APL Apollo Q1 FY26 Net Profit Rises 23% YoY to ₹2.37 Billion
APL Apollo Tubes Limited reported a 23% year-on-year increase in consolidated net profit to ₹2.37 billion for the quarter ended June 30, 2025. Revenue from operations grew 4% to ₹51.70 billion, while EBITDA increased by 23% to ₹3.72 billion.
Q1 FY26 Financial Results (in ₹ million)ParticularsQ1 FY26Q1 FY25YoY ChangeQ4 FY25
QoQ Change
Net Revenue51,69849,743+4%55,086
-6%EBITDA3,7203,016+23%4,137
-10%Net Profit2,3721,932+23%2,931
-19%
Financial Performance
In Q1 FY26, APL Apollo Tubes achieved a sales volume of 794,000 tons, marking a 10% year-on-year increase but a 7% quarter-on-quarter decrease. The company's EBITDA per ton stood at ₹4,683, reflecting a 12% year-on-year increase and a 4% quarter-on-quarter increase. The value-added sales mix reached 61%, compared to 58% in Q4 FY25. Interest costs amounted to ₹333 million, up 19% year-on-year and 3% quarter-on-quarter. The company's cash profit was ₹2.9 billion, a 22% increase year-on-year and a 17% decrease quarter-on-quarter.The company reported a net cash position of ₹2.1 billion in Q1 FY26, compared to ₹3.1 billion at the end of FY25. ROCE for Q1 FY26 was 28.6%, compared to 24.5% in FY25, and ROE was 21.9%, compared to 19.4% in FY25. Net working capital days stood at 6 in Q1 FY26, compared to 0 days in FY25.De-commoditizing Product Portfolio
APL Apollo Tubes has strategically shifted its focus towards value-added products. The application sales mix for Q1 FY26 shows that heavy structural products accounted for 9% of sales volume with an EBITDA/Ton of ₹8,382, while Apollo Structural Light contributed 16% with an EBITDA/Ton of ₹5,415. General products made up 39% of sales volume with an EBITDA/Ton of ₹2,741, and rust-proof products accounted for 24% with an EBITDA/Ton of ₹5,437. Apollo Z Coated contributed 8% with an EBITDA/Ton of ₹5,971, and Apollo Galv Agri/Industrial accounted for 4% with an EBITDA/Ton of ₹5,078.Comparing FY25 with previous years, heavy structural products increased from 6% in FY21 to 9% in FY25, Apollo Structural Light increased from 21% to 17%, General products decreased from 43% to 42%, and Apollo Z Rust-proof decreased from 25% to 21%. Apollo Coated increased from 0% to 6%, and Apollo Galv Agri/Industrial remained relatively stable at around 4%.Capacity Expansion PlanAPL Apollo Tubes has outlined a capacity expansion plan to reach 6.8 million tons by FY28. This includes existing capacity of 4.5 million tons, brownfield expansion of 0.8 million tons, and greenfield expansion of 1.0 million tons. The company plans to invest ₹15 billion over the next three years. Expansions include international projects in Dubai (200,000 tons), Raipur (roofing sheets - 500,000 tons, heavy - 100,000 tons), East (Gorakhpur - 200,000 tons, Kolkata - 300,000 tons), West (Bhuj - 300,000 tons), and South (New Malur - 360,000 tons). Additionally, existing lines will be shifted, adding 160,000 tons of capacity. A significant portion of the expansion will focus on speciality tubes, targeting major applications in structural, oil & gas, water, and mechanical sectors.Demand Drivers and Market PotentialStructural steel tube applications constitute a significant portion of APL Apollo's revenue. As of Q1 FY26, the application mix includes housing (64%), commercial buildings (19%), infrastructure (13%), and others (4%). The Indian structural steel tube market has substantial potential, with structural steel tubes accounting for 6.5% of the total steel market in FY24. The company anticipates this share to increase to 8.3% by 2030. The HR Coil based steel tube market, which is APL Apollo's primary focus, is expected to grow faster than the scrap steel-based tube market due to superior quality and better cost efficiencies.The solar structure segment presents another significant opportunity, with potential applications in residential rooftop and ground-mounted solar power installations. By 2030, the market opportunity for APL Apollo products in the solar sector is estimated to be 830,000 tons of tubes and 360,000 tons of Alu Zinc coated sheets.ESG Initiatives
APL Apollo Tubes is committed to ESG practices and has set a target to reduce Scope 1 & 2 emissions by 25% by 2030 and achieve Net Zero by 2050. The company has calculated its GHG inventory for Scope 1, 2, and 3 emissions and is working on renewable energy installations in its plants. APL Apollo achieved SBTi validation on February 27, 2025, for its near-term and net-zero targets. The company's DJSI score reached a high of 49 points, placing it in the 89th percentile among global companies in its peer industry.