Q2 2026 APL Apollo Tubes Ltd Earnings Call Transcript
Key Points
- APL Apollo Tubes Ltd (BOM:533758) achieved its highest-ever quarterly volume and EBITDA in Q2 FY26, despite challenging market conditions.
- The company reported a significant recovery in sales volume from Q1, supported by strong capacity utilization at its Raipur and Dubai plants.
- EBITDA margins expanded, with spreads exceeding INR5,000 per tonne, driven by brand power, value-added mix improvements, and operating leverage gains.
- The company maintains a strong financial position with zero working capital days as of September 2025, boosting its return on capital employed (ROC) to over 32%.
- APL Apollo Tubes Ltd (BOM:533758) plans to fund its 1,500 crore capacity expansion entirely through internal cash flows, reflecting strong cash generation capabilities.
- The company faced challenges due to extended monsoons and weak construction activity, impacting the broader construction materials sector.
- Despite achieving a high EBITDA per tonne in Q2, the company maintained its annual guidance of INR4,600 to INR5,000 per tonne, citing market pressures.
- The demand environment remains uncertain, with factors such as long monsoon seasons and holiday disruptions affecting market conditions.
- The company is cautious about increasing its EBITDA guidance due to potential market volatility and pressure on margins.
- APL Apollo Tubes Ltd (BOM:533758) faces competition from secondary material producers, which could impact market dynamics and pricing strategies.
Ladies and gentlemen, good day and welcome to Apollo Tubes Limited Q2 FY26 investors conference call hosted by Axis Capital Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Darshan Mehta from Axis Capital Limited. Thank you, and over to you, sir.
Thank you, Naftali. Good evening, all. This is Darshan Mehta here, and I welcome you all on behalf of Axis Capital to APL Apollo Tubes Limited Q2 FY26 results conference call.
From the management side, we have Mr. Sanjay Gupta, Chairman and Managing Director; Mr. Rahul Gupta, Director; Mr. Deepak Goyal, Director, Operations; Mr. Anubhav Gupta, Chief Strategy Officer; and Mr. Chetan Khandelwal, CFO. I will now hand over the call to the management for their opening comments. Thank you, and over to the team.
Good evening, everyone, and thanks for attending the call today. We are glad to announce our all-time highest quarterly volume EBITDA
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