APL Apollo Tubes (533758) Q2 26/27 earnings summary

Executive summary

• Q2FY27 set quarterly records with volume of 963,143 tons (+13% YoY), EBITDA of ₹5.778bn (+29%) and PAT of ₹382.42 crore (+27%).

• H1FY27 revenue was ₹12,608.41 crore, EBITDA ₹9.9bn and PAT ₹645.53 crore, up 22%, 21% and 20% YoY, respectively.

Financial highlights

• Q2FY27 consolidated revenue from operations was ₹7,001.70 crore versus ₹5,531.28 crore YoY; profit before tax was ₹499.70 crore versus ₹386.36 crore.

• Q2 EBITDA per ton was ₹5,999, up 15% YoY and 9% QoQ; net profit was ₹382.42 crore. Interest cost rose 90% YoY to ₹524mn.

• Standalone Q2 revenue was ₹4,655.61 crore and PAT ₹265.13 crore; H1 standalone revenue was ₹8,457.49 crore and PAT ₹412.11 crore.

• H1FY27 EBITDA per ton was ₹5,791, up 17% YoY; cash profit was ₹7.7bn, up 18%.

Outlook and guidance

• Management retained 20% FY27 absolute EBITDA growth guidance; Q3 EBITDA per ton may repeat or exceed ₹6,000, while H2 branded and roofing growth is expected to remain double digit.

• 2HFY27 is expected to outperform H1, with demand supported by higher government infrastructure budget allocations.

• Capacity is planned to increase from 5mn to 8mn tons by FY28 through 2mn tons of greenfield/brownfield expansion and 1mn ton of debottlenecking and modernization.

• FY28 EBITDA of ₹3,000 crore was discussed conditionally, subject to UAE recovery, domestic steel availability and lower container rates.