/** blogpostTitle: "APL Apollo Q4FY26: Record Quarter, Cash-Rich Balance Sheet, and an 8 Mn Ton Roadmap" blogpostSlug: "apl-apollo-q4" blogpostShortTitle: "APL Apollo Q4FY26 record profits, net cash" blogpostCoverImageDescription: "An ultra-realistic corporate finance scene showing a clean dashboard on a large monitor with three rising trend lines for annual sales volume, EBITDA, and net profit across five years, alongside a separate gauge indicating net cash increasing sharply. In the background, a minimalistic industrial setting hints at steel tube manufacturing with abstract metallic textures and factory silhouettes. A secondary chart shows capacity rising from 5 to 8 million tons by FY28 as stacked bars. No logos or text labels, neutral lighting, professional financial aesthetic." */

APL Apollo Q4FY26: Record Quarter, Cash-Rich Balance Sheet, and an 8 Mn Ton Roadmap

APL Apollo Tubes ended Q4FY26 with its highest ever quarterly sales volume, EBITDA, and profit. In a year marked by geopolitical tensions and supply disruptions, the company still delivered record operating performance and finished FY26 with a net cash balance.

For Q4FY26, consolidated sales volume stood at 924,881 tons, up 9% year-on-year. Net revenue rose to INR 6,269 crore, up 14% year-on-year, while EBITDA increased 24% to INR 511 crore. EBITDA per ton improved to INR 5,525. Net profit for the quarter was INR 354 crore, up 21% year-on-year.

FY26 performance was stronger on nearly every metric. Consolidated volume increased 11% to 3,491,243 tons and net revenue grew 12% to INR 23,079 crore. EBITDA expanded 50% to INR 1,802 crore, with EBITDA per ton at INR 5,161. Profit after tax rose 59% to INR 1,203 crore. The company also reported net working capital at zero days for FY26, unchanged from FY25.

The quarter that delivered, despite disruption

Management described FY26 as volatile, with conditions deteriorating after late February due to the Middle East crisis. On the earnings call, the company highlighted multiple moving parts: raw material shortages in India, disruption to global supply chains, and destocking by channel partners driven by fears of raw material price correction.

Dubai operations were called out as a key area impacted by the crisis, operating at around 40% utilization. In India, temporary energy constraints affected certain product categories. Management said two product categories, rust-proof pipes and coated products, faced shutdowns at some locations for 10 to 15 days in March, before plants shifted to alternate fuels.

Even with these headwinds, management emphasized that the focus has shifted toward protecting profitability rather than pushing volume at any cost. They repeatedly pointed to market leadership and brand strength as enablers of better pricing and margin resilience.

Mix, pricing power, and what drove margins

APL Apollo’s quarterly mix data shows a portfolio split across Apollo Structural, Apollo Z, and Apollo Galv categories. In Q4FY26, Apollo Structural general category accounted for 45% of volume, while rust-proof contributed 21% and coated products 6%. Heavy structural was 9% and light structural was 15%.

A notable point in the quarter was that value-added sales mix reduced slightly to 55% from 57% in Q3FY26, yet EBITDA per ton rose to an all-time high. Management addressed this on the call. They attributed profitability to stronger pricing in the general category, driven by brand premium and earlier pricing actions, alongside ongoing cost rationalization.

The quarterly table also highlights that value-added categories such as rust-proof and coated products delivered significantly higher EBITDA per ton than general products. For Q4FY26, rust-proof EBITDA per ton was INR 7,261 and coated was INR 8,047, while heavy structural was INR 9,010.

The company also shared that SG Premium volumes were around 8% to 9% of total volumes in Q4FY26.

Cash generation and balance sheet strength

A central theme of FY26 was cash. The company reported FY26 operating cash flow of INR 2,002 crore, up from INR 1,212 crore in FY25. Capex for FY26 was INR 652 crore, broadly similar to the prior year. Free cash flow rose sharply to INR 1,336 crore, compared with INR 375 crore in FY25.

The cash flow bridge in the presentation shows FY26 net cash rising from INR 305 crore to INR 1,532 crore, supported by strong operating cash flow, controlled capex, and net investment inflows.

Management also discussed how the cash build-up accelerated within Q4. On the call, they linked this to inventory rationalization through SKU consolidation, which reduced inventory hold-up across plants, and to improved payment terms from creditors.

Importantly, the company reiterated that capex is being funded through internal cash flows. Net debt metrics support this, with FY26 net debt to EBITDA at negative 0.9x and net debt to equity at negative 0.3x, reflecting a net cash position.

The roadmap: 8 Mn Ton capacity by FY28

APL Apollo reiterated that its long-term plan remains on track. The presentation outlines a capacity expansion from 5 Mn Ton to 8 Mn Ton of structural steel capacity by FY28.

The plan includes:

• Existing capacity of 5 Mn Ton
• 2 Mn Ton via greenfield and brownfield additions in East India (Gorakhpur and Siliguri), South (Malur), and a western coastal area
• 1 Mn Ton through debottlenecking and modernization, including replacement of conventional mills with faster, more efficient mills

On the earnings call, management guided annual capex of around INR 500 to 600 crore for FY27. They also stated that the total remaining capex for the 8 Mn Ton plan is around INR 1,400 to 1,500 crore, to be completed over the next 2 to 2.5 years.

Beyond capacity, management called out expansion in East India as a strategic push. They said two plants in East India should help the company compete more intensively with local smaller players, with results expected over the next one to two years as the plants become operational.

Guidance and management priorities for FY27

While management acknowledged that near-term volume prediction is difficult, they maintained yearly targets.

For FY27, management reiterated guidance of:

• Volume growth of 15% to 20%
• EBITDA growth of 20% to 25%
• PAT growth of 25% to 30%

They also indicated a preference to protect EBITDA per ton and absolute EBITDA even if volumes fluctuate.

Capital allocation also came up. Management said net liabilities were around INR 500 crore and they aim to eliminate these in Q1 and Q2. After that, they indicated that surplus cash could be used to increase dividends or consider a buyback.

Takeaways

APL Apollo’s FY26 story is built on three pillars: record profitability, strong cash conversion, and a clear expansion plan. Q4FY26 demonstrated pricing power and margin resilience even in a disrupted environment, while FY26 validated the strength of the working capital model with zero working capital days and a net cash balance sheet.

The near-term environment remains uncertain, with management highlighting risks from energy disruptions, raw material shortages, and regional issues impacting Dubai utilization. But the company has kept its medium-term commitments unchanged, including the 8 Mn Ton capacity target by FY28 and a growth guidance framework for FY27.

For investors tracking execution, the key monitorables from here are volume recovery as supply normalizes, the pace of East and South capacity additions, and whether the current margin profile can remain in the guided INR 5,000 to INR 5,500 per ton band that management described as sustainable over the long term.