APL Apollo Tubes Limited achieved a significant milestone in the third quarter of FY26, delivering its best-ever quarterly performance despite a challenging macroeconomic backdrop. The company reported a record sales volume of 917k tons, representing an 11 per cent year-on-year (YoY) increase. This volume growth translated into a robust revenue of Rs 58.2 billion, up 7 per cent YoY. The quarter was particularly notable for its profitability, as EBITDA surged by 37 per cent to Rs 4.7 billion and Net Profit jumped 43 per cent to Rs 3.1 billion. This resilience is especially impressive given external headwinds such as construction bans in Delhi-NCR due to pollution and a general slowdown in government infrastructure spending.
The momentum extends across the first nine months of the fiscal year (9MFY26), where the company recorded a total sales volume of 2,566k tons. For this period, EBITDA grew by a staggering 64 per cent YoY to Rs 12.9 billion, supported by an improved EBITDA per ton of Rs 5,030—a 48 per cent increase compared to the previous year. Net profit for the nine months reached Rs 8.5 billion, an 83 per cent YoY increase. These figures highlight the company's superior execution and its ability to outpace general industry growth. Furthermore, the value-added sales mix remained strong at 58 per cent, reflecting a strategic focus on high-margin products that distinguish the brand from regional competitors.
To sustain this growth, APL Apollo has outlined an ambitious roadmap to double its capacity. From an existing annual capacity of 5 million tons, the company targets 10 million tons by FY30. This expansion includes a mix of greenfield projects and debottlenecking efforts across locations like Raipur, Malur and Bhuj, with a planned capital expenditure of Rs 15 billion by FY28. Currently operating at approximately 89 per cent capacity utilisation, the company is also modernising its plants by replacing conventional mills with high-speed, efficient technology. This scale-up is designed to capture market share from traditional materials like sponge iron pipes and to bolster its presence in the heavy structural steel segment.
The company continues to maintain an exceptionally strong balance sheet, characterised by a net cash position of Rs 5.6 billion as of December 2025, up from Rs 3.1 billion in FY25. Efficiency remains a core strength, with net working capital maintained at just 3 days. This financial discipline has enabled high returns for shareholders, evidenced by a Return on Equity (ROE) of 24.8 per cent and a Return on Capital Employed (ROCE) of 33.3 per cent. Additionally, APL Apollo has maintained a healthy dividend payout ratio of 21.2 per cent, demonstrating a balance between aggressive reinvestment for growth and rewarding its investors.
Beyond financial metrics, APL Apollo is positioning itself as a leader in "Steel for Green" concepts. By innovating products like readymade steel doorframes and planks, the company estimates it saves 250,000 trees annually by replacing wood in construction. On the environmental front, the company has committed to Net Zero by 2050 and aims to reduce Scope 1 and 2 emissions by 25 per cent by 2030. Currently, 52 per cent of its operations (excluding new facilities) are powered by renewable energy. Socially, the company is focused on gender diversity, aiming for a 1 per cent annual increase in its female workforce, while maintaining an impressively low attrition rate of below 5 per cent.
About APL Apollo Tubes Limited
APL Apollo Tubes Limited (APL Apollo) BSE: 533758, NSE: APLAPOLLO is India’s leading structural steel tube manufacturer. Headquartered in Delhi NCR, the Company operates 11 manufacturing facilities with a total capacity of 5 Mn Ton. It has a pan-India presence with 11 units strategically located in Hyderabad, 3 plants at Sikandarabad (UP), Bangalore, Hosur (Tamil Nadu), 2 plants in Raipur (Chhattisgarh), Malur (Karnataka), Murbad (Maharashtra) and Umm AI Quwain (UAE).
APL Apollo’s multi-Service offerings include over 5,000+ varieties for multiple building material structural steel applications. With state-of-the-art-manufacturing facilities, APL Apollo serves as a ‘one-stop shop’ for a wide spectrum of products, catering to an array of industry applications such as urban infrastructure and real estate, rural housing, commercial construction, greenhouse structures and engineering applications. The Company’s vast 3-tier distribution network of over 800 Distributors is spread across India, with presence in over 300 towns and cities.
Disclaimer: The article is for informational purposes only and not investment advice.
APL Apollo Tubes Results: Record-Breaking Financial Performance in Q3FY26 and 9MFY26