APL Apollo Tubes Limited conducted a conference call on May 4, 2026, to discuss its Q4 and full-year FY26 financial performance. The company reported a 9% increase in quarterly volumes year-on-year, with EBITDA per ton exceeding ₹5,500 for Q4 FY26. For the full year, ROCE stood at 37%, with operating cash flow generation of ₹20 billion and free cash flow of ₹13 billion, closing the year with a net cash balance of over ₹15 billion. Management highlighted that while the quarter started strong, geopolitical events, including the Middle East crisis, impacted performance towards the end of the financial year. This led to disruptions in raw material supply from Indian mills and global supply chains, with Dubai operations running at 40% utilization. Energy crises and labor shortages also affected volumes in March. Despite these challenges, the company focused on protecting profitability and margins, with EBITDA per ton performing better than guided. The long-term plan of achieving an 8-million-ton capacity by FY28 remains on track, with ongoing capex, land acquisition, and product development initiatives. During the Q&A session, management addressed concerns about demand weakness versus destocking, stating it's difficult to ascertain definitively but that the focus remains on margin protection. They confirmed that the yearly targets for absolute EBITDA are intact. Capex for FY27 is projected at ₹500-600 crore, with a pending capex of ₹1,400-1,500 crore for the 8-million-ton capacity target over the next 2-2.5 years. The company anticipates eliminating its ₹500 crore liability in Q1 and Q2 of FY27, after which decisions on increasing dividends or initiating buybacks will be considered. Management also indicated that the value-added sales mix saw a slight decrease in Q4, but improved pricing in the general category and cost rationalization drove record EBITDA per ton.
