APL Apollo Tubes (533758) Q3 25/26 earnings summary

Executive summary

• Nine-month sales volume increased 11% year-over-year, with Q3FY26 achieving a record 917k tons and revenue of ₹58.2Bn, up 7% YoY.

• EBITDA per ton for the nine months exceeded INR 5,000, with Q3FY26 EBITDA at ₹4.7Bn, up 37% YoY, and net profit at ₹3.1Bn, up 43% YoY.

• Premiumization strategy and SG brand launch expanded EBITDA spreads and market share.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025.

• Statutory auditors conducted a limited review and expressed unmodified conclusions on both standalone and consolidated results.

Financial highlights

• 9MFY26 sales volume was 2,566k tons, up 11% YoY; revenue was ₹161.9Bn, up 7% YoY; EBITDA was ₹12.9Bn, up 64% YoY; net profit was ₹8.5Bn, up 83% YoY.

• Net cash surplus on the balance sheet stands at INR 5.6 billion, with net cash position improving from ₹3.1Bn in FY25.

• Gross debt reduced from INR 615 crore to INR 548 crore over nine months; interest cost for 9MFY26 decreased 7% YoY to ₹937Mn.

• Consolidated Q3 FY26 revenue was ₹5,815.13 crore, up from ₹5,432.73 crore in Q3 FY25; net profit was ₹310.04 crore, up from ₹216.97 crore.

• Operating cash flow for 9MFY26 was ₹8.5Bn; free cash flow was ₹4.6Bn.

Outlook and guidance

• Upgraded sales volume growth guidance to 20% for Q4 FY 2026 and FY 2027, with EBITDA per ton guidance raised to INR 5,500.

• Targeting total capacity of 10Mn tons by FY30, with current capacity at 5Mn tons and expansion plans underway.

• Capex of ₹13Bn planned by FY28 for greenfield expansion and ₹2Bn for plant modernization.

• Dividend payout policy to increase from 20% to 25% minimum.

• Tax rate expected to decline to around 20% as Dubai and Raipur plants contribute more.