APL Apollo Tubes: Forging Ahead with Record Performance and Strategic Expansion in Q2 FY26

APL Apollo Tubes Limited, India's leading structural steel tube manufacturer, has once again demonstrated remarkable resilience and strategic foresight, delivering its best-ever quarterly performance in Q2 FY26. Despite navigating a challenging macroeconomic landscape marked by extended monsoons, global trade uncertainties, and a subdued construction material industry, the company achieved all-time highs in sales volume, EBITDA, and Profit After Tax (PAT). This stellar performance underscores APL Apollo's robust operational capabilities and its unwavering commitment to growth and efficiency.

The company reported a sales volume of 855,037 tons, marking a 13% year-on-year (YoY) increase and an 8% quarter-on-quarter (QoQ) increase. Net revenue stood at INR 5,206.3 crore, a 9% YoY and 1% QoQ increase. EBITDA surged to INR 447 crore, a significant 224% YoY and 20% QoQ rise, translating to an EBITDA per ton of INR 5,228, up 187% YoY and 12% QoQ. Net profit reached INR 301.5 crore, an impressive 461% YoY and 27% QoQ growth. This exceptional performance was driven by strong capacity utilization in key plants like Raipur and Dubai, coupled with an expanding value-added product mix and effective operating leverage.

Financial Highlights: Q2 FY26 vs. Q2 FY25

Management highlighted that the brand power of APL Apollo played a crucial role in expanding EBITDA spreads, particularly in the general category, which saw its EBITDA per ton almost double to INR 3,400 in recent quarters. The company's strategic decision to increase selling prices for these products in January 2025 was successfully absorbed by the market, further contributing to margin expansion. The value-added mix improvement, particularly from the Dubai and Raipur plants, where EBITDA per ton is above INR 5,500-6,000, also significantly boosted profitability.

Strategic Initiatives and Future Outlook

APL Apollo is not resting on its laurels. The company is aggressively pursuing a capacity expansion plan, aiming to reach 6.8 million tons by FY28 from the current 4.5 million tons. This includes a INR 1,500 crore capital expenditure over the next three years, fully funded through internal cash flows, a testament to its strong financial health. The expansion encompasses brownfield projects in Dubai and Raipur, greenfield initiatives in Gorakhpur, Kolkata, Bhuj, and New Malur, and dedicated capacity for speciality tubes.

Beyond capacity, the company is focused on product innovation and market diversification. New product launches, such as the 1000x1000 tube for heavy construction and solutions for the renewable energy sector, are opening new avenues for growth. The 'Steel for Green' concept, which promotes steel doorframes, fences, and handrails as sustainable alternatives to wood, is projected to save 250,000 trees annually. The company's international expansion, particularly with the Dubai plant and planned warehouses in Europe, is expected to further boost volumes and EBITDA margins.

ESG Commitment and Operational Excellence

APL Apollo's commitment to sustainability is a core pillar of its strategy. The company has pledged to achieve Net Zero greenhouse gas emissions by 2050 and reduce Scope 1 and 2 emissions by 25% by 2030, with SBTi validation already secured. Its renewable energy contribution is targeted to reach 47% by 2030. Operational excellence is also evident in its working capital management, which stood at 0 days as of September 2025, reflecting disciplined capital allocation and strong cash conversion.

Management's Confident Outlook

Management expressed confidence in sustaining a 10%-15% volume growth CAGR over the next 3-4 years, with EBITDA growth expected to outpace volume growth (15%-20%). They anticipate the second half of FY26 to be stronger than the first, with Q3 and Q4 targets of 9 lakh tons and 9.2-9.5 lakh tons, respectively, and an EBITDA per ton of INR 5,000-5,200. The company's robust distribution network, diversified product portfolio, and strong brand pull position it favorably to capitalize on India's infrastructure growth story.

APL Apollo's Q2 FY26 performance is a clear indicator of its strategic clarity and disciplined execution. By focusing on brand premiumization, capacity expansion, product innovation, and sustainability, the company is not only delivering strong financial results but also building a resilient and future-ready enterprise in the Indian steel tube market.