APL Apollo Tubes Limited hosted its Q2 and H1 FY27 earnings conference call on October 26, 2026. Management reported a record quarter for sales volume, EBITDA, and net profit, driven by a focus on core strengths, brand value, and value-added products. Despite disruptions in UAE operations and high raw material prices, the company achieved a volume of 960,000 tons. Projections for the second half of FY27 indicate continued double-digit volume growth.
APL Apollo Tubes: Q2 & H1 FY27 Earnings Conference Call Summary
The conference call for APL Apollo Tubes Limited’s Q2 and H1 FY27 results, held on October 26, 2026, provided insights into the company’s performance and future outlook. Management highlighted a strong performance in the second quarter, achieving record sales volume, EBITDA, and net profit. This success was attributed to a strategic focus on core strengths, including the APL Apollo brand, and an increased emphasis on value-added products, particularly for the Defence and Aerospace sectors.
Key Performance Indicators and Strategic Drivers
In Q2 FY27, APL Apollo Tubes achieved a volume of 960,000 tons. This was accomplished despite challenges such as disrupted UAE operations, fluctuating raw material prices, steel shortages, and container trade issues. The company’s strategy involved leveraging the strength of the APL Apollo brand to secure better pricing and EBITDA spreads. Furthermore, the expansion into value-added products, supported by a specialized tube mill capable of producing large-sized tubes for Defence and Aerospace, is expected to yield results in the coming months.
The company reported a 20% year-on-year increase in volume for APL Apollo and roofing products in the first half of FY27. Management anticipates this momentum to continue in the second half with double-digit volume growth, compensating for the absence of export sales and UAE operations. These product verticals are seen as key drivers for superior volume growth and margin improvement.
Financial Outlook and Guidance
In terms of EBITDA, APL Apollo Tubes is on track to achieve a 20% growth on an absolute basis by March 2027 fiscal. The EBITDA per ton stood at Rs. 6000 in Q2, which is considered sustainable due to the contribution from brand APL Apollo and high value-added roofing products. The company’s working capital cycle remains intact, with cash on books increasing by 15% to Rs. 16 billion as of September 2026. CAPEX plans are on track to achieve a total capacity of 7 million tons through greenfield and brownfield expansions.
Regarding volume guidance for FY2027, the company maintains its 15% growth target for profitable segments like the APL Apollo brand and roofing products. However, due to issues in Dubai and steel shortages, focus is being shifted away from low-margin business products. The company expressed confidence in achieving its volume growth targets for its main products and expects EBITDA per ton to increase beyond Rs. 6000, with Q3 anticipated to be even stronger.
Operational Updates and Future Plans
APL Apollo Tubes is expanding its capacity, with a target of 7 million tons by FY2028. Management is also focused on improving margins through innovation, cost management, and value-added product development. The company sees continuous revenue growth supported by pricing power, even if volume growth is moderate. The potential recovery of Dubai operations and stabilization of steel prices are viewed as positive factors for future growth.
Source: BSE
