1. At a Glance
APL Apollo isn’t just selling steel tubes; it’s out here running a monopoly cosplay. With a 50% market share in India’s construction steel tubes (up from a modest 27% in FY16), the company is basically the Reliance Jio of hollow sections. It churns out over1,500 product varietiesacross 10 factories, making everything from your neighborhood irrigation pipes to giant 1,000×1,000mm tubes that could double up as hiding spots for politicians during raids. Revenue? ₹20,885 crore. Profit? ₹801 crore. Market Cap? ₹44,587 crore. And an ambition to gobble up 60% market share by 2025—because apparently half the market wasn’t enough.
2. Introduction
Let’s imagine a crime thriller where the villain isn’t some shady cartel but a humble steel tube that can bend, stretch, and shine in colors never seen before. That’s APL Apollo Tubes for you—a company that figured out India doesn’t just needsteel, it needssexy steel.
The story starts like every good Indian rags-to-riches saga: an ordinary pipe maker realizes people don’t want boring galvanized tubes anymore; they want branded, patent-backed, shiny pieces of infrastructure bling. So, APL Apollo decided to move beyond the “commodity steel” rut and invented products likecolor-coated tubes,AluZinc tubes, and those monster500×500mm and 1000×1000mm structural tubes. In other words, they’ve been de-commoditizing steel like Apple did with boring smartphones.
By FY24,68% of revenue came from Apollo Structural, the poster child of their portfolio. Apollo Z chipped in 28%, while Apollo Galv trailed at 4%. The company isn’t just making pipes; it’s redesigning how India builds houses, factories, airports, hospitals, and probably the next Ambani mansion.
And let’s talk distribution flex—800+ distributors, 50,000+ retailers and fabricators across 300 towns, plus their own “PipeTok” (an app with 30,000+ fabricators and 400+ design uploads). Yes, APL has an app. Because why stop at bending steel when you can bend tech adoption too?
3. Business Model (WTF Do They Even Do?)
APL Apollo’s core business model can be summed up in three words:Make Steel Sexy.
- Massive Product Range:1,500 types of hollow sections, tubes, black pipes, galvanised tubes, pre-galvanised tubes, and the pièce de résistance—structural ERW tubes.
- Applications Everywhere:If you see steel in a building, warehouse, airport, solar plant, irrigation system, greenhouse, or railway station—there’s a good chance it’s APL Apollo’s child.
- Value-Added Play:Instead of just selling steel by the kilo, they’ve started marketing it like Louis Vuitton markets handbags. “Color-coated” and “patented” tubes fetch better margins than plain old black pipes. No wondervalue-added products now form 58% of revenue (FY24).
- Capacity & Scale:With3.8 million tonnes current capacity(headed to 5 million in FY25),
- spread across 10 plants, APL has effectively regionalized production. South India leads with 39%, followed by West (32%), North (26%), and East (3%). Even their geography screams “we’ll deliver wherever you build your mall.”
- Capex Power:₹2,370 crore invested in the past 4 years, mostly for expansions and their Raipur facility—a plant that birthed several “world-first” steel products.
Translation: APL Apollo doesn’t just sell pipes—it sells infrastructure solutions, brand equity, and patents, while flexing scale like no other.
4. Financials Overview
Quarterly Results (Q1 FY26 vs YoY & QoQ):
| Metric | Latest Qtr (Jun ’25) | YoY Qtr (Jun ’24) | Prev Qtr (Mar ’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹5,170 Cr | ₹4,974 Cr | ₹5,509 Cr | 3.9% | -6.1% |
| EBITDA | ₹372 Cr | ₹302 Cr | ₹414 Cr | 23.2% | -10.1% |
| PAT | ₹237 Cr | ₹193 Cr | ₹293 Cr | 22.8% | -19.1% |
| EPS (₹) | 8.55 | 6.96 | 10.56 | 22.8% | -19.0% |
Commentary:YoY—strong. QoQ—meh. Revenue is crawling, profits dipped versus March (probably election hangover + steel price volatility), but margins are holding. Annualized EPS = ₹34.2 → which means a P/E of47x(not 55x as Screener lazily shows). Still rich, but hey, this is branded steel, not cheap rebar.
5. Valuation (Fair Value Range Only)
- P/E Method:EPS (annualized) ₹34.2. Industry P/E ~23. APL trades at ~47x. Fair range =₹785–₹1,575.
- EV/EBITDA Method:EV ~₹44,647 Cr. EBITDA (TTM) ~₹1,269 Cr. EV/EBITDA = 35x. Peers ~12–18x. Fair EV range =₹15,000–₹22,800 Cr → FV per share = ₹540–₹820.
- DCF:Assuming 15% CAGR for 5 years, WACC 10%, terminal growth 3% → FV range =₹1,200–₹1,800.
👉Consolidated FV Range (Educational Only): ₹800–₹1,600.Disclaimer: This FV range is for educational purposes only and is not investment advice.
6. What’s Cooking
