APL Apollo Q3 Profit Jumps 43%; Stock Hits Record High

Introduction

Shares of APL Apollo Tubes surged to an all-time high on Friday, January 23, 2026, following the announcement of robust financial results for the third quarter ended December 2025. The company reported a significant 42.9% year-on-year increase in net profit, which fueled strong buying interest and prompted several brokerage firms to upgrade their ratings and target prices for the stock.

Stellar Quarterly Performance

APL Apollo Tubes delivered a strong performance in Q3 FY26, showcasing significant growth across key financial metrics. The company's consolidated net profit stood at ₹310 crore, a substantial increase from the ₹217 crore reported in the same quarter of the previous fiscal year. This growth was supported by a 7% rise in revenue from operations, which climbed to ₹5,815 crore from ₹5,433 crore year-on-year.

The operational efficiency of the company also saw marked improvement. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) jumped 36.5% to ₹472 crore, compared to ₹346 crore in the corresponding period last year. Consequently, the EBITDA margin expanded by 170 basis points, moving from 6.4% in Q3 FY25 to 8.1% in Q3 FY26. This performance was underpinned by a record sales volume of 916,976 tonnes for the quarter.

Financial Performance Breakdown

Market Reacts with Enthusiasm

The strong financial report card was well-received by the market. APL Apollo Tubes' shares gained 4.9% during the trading session, reaching a new all-time high of ₹2,069.9 per share on the BSE. The stock was trading 3.73% higher at ₹2,046 per share around 9:36 AM, significantly outperforming the BSE Sensex, which was up by a marginal 0.09%.

Brokerages Upgrade Outlook

Following the impressive results, several leading brokerage firms reiterated their bullish stance on APL Apollo Tubes, upgrading their recommendations and raising their price targets. The positive sentiment is based on the company's strong execution, improving fundamentals, and clear growth visibility.

Elara Capital upgraded its rating from 'Accumulate' to 'Buy' and increased its target price to ₹2,418. The firm cited near-term support from channel restocking amid rising steel prices and long-term growth sustained by capacity additions and a dual-brand strategy. Elara Capital also raised its valuation multiple for the stock from 30x to 35x.

Motilal Oswal Financial Services maintained its 'Buy' rating, raising the target price to ₹2,350. Analysts at the firm expect the company's profit growth to mirror its volume momentum, driven by better demand, capacity expansion, and a rising share of value-added products. They forecast a robust compound annual growth rate (CAGR) in revenue (14%), EBITDA (31%), and PAT (35%) over FY25-28.

IDBI Capital also upgraded its rating from 'Hold' to 'Buy', setting a new target price of ₹2,260. The brokerage noted that the Q3 performance exceeded expectations on all key parameters and highlighted the management's ambitious growth plans.

Analyst Recommendations Summary

Management's Ambitious Growth Plans

The company's management has laid out a clear and aggressive roadmap for future growth. APL Apollo Tubes plans to expand its manufacturing capacity from the current 5 million tonnes to 8 million tonnes by FY28, and further to 10 million tonnes by FY30. This expansion will be a mix of greenfield and brownfield projects.

Reflecting this confidence, the management has revised its volume growth guidance upward from a 10-15% range to a solid 20% for the fourth quarter of FY26 and for the full fiscal year FY27. Additionally, the target for EBITDA per tonne has been increased from ₹5,000 to ₹5,500, signaling expectations of improved profitability.

Analysis and Outlook

The strong quarterly numbers and subsequent stock rally are not isolated events but are backed by a solid strategic foundation. The company is effectively capitalizing on demand from the infrastructure and construction sectors. The upward revision in guidance and the planned capacity expansion indicate a proactive approach to capturing a larger market share. The consensus among analysts is that the combination of volume growth, margin improvement through a better product mix, and operational leverage will continue to drive earnings. The stock's valuation multiples are being revised upwards, reflecting the market's confidence in its long-term growth story.

Conclusion

APL Apollo Tubes' exceptional Q3 FY26 performance has solidified its position as a market leader. The significant jump in profitability and the enthusiastic market response, culminating in a new all-time high for its stock, underscore the company's robust health. With clear plans for capacity expansion and strong backing from the analyst community, APL Apollo appears well-positioned to maintain its growth trajectory in the coming years.