27-Oct-2026 08:22:15
APL APOLLO TUBES Q2 CONCALL : RECORD QUARTERLY VOLUMES, EBITDA AT ₹6,000 PER TONNE & MANAGEMENT MAINTAINS 20% FY27 EBITDA GROWTH TARGET
• MANAGEMENT MAINTAINS FY27 ABSOLUTE EBITDA GROWTH TARGET OF APPROXIMATELY 20%, WITH POTENTIAL UPSIDE IF UAE OPERATIONS RECOVER • MANAGEMENT EXPECTS EBITDA PER TONNE OF APPROXIMATELY ₹6,000 TO REMAIN SUSTAINABLE, WITH Q3 PERFORMANCE EXPECTED TO MATCH OR EXCEED Q2 LEVELS • MANAGEMENT EXPECTS APOLLO-BRANDED & ROOFING PRODUCTS TO DELIVER DOUBLE-DIGIT VOLUME GROWTH DURING H2 FY27, WITH CONFIDENCE IN APPROXIMATELY 15% GROWTH • Q2 SALES VOLUME REACHED A RECORD 9.60 LAKH TONNES, WHILE MANAGEMENT REPORTED ITS HIGHEST-EVER QUARTERLY EBITDA & NET PROFIT • Q2 EBITDA PER TONNE REACHED APPROXIMATELY ₹6,000, SUPPORTED BY PREMIUM PRODUCT PRICING, HIGHER CAPACITY UTILIZATION & OPERATING LEVERAGE • APOLLO-BRANDED & ROOFING PRODUCTS RECORDED APPROXIMATELY 20% YOY VOLUME GROWTH DURING H1 FY27, DRIVING PROFITABILITY • MANAGEMENT PRIORITIZES HIGH-MARGIN PRODUCTS OVER LOW-MARGIN VOLUMES, WHILE DOMESTIC STEEL SHORTAGES CONTINUE TO RESTRICT OVERALL GROWTH • MANAGEMENT PLANS TO EXPAND TOTAL CAPACITY TO APPROXIMATELY 8 MILLION TONNES OVER THE NEXT TWO YEARS, INCLUDING 1 MILLION TONNES THROUGH DEBOTTLENECKING • CURRENT CAPACITY UTILIZATION STANDS AT APPROXIMATELY 70–75%, WITH HIGHER UTILIZATION EXPECTED TO SUPPORT FURTHER OPERATING LEVERAGE • MANAGEMENT TARGETS DUBAI CAPACITY EXPANSION TO 5 LAKH TONNES ANNUALLY BY MARCH 2027, COMPARED WITH CURRENT CAPACITY OF 3 LAKH TONNES • MANAGEMENT SEES POTENTIAL DUBAI EBITDA OF ₹8,000–10,000 PER TONNE AT EXPANDED OPERATIONS, SUBJECT TO PRODUCT MIX & SUCCESSFUL RAMP-UP • UAE OPERATIONS REMAIN DISRUPTED BY MIDDLE EAST GEOPOLITICAL CONDITIONS, WITH CURRENT PRODUCTION RUNNING AT APPROXIMATELY 1 LAKH TONNES ANNUALIZED • COMPANY HAS COMMISSIONED A SPECIALIZED TUBE MILL TARGETING DEFENSE & AEROSPACE APPLICATIONS, WITH PRODUCT SAMPLING & APPROVALS UNDERWAY • CASH BALANCE INCREASED TO ₹1,600 CR FROM ₹1,400 CR QOQ, WHILE WORKING CAPITAL DAYS REMAIN NEAR ZERO; MANAGEMENT EXPECTS STRONGER CASH CONVERSION IN H2 • MANAGEMENT EXPECTS LOWER H2 CAPEX OUTFLOWS AFTER APPROXIMATELY ₹400 CR SPENDING IN H1; UAE DISRUPTIONS, STEEL SHORTAGES & EBITDA-PER-TONNE SUSTAINABILITY REMAIN KEY RISKS
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