APL Apollo Tubes (533758) Q2 25/26 earnings summary

Executive summary

• Achieved record quarterly sales volume of 855k tons in Q2FY26, up 13% YoY and 8% QoQ, with highest-ever EBITDA and net profit despite challenging demand and weak construction activity.

• H1FY26 sales volume rose 11% YoY to 1,649k tons, with EBITDA up 86% YoY and net profit up 118% YoY.

• Maintained zero net working capital days and strong cash position, highlighting operational efficiency.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, with limited review by statutory auditors.

• Group operates in a single segment: manufacturing of ERW steel tubes and pipes.

Financial highlights

• Q2FY26 revenue reached ₹5,206.30 crore, up from ₹4,773.91 crore in Q2 FY25; H1 FY26 revenue was ₹10,376.07 crore, up from ₹9,748.21 crore in H1 FY25.

• Q2FY26 EBITDA was ₹4.5Bn (+224% YoY, +20% QoQ), EBITDA/ton at ₹5,228 (+187% YoY, +12% QoQ).

• Q2FY26 net profit was ₹301.54 crore, up from ₹53.81 crore in Q2 FY25; H1 FY26 net profit was ₹538.71 crore, up from ₹246.98 crore in H1 FY25.

• Working capital days at zero as of September 2025, boosting ROCE to 32%-33%.

• Dubai plant contributed 8% to total volume; Raipur and Dubai plants operating at 70% and 80-85% utilization, respectively.

Outlook and guidance

• Confident in meeting FY26 guidance of 10%-15% volume growth and EBITDA spread of INR 4,600-5,000 per ton.

• Management expects 2HFY26 to outperform 1HFY26, citing readiness in capacity, product portfolio, and distribution.

• Targeting 9 lakh tons in Q3 and 9.2 lakh tons in Q4, with EBITDA per ton of INR 5,000-5,200.

• Long-term vision to reach 7 million ton capacity in 2-3 years and potentially 10 million tons in five years.

• Double-digit volume growth (10%-15% CAGR) expected over next 3-4 years.