Q1 2026 Apollo Pipes Ltd Earnings Call Transcript
Key Points
- Apollo Pipes Ltd (BOM:531761) is actively expanding its product portfolio, including new additions like PLVs DWC pipe, P/E gas pipe, and PVCO pipe, which align with their vision to diversify and cater to evolving market needs.
- The company is ramping up production at its West India plant, which is expected to play a key role in meeting demand.
- A new plant in Varanasi is on track to commence operations soon, strengthening Apollo Pipes Ltd (BOM:531761)'s presence in the eastern Indian market.
- Apollo Pipes Ltd (BOM:531761) is committed to expanding its total installed capacity to 286,000 tons over the next two years without adding debt.
- The company is seeing positive traction in its CPVC sales, with expectations to increase its contribution from 15% to over 20% in the next 1 to 2 years.
- The PVC pipe industry continues to face significant headwinds due to weak end-user demand and volatility in raw material prices, impacting Apollo Pipes Ltd (BOM:531761)'s performance.
- The company experienced a flat year-on-year performance in consolidated sales volume, with margins under pressure due to low capacity utilization and heightened competition.
- There is a slowdown in government spending on infrastructure, which is affecting demand across product verticals.
- Competitive intensity is high, with players aggressively reducing selling prices to fill capacities, impacting Apollo Pipes Ltd (BOM:531761)'s pricing strategy.
- The company's return on capital employed (ROCE) is currently low due to significant investments in capacity expansion, with improvements expected only as demand picks up and capacity utilization increases.
Ladies and gentlemen, good day and welcome to the Q1 FY26 earnings conference call of Apollo Pipes Limited, hosted by Systematic Institutional Equities.
(Operator Instructions)
I now hand the conference over to Ms. Anshika Patnaik from Systematic Institutional Equities.
Thank you and over to you, ma'am.
Thank you, Muskan.
On behalf of Systematics Institutional Equities, we welcome you all to the Q1 FY26 conference call of Apollo Pipe Limited.
From the management side we have Mr. Sameer Gupta, Chairman and Managing Director, Mr. Arun Agarwal, joint Managing Director.
Mr. Ajay Kumar Jain, Chief Financial Officer, Mr. Anubhav Gupta, Group Chief Strategy Officer.
I will now hand over the call to CMD, Mr. Sameer Gupta for opening remarks. Over to you, sir.
Yeah, thank you. Good afternoon, everyone. This is Sameer Gupta, CMD of Apollo pipes.
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