APL Apollo Tubes Limited delivered a resilient performance for FY26, achieving an EBITDA per ton exceeding INR 5,500 in the final quarter despite significant global and domestic supply chain disruptions. The company successfully generated INR 20 billion in operating cash flow and INR 13 billion in free cash flow, significantly strengthening its balance sheet to a net cash position of INR 15 billion plus, while maintaining a strong commitment to its 8-million-ton capacity expansion plan by FY28.
Financial Highlights and Operational Resilience
During the Q4 & FY26 Earnings Conference Call, management reported that despite a challenging conclusion to the financial year marked by Middle East crises, energy shortages, and labor scarcity, the company maintained strong profitability. The company achieved a 9% year-on-year growth in quarterly volumes and a 37% ROCE for the full fiscal year. Notably, the firm achieved a negative working capital cycle, reflecting effective operational management.
Strategic Focus on Margins and Growth
Management emphasized that in the current volatile environment, the company’s strategic priority is protecting EBITDA margins over aggressive volume pushing. By leveraging market leadership and continuous product innovation, APL Apollo has successfully managed to navigate raw material shortages. The company confirmed that its 8-million-ton capacity expansion remains firmly on track, with approximately INR 1,400–1,500 crores allocated for future capital expenditure over the next 2 to 2.5 years.
Capital Allocation and Future Outlook
Regarding capital allocation, the company has witnessed a significant improvement in cash generation, with a net cash balance of INR 1,510 crores as of March 2026. Management expressed a clear intent to prioritize shareholder returns once residual liabilities are cleared, signaling potential for increased dividends or share buybacks. Looking ahead to FY27, the company has guided for 15% to 20% volume growth, 20% to 25% EBITDA growth, and 25% to 30% PAT growth, supported by a healthy product mix and recovery in infrastructure demand.
Source: BSE
