APL Apollo Tubes Q2 FY27 Volume Hits 960,000 Tonnes

APL Apollo Tubes Limited has released the audio recording of its October 26, 2026 earnings conference call, held after the company announced unaudited results for the quarter and half year ended September 30, 2026. The call was hosted by ICICI Securities and included senior management led by Chairman and Managing Director Sanjay Gupta. Management described Q2 FY27 as the company’s strongest quarter on sales volume, EBITDA and net profit. The key disclosed operating metric was quarterly sales volume of 960,000 tonnes. APL Apollo said it achieved the volume despite disruption in its UAE operations, domestic steel shortages, raw-material price swings and container-trade issues affecting exports.

Record quarterly volume reported

The 960,000-tonne volume was presented as a record quarterly performance for APL Apollo. Management said the company focused on its core branded product portfolio to navigate difficult operating conditions. According to Chief Strategy Officer Anubhav Gupta, products sold under the APL Apollo category received better pricing, realisations and EBITDA spreads. Roofing products were also identified as an important contributor to volume growth and margins. The company said APL Apollo and roofing product volumes rose 20% year on year during the first half. It expects this momentum to continue into the second half with double-digit volume growth.

EBITDA per tonne reaches ₹6,000

APL Apollo reported EBITDA of ₹6,000 per tonne in Q2 FY27. Management said this level was more sustainable than the margin peak seen in Q2 FY23. It attributed the current performance to brand-led pricing, a higher value-added product mix and operating leverage. The company indicated that quarterly utilisation was about 70% to 75%, based on the 960,000-tonne sales volume. Anubhav Gupta said management expected the Q2 margin level to repeat in Q3 FY27. Sanjay Gupta stated during the call that Q3 should be better than the reported quarter.

FY27 EBITDA target remains unchanged

Management retained its target of 20% growth in absolute EBITDA for FY27. The company expects full-year EBITDA of ₹2,100 crore to ₹2,200 crore by March 2027. It said higher value-added sales and better pricing support the target. The guidance is based on the company’s stated operating plan and does not include undisclosed revenue or earnings-per-share results. APL Apollo also maintained its 15% growth guidance for its profitable APL Apollo brand and roofing businesses. Management said these product categories remained central to its volume and profitability strategy.

UAE disruption weighs on operations

The company said its UAE operations remained disrupted because of the ongoing situation in the Middle East. Export activity was also affected by disruption in container trade. These factors limited the contribution from international operations during the quarter. However, management said its domestic branded and roofing businesses helped offset the operational constraints. It also cited a shortage of steel in domestic markets and sharp movements in raw-material prices as challenges during Q2. The company did not provide a quantified financial impact of these disruptions in the supplied information.

Dubai expansion continues

APL Apollo said brownfield expansion in Dubai continued despite the disruption. Two new high-margin mills are expected to increase Dubai capacity to 0.5 million tonnes by March 2027. Management said this capacity could generate EBITDA of ₹8,000 to ₹10,000 per tonne. Once conditions normalise, the company expects to ramp up quarterly volumes from the expanded capacity to 200,000 to 400,000 tonnes. This outlook is conditional on a stable geopolitical situation, as stated during the call. The company has not indicated a specific date for normalisation of UAE operations.

Balance-sheet position improves

Management said working-capital days remained at zero at the end of September 2026. Cash on the books increased 15% to ₹1,600 crore, compared with ₹1,400 crore at the end of the June quarter. This indicates a ₹200 crore sequential increase in cash balances based on the figures disclosed on the call. The company did not provide further debt, capex or cash-flow details in the supplied material. Still, the cash position and zero working-capital days were highlighted as part of management’s update on financial discipline.

Key figures from the conference call

Disclosure under SEBI regulations

The audio recording was made available under Regulation 30 of the Securities and Exchange Board of India’s Listing Obligations and Disclosure Requirements. The disclosure gives shareholders and market participants access to management’s discussion of quarterly results and business conditions. APL Apollo had also informed the exchange about the transcript of its August 3, 2026 conference call on August 5. The October 26 recording relates to the Q2 FY27 call and the quarter ended September 30, 2026. The company did not provide actual revenue or EPS figures in the material supplied for this report.

Market relevance and outlook

The Q2 update places attention on APL Apollo’s ability to sustain volume growth and ₹6,000-per-tonne EBITDA amid supply-chain and geopolitical disruptions. Management’s comments point to branded products, roofing sales and value-added mix as the main supports for performance. The retained EBITDA target of ₹2,100 crore to ₹2,200 crore provides the company’s formal operational benchmark for FY27. Its Dubai expansion remains a relevant future capacity milestone, with completion targeted by March 2027. Investors will also track the company’s next financial disclosures for updates on UAE operations, exports, utilisation and the FY27 guidance.