APL Apollo Tubes Q3 Volumes Surge 11% to Record 9.1 Lakh Tonnes

Introduction

APL Apollo Tubes Ltd., a leading structural steel tube manufacturer, announced its highest-ever quarterly sales volume for the third quarter of fiscal year 2026. The company reported sales of 9,16,976 tonnes, marking an 11% year-on-year increase. This performance highlights sustained demand from key sectors like infrastructure and housing, signaling a robust operational period for the company. The positive results were well-received by the market, with the company's shares gaining shortly after the announcement.

Record-Breaking Quarterly Performance

In a regulatory filing, APL Apollo detailed its landmark achievement for the quarter ending December 31, 2025. The sales volume of 9,16,976 tonnes is a new benchmark for the company. This figure represents a significant 11% growth compared to the 828,200 tonnes sold in the same quarter of the previous fiscal year. The growth momentum was also evident on a sequential basis, with volumes increasing by 7% from the 8,55,037 tonnes recorded in the second quarter of FY26. This consistent upward trend underscores the company's ability to effectively scale its operations and meet growing market needs.

Sustained Growth Over Nine Months

The strong performance in the third quarter contributed to impressive cumulative results for the first nine months of the fiscal year. For the period ending in December, APL Apollo reported total sales volumes of 2.57 million tonnes. This marks an 11% growth over the corresponding nine-month period in the previous year, indicating that the demand drivers have been consistent throughout the fiscal year. This sustained growth trajectory reinforces the company's market leadership and its successful execution of its business strategy.

Broad-Based Demand Fuels Growth

The record sales figures are attributed to strong and widespread demand from several critical sectors of the Indian economy. The primary drivers include ongoing infrastructure projects, a resilient real estate market, and increased activity in rural housing. Furthermore, steady industrial consumption has provided additional support, reflecting a healthy economic environment. The company stated that this broad-based demand from both urban and rural markets has been instrumental in achieving these record volumes, showcasing the diverse applications of its product portfolio.

Strong Performance Across Product Segments

The growth was not limited to a single category but was visible across the company's diverse product range. The core general structural tubes segment, a major contributor to sales, recorded volumes of 3,92,136 tonnes in the third quarter. A notable highlight was the performance of its value-added product lines. The Apollo Z rust-proof range, a key high-margin segment, saw its sales volume jump to 1,99,208 tonnes, a sharp increase from the 1,65,635 tonnes sold in the same period a year earlier. Other categories, such as coated products and agri/industrial galvanised tubes, also registered healthy growth, indicating strong market traction.

Strategic Initiatives Paying Off

APL Apollo's robust performance is also a result of its focused strategic initiatives. The company has been actively expanding its distribution network, which has enhanced its market penetration and ensured wider product availability across the country. A strategic push towards increasing the share of branded steel products in its sales mix has also paid dividends, strengthening brand recognition and customer loyalty. These efforts, combined with a focus on improving the product mix towards more value-added offerings, have been crucial in driving both volume and value growth.

Company's Operational Scale

APL Apollo's ability to meet the surging demand is backed by its substantial manufacturing capabilities. The company operates 11 manufacturing plants across India and overseas, with a combined annual capacity of 4.5 million tonnes. This large-scale, geographically diversified manufacturing footprint allows the company to serve various regional markets efficiently, reduce logistics costs, and maintain a competitive edge. This operational strength is fundamental to its strategy of scaling volumes while simultaneously enhancing its product offerings.

Positive Market Reaction

Investors responded favorably to the news of the record sales volumes. Following the announcement, the shares of APL Apollo Tubes Ltd. gained on the stock exchange. The stock was trading 2.36% higher at ₹1,959.20 during midday trading on the day of the announcement. This positive movement in the share price reflects investor confidence in the company's operational strength, its growth prospects, and its ability to capitalize on the positive momentum in its end markets.

Conclusion

APL Apollo Tubes' record-breaking sales volume in Q3FY26 is a clear indicator of its strong market position and the buoyant demand environment for structural steel products in India. The 11% year-on-year growth was driven by a combination of robust demand from key sectors, successful strategic initiatives, and strong operational execution. With a solid performance over the first nine months of the fiscal year and continued momentum in infrastructure and housing, the company appears well-positioned to maintain its growth trajectory in the coming quarters.