APL Apollo Tubes Limited announced its unaudited financial results for the quarter ended June 30, 2026. The Board of Directors also approved the company’s participation in the incorporation of a new Group Shared Services Company (‘SSC’). This strategic move involves an investment of up to ₹1,00,00,000 (Rupees One Crore) for up to 20% of the SSC’s equity share capital, positioning it as an Associate Company.
Board Meeting Outcomes
The Board of Directors of APL Apollo Tubes Limited convened on August 1, 2026, transacting key business items. Primarily, the Board approved the unaudited financial results, both standalone and consolidated, for the quarter that concluded on June 30, 2026. These results were subsequently reviewed by M/s Walker Chandiok & Co. LLP.
Strategic Investment in Shared Services
A significant resolution passed during the meeting was the approval for APL Apollo Tubes to participate in the formation of a new entity, a Group Shared Services Company (SSC). The company will invest up to ₹1,00,00,000 (Rupees One Crore) to acquire a stake of up to 20% in the SSC’s equity share capital. Upon its incorporation, this SSC is expected to become an Associate Company of APL Apollo Tubes.
The proposed SSC aims to centralize and provide common corporate support services to various Group entities, enhancing operational efficiency and streamlining business processes. The Finance Committee of the Board has been empowered to undertake all necessary actions to facilitate this proposal, including the execution of documents and finalization of ancillary matters.
Rationalization of Manufacturing Operations
The Board also took note of an approval granted by Apollo Metalex Limited (AML), a material subsidiary. This approval pertains to the rationalization of manufacturing operations through a phased consolidation of production activities from its A-25 unit in Sikandrabad, Uttar Pradesh, to other Group facilities. This initiative includes the potential disposal of the land and building of the A-25 Unit. The decision is part of a broader strategic restructuring effort focused on optimizing the manufacturing footprint, improving capacity utilization, reducing costs, and enhancing supply chain efficiencies.
The company stated that the consolidation is expected to be implemented in a phased manner and should not adversely impact overall manufacturing capacity, operations, customer commitments, or production volumes. The rationalization is anticipated to boost operational efficiency, optimize the asset base, reduce operating and maintenance costs, and allow for the redeployment of capital towards core manufacturing and future growth initiatives.
Financial Highlights (Unaudited)
The unaudited consolidated financial results for the quarter ended June 30, 2026, were approved. Key figures from the consolidated statement of profit and loss include revenue from operations of ₹5,606.71 crore and a profit before tax of ₹352.43 crore. The profit for the period attributable to owners of the company stood at ₹263.11 crore.
For the standalone results, revenue from operations for the quarter ended June 30, 2026, was ₹3,801.88 crore, with a profit before tax of ₹198.74 crore. The profit for the period attributable to owners of the company was ₹146.98 crore.
Auditors’ Report
Independent auditors, Walker Chandiok & Co. LLP, provided a limited review report on the unaudited quarterly financial results. Their report confirmed that, based on their review, nothing came to their attention that would indicate material misstatements or non-disclosure of required information in accordance with applicable accounting standards and regulations.
Source: BSE
