Apollo Pipes Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Apollo Pipes Ltd filed with BSE on 03 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
Apollo Pipes reported flat year-on-year sales volume in Q1 FY27 as sharp PVC resin price volatility, including a 30% price drop in the first 20 days of April, disrupted both primary and secondary demand. Consolidated EBITDA was affected by inventory write-downs, aggressive pricing and fixed costs tied to new business verticals including the Varanasi plant and window profile business, with normalized business EBITDA margins at 7% on a consolidated basis. Management said demand recovered from May onwards and expects the second half of FY27 to be stronger than the first half as monsoon-related disruption eases.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Total sales volume growth: flat YoY (Q1 FY27)
p. 3
“Apollo Pipes Q1 FY27 total sales volume was flat YoY.”
Sameer Gupta, page 3 of the filed PDF · View the filing
Normalized consolidated EBITDA margin: 7% (Q1 FY27)
p. 3
“Our normalized business EBITDA margins were 7% on consolidated basis.”
Sameer Gupta, page 3 of the filed PDF · View the filing
Apollo standalone EBITDA margin: 8% (Q1 FY27)
p. 5
“out of which 8% was for Apollo standalone and 6% was for Kisan standalone”
Anubhav Gupta, page 5 of the filed PDF · View the filing
Additional cost from new businesses: 0.5% (Q1 FY27)
p. 5
“because of Varanasi and Window profile, 0.5% will be the additional cost, right, due to the new businesses”
Anubhav Gupta, page 5 of the filed PDF · View the filing
PVC resin price fall: Rs.32 per Kg in April, Rs.5 per Kg in June (Q1 FY27)
p. 3
“prices falling by Rs.32 per Kg in April followed by a little in May, but prices fell again by Rs.5 per Kg in June”
Sameer Gupta, page 3 of the filed PDF · View the filing
MIP on PVC resin: $766 per MT (approx Rs.82 per Kg) (Current)
p. 4
“The current MIP was applied around 12-days back and it is $766 per MT, which in Indian terms amounts to Rs.82 approximately per Kg on export basis.”
Sameer Gupta, page 4 of the filed PDF · View the filing
Inventory days: 80 days (Q1 FY27)
p. 8
“right now, the inventory is at 80-days, okay, which was in FY26 ending and same in Q1 June 2026.”
Anubhav Gupta, page 8 of the filed PDF · View the filing
Debtor days: 30 days (Current)
p. 8
“Debtor days are stable at 30.”
Anubhav Gupta, page 8 of the filed PDF · View the filing
Net working capital days: 45 days (Current)
p. 9
“we will have a net working capital day target of 30, which right now is 45”
Anubhav Gupta, page 9 of the filed PDF · View the filing
Kisan quarterly sales volume: around 5,500 tons per quarter (Last four quarters)
p. 11
“coming to the sales volume, for the last four quarters, we are kind of flattish at around 5,500 tons per quarter.”
Anubhav Gupta, page 11 of the filed PDF · View the filing
Varanasi plant revenue capacity: Rs.300 crores
p. 10
“the total capacity for Varanasi in terms of revenue size is around Rs.300 crores, the plant which can generate revenue in total.”
Anubhav Gupta, page 10 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 — high double-digit · FY27
stated firmly by Anubhav Gupta
p. 5
“we are confident of high double-digit volume growth for next coming years, including FY27.”
Anubhav Gupta, page 5 of the filed PDF · View the filing
EBITDA margin — 7% to 8% · next 12 to 15-months
stated conditionally by Anubhav Gupta
p. 5
“we believe that 7% to 8% EBITDA margin for the next 12 to 15-months is what we are going to achieve.”
Anubhav Gupta, page 5 of the filed PDF · View the filing
Q2 volume growth YoY — double-digit · Q2 FY27
stated firmly by Anubhav Gupta
p. 6
“It will be double-digit growth on YoY basis in Q2.”
Anubhav Gupta, page 6 of the filed PDF · View the filing
Long-term revenue target — Rs.1,000 crores revenue per plant, four plants · FY31
stated as an aspiration by Anubhav Gupta
p. 6
“our long-term target by FY31 is to have four large plants across India, each plant contributing Rs.800 crores to Rs.1,000 crore of revenue with 10% plus EBITDA margin from the PVC pipes business”
Anubhav Gupta, page 6 of the filed PDF · View the filing
Window profile revenue contribution — 7% to 8%, settling around 10% · FY27 and beyond
stated as an aspiration by Anubhav Gupta
p. 6
“we expect that business to contribute 7% to 8% to our revenue, okay, in FY27 and gradually, it will keep on improving and maybe it will settle at around 10% as per the current capacity.”
Anubhav Gupta, page 6 of the filed PDF · View the filing
CAPEX — Rs.200 crores total (Rs.100 crores per year) · FY27 and FY28
stated firmly by Anubhav Gupta
p. 8
“in both the years, the total CAPEX will be near about Rs.200 crores divided by like Rs.100 crores in each year.”
Anubhav Gupta, page 8 of the filed PDF · View the filing
Debtor days target — 25 days · FY27-end or first half of FY28
stated as an aspiration by Anubhav Gupta
p. 8
“idea is to bring debtor days to maybe 25-days, maybe by FY27-end or maybe in first half of FY28, but there is a clear visibility.”
Anubhav Gupta, page 8 of the filed PDF · View the filing
EBITDA margin improvement — 50 to 100 bps
stated conditionally by Anubhav Gupta
p. 9
“as Varanasi plant and Window profile plant stabilize, margins will further inch up by 50-to-100 bps.”
Anubhav Gupta, page 9 of the filed PDF · View the filing
Varanasi plant utilization — 30% in FY27, 50-70% in FY28, balance in FY29 · FY27-FY29
stated as an aspiration by Anubhav Gupta
p. 10
“we are hopeful that we should be able to utilize 30% of the plant in FY27, and then 50%, 60%, 70% in FY28, and then balance in FY29.”
Anubhav Gupta, page 10 of the filed PDF · View the filing
Return on capital — 25% ROC
stated as an aspiration by Anubhav Gupta
p. 12
“on Rs.5,000 crores revenue, even if we make 10% to 12% EBITDA margin, which is like Rs.500 crores to Rs.600 crores broad range, so that gives like 25% ROC.”
Anubhav Gupta, page 12 of the filed PDF · View the filing
Cost synergies from Kisan merger — 1% cost synergies
stated as an aspiration by Anubhav Gupta
p. 13
“there could be like a 1% cost synergies, which could come at the overall company level.”
Anubhav Gupta, page 13 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 the MIP has created a price floor and premium in the market, with prices expected to remain stable given low channel inventories.
Answered by Sameer Gupta
Asked by Sneha: What is the impact of the recently imposed MIP on PVC pricing and how is it being passed on?
p. 4
“we feel that the prices should remain stable in the near future.”
Sameer Gupta, page 4 of the filed PDF · View the filing
Management explained April was hurt by a 30% PVC price decline, but demand recovered in May and June and July is tracking similarly, with construction demand expected to pick up post-monsoon.
Answered by Anubhav Gupta
Asked by Sneha: What was behind demand not hitting double digits, and how is demand trending now?
p. 4
“July is also doing decently well in line with how May and June performed.”
Anubhav Gupta, page 4 of the filed PDF · View the filing
Management attributed most of the margin hit to inventory write-downs, with only 0.5% coming from new business costs at the standalone level.
Answered by Anubhav Gupta
Asked by Sneha: Can you quantify the one-off costs related to new businesses hurting margins?
p. 5
“0.5% will be the additional cost, right, due to the new businesses, and rest was the inventory write-down from the P&L.”
Anubhav Gupta, page 5 of the filed PDF · View the filing
Management targeted 7-8% revenue contribution rising to around 10% at full capacity, and said flat volumes amid industry contraction suggest market share gains.
Answered by Anubhav Gupta
Asked by Ameya: What are the targets for the window and door profile segment, and are there signs of market share gains from industry disruption?
p. 6
“despite the contraction in the industry, in terms of volume, we were able to maintain a flattish volume YoY. So, this does suggest that we gain the market share.”
Anubhav Gupta, page 6 of the filed PDF · View the filing
Management said most funding will come from internal cash flows, with no plans to raise debt or equity for ongoing CAPEX.
Answered by Anubhav Gupta
Asked by Sagar Pamnani: How will the company fund its long-term CAPEX plans?
p. 7
“we are 100% sure that the ongoing CAPEX will be funded from internal cash flow. There will not be a requirement of raising any debt or equity.”
Anubhav Gupta, page 7 of the filed PDF · View the filing
Management said there was encouragement in the budget but no actual activity pickup yet, with hope for movement in coming months.
Answered by Anubhav Gupta
Asked by Neha: Is government CAPEX/disbursement under schemes like Nal Se Jal picking up?
p. 7
“Nothing as yet, like we are four months into the new financial year. But, we are hoping that in the next three, four months, there could be some activity pickup from this category, but as of now, not much.”
Anubhav Gupta, page 7 of the filed PDF · View the filing
Management said the Q1 margin was largely depressed by inventory losses and reaffirmed confidence in 7-8% margins, with further improvement expected as new plants stabilize.
Answered by Anubhav Gupta
Asked by Aasim Bharde: Can margins of 7-8% be sustained given competitive intensity and volume focus?
p. 9
“we are confident of maintaining this margin at 7% to 8% at company level.”
Anubhav Gupta, page 9 of the filed PDF · View the filing
Management said recent delays were due to port congestion from heavy rain rather than supply shortage, and does not expect ongoing disruption.
Answered by Sameer Gupta
Asked by Aasim Bharde: Is PVC resin availability still an issue given customs duty and MIP changes?
p. 9
“I do not see that there will be any supply disruption in PVC resin in the near future.”
Sameer Gupta, page 9 of the filed PDF · View the filing
Management said distributors remain cautious and restocking would likely begin if price stability holds for another 10-15 days.
Answered by Anubhav Gupta
Asked by Roshan: Are distributors resuming inventory restocking now that PVC prices have stabilized?
p. 10
“if this stability sustains for say the next 10-15 days, then definitely there will be restocking, which would start and this will give boost to the overall industry sales for the second quarter.”
Anubhav Gupta, page 10 of the filed PDF · View the filing
Management said Kisan is generating 5-6% business-level EBITDA margin, but weak industry conditions have masked this in reported P&L, with volume improvement expected from Q2/Q3.
Answered by Anubhav Gupta
Asked by Karan: What is driving continued operating losses at Kisan despite expected synergies from Apollo?
p. 11
“at the business EBITDA level, okay, we are making of like 5% to 6% EBITDA, right?”
Anubhav Gupta, page 11 of the filed PDF · View the filing
Management said CPVC and water tanks are growing well while government infrastructure products like O-PVC and HDPE are nearly flat, dragging overall volume.
Answered by Anubhav Gupta
Asked by Karan: What segmental volume growth trends are visible across agri, plumbing and infrastructure?
p. 11
“Government infrastructure business, whether it is O-PVC or HDPE, that is like almost zero, that is one of the major drags for the overall volume to remain flat.”
Anubhav Gupta, page 11 of the filed PDF · View the filing
Risks flagged
Extreme PVC resin price volatility disrupting demand and inventories
p. 3
“The volatility in PVC resin prices was even higher in Q1 FY27 with prices falling by Rs.32 per Kg in April followed by a little in May, but prices fell again by Rs.5 per Kg in June.”
Sameer Gupta, page 3 of the filed PDF · View the filing
Inventory write-downs hurting consolidated EBITDA
p. 3
“Our consol EBITDA was hurt due to inventory write-downs, aggressive pricing and fixed expenses for our new business verticals.”
Sameer Gupta, page 3 of the filed PDF · View the filing
Monsoon slowing construction and agri demand in the near term
p. 4
“now that monsoon is at its peak, in maybe next 15-20 days, overall demand should be slightly soft.”
Anubhav Gupta, page 4 of the filed PDF · View the filing
Weak government infrastructure disbursements under schemes like Nal Se Jal
p. 7
“it is a long-driven process, which will take time.”
Anubhav Gupta, page 7 of the filed PDF · View the filing
Port congestion from heavy rain delaying resin container availability
p. 9
“in the last few days, there have been some issues, but this is not because of other reasons, it is mainly because of the extensive rain at the ports.”
Sameer Gupta, page 9 of the filed PDF · View the filing
Distributor caution on restocking due to price volatility
p. 10
“Too early for them to start stocking up, to be fair on their side, because the PVC prices have been so volatile that any call taken by them has not worked, right?”
Anubhav Gupta, page 10 of the filed PDF · View the filing
Kisan brand weakness and lack of macro industry support
p. 11
“it was a weak plant, it was a weak brand, everything was weak, right?”
Anubhav Gupta, page 11 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.