APL Apollo Tubes (533758) Q4 24/25 earnings summary

Executive summary

• Achieved record sales volume of 3.16 million tons in FY25, becoming the world's largest downstream steel player outside China in structural steel tubes, with record-high revenue, EBITDA, and net profit despite macroeconomic and industry challenges.

• Q4FY25 sales volume rose 25% YoY to 850,000 tons; revenue up 16% YoY to Rs 55.1bn; EBITDA up 48% YoY to Rs 4.1bn; net profit up 72% YoY to Rs 2.9bn.

• Ended FY25 with net cash exceeding INR 300 crore (Rs 3.1bn), and recommended a final dividend of ₹5.75 per share for FY25.

• CMD voluntarily surrendered remuneration and commission for FY25 and FY26 to set a cost discipline example.

• Board approved a ₹1,500 crore capex plan over three years to expand capacity from 4.5 Mn Ton to 6.8 Mn Ton by FY28, funded by internal accruals and loans if required.

Financial highlights

• FY25 consolidated revenue was ₹20,689.54 crore, up from ₹18,118.80 crore in FY24; net profit was ₹757.06 crore, up from ₹732.44 crore.

• FY25 EBITDA per ton was INR 3,900 (Rs 3,797), below historical levels due to depressed spreads; Q4FY25 EBITDA/ton at Rs 4,864, up 18% YoY.

• Net working capital days at 0 for FY25, maintained for the fifth consecutive year.

• FY25 ROCE at 24.5% and ROE at 19.4%; net cash position at Rs 3.1bn.

• Earnings per share (consolidated) for FY25 was ₹27.28, up from ₹26.40 in FY24.

Outlook and guidance

• Targeting EBITDA spread near INR 5,000 per ton in FY26, with further improvement expected as sales mix and international expansion progress.

• Capacity expansion to 6.8–7 million tons by FY28, with INR 1,500 crore CapEx funded internally.

• Confident in sustaining 20% year-on-year volume growth for the next 3-4 years.

• ROC targeted at 35% for next year, with a long-term goal of 50%.

• Export share to rise from 6% to over 10% in the next two years.