Analyst Concall
APL Apollo revises Q4 EBITDA/tn guidance to INR 5,500
This story was originally published at 20:07 IST on 22 January 2026
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--APL Apollo: Expect to see 20% volume growth in FY28 as well
--APL Apollo: Bullish on construction, infra sectors for next few years
--APL Apollo: Expect 4.2 million tonne output in FY27
--APL Apollo: Revised volume growth guidance for Q4, FY27 to 20%
--APL Apollo: Revising Jan-Mar EBITDA-per-tonne guidance to INR 5,500
--CONTEXT: APL Apollo had earlier guided for Q4 EBITDA per tonne of INR 5000
--APL Apollo: To invest INR 15 bln on capacity expansion over 2 yrs
--APL Apollo: To expand structural steel capacity to 8 mln tn from 5 mln tn
--CONTEXT: APL Apollo mgmt's comments at post-earnings concall with analysts
--APL Apollo: Market has accepted recent price hikes by co
By Gunjan Rajput and Narayana Krishna
MUMBAI – APL Apollo Tubes Ltd. has raised its earnings before interest, tax, depreciation, and amortisation per tonne guidance for the March quarter to INR 5,500 as its fixed costs have come down due to various measures that the company has implemented, the company's top management said in a post-earnings conference call Thursday.
At the beginning of 2025-26 (Apr-Mar), the company had guided for an EBITDA per tonne of INR 4,800 for the March quarter, which was raised to INR 5,000 Thursday. The management said the upward revision was driven by revised pricing that was positively absorbed by customers, along with cost optimisation measures. For the December quarter, the company reported an EBITDA per tonne of INR 5,146, up 23% on year.
The company plans to add an additional capacity of 3 million tonnes of structural steel products, taking the total capacity in this category to eight million tonnes from five million tonnes, with an investment of INR 15 billion. The company plans to fund this expansion through internal accruals.
For the December quarter, APL Apollo reported a consolidated net profit of INR 3.10 billion, nearly 43% higher on year and up 3% sequentially. This was above the Street's estimate of a net profit of INR 3 billion. The company reported net sales of INR 58.15 billion, up 7% on year and 12% on quarter.
The company also revised its volume growth guidance to 20% on year from the earlier 15% for the March quarter as well as for FY27 and FY28.
The company sold 375,000 tonnes of steel products in December alone, translating into an annualised run rate of around 4.4 million tonnes and utilisation of nearly 90% of its capacity of 5 million tonnes.
The management said it remains bullish on demand from the construction and infrastructure sectors over the next few years and expects steel tube output of about 4.2 million tonnes in FY27. It added that the market has accepted the company's recent price hikes.
The company also expects working capital efficiency to improve, with inventory days likely to decline to a low of 20 days from over 30 days currently, which would further strengthen cash generation and push the company closer to a negative working capital position.
APL Apollo said it plans to scale capacity to over 8 million tonnes by FY28, with incremental additions expected to focus on specialised and value-added steel tube segments, potentially through joint ventures and partnerships.
The company also said it has maintained a market share of about 65% over the past four years. On Thursday, the company's shares ended at INR 1,976 on the National Stock Exchange, up over 5% from the previous close. End
Edited by Tanima Banerjee
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