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

Executive summary

• Achieved 11% year-over-year nine-month sales volume growth, with record Q3FY26 sales volume of 917k tons and revenue at ₹58.2Bn, up 7% YoY.

• EBITDA reached ₹4.7Bn in Q3FY26, a 37% YoY increase, and net profit was ₹3.1Bn, up 43% YoY.

• Board approved unaudited standalone and consolidated financial results for Q3 and nine months ended December 31, 2025.

• Maintained premium pricing for branded products, with INR 3,000–4,000 per ton premium now established as the market norm.

• Value-added sales mix improved to 57% in Q3FY26 from 56% in Q3FY25.

Financial highlights

• Nine-month EBITDA per ton exceeded INR 5,000, with 9MFY26 EBITDA at ₹12.9Bn, up 64% YoY; net profit was ₹8.5Bn, up 83% YoY.

• Net cash surplus stands at INR 5.6 billion, with expectations to reach INR 1,500 crores surplus by Q4.

• EBITDA/ton for 9MFY26 was ₹5,030, up 48% YoY.

• Interest cost for 9MFY26 decreased 7% YoY to ₹937Mn.

• Return on capital employed (ROCE) for 9MFY26 was 33.3%, up from 24.5% in FY25.

Outlook and guidance

• Upgraded sales volume growth guidance to 20% for Q4 FY 2026 and FY 2027.

• Targeting 8 million tons capacity by FY 2028 and 10 million tons by 2030, with capex of ₹13Bn planned by FY28 for greenfield expansion.

• Execution plan for additional 2Mn tons capacity to be shared within a year.

• Specialty segment expansion planned, with EBITDA spreads expected above INR 10,000 per ton.

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