APL Apollo Tubes (533758) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 performance was below expectations due to macro slowdown, geopolitical tensions, early monsoon, and softer money supply impacting volumes and dealer buying power.

• Q1FY26 sales volume reached 794k tons, up 10% year-over-year but down 7% sequentially.

• EBITDA grew 23% year-over-year to ₹3.7Bn, with EBITDA/ton up 12% year-over-year to ₹4,683.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2025.

• Appointment of new COO and independent directors, and launch of new ESOP 2025 scheme.

Financial highlights

• Q1FY26 revenue: ₹51.7Bn; EBITDA: ₹3.7Bn; Net profit: ₹2.4Bn; EBITDA margin per ton increased to ₹4,683, up 12% year-over-year.

• Consolidated revenue from operations for Q1 FY26 was ₹5,169.77 crore, up from ₹4,974.30 crore in Q4 FY25.

• Value-added product sales mix rose to 61%, supporting gross spread improvement by INR 400 per ton quarter-over-quarter.

• Employee cost for the quarter included a one-time ESOP cost of INR 6 crore; sustainable employee cost expected at INR 600-700 per ton.

• Net cash position at ₹2.1Bn in Q1FY26, down from ₹3.1Bn in FY25.

Outlook and guidance

• FY26 volume growth guidance revised to 10%-15% from 15%-20% due to softer H1; EBITDA spread guidance set at INR 4,600-5,000 per ton.

• Second half of FY26 expected to be stronger as monsoon ends and government spending increases.

• Capacity expansion to 6.8Mn tons by FY28, with ₹15Bn capex over next 3 years.

• Board and auditors confirm compliance with SEBI and Ind AS requirements; no material misstatements identified.

• Company continues to focus on operational excellence and cost optimization, as highlighted by new leadership appointments.