APL Apollo Tubes Limited held a conference call on January 22, 2026, to discuss its 3QFY26 results. Management expressed confidence in achieving 20% sales volume growth for 4QFY26 and FY27, with an EBITDA guidance of approximately INR 5,500 per ton. The company aims to expand capacity to 8 million tons in the next 2 years, funded by internal cash flows. APL Apollo is targeting ROCE to sub-40 levels.
Strong Performance and Future Outlook
During the conference call, APL Apollo highlighted a robust performance, with 9-month sales volume increasing by 11% YoY, and EBITDA per ton surpassing INR 5,000. Management is upgrading sales volume growth guidance to 20% for 4QFY26 and FY27, with EBITDA guidance of approximately INR 5,500 per ton.
Capacity Expansion Plans
The company plans to aggressively pursue capacity expansion to 8 million tons from the current 5 million tons within the next 2 years. This will involve a mix of greenfield and brownfield projects, funded through internal cash flows, with an investment of around INR1,500 crores.
Strategic Initiatives
APL Apollo is focusing on premiumization of its product offerings, leveraging the APL Apollo brand, and expanding EBITDA spreads. The company also aims to rationalize inventory days to the 20-day range, with surplus cash potentially reaching INR1,500 crores. With high inventory churn, better EBITDA spreads, and volume growth, the company anticipates expanding its ROCE to sub-40 levels.
Volume and Financial Targets
The company sold 375,000 tons in December, annualizing to 4.4 million tons. APL Apollo has successfully tested its 5 million ton capacity, achieving almost 90% utilization. For Q4, the company is targeting between 1.0-1.1 million tons. The company’s EBITDA per ton is close to INR6,000, resulting in approximately INR220 crores per month.
Growth Drivers and Market Strategy
APL Apollo is focusing on volume growth through a multi-brand strategy. The company aims to maintain a balance between premium APL Apollo products and other brands to capture market share and drive volume growth. They are also increasing focus on value-added products and reducing freight costs to improve margins.
Specialty Tubes Expansion
APL Apollo is planning to increase its focus on super specialty segments, targeting 2 million tons in the future, through potential joint ventures with international companies. The company is exploring opportunities in sectors like EV category, aerospace, petrochem, oil and gas, and heavy engineering.
Source: BSE
