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Informist, Saturday, May 2, 2026

By Avishek Rakshit

KOLKATA – Though APL Apollo Tubes Ltd. narrowly beat the Street's estimates on its profit and revenue for the March quarter and the profit, operating profit, and sales volume hit record highs, the company registered the slowest year-on-year growth in profit in six quarters.

APL Apollo's consolidated net profit grew around 21% on year to INR 3.54 billion, better than the Street's estimate of INR 3.42 billion, but the year-on-year growth in net profit was the slowest in six quarters. The consolidated revenue grew around 14% on year to nearly INR 63 billion, also marginally higher than the Street's projection.

The company's sales volume in the March quarter grew around 9% on year to 925,000 tonnes and earnings before interest, tax, depreciation, and amortisation increased by around 24% on year to a little over INR 5 billion.

Despite the falling share of margin-accretive value-added products to overall sales to 55% in the March quarter against 57% a quarter ago, the EBITDA per tonne of sales increased. It improved to INR 5,525 per tonne in the March quarter from INR 5,146 in the December quarter and INR 4,864 per tonne in the year-ago quarter.

As a result of higher sales volume and operating leverage, APL Apollo's operating margin improved to 8.15%, compared with 7.51% in the year-ago quarter. The cash profit position improved by 18% on year to INR 4.10 billion.

"It is a remarkable milestone given the challenges arising due to geopolitical tensions and global trade tariffs throughout the year," APL Apollo Chairman Sanjay Gupta said in a statement. 

For the year ended Mar. 31, on a consolidated basis, APL Apollo reported a net profit of over INR 12 billion, registering around 59% year-on-year growth, while consolidated sales improved by around 12% on year to nearly INR 231 billion. APL Apollo has decided to pay INR 8.50 as the final dividend subject to shareholder approval.

"We are ready with our enhanced capacity, diversified product portfolio, distribution network and strong brand pull," Gupta said. "We continue to remain prudent with our working capital management, which remains best in the construction material sector."

The company's board also considered the initiation of voluntary liquidation of its wholly owned subsidiary, APL Apollo Mart Ltd. and granted in-principle approval for divestment of its shareholding in Blue Ocean Projects Pvt. Ltd., a wholly owned subsidiary engaged in holding real estate assets. The objective is to unlock capital and redeploy it in the core manufacturing business.

The company aims to increase its manufacturing capacity to 8 million tonnes by the financial year 2027-28 (Apr-Mar) from the current 5 million tonnes. Of this, 2 million tonnes capacity will be added via greenfield and brownfield projects and 1 million tonnes will be debottlenecked.

The proposed divestment at Blue Ocean will be undertaken based on independent valuation. The final proposal, including valuation, buyer details, and transaction structure, will be placed before the board for approval in due course, the company said.

Thursday, shares of APL Apollo had closed over 3% lower at INR 1,905.00 on the National Stock Exchange. Friday, the capital markets were shut for Maharashtra Day.  End

Edited by Rajeev Pai

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