Conference Call with APL Apollo Tubes Management and Analysts on Q1FY27 Performance and Outlook. Listen to the full earnings transcript.
Iron & Steel Products company APL Apollo Tubes announced Q1FY27 results Consolidated Financial Highlights: Total Income for Q1FY27 stood at Rs 5,646.23 crore, representing an 8.68% increase YoY from Rs 5,195.34 crore in Q1FY26, but a 10.46% decrease QoQ from Rs 6,305.65 crore in Q4FY26. Revenue from Operations for Q1FY27 was Rs 5,606.71 crore, reflecting an 8.45% growth compared to Rs 5,169.77 crore in Q1FY26, and a 10.57% decline compared to Rs 6,269.16 crore in Q4FY26. Profit before tax for Q1FY27 reached Rs 352.43 crore, showing a 13.71% YoY increase from Rs 309.95 crore in Q1FY26, and a 22.82% QoQ decrease from Rs 456.61 crore in Q4FY26. Net Profit for Q1FY27 (Profit for the period) was Rs 263.11 crore, marking a 10.94% YoY increase from Rs 237.17 crore in Q1FY26, but a 25.75% QoQ decrease from Rs 354.35 crore in Q4FY26. Basic Earnings Per Share (EPS) for Q1FY27 was Rs 9.48, compared to Rs 8.55 in Q1FY26 and Rs 12.76 in Q4FY26. The Group's Net Worth as of June 30, 2026, was Rs 5,579.01 crore, compared to Rs 5,296.53 crore in FY26. Standalone Financial Highlights: Total Income for Q1FY27 was Rs 3,851.38 crore, up 13.62% YoY from Rs 3,389.73 crore in Q1FY26, and down 9.29% QoQ from Rs 4,245.83 crore in Q4FY26. Revenue from Operations for Q1FY27 stood at Rs 3,801.88 crore, an increase of 12.73% YoY from Rs 3,372.54 crore in Q1FY26, but a decrease of 9.82% QoQ from Rs 4,215.93 crore in Q4FY26. Profit before tax for Q1FY27 reached Rs 198.74 crore, reflecting a 27.04% growth YoY from Rs 156.44 crore in Q1FY26, while decreasing by 26.58% QoQ from Rs 270.71 crore in Q4FY26. Net Profit for Q1FY27 was Rs 146.98 crore, a 26.65% YoY increase from Rs 116.05 crore in Q1FY26, and a 28.34% QoQ decrease from Rs 205.10 crore in Q4FY26. Basic Earnings Per Share (EPS) for Q1FY27 was Rs 5.29, compared to Rs 4.18 in Q1FY26 and Rs 7.39 in Q4FY26. Standalone Net Worth as of June 30, 2026, stood at Rs 3,638.01 crore. Business Highlights: Manufacturing Rationalisation: The Board took note of the approval granted by Apollo Metalex Limited ("AML"), a material subsidiary, for the phased consolidation of production activities from its A-25 manufacturing unit at Sikandrabad, Uttar Pradesh, to other Group manufacturing facilities. This includes the consequential disposal of the land and building of the A-25 unit. Group Shared Services Company: The Company approved participation in the proposed incorporation of a Group Shared Services Company ("SSC") and an investment of up to 20% of its equity share capital for an amount not exceeding Rs 1,00,00,000 (Rs 1 crore). Divestment of Subsidiary: During Q1FY27, the Holding Company executed a share purchase agreement to sell its entire shareholding in Blue Ocean Projects Private Limited (BOPL) for a total consideration of Rs 160.00 crore. As of June 30, 2026, the assets and liabilities of BOPL have been classified as held for sale. Segment Performance: The Group operates in a single reportable operating segment, which is the "Manufacturing of ERW steel tube and pipes." Expansion Initiatives: The manufacturing consolidation is part of strategic restructuring aimed at optimizing manufacturing footprint, improving capacity utilization, and redeploying capital towards core manufacturing operations and future growth initiatives. Sanjay Gupta, Chairman, APL Apollo, said: “The company reported Q1FY27 sales volume of 744,823 Ton which was below our own expectations. The demand for the structural steel tubes was soft due to the geopolitical situation and challenging macroeconomic environment. However, the quarterly EBITDA of Rs 5,522 per ton demonstrates APL Apollo’s strengths such as improving sales mix and brand power. Better margins resulted in EBITDA growth of 11% YoY and Net Profit growth of 11% YoY. We expect demand conditions to improve in the coming quarters on the back of an improved government budget allocation for the infrastructure sector. We are ready with our capacity, product range, distribution network and brand pull. Hence, we expect H2FY27 to perform much better than H1FY27. The company's commitment to delivering exceptional quality, coupled with its unwavering dedication to customer satisfaction, has propelled it to the forefront of the industry. We continue to remain prudent with our working capital management, which remains best in the construction material sector.” Result PDF
