APL Apollo Tubes Limited (APLAPOLLO) Q2 2027 Earnings Report

The call was strongly positive overall. Management reported record quarterly performance, strong core-product demand, INR 6,000 EBITDA per ton, improving cash balances, continued capacity expansion, and confidence in double-digit growth and 20% absolute EBITDA growth. These positives were partly offset by ongoing UAE disruption, domestic steel shortages, export-container disruption, lower first-half free cash flow after CapEx and dividends, and lower gross profit per ton from the light-structure mix.

Management maintained guidance of 15% growth in profitable business like APL Apollo brand and the roofing product, with double-digit volume growth in the second half, and expects 20% growth on the absolute basis by March 2027 fiscal for EBITDA; quarter two EBITDA per ton of INR 6,000 was described as sustainable, with potential to do better than the expected 20% EBITDA growth if the UAE operations recover in the second half on stable geopolitical situation. Roofing product volumes are targeted at 175,000 quarterly, while the company targets 2 million tonne of greenfield plus brownfield capacity and 1 million tonne of debottlenecking capacity in the next two years; second-half guidance includes around INR 1,200 crore EBITDA, hardly INR 200 crore towards CapEx, and surpassing INR 1,300 crore of free cash flow generated last year on whole. For next year, the target discussed was INR 6,000-INR 6,500 per ton, and the company is ready for INR 3,000 crore for FY 2028 subject to Dubai, steel availability in the country, stabilization of both the thing as the container rates going to down.