APL Apollo Tubes Limited Earnings Summary — Q1 FY2027
APL Apollo Tubes Reports Subdued Q1 Growth Amid Strategic Manufacturing Realignment
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 10.6% sequentially in Q1 FY2027.
- Revenue of ₹5,607 Cr is 8.5% higher year-on-year.
- Revenue has compounded at 7.5% annualised over the last 10 quarters.
- Net profit of ₹263 Cr is 10.9% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 21.3% annualised across the period.
- Operating margin stands at 7.3% in Q1 FY2027.
- Operating margin expanded by 14 bps year-on-year.
- Over the last two years operating margin has expanded by 128 bps.
- PBT margin is 6.3%.
- Expense growth of 8.3% remained below revenue growth of 8.5%.
- Operating profit of ₹411 Cr is 10.6% higher year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 61/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 5,607 | 6,269 | 5,982 | 5,206 | 5,170 | 5,509 | 5,433 | 4,774 | 4,974 | 4,766 |
| Expenses | Stable | 5,195 | 5,758 | 5,511 | 4,759 | 4,798 | 5,095 | 5,087 | 4,636 | 4,673 | 4,485 |
| Operating Profit | Volatile | 411 | 511 | 472 | 447 | 372 | 414 | 346 | 138 | 302 | 280 |
| Operating Margin | Improving | 7.3% | 8.2% | 7.9% | 8.6% | 7.2% | 7.5% | 6.4% | 2.9% | 6.1% | 5.9% |
| Other Income | Improving | 40 | 36 | 25 | 25 | 26 | 35 | 22 | 15 | 25 | 19 |
| Interest | Accelerating | 39 | 32 | 33 | 28 | 33 | 32 | 37 | 36 | 28 | 31 |
| Depreciation | Stable | 59 | 59 | 59 | 58 | 54 | 58 | 50 | 47 | 47 | 47 |
| Profit Before Tax | Volatile | 352 | 457 | 404 | 386 | 310 | 359 | 280 | 70 | 252 | 221 |
| Tax | Volatile | 89 | 102 | 94 | 85 | 73 | 66 | 63 | 16 | 59 | 51 |
| Net Profit | Volatile | 263 | 354 | 310 | 302 | 237 | 293 | 217 | 54 | 193 | 170 |
| Net Margin | Volatile | 4.7% | 5.7% | 5.2% | 5.8% | 4.6% | 5.3% | 4.0% | 1.1% | 3.9% | 3.6% |
Key Takeaways
- Revenue grew by 13.7% YoY to ₹5,169.31 Cr, though performance saw a sequential dip from Q4 FY26.
- The Board approved a strategic rationalization of manufacturing operations, including the phased closure of the A-25 unit at Sikandrabad to optimize asset utilization.
- APL Apollo is diversifying its corporate structure by investing up to 20% in a new Group Shared Services Company (SSC).
- Operating margins slightly improved YoY to 7.34%, but contracted significantly from the 8.15% recorded in the preceding quarter.
- The company successfully executed a share purchase agreement to divest its entire stake in Blue Ocean Projects Private Limited for ₹160 Cr.
- Net worth significantly improved to ₹5,579 Cr compared to ₹4,470 Cr in the same quarter last year, reflecting strong internal accruals.
Management Guidance
Management is focused on strategic restructuring and capital allocation to optimize the manufacturing footprint and enhance supply chain efficiencies. The consolidation of production activities is not expected to adversely impact overall capacity or customer commitments.
Sentiment Shift
Stable
While YoY growth remains positive, the sharp sequential decline in profit and margins, coupled with plant rationalization, indicates a period of internal consolidation rather than aggressive expansion.
Outlook
The company expects long-term competitiveness to strengthen through the redeployment of capital toward core manufacturing and the centralized Shared Services model, despite near-term reorganization costs.
From the Annual Report (Key Quotes)
“The decision forms part of the Group's ongoing strategic restructuring and capital allocation initiatives aimed at optimising manufacturing footprint.”
“Consolidation of manufacturing operations... is not expected to have any adverse impact on the Group's overall manufacturing capacity.”
“Proposed SSC will provide common corporate support services to participating Group entities through a centralised shared services model.”
Official Quarterly Documents
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This summary is AI-generated from APL Apollo Tubes Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.