- Revenue and EBITDA rise despite lower sales volumes.
- Value-added products and structural tubes support profitability outlook.
APL Apollo Tubes reported a mixed operating performance in Q1 FY27, with revenue and EBITDA increasing y-o-y despite a decline in sales volumes. The lower volumes remained a key constraint during the quarter, indicating softer underlying demand. However, improved EBITDA per tonne helped offset the impact of lower volumes and supported overall profitability.
Revenue performance
Consolidated net revenue increased 8% y-o-y to INR 5,607 crore in Q1 FY27 from INR 5,170 crore in Q1 FY26. However, revenue declined 11% q-o-q from INR 6,269 crore in Q4 FY26, in line with the lower quarterly sales volume.
Volume remains under pressure
Sales volume declined 6% y-o-y and 19% q-o-q to 745,000 t in Q1 FY27. APL Apollo Brand volumes fell to 568,691 t from 640,258 t in Q1 FY26, while UAE operations declined to 25,929 t from 48,162 t.
Roofing products remained relatively stable at 91,516 t compared with 91,788 t a year earlier. Meanwhile, SG Premium Brand volumes increased to 58,686 t from 14,141 t in Q1 FY26.
Overall, sales volume declined from 794,000 t in Q1 FY26 and 925,000 t in Q4 FY26. Despite the lower volumes, EBITDA per tonne improved to INR 5,522/t from INR 4,683/t in Q1 FY26, indicating stronger per-tonne profitability.
EBITDA improves despite lower volumes
EBITDA increased 11% y-o-y to INR 411 crore from INR 372 crore in Q1 FY26. EBITDA per tonne also rose to INR 5,522/t from INR 4,683/t. EBITDA per tonne also rose 18% y-o-y to INR 5,522/t from INR 4,683/t.
However, EBITDA declined from INR 511 crore in Q4 FY26, reflecting the sequential decline in sales volumes. The improvement in per-tonne profitability helped support EBITDA growth despite the lower volumes.
Net profit increased 11% y-o-y to INR 263 crore in Q1 FY27, further reflecting the improvement in profitability despite the decline in sales volumes.
Focus on value-added products
APL Apollo continues to focus on value-added products as part of its business strategy. The company highlighted products generating EBITDA of more than INR 5,000/t, with the strategy aimed at improving product mix and supporting profitability.
The company is also focusing on expanding its presence in the structural steel tube segment, particularly in the HR coil-based steel tube market. APL Apollo sees strong potential in this segment, supported by the quality and cost efficiencies offered by HR coil-based tubes, along with the expected increase in HR coil availability. The company also highlighted pollution concerns associated with local and unorganised sponge iron melting mills, which could further support the shift towards HR coil-based steel tubes.
Structural steel tube market outlook
APL Apollo expects India’s structural steel tube market to expand from 10 million tonnes (mnt) in FY26 to 18.3 mnt by FY31. The company also expects structural steel tubes to account for a higher share of India’s overall steel consumption, increasing from 6% in FY26 to 8% by FY31.
The company sees structural steel tubes as well positioned to benefit from the real estate and construction cycle, with applications across housing, commercial buildings and infrastructure. It is also targeting opportunities in heavy structural steel tubes and solar structures.
Outlook and expansion
For the coming quarters, volume recovery and continued growth in value-added products will remain key factors for APL Apollo’s performance. The company’s focus on value-added products is expected to support profitability as it expands its presence across structural steel tube applications.
The company is also pursuing capacity expansion as part of its longer-term growth strategy, with a focus on strengthening its product portfolio and increasing its presence in markets where structural steel tubes can replace conventional applications.
The near-term performance will therefore remain linked to the recovery in sales volumes, while the company’s focus on value-added products and structural steel tube applications will remain important for sustaining per-tonne profitability.
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