5
“more or less we are trying our level best to achieve this numbers, that 15% to 20% in the volume growth and 20% and above EBITDA growth.”
Sanjay Gupta, page 5 of the filed PDF · View the filing
EBITDA growth — 20% growth in absolute EBITDA · FY27
stated firmly by Anubhav Gupta
p. 4
“we are confident that for the full year, we will be able to achieve 20% EBITDA growth for FY27 versus FY26.”
Anubhav Gupta, page 4 of the filed PDF · View the filing
EBITDA spread — INR5,000 to INR5,500 per ton · throughout the year
stated firmly by Anubhav Gupta
p. 4
“we do expect that our EBITDA spreads will remain in range of INR5,000 to INR5,500 per ton throughout the year.”
Anubhav Gupta, page 4 of the filed PDF · View the filing
Volume growth beyond 20% — above 20% · FY27
stated conditionally by Sanjay Gupta
p. 6
“Yes, some tailwinds will be needed to cross 20%. I cannot say that with confidence right now; I can say 15% confidently.”
Sanjay Gupta, page 6 of the filed PDF · View the filing
Value-added product share — 75% to 80% · by Q4 FY28 (December '27)
stated firmly by Sanjay Gupta
p. 10
“That will come from our Malur plant, Bharat bhai, by December '27. By Q4 of next year, our share of value-added product will come to 75% to 80%.”
Sanjay Gupta, page 10 of the filed PDF · View the filing
EBITDA per ton at scale — INR6,000 per ton · next two, three years
stated as an aspiration by Anubhav Gupta
p. 11
“our target is that Apollo at 8 million ton should be generating INR6,000 per ton EBITDA right over the next two, three years when we ramp up this capacity.”
Anubhav Gupta, page 11 of the filed PDF · View the filing
Q2 volume — about 10 lakh tons · Q2 FY27
stated firmly by Sanjay Gupta
p. 18
“Q2 we are targeting about 10 lakh tons.”
Sanjay Gupta, page 18 of the filed PDF · View the filing
Q3 volume — 10.5 lakh tons · Q3 FY27
stated firmly by Sanjay Gupta
p. 18
“Q3 we are targeting 10.5 lakh tons.”
Sanjay Gupta, page 18 of the filed PDF · View the filing
Q4 volume — 12 lakh tons · Q4 FY27
stated conditionally by Sanjay Gupta
p. 18
“In Q4, we will operate at full capacity, which is 5 million tons, plus our Gorakhpur and Siliguri plants will start. So, we will try to reach 12 lakh tons.”
Sanjay Gupta, page 18 of the filed PDF · View the filing
August volume — 3,30,000 tons, 3,35,000 tons · August
stated firmly by Sanjay Gupta
p. 6
“In August we are targeting 3,30,000 tons, 3,35,000 tons.”
Sanjay Gupta, page 6 of the filed PDF · View the filing
September volume — around 3,50,000 tons, 3,60,000 tons · September
stated firmly by Sanjay Gupta
p. 6
“In September, we are targeting around 3,50,000 tons, 3,60,000 tons to cross 10 plus.”
Sanjay Gupta, page 6 of the filed PDF · View the filing
ROC — 40%
stated as an aspiration by Anubhav Gupta
p. 18
“our target is to come back to the ROC of 30% that we had in the previous quarter and bring it back to 40%.”
Anubhav Gupta, page 18 of the filed PDF · View the filing
Financial performance stability — FY28 Q4
stated conditionally by Sanjay Gupta
p. 10
“FY28 Q4, FY27-28 Q4, our quarter will be very stable where we will stop talking about stocking, destocking, prices going up and down.”
Sanjay Gupta, page 10 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management confirmed it is maintaining its guidance of 15-20% volume growth and 20%+ EBITDA growth.
Answered by Sanjay Gupta
Asked by Shaleen Kumar: Is the company maintaining its full-year volume and EBITDA guidance?
p. 5
“Shaleen, more or less we are trying our level best to achieve this numbers, that 15% to 20% in the volume growth and 20% and above EBITDA growth.”
Sanjay Gupta, page 5 of the filed PDF · View the filing
Management described a recovery from near-zero volumes to a targeted ramp-up over coming months, aided by inventory in transit.
Answered by Sanjay Gupta
Asked by Shaleen Kumar: What is the status of the UAE market and demand recovery?
p. 6
“We have a stock of almost an inventory of 70,000 tons in transit at our plant. So, for two or three months, we have no problems there, and in July, we have done 10,000 tons to 12,000 tons in the month of July.”
Sanjay Gupta, page 6 of the filed PDF · View the filing
Management said it has not observed losses in market share and aims to maintain a 60-65% market share.
Answered by Sanjay Gupta
Asked by Sneha: How is competitive intensity from Tata and other players evolving?
p. 8
“Until now, I don't feel that we are losing any market share.”
Sanjay Gupta, page 8 of the filed PDF · View the filing
Management said destocking had ended as price expectations stabilized, and dealers resumed normal stocking.
Answered by Sanjay Gupta
Asked by Sneha: What changed between June and July to support optimism for Q2?
p. 8
“Now what is there? The momentum of the price going downwards has ended. Everybody is clear that the price will not go down. So, demand has started picking up again.”
Sanjay Gupta, page 8 of the filed PDF · View the filing
Management said this would come once the full capex plan, including the Malur plant, is complete by Q4 FY28.
Answered by Sanjay Gupta
Asked by Bharat Shah: When will the company reach stable, predictable profitable growth less dependent on steel price swings?
p. 10
“FY28 Q4, FY27-28 Q4, our quarter will be very stable where we will stop talking about stocking, destocking, prices going up and down.”
Sanjay Gupta, page 10 of the filed PDF · View the filing
Management said the target is to reach INR6,000 per ton EBITDA at 8 million ton scale over the next two to three years, with incremental improvements of INR100-200 per ton annually.
Answered by Anubhav Gupta
Asked by Akshay: What EBITDA per ton growth is expected in FY28 and FY29?
p. 11
“idea is to improve EBITDA spreads INR100, INR200 per ton on yearly basis and our target is that Apollo at 8 million ton should be generating INR6,000 per ton EBITDA right over the next two, three years when we ramp up this capacity.”
Anubhav Gupta, page 11 of the filed PDF · View the filing
Management attributed this to a January 2025 repricing strategy that raised APL Apollo branded product prices.
Answered by Anubhav Gupta
Asked by Aditya Welekar: Why has EBITDA per ton increased year-on-year despite lower volumes in APL Apollo brand and UAE operations?
p. 13
“this pertains to our pricing strategy which we adopted in the month of January of 2025 wherein we decided that we need to reposition APL Apollo branded products in the market and we increased the pricing by almost INR500 per ton.”
Anubhav Gupta, page 13 of the filed PDF · View the filing
Management explained that SG Premium volumes and margins depend entirely on the pricing gap between primary and secondary steel.
Answered by Sanjay Gupta
Asked by Darshan Mehta: How does the SG Premium brand's EBITDA per ton strategy work relative to primary-secondary steel price gaps?
p. 14
“This is totally played against capturing the market share and this is totally dependent on the pricing difference between the primary and the secondary.”
Sanjay Gupta, page 14 of the filed PDF · View the filing
Management outlined a phased ramp-up across quarters, targeting full capacity utilization by Q4.
Answered by Sanjay Gupta
Asked by Rajesh Ravi: Is there a risk of missing the 15% volume growth guidance given H2 run-rate requirements?
p. 18
“Q1 was around 7.5 lakh tons. Q2 we are targeting about 10 lakh tons. Q3 we are targeting 10.5 lakh tons.”
Sanjay Gupta, page 18 of the filed PDF · View the filing
Management said this practice was stopped because competitors used the disclosed margin information against them.
Answered by Sanjay Gupta
Asked by Rajesh Ravi: Will the company resume reporting segmental EBITDA margins by product category?
p. 17
“our business was getting a lot of impact. With the competitors the more our margin was seen, we used to get a hit there. So technically we have finished it.”
Sanjay Gupta, page 17 of the filed PDF · View the filing
Risks flagged
UAE operations disrupted by geopolitical situation, reducing volume
p. 3
“the UAE operations which were hit because of the geopolitical situation there and we lost almost 25,000 tons quarter-on-quarter”
Anubhav Gupta, page 3 of the filed PDF · View the filing
Decline in SG Premium brand volume due to competition from secondary material
p. 3
“decline in the volume of SG premium brand which of course is in competition with the secondary material. So, because of price gap, which was pretty high, the volume suffered there.”
Anubhav Gupta, page 3 of the filed PDF · View the filing
Energy crisis in India impacting production of rust-proof pipes and roofing products
p. 3
“the energy crisis in India which impacted our volume for some of the products like rust-proof pipes and roofing products”
Anubhav Gupta, page 3 of the filed PDF · View the filing
High commodity/factory inflation leading to destocking by channel partners and delayed purchases by developers
p. 3
“high factory inflation during the quarter which led to the softer demand in the construction industry and it impacted both primary sales and secondary sales”
Anubhav Gupta, page 3 of the filed PDF · View the filing
Rising demurrage costs and pricing hits on ships due to UAE disruption
p. 6
“No doubt we had to take some hits in pricing; demurrage on our ships has been high.”
Sanjay Gupta, page 6 of the filed PDF · View the filing
Widening gap between primary and secondary steel pricing affecting patra segment business
p. 7
“This has a big impact on our 30% business, no doubt.”
Sanjay Gupta, page 7 of the filed PDF · View the filing
High container prices restricting exports from India
p. 14
“the export from India is closed due to high container prices”
Sanjay Gupta, page 14 of the filed PDF · View the filing
Elevated employee costs due to low production and annual increment
p. 15
“Due to low production, the employee cost has gone high and plus some part of annual increment.”
Sanjay Gupta, page 15 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.