Apollo Pipes H1FY27 Revenue Rises 18% as EBITDA Falls 60%

Apollo Pipes Limited reported H1FY27 revenue of Rs 605.1 crore, up 18% year on year, but earnings before interest, tax, depreciation and amortisation (EBITDA) fell 60% to Rs 14.5 crore and the company posted a Rs 6.6 crore net loss after minority interest, against a Rs 9.8 crore profit in H1FY26.

Why did Apollo Pipes report a loss despite higher H1FY27 revenue?

Apollo Pipes reported a loss because operating profit declined sharply even as revenue and sales volume increased in H1FY27. Sales volume rose 4% year on year to 48,978 tonnes, while revenue increased 18% to Rs 605.1 crore. EBITDA fell from Rs 36.0 crore in H1FY26 to Rs 14.5 crore, and the EBITDA margin contracted by 473 basis points to 2.4% from 7.1%.

The presentation does not assign a single reason for the decline, but its consolidated profit and loss statement records expenditure increasing faster than revenue. Total expenditure rose to Rs 590.6 crore in H1FY27 from Rs 474.4 crore in H1FY26. Raw-material expense increased to Rs 443.7 crore from Rs 352.4 crore, employee expense rose to Rs 56.4 crore from Rs 48.4 crore, and other expenses increased to Rs 90.4 crore from Rs 74.8 crore.

Depreciation also increased to Rs 30.8 crore in H1FY27 from Rs 27.2 crore a year earlier, while finance costs rose to Rs 5.9 crore from Rs 5.1 crore. The result was a profit after tax, after minority interest, loss of Rs 6.6 crore, compared with a Rs 9.8 crore profit in H1FY26. Revenue growth of Rs 94.4 crore therefore did not convert into higher operating or net earnings.

Did Apollo Pipes recover sequentially in Q2FY27?

Apollo Pipes recovered sequentially in Q2FY27, with EBITDA rising to Rs 11.5 crore from Rs 3.0 crore in Q1FY27 and profit after tax after minority interest returning to Rs 2.0 crore from a Rs 8.6 crore loss. Consolidated revenue increased 5% quarter on quarter to Rs 309.6 crore from Rs 295.4 crore, while sales volume was largely flat at 24,501 tonnes versus 24,477 tonnes.

The sequential rise lifted EBITDA margin to 3.7% in Q2FY27 from 1.0% in Q1FY27, a gain of 268 basis points. Cash profit increased to Rs 17.9 crore from the preceding quarter, according to the presentation. However, the recovery did not restore year-on-year operating profitability: Q2FY27 EBITDA was 27% below Rs 15.8 crore in Q2FY26, and margin was 297 basis points below the prior-year quarter's 6.7%.

The presentation separately shows Q2FY27 operations for Apollo Pipes excluding Kisan Mouldings and for Kisan Mouldings. Apollo Pipes excluding Kisan Mouldings recorded Rs 14 crore of EBITDA on Rs 253 crore of total income from operations, producing a 5.7% EBITDA margin. Kisan Mouldings recorded negative EBITDA of Rs 2 crore on Rs 65 crore of income, with a negative 2.9% margin; the company notes that inter-company sales and volume are adjusted in consolidated results.

How did Apollo Pipes' debt, cash flow and working capital change?

Apollo Pipes' net debt increased to Rs 98 crore at H1FY27 from Rs 40 crore at FY26, mainly alongside a reduction in cash and bank balances to Rs 19 crore from Rs 84 crore. Reported debt declined to Rs 117 crore from Rs 123 crore over the same period. The presentation records total assets of Rs 1,312 crore at H1FY27, compared with Rs 1,286 crore at FY26.

Operating cash flow was Rs 36 crore in H1FY27, compared with Rs 68 crore in FY26, while H1FY27 EBITDA was Rs 15 crore. Capital expenditure was Rs 45 crore and investments were Rs 39 crore during the half year. After interest of Rs 6 crore, the company reported free cash flow of negative Rs 55 crore and a net cash-flow reduction of Rs 58 crore.

Net working capital days improved to 40 days on a consolidated basis in H1FY27 from 45 days in FY26. Receivables increased to Rs 106 crore from Rs 104 crore, inventories rose to Rs 249 crore from Rs 242 crore, and trade payables increased to Rs 204 crore from Rs 191 crore. Return on capital employed was 1.1% in FY26 versus 6.6% in FY25, while return on equity was 0.8% versus 4.2%.

What expansion and revenue targets has Apollo Pipes disclosed?

Apollo Pipes has stated that it aims to deliver revenue compound annual growth of more than 25% over the next three years and is targeting revenue growth of around 25% or more in FY27. Its listed FY27 priorities include improving utilisation at existing manufacturing facilities, expanding its Pan-India footprint and undertaking phase-wise expansion at existing facilities over the next few quarters.

The company disclosed available capacity of 240,000 tonnes, comprising 179,000 tonnes at existing Apollo Pipes plants, 58,000 tonnes at Kisan Mouldings and 3,000 tonnes in window and door profiles. The plan includes 20,000 tonnes of ongoing expansion, including an 18,000-tonne Varanasi greenfield plant by FY27 and 2,000 tonnes of window and door profile capacity by FY27.

Apollo Pipes also identified 28,000 tonnes of brownfield expansion, taking its stated total capacity target to 288,000 tonnes within two years. The company said its primary utilisation focus is on Dadri, Ahmedabad, Bengaluru and Raipur. Separately, it disclosed a Rs 300 crore overall investment plan for the Mazzini Tiles LLP acquisition through Apollo Ceramics Limited, including Rs 40.42 crore of acquisition consideration for a 76% stake and profit-sharing rights.

Conclusion

Apollo Pipes' H1FY27 results show higher revenue and modest volume growth alongside lower earnings conversion. Revenue rose 18% and volume increased by 1,979 tonnes, but EBITDA declined by Rs 21.5 crore, margin fell to 2.4%, and the company moved from a Rs 9.8 crore profit to a Rs 6.6 crore loss. Q2FY27 showed a sequential improvement, although its EBITDA and margin remained below Q2FY26.

The next developments to watch are Apollo Pipes' stated FY27 revenue-growth target of around 25% or more, the planned 18,000-tonne Varanasi capacity addition by FY27, and phase-wise brownfield expansion at existing facilities. The presentation also identifies utilisation improvement at Dadri, Ahmedabad, Bengaluru and Raipur as a priority, while net debt stood at Rs 98 crore at H1FY27.