1. Opening Hook
APL Apollo just walked into a quarter with construction bans, falling steel prices, and macro hand-wringing—and walked out saying, “Excuses are for amateurs.”
While most metal companies were busy blaming headwinds, APL Apollo Tubes Limited decided to flex capacity, slap a premium on branding, and casually talk about becoming liability-free.
December alone clocked 3.75 lakh tons, flirting with 90% utilisation, and management is now throwing around numbers like ₹5,500 EBITDA/ton as if it’s a warm-up stretch.
This wasn’t a concall. This was a boardroom chest-thump disguised as guidance.
Read on—because the real fun begins once volumes, margins, and egos collide in Q4.
2. At a Glance
- 9M Volumes up 11% – Guidance met without panic or prayer.
- December run-rate 4.4 MT – Plants ran hotter than analyst models.
- EBITDA > ₹5,000/ton (9M) – Premiumisation finally paying rent.
- Q4 + FY27 volume growth guided at 20% – Confidence dial turned to max.
- Cash surplus ₹560 cr – Debt-free wasn’t enough; liabilities are next.
3. Management’s Key Commentary
“Headwinds and challenges are just excuses. There is only pass or fail.”
(Translation: Stop crying, start executing. 😏)
“₹3,000–₹4,000 per ton premium on Apollo brand is the new normal.”
(Translation: Customers blinked first.
Brand won. 💸)
“We tested 5 million ton capacity in December itself.”
(Translation: Capacity constraints are now imaginary. 🚀)
“We are upgrading EBITDA guidance to ₹5,500 per ton.”
(Translation: We wouldn’t say it if it wasn’t already half done.)
“We want to become a liability-free company.”
(Translation: Not just zero debt—negative excuses too. 😌)
“Specialty tubes will deliver ₹10,000–₹15,000 EBITDA per ton.”
(Translation: Structural steel was just foreplay. 🧠)
4. Numbers Decoded
| Metric | Q3FY26 / Commentary |
|---|---|
| Volumes (Dec) | 3.75 lakh tons (annualised 4.4 MT) |
| Capacity Utilisation | ~90% in Dec |
| EBITDA / ton (9M) | > ₹5,000 |
| EBITDA Guidance | ₹5,500/ton |
| ROCE | 33% → eyeing ~40% |
| Capex Plan | ₹1,500 cr for 5→8 MT |
| Cash Balance | ₹560 cr (target ₹1,500 cr) |
One-liner: Fixed costs stayed put; volumes did the heavy lifting.
5. Analyst Questions – Decoded
- Q: Isn’t 20% growth too aggressive?
A: SG brand + Apollo premium = both H1 and L1. Math works.
