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Informist, Friday, May. 1, 2026

By Adhithya Aji

MUMBAI – APL Apollo Tubes Ltd. is likely to report a healthy growth in its net profit for the March quarter as sales volume rose substantially despite geopolitical challenges posed by war in West Asia, according to analysts.

The company is expected to report a consolidated net profit of INR 3.45 billion for the March quarter, according to the average of estimates from eight brokerages. This suggests a year-on-year growth of nearly 18% and quarter-on-quarter rise of over 11%. The highest estimate for the bottom line is INR 4.23 billion from Nuvama Wealth Management Ltd., while the lowest projection is of INR 3.22 billion from HDFC Securities Ltd.

The consolidated revenue of the company is estimated at INR 62.76 billion, as per the average of estimates. This translates to a growth of nearly 14% on year and nearly 8% on quarter. The highest estimate for the top line is of INR 72.57 billion from Nuvama and the lowest is of INR 59.75 billion from JM Financial Institutional Securities Pvt. Ltd.

For Jan-Mar, the company's sales volume rose around 9% on year to an all-time high of 924,881 tonnes. The Delhi-based company that produces structural steel tubes had a total market share of 55% as of end of 2024-25 (Apr-Mar). For the nine months to Mar. 31, its production capacity was 5 million tonnes.   

According to Nuvama, the company posted robust volume despite challenges due to the war in West Asia and gas shortage. "The top line of the company is estimated to grow 6.5% on year as hot rolled coil prices have risen in the last three months," Nuvama said. Consequently, net profit is expected to improve 16% on year to INR 3.40 billion, Nuvama added.  A rise in prices of hot rolled coil during the quarter is likely to lead to some inventory gains for APL Apollo Tubes as the company benefits from lower-cost inventory procured earlier, according to Equirus Securities Pvt. Ltd.

However, the company's sales in the Gulf Cooperation Council region were impacted by geopolitical disruptions in March alongside gas supply issues and a temporary slowdown in domestic construction activity, HDFC Securities, which has the lowest estimate for Jan-Mar net profit, said.   

The earnings before interest, tax, depreciation, and amortisation of the company is pegged at INR 5.74 billion, according to the average of estimates. The EBITDA is seen growing nearly 39% on year and nearly 22% on quarter.

Nuvama expects the EBITDA per tonne of APL Apollo Tubes to improve to INR 5,600 owing to its pricing power and potential inventory gains. "We expect APL to improve its realisations and deliver on its focus on profitability, recording EBITDA/tonne of around INR 5,400", JM Financial said. For the corresponding quarter a year ago, the company recorded an EBITDA per tonne of INR 4,864 and in the trailing quarter the metric was at INR 5,146.  

The company will detail its March quarter earnings on May. 2. Raw materials costs, demand for new products, entry into new markets, volume, and EBITDA per tonne guidance will be the key factors to monitor, the brokerages said. 

Thursday, shares of the company closed nearly 3% lower at INR 1,905 on the National Stock Exchange. The stock fell nearly 4% since the announcement of its December quarter earnings on Jan. 22. The Indian equity market is shut Friday on account of Labour Day.

All the nine brokerage reports available on the company with Informist have a "buy" call on the stock with an average target price of INR 2,337, nearly 17% higher than the current market price. 

Following are the March quarter earnings estimates for APL Apollo Tubes from eight brokerages in descending order of the estimate of net profit in INR billion:

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Edited by Deepshikha Bhardwaj

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