Apollo Pipes Limited Q3FY26 Concall Decoded: Flat Volumes, ₹50 Million Inventory Hit, and a 35,000-Ton Q4 Gamble
1. Opening Hook
After 15 months of PVC price drama, anti-dumping suspense, and enough inventory write-downs to make Excel cry, Apollo Pipes walked into Q3FY26 like a contractor discovering cement just doubled overnight.
Nine months in, volumes are flat. Margins slipped. Inventory took a ₹50 million punch. And yet, management is promising a 23%-35% volume jump in Q4 — because December’s last two weeks felt “different.”
Apparently, Q4 is where suppressed demand, seasonal construction, and aggressive pricing all magically align. Bold? Definitely. Reckless? Not yet.
The industry is oversupplied, pricing wars are alive, and government infra is still stuck in payment limbo. But Apollo is betting on housing, CPVC, and Varanasi to rescue the year.
Read on. The real story sits between “inventory loss” and “strong Q4 confidence.” 😏
2. At a Glance
Revenue Growth – Volumes flat for 9M; Q4 suddenly found religion.
EBITDA per ton – Fell to ₹6,500; normal is ₹9,000-₹10,000. Gravity works.
Inventory Loss – ₹50 million write-down; PVC prices crashed ₹11/kg.
Working Capital – Inventory at 80 days; hoping to fall to 60 days by Q4.
CAPEX – ₹125 crore spent in 9M; another ₹25 crore coming. Expansion continues.
Volume Guidance Q4 – 32,000–35,000 tons; management sounds very sure.
Kisan Utilization – 40% now; target 70% in two years. Optimism intact.
3. Management’s Key Commentary
“The first 9 months of FY26 have been the most challenging period for the Indian PVC pipe industry.”
(Translation: It wasn’t just us. The whole sector is limping.) 😏
“Our sale volume was flat in these 9 months versus our expectation of double-digit growth.”
(Translation: Budget vs reality had creative differences.)
“From December onwards, momentum has started building.”
(Translation: The last two weeks looked good, so Q4 is getting promoted early.)
“We are confident of a very strong Q4 sales performance.”
(Translation: Please focus on Q4. Q3 is already archived.)
“Housing Pipes have grown above 10% Y-o-Y basis.”
(Translation: Plumbing saved the day; Agri dragged the party down.)
“Unless there is revival in macro demand, the pricing war will continue.”
(Translation: Margins are hostages until demand wakes up.)
“Kisan is operating at around 40% utilization; target is 70% in two years.”
(Translation: We bought potential. Execution is still loading.) 🚧
