Earnings Outlook
APL Apollo Q1 PAT seen up on strong sales, value-added pdts
This story was originally published at 12:31 IST on 23 July 2025
Register to read our real-time news.Informist, Wednesday, Jul. 23, 2025
By Shreya Shetty
MUMBAI - APL Apollo Tubes Ltd. is expected to post robust earnings growth in the June quarter due to good sales volumes and better value-added product mix, according to analysts.
The company is likely to report a consolidated net profit of INR 2.48 billion for the June quarter, up nearly 29% on year, according to the average of estimates by seven brokerage firms. The highest estimate for net profit was INR 2.60 billion by Systematix Shares and Stocks (India) Ltd. and the lowest was INR 2.37 billion by Nuvama Wealth Management Ltd.
The company's revenue is expected to rise nearly 7% on year to INR 52.99 billion for the June quarter, according to the average of the estimates. Estimates for revenue range from INR 51.43 billion by YES Securities (India) Ltd. to INR 54.27 billion by IDBI Capital Market Services Ltd. The company's revenue is expected to fall nearly 4% from the trailing quarter while its consolidated net profit is expected to fall more than 15%.
The company sold 794,350 tonnes of products in the June quarter, 10% higher than the 721,064 tonnes sold in the year-ago quarter. However, sales were down 7% on a sequential basis. Volumes were down from the previous quarter due to subdued demand and lower output from the company's Dubai plant, Nuvama said.
APL Apollo's earnings before interest, tax, depreciation, and amortisation is likely to rise over 29% on year to INR 3.90 billion for the June quarter, as per the average of estimates of the seven brokerages. However, the steel tube maker's EBITDA is seen down nearly 5% from the trailing quarter, mainly due to subdued demand, according to analysts.
Along with higher volumes, the company's EBITDA is seen improving on year due to an improvement in its product portfolio, with a greater proportion of value-added products in the sales mix, analysts said. Sales of the 'Apollo Z' product category in the latest quarter were at 254,275 tonnes, up 16% on year and 6% sequentially. This product category includes rust-proof and coated products.
The company has maintained its premium pricing, with the roll-back of discounts, which is also likely to improve its EBITDA per tonne, Nuvama said. The company had provided an additional discount of INR 500 per tonne in the September quarter last year to push sales amid a correction in steel prices. The company had opted for discounts to overcome the dampened sentiment of distributors and channel partners.
The 12% provisional safeguard duty on steel products is likely to help the company's performance. The duty, which was enforced on Apr. 12 and is only valid for 200 days, will prevent cheap foreign-made steel goods from flooding the domestic market. The government may raise the safeguard duty on steel products if imports remain high, a commerce ministry official told Informist on Jul. 4.
Market participants should monitor the company's market share gain from patra-pipes, IDBI Capital said. Patra refers to pre-cut steel plates or sheets ready for further processing. They should also watch out for details about the company's EBITDA per tonne, any update on debt, and any update on capacity expansion work, the brokerage said.
APL Apollo Tubes will announce its quarterly earnings on Thursday. At 1105 IST, shares of APL Apollo traded 0.3% higher at INR 1,667.10 on the National Stock Exchange. The stock has been marginally down since Mar. 7 when the company detailed its March quarter earnings. In the March quarter, the company's consolidated net profit rose 72% on year to INR 2.93 billion and its revenue had risen nearly 16% on year to INR 55.09 billion.
All 12 brokerage reports on the company available with Informist have a 'buy' or equivalent rating on the stock. The highest target price of INR 2,122 was from YES Securities and the lowest of INR 1,680 was from Axis Securities Ltd.
Following are the Apr-Jun earnings estimates for APL Apollo Tubes Ltd. based on reports from seven brokerage firms in descending order by the estimate of net profit:
Brokerage firm | Net sales (in INR mln)
| Net profit (in INR mln)
| EBITDA (in INR mln) |
Systematix Shares and Stocks (India) Ltd. | 54,000.00 | 2,600.00 | 3,900.00 |
Antique Stock Broking Ltd. | 53,438.00 | 2,546.00 | 3,983.00 |
Dolat Capital Market Pvt Ltd. | 53,723.00 | 2,522.00 | 3,972.00 |
Motilal Oswal Financial Services Ltd. | 52,607.00 | 2,496.00 | 3,842.00 |
YES Securities (India) Ltd. | 51,431.00 | 2,451.00 | 3,891.00 |
IDBI Capital Market Services Ltd. | 54,269.00 | 2,390.00 | 3,853.00 |
Nuvama Wealth Management Ltd. | 51,452.00 | 2,374.00 | 3,892.00 |
Average | 52,988.57 | 2,482.71 | 3,904.71 |
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Tanima Banerjee
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
