APL Apollo Tubes Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript APL Apollo Tubes Ltd filed with BSE on 06 May 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 9% year-on-year growth in quarterly volume and EBITDA per ton above INR5,500 for Q4 FY26, alongside 37% ROCE and a negative working capital cycle for the full year. Management said the Middle East crisis, steel shortages, gas and energy disruptions, and labour shortages affected operations toward the end of the fiscal year, with Dubai operations running at 40% utilization. The company said it is prioritizing margin protection over volume growth given the unpredictable environment, while maintaining its capacity expansion plans toward 8 million tons by FY28.
Numbers mentioned
Quarterly volume growth: 9% (Q4 FY26 Y-o-Y)
p. 3
“Number one, 9% increase in our quarterly volume on Y-o-Y basis.”
Anubhav Gupta, page 3 of the filed PDF · View the filing
EBITDA per ton: upward of INR5,500 per ton (Q4 FY26)
p. 3
“EBITDA per ton at upward of INR5,500 per ton for the quarter 4”
Anubhav Gupta, page 3 of the filed PDF · View the filing
ROCE: 37% (FY26)
p. 3
“our 37% ROCE for the full year closing FY '26, negative working capital cycle for the full year.”
Anubhav Gupta, page 3 of the filed PDF · View the filing
Operating cash flow: INR20 billion (FY26)
p. 3
“Operating cash flow generation of INR20 billion and free cash flow generation of INR13 billion”
Anubhav Gupta, page 3 of the filed PDF · View the filing
Free cash flow: INR13 billion (FY26)
p. 3
“Operating cash flow generation of INR20 billion and free cash flow generation of INR13 billion for the full year.”
Anubhav Gupta, page 3 of the filed PDF · View the filing
Net cash balance: INR15 billion plus (end of FY26)
p. 3
“And we closed the year with net cash balance of INR15 billion plus in the books.”
Anubhav Gupta, page 3 of the filed PDF · View the filing
Dubai operations utilization: 40% (current)
p. 4
“Our Dubai operations are operating at 40% utilization right now because of the on-going crisis there.”
Anubhav Gupta, page 4 of the filed PDF · View the filing
SG Premium share of volumes: 8% to 9% (Q4 FY26)
p. 9
“It's between 8% to 9%.”
Anubhav Gupta, page 9 of the filed PDF · View the filing
April sales volume: 2.5 lakh tons (April 2026)
p. 11
“It is difficult to say, because in April, we 2.5 lakh tons.”
Sanjay Gupta, page 11 of the filed PDF · View the filing
Prior year volume: 7.92 lakh tons (prior year comparable months)
p. 11
“Last year, we have done 7.92 lakh tons.”
Sanjay Gupta, page 11 of the filed PDF · View the filing
Market share: 65%, up from 55% (FY26 versus FY25)
p. 13
“our market share is improved to 65% from 55%.”
Anubhav Gupta, page 13 of the filed PDF · View the filing
Residual liability: INR500 crores (current)
p. 7
“I have a liability of INR500 crores.”
Sanjay Gupta, page 7 of the filed PDF · View the filing
HR coil price increase: around INR3,000 per ton (April to May)
p. 16
“they are up by around INR3,000 per ton. Yes, so that much price hike we took, Rajesh.”
Anubhav Gupta, page 16 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.
Annual capex — around INR500 crores, INR600 crores yearly · FY27
stated firmly by Sanjay Gupta
p. 6
“So our target remains the same, around INR500 crores, INR600 crores yearly capex.”
Sanjay Gupta, page 6 of the filed PDF · View the filing
Total pending capex for 8 million ton capacity — INR1,400 crores, INR1,500 crores · next 2 to 2.5 years
stated firmly by Sanjay Gupta
p. 6
“Our total capex plan which is pending right now for 8 million ton is around INR1,400 crores, INR1,500 crores our total pending plan is 8 million tons.”
Sanjay Gupta, page 6 of the filed PDF · View the filing
Capacity expansion — 8-million-ton capacity · FY28
stated firmly by Anubhav Gupta
p. 4
“And our long-term plan of 8-million-ton capacity by FY '28 remains totally on-track.”
Anubhav Gupta, page 4 of the filed PDF · View the filing
Volume growth — 15% to 20% · FY27
stated conditionally by Sanjay Gupta
p. 11
“For FY '27, our volume growth is very clear -- we are targeting 15% to 20%.”
Sanjay Gupta, page 11 of the filed PDF · View the filing
EBITDA growth — 20% to 25% · FY27
stated firmly by Sanjay Gupta
p. 11
“EBITDA growth is 20% to 25% and PAT growth is 25% to 30%.”
Sanjay Gupta, page 11 of the filed PDF · View the filing
PAT growth — 25% to 30% · FY27
stated firmly by Sanjay Gupta
p. 11
“EBITDA growth is 20% to 25% and PAT growth is 25% to 30%.”
Sanjay Gupta, page 11 of the filed PDF · View the filing
Volume growth scenario adjustment — 15% · FY27
stated conditionally by Sanjay Gupta
p. 8
“Yes. Volume. I think 20% is difficult. If it gets worse than we targeting 15%. But from a margin point of view, we are very confident that we can achieve.”
Sanjay Gupta, page 8 of the filed PDF · View the filing
May sales volume — 3 lakh ton · May
stated as an aspiration by Sanjay Gupta
p. 12
“So I think, May we can do 3 lakh ton and June we are back on track with 3.5 lakh ton.”
Sanjay Gupta, page 12 of the filed PDF · View the filing
EBITDA per ton sustainability — INR5,000 to INR5,500
stated firmly by Sanjay Gupta
p. 6
“But INR5,000 to INR5,500, the 2 years of track record, the product price margin we have we are quite sure that now in the future, we continue with this margin.”
Sanjay Gupta, page 6 of the filed PDF · View the filing
Dividend or buyback — after liability retirement in Q1/Q2
stated conditionally by Sanjay Gupta
p. 7
“Once I eliminate this liability in Q1 and Q2, I'm unsure what to do with the cash. Either increase the dividend or do a buyback.”
Sanjay Gupta, page 7 of the filed PDF · View the filing
Infrastructure and commercial mix improvement — 2%-3% improvement
stated conditionally by Anubhav Gupta
p. 9
“Yes, we do expect government to start spending heavily and if it does, so there could be 2%-3% improvement in mix from infra side, otherwise housing will keep on taking the lead.”
Anubhav Gupta, page 9 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 said it is too early to distinguish de-stocking from demand slowdown and that yearly targets remain unchanged, with focus on protecting margin over volume.
Answered by Sanjay Gupta
Asked by Sneha: How does the current environment reflect demand weakness versus de-stocking, and is guidance changing?
p. 5
“But in the current scenario, it is very difficult to give quarter on quarter and month on month guidance right now. But yearly targets par we are intact.”
Sanjay Gupta, page 5 of the filed PDF · View the filing
Management attributed margin strength to reduced Patra segment exposure, brand positioning, and steel shortage supporting pricing.
Answered by Sanjay Gupta
Asked by Angad Saluja: What is driving margin improvement given rising HRC prices and Patra segment risk?
p. 6
“Mainly boss, you can say market leadership, product innovation, and supported by the shortage of steel also.”
Sanjay Gupta, page 6 of the filed PDF · View the filing
Management said the margin range is sustainable based on a two-year track record and that inventory gains were minimal given low free inventory days.
Answered by Sanjay Gupta
Asked by Vikas Singh: Is the INR5,500 per ton margin level sustainable and did inventory gains contribute?
p. 6
“So, what profit or loss will we incur from that.”
Sanjay Gupta, page 6 of the filed PDF · View the filing
Management cited inventory rationalization, reduced SKU spread across plants, and better creditor payment terms as key drivers of cash generation.
Answered by Anubhav Gupta
Asked by Bharat Shah: What drove the large net cash addition during the quarter?
p. 8
“So that strategy of inventory rationalization actually worked.”
Anubhav Gupta, page 8 of the filed PDF · View the filing
Management said inventory reduction is intentional and sustainable, with further reductions targeted.
Answered by Anubhav Gupta
Asked by Rajesh Ravi: Is the current inventory reduction sustainable?
p. 11
“So yes, I mean, whatever we have achieved as at March 2026, it is highly sustainable.”
Anubhav Gupta, page 11 of the filed PDF · View the filing
Management said its market share rose to 65% from 55% year-on-year and expects further gains if disruption continues to hurt competitors more.
Answered by Anubhav Gupta
Asked by Onkar Gangurde: Is the company gaining market share from weaker competitors amid the crisis?
p. 13
“So this is what if you look at our market share in FY’26 versus FY'25, our market share is improved to 65% from 55%.”
Anubhav Gupta, page 13 of the filed PDF · View the filing
Management attributed it mainly to a January price hike in the general Apollo brand segment feeding through to EBITDA, plus ongoing cost rationalization.
Answered by Anubhav Gupta
Asked by Devarshi Jani: What explains the record EBITDA per ton despite lower value-added sales mix?
p. 15
“That's why from INR2,000 per ton EBITDA level, we are at INR3,500 per ton plus level in general.”
Anubhav Gupta, page 15 of the filed PDF · View the filing
Management said inventory turnover under 30 days limits mark-to-market impact, so no significant inventory gains were embedded.
Answered by Anubhav Gupta
Asked by Rajesh Ravi: Would rising HRC prices have led to inventory-driven gains in Q4 numbers?
p. 16
“So Rajesh, what happens is that since our overall inventory churn is less than 30 days and in India steel prices are revised once in a month, okay.”
Anubhav Gupta, page 16 of the filed PDF · View the filing
Risks flagged
Shortage of raw material steel from Indian mills and disrupted global supply chain
p. 4
“Number one being, the shortage of raw material steel from the Indian mills and also the global supply chain got disrupted.”
Anubhav Gupta, page 4 of the filed PDF · View the filing
Dubai operations running at reduced utilization due to Middle East crisis
p. 4
“Our Dubai operations are operating at 40% utilization right now because of the on-going crisis there.”
Anubhav Gupta, page 4 of the filed PDF · View the filing
Fear of steel price correction leading to channel de-stocking
p. 4
“So there is a de-stocking from our channel partners as well.”
Anubhav Gupta, page 4 of the filed PDF · View the filing
Energy crisis impacting volumes
p. 4
“Energy crisis in India did impact our volumes in the month of March and things have got stabilized, but then there is always a sword which can come up and like which can again impact if at all there is shortage of fuel etcetera in the country.”
Anubhav Gupta, page 4 of the filed PDF · View the filing
Labour shortage due to heat and elections halting construction sites
p. 4
“And of course, because of heat and elections, there was labour shortage also for the time being, which also impacted our operations directly and indirectly as a lot of construction sites went for the halt.”
Anubhav Gupta, page 4 of the filed PDF · View the filing
Gas shortage causing temporary plant shutdowns
p. 14
“So definitely in month of March, two of our product categories in India, the rust-proof pipes and coated products, they faced temporary shutdowns at few locations.”
Anubhav Gupta, page 14 of the filed PDF · View the filing
Potential extraordinary disruption if fuel shortage extends to vehicles and automobiles
p. 14
“If, if there is like shortage of fuel to run vehicles, cars, automobile, then it'll be like extraordinary situation which will make us reconsider our business plan.”
Anubhav Gupta, page 14 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.