Apollo Pipes Limited gains tiles control in Rs 40.42 crore deal

Apollo Pipes Limited gained indirect control of Mazzini Tiles LLP during the quarter ended September 30, 2026, after its new wholly owned subsidiary acquired a 76% interest for Rs 40.42 crore. The transaction adds a tiles business to the group, although Plastic Products remained its only reportable segment at September 30, 2026.

How did Apollo Pipes acquire control of Mazzini Tiles?

Apollo Pipes acquired control through Apollo Ceramics Limited, a wholly owned subsidiary incorporated on September 17, 2026. Apollo Ceramics acquired a 76% interest in Mazzini Tiles on September 18, 2026, giving Apollo Pipes an indirect controlling interest through the group.

The consideration for the 76% interest was Rs 40.42 crore. Mazzini Tiles is consequently a step-down subsidiary of Apollo Ceramics, while the remaining 24% interest is held by non-controlling owners. The filing identifies Apollo Ceramics as 100% owned by Apollo Pipes and records the Mazzini Tiles transaction in the September 2026 quarter.

Apollo Pipes said the financial statements of both Apollo Ceramics and Mazzini Tiles were consolidated from the respective dates on which control was obtained. It evaluated the acquisition under Indian Accounting Standard 103, which covers business combinations, including whether the LLP constitutes a business, and said the accounting treatment followed the applicable Indian Accounting Standards.

What business does the Mazzini Tiles acquisition add?

The acquisition adds a tiles operation to a group that is primarily engaged in manufacturing and selling plastic products. Apollo Pipes specifically disclosed that the group operates a tiles business as of the quarter ended September 30, 2026, alongside its plastic-products activities.

Tiles did not meet the quantitative thresholds for separate reportable-segment disclosure in the September 2026 results. Based on the operating-results review by the Chief Operating Decision Maker, Apollo Pipes reported one segment, Plastic Products, and did not provide separate tiles revenue, profit, assets or liabilities.

This means the filing establishes the control structure and purchase consideration but does not disclose operating data for Mazzini Tiles. There is no separate figure for its sales, earnings, production capacity, customer base or geographic presence for the period from September 18, 2026 to September 30, 2026.

What changed in Apollo Pipes' consolidated group?

Apollo Pipes added Apollo Ceramics and Mazzini Tiles to its consolidated structure during the September 2026 quarter. The filing lists Kisan Moulding Limited, including KML Tradelinks Private Limited, as existing consolidated entities, and adds Apollo Ceramics, including Mazzini Tiles, to that group.

The two-step structure was completed across September 17 and September 18, 2026. Apollo Ceramics was formed with 100% ownership by Apollo Pipes on the first date, and acquired the 76% Mazzini Tiles interest on the following date, creating control without full ownership of the LLP.

The consolidated balance sheet reported non-controlling interest of Rs 83.10 crore at September 30, 2026, compared with Rs 73.87 crore at March 31, 2026. That was an increase of Rs 9.22 crore, but the filing does not attribute the full movement solely to the 24% interest in Mazzini Tiles.

How does the transaction compare with Apollo Pipes' financial position?

Apollo Pipes reported purchase of investments of Rs 40.42 crore in its consolidated cash-flow statement for the half year ended September 30, 2026. That outflow matches the disclosed acquisition consideration when rounded, although the filing does not explicitly identify the cash-flow line as funding for the Mazzini Tiles transaction.

The group reported net cash used in investing activities of Rs 54.43 crore in the September 2026 half year. Cash and cash equivalents were Rs 17.34 crore at September 30, 2026, down from Rs 82.20 crore at March 31, 2026, while these figures cover all consolidated operations and not only the tiles acquisition.

Consolidated goodwill increased to Rs 45.36 crore at September 30, 2026 from Rs 31.00 crore at March 31, 2026. Apollo Pipes said it assessed the purchase consideration, fair value of net assets acquired and resultant goodwill for Mazzini Tiles, but the acquisition table in the filing does not provide numerical amounts for that purchase-price allocation.

What did Apollo Pipes report for September 2026?

Apollo Pipes reported consolidated revenue from operations of Rs 309.40 crore for the quarter ended September 30, 2026 and Rs 605.08 crore for the half year ended on that date. The half-year result was a consolidated net loss of Rs 10.48 crore, compared with a net profit of Rs 9.55 crore in the corresponding half year ended September 30, 2025.

For the September 2026 quarter, consolidated profit after tax was Rs 63.09 lakh, compared with a loss of Rs 11.11 crore in the June 2026 quarter and profit of Rs 1.39 crore in the September 2025 quarter. The group accounts include entities from their respective control dates, but no contribution from Mazzini Tiles was separately identified.

Standalone revenue from operations was Rs 252.98 crore in the September 2026 quarter, against Rs 194.09 crore in the September 2025 quarter. The difference between standalone and consolidated reporting reflects the presence of subsidiaries in group accounts, while the tiles business remained below the separate-segment reporting threshold.

Conclusion

Apollo Pipes has entered the tiles business through an indirect 76% interest in Mazzini Tiles costing Rs 40.42 crore. The acquisition, executed through Apollo Ceramics on September 18, 2026, expands the consolidated group beyond plastic products, but the filing does not yet show tiles as a separately reportable operating segment or disclose its financial contribution.

The next disclosures to watch are whether tiles reaches the threshold for separate segment reporting and whether later accounts provide the acquisition's fair-value allocation and goodwill amount. Apollo Pipes also said its June 26, 2026 scheme of arrangement involving Kisan Moulding and KML Tradelinks remains subject to approvals from stock exchanges, the National Company Law Tribunal, shareholders and creditors.