Analyst Concall
APL Apollo sees better H2 than H1, aims to surpass guidance
This story was originally published at 20:30 IST on 29 October 2025
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--APL Apollo: See H2 to be better than H1, may even do better than guidance
--CONTEXT: APL Apollo Tubes mgmt's comments at post-earnings analyst concall
--APL Apollo: Not raising guidance, hope to reach production, EBITDA targets
--APL Apollo: To fund entire capex of INR 15 billion via internal cash flows
--APL Apollo: To achieve 70% utilisation of 5 mln tn capacity in FY26
--APL Apollo: To up capacity of Dubai unit to 500,000 tn, from 300,000 tn
--APL Apollo: Dubai unit fully booked, bullish on plant utilisation
--APL Apollo: To open warehouses in Antwerp, Liverpool to serve Europe
--APL Apollo: Hope to sustain 10-15% volume growth over coming 3-4 years
--APL Apollo: No impact of US tariffs on co as supply goes from Dubai plant
By Gopika Balasubrananium and Sunil Raghu
MUMBAI – APL Apollo Tubes Ltd. expects the second half of 2025-26 (Apr-Mar) to be better than the first half with the monsoon season over and on some certainty on the global trade front, the company's management told analysts in a post-earnings conference call Wednesday. The management also said it is confident on acheiving the guidance of 10-15% growth in volumes and also the earnings before interest, tax, depreciation, and amortisation per tonne of INR 4,600-INR 5,000 in FY26.
"...if GDP of India surprises positively or performs better than expected, who knows we may even do better than our guidance when we close the financial year (FY26)," APL Apollo told analysts. The company also said given its strategy to expand capacity in international and eastern Indian markets, it is confident of achieving 10-15% growth in volume over the next 3-4 years on compounded annual growth rate basis. Even though the company hopes to reach capacity and EBITDA targets, it did not increase its guidance.
The steel pipes and tubes manufacturer said it will add 200,000 tonne capacity to the existing Dubai plant, takng international capacity to 500,000 tonne. Currently, the company's Dubai plant contributes about 8% to the company's total volume. The company said its Dubai unit is fully booked and that it was bullish on capacity utilisation. To support this, the company said it will open two warehouses in Europe, in Liverpool and Antwerp.
The company will add one more plant in Abu Dhabi in coming 2-3 years, taking capacity in West Asia to 1 million tonnes. APL Apollo also noted that even if the US lowers tariffs on Indian shipment significantly, it would not have an impact on the company as it does international sales from the Dubai plant. It added that the only risk towards its growth is the deterioration in India's GDP growth.
APL Apollo's management said it would fund the entire capital expenditure of INR 15 billion through internal cash flows. At the end of Apr-Sept, the company had a net cash of INR 5.12 billion. The company said it would be generating INR 4 billion per annum for the next three years.
The company hopes to achieve 70% of capacity utilisation of 5 million tonnes in FY26, its management told analysts. During this quarter, the capacity utilisation of its Dubai plant was 80% and Raipur plant was 65%, the company said.
The company posted its highest ever profit for the September quarter, which grew nearly six-fold on year due to record growth in volumes. The company reported a consolidated net profit of INR 3.02 billion on revenues of INR 52.06 billion. The company reported its earnings during market hours and its shares closed 1.6% higher at INR 1,804.80 on the National Stock Exchange. End
Edited by Akul Nishant Akhoury
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