APL Apollo Tubes Share Price Falls Despite Healthy Q1 Y-o-Y Numbers

APL Apollo Tubes shares fell 3.46% to ₹1,630 despite healthy YoY numbers in Q1. The company reported a mixed set of numbers, with strong YoY growth but sequential decline across key metrics. Sales volume rose 10% YoY to 794,000 tonnes, while revenue increased 4% YoY to ₹5,170 crore. However, on a QoQ basis, the company reported a 7% decline in sales volume and a 6% fall in revenue.

APL Apollo Tubes Limited, a leading manufacturer of structural steel tubes in India, reported mixed financial results for the first quarter of the fiscal year 2026 (Q1FY26). Despite showing strong year-on-year (YoY) growth, the company experienced a sequential decline across key metrics, which likely weighed on its share price.

Key Financial Highlights

- Sales volume rose 10% YoY to 794,000 tonnes.
- Revenue increased 4% YoY to ₹5,170 crore.
- EBITDA grew 23% YoY to ₹370 crore.
- Net profit surged 23% YoY to ₹240 crore.

However, on a quarter-on-quarter (QoQ) basis, the company reported:

- A 7% decline in sales volume.
- A 6% fall in revenue.
- A 10% dip in EBITDA.
- A 19% drop in net profit.

Operational Performance

The value-added sales mix improved to 61% in Q1, up from 58% in the previous quarter. Interest cost rose 19% YoY and 3% QoQ to ₹33.3 crore. Cash profit came in at ₹290 crore, up 22% YoY but down 17% sequentially.

Market Reaction

Despite the strong YoY numbers, APL Apollo Tubes' shares fell 3.46% to ₹1,630. The sequential softness in operational performance overshadowed the annual growth, triggering weakness in the company’s share price.

Analyst Comments

Analysts at Nuvama termed the Q1FY26 performance as mixed. They noted that EBITDA per tonne came in at ₹4,683, below their estimate of ₹4,900, due to operating deleverage and a one-off ESOP expense of ₹300/tonne. The company revised its volume growth guidance downward to 10-15% (from 15-20%) and lowered its EBITDA/tonne outlook to ₹4,600–5,000 (from earlier guidance of above ₹5,000).

Future Outlook

For FY27, APL Apollo is targeting a 15-20% volume growth and aims to achieve EBITDA/ton in the range of ₹5,500–6,000.

References

[1] https://scanx.trade/stock-market-news/earnings/apl-apollo-tubes-reports-10-volume-growth-and-23-profit-surge-in-q1/14899464
[2] https://www.business-standard.com/markets/news/why-is-apl-apollo-falling-despite-healthy-yoy-numbers-in-q1-results-steel-stocks-bse-sensex-nifty50-steel-company-125072500265_1.html
[3] https://hdfcsky.com/news/apl-apollo-q1fy26-net-profit-rises-22-8-percent-yoy-to-rs-237-crore-revenue