1. At a Glance
APL Apollo is doing for steel pipes what Maggi did for 2-minute meals—mass manufacturing, brand domination, and mild pricing trauma. With ₹801 Cr PAT TTM, a PE of 58x, and capex expansion dreams worth ₹15,000 Cr, this company is not just rolling pipes—it’s steamrolling its way through India’s infra story.
2. Introduction with Hook
Imagine if Tata Steel and Asian Paints had a baby—functional like a steel bar, but with brand recall like a celebrity shampoo. That’s APL Apollo. You’ve probably walked past their hollow sections without even realizing you’re brushing up against a ₹46,000 Cr empire. And now, with Q1 FY26 net profit at ₹237 Cr (+23% YoY), they’re not just flexing metal—they’re flexing profits.
3. Business Model (WTF Do They Even Do?)
“Basically, they take boring steel coils, cut them into tubes, and convince builders they’re sexy.”
APL Apollo manufactures:
- Structural Steel Tubes (68%) – Think mall ceilings, flyovers, metro stations.
- Apollo Z (28%) – Fancy galvanized tubes for construction & infra.
- Apollo Galv (4%) – Anti-corrosion pipe party.
Used in: urban infrastructure, housing, solar projects, irrigation systems, warehouses, and anything that requires “hollow but strong” (much like quarterly TV debates).
4. Financials Overview
Q1 FY26 Highlights:
| Metric | Value | YoY Change |
|---|---|---|
| Revenue | ₹5,170 Cr | +14% |
| EBITDA | ₹372 Cr | +21% |
| Net Profit | ₹237 Cr | +23% |
| EPS | ₹8.55 | vs ₹6.98 |
| OPM | 7.2% | Flat-ish |
Margins that don’t leak. Profits that don’t rust.
5. Valuation
Current Valuation Metrics:
- P/E: 58.4x
- P/B: 11.1x
- EV/EBITDA: ~34x
- ROE: 19.4%
Let’s do a sanity check:
- Base EPS (FY25): ₹27.28
- Assume 20% growth → FY26E EPS: ₹32.73
- Even a 40x P/E = Fair Value = ₹1,309
- But market pricing in growth till Mars.
Fair Value Range: ₹1,300 – ₹1,500
At ₹1,686 — you’re paying future-forward. Premium pipe pricing.
6. What’s Cooking – News, Triggers, Drama
- Q1 Beat: Net profit jumps 23%, volumes up 10%
- Capex Plan: ₹15,000 Cr to boost capacity to 6.8 Mn tons by FY28
- New COO & Board Appointments: Succession drama minus the HBO music
- ESOP 2025: Issued. If your employees are getting stock, watch what they’re watching.
In short: less soap opera, more manufacturing mania.
7. Balance Sheet
| Item | Mar 2025 |
|---|---|
| Equity | ₹56 Cr |
| Reserves | ₹4,153 Cr |
| Borrowings | ₹634 Cr |
| Fixed Assets | ₹3,668 Cr |
| CWIP | ₹336 Cr |
| Investments | ₹126 Cr |
| Total Liabilities | ₹7,596 Cr |
Solid. Low debt. Enough reserves to survive an apocalypse or 3 years of bad monsoons.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY23 | ₹691 Cr | ₹-876 Cr | ₹143 Cr | ₹-41 Cr |
| FY24 | ₹1,112 Cr | ₹-916 Cr | ₹27 Cr | ₹222 Cr |
| FY25 | ₹1,213 Cr | ₹-375 Cr | ₹-815 Cr | ₹24 Cr |
Operational cash flows = fire.
But investing + financing = moody teenager energy—up, down, unpredictable.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROE | 19.4% |
| ROCE | 22.8% |
| D/E | 0.14x |
| OPM | 6.0–7.2% |
| Debtor Days | 5 days |
| CCC | -8 days |
Verdict:
Working capital cycle shorter than your attention span. That’s elite ops.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹16,166 Cr | ₹1,022 Cr | ₹642 Cr |
| FY24 | ₹18,119 Cr | ₹1,193 Cr | ₹732 Cr |
| FY25 | ₹20,690 Cr | ₹1,199 Cr | ₹757 Cr |
| TTM | ₹20,885 Cr | ₹1,269 Cr | ₹801 Cr |
Profits growing at steel-pipe speed: strong, steady, not flashy.
11. Peer Comparison
| Company | CMP | P/E | ROE | PAT (TTM) | OPM |
|---|---|---|---|---|---|
| APL Apollo | ₹1,686 | 58.4 | 19.4% | ₹801 Cr | 6.0–7% |
| Welspun Corp | ₹897 | 19.6 | 18.5% | ₹1,206 Cr | 12% |
| Shyam Metalics | ₹951 | 28.8 | 8.9% | ₹922 Cr | 12.3% |
| Ratnamani Metals | ₹2,798 | 36.2 | 15.9% | ₹541 Cr | 15.9% |
APL = Most expensive date at the steel party. Justified? Depends if you’re buying value… or vibes.
12. Miscellaneous – Shareholding, Promoters
| Category | Jun 2022 | Jun 2025 |
|---|---|---|
| Promoters | 34.5% | 28.3% |
| FIIs | 24.7% | 33.1% |
| DIIs | 10.9% | 16.8% |
| Public | 29.9% | 21.8% |
Promoters are offloading like they found better steel. But FIIs are backing the truck up.
13. EduInvesting Verdict™
APL Apollo is the Tesla of tubes. Branded steel, low debt, wild capex, and enough fan following to justify a rich P/E. But at 58x earnings, you’re buying the future, not the factory. One slip and the stock could bend under pressure.
Still, it’s a structural story that refuses to rust.
A premium ride through India’s infra boom. Just remember—premium comes with a price tag.
Written by EduInvesting Team | 24 July 2025
Tags: APL Apollo Tubes, Infra, Steel Pipes, Capex, EduInvesting Premium
