Q1 2027 APL Apollo Tubes Ltd Earnings Call

August 3, 2026

Speaker #1: Ladies and gentlemen, good day, and welcome to the APL Apollo Tubes Ltd. Q1 FY27 Earnings Conference Call, hosted by Antique Stock Broking Ltd. As a reminder, all participant lines will be in listen-only mode.

Operator: Ladies and gentlemen, good day and welcome to the APL Apollo Tubes Limited Q1 FY27 earnings conference call hosted by Antique Stock Broking Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Pallav Agarwal from Antique Stock Broking. Thank you and over to you, sir.

Speaker #1: There will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero, on your touchtone phone.

Operator: Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Pallav Agarwal from Antique Stock Broking. Thank you and over to you, sir.

Speaker #1: Please note that this conference is being recorded. I now hand the conference over to Mr. Pallava Agarwal from Antique Stock Broking. Thank you, and over to you, sir.

Speaker #2: Yeah, thank you, Lizanne, and good morning, everyone. Apologies for the delay in starting the call. We have the senior management of APL Apollo Tubes represented by Mr. Sanjay Gupta, the Chairman and Managing Director.

Pallav Agarwal: Yeah, thank you, Lizanne, and good morning, everyone. Apologies for the delay in starting the call. We have the senior management of APL Apollo Tubes represented by Mr. Sanjay Gupta, the Chairman and Managing Director, Mr. Rahul Gupta, the Director, Mr. Deepak Goyal, the Director, Operations, Mr. Anubhav Gupta, the Chief Strategy Officer, and Mr. Chetan Khandelwal, the Chief Financial Officer. I'd now like to hand over the call to Anubhav for his opening remarks. Over to you, Anubhav.

Speaker #2: Mr. Rahul Gupta, Director; Mr. Deepa Goel, Director of Operations; Mr. Anurag Gupta, Chief Strategy Officer; and Mr. Cheetan Khandelar, Chief Financial Officer.

Speaker #2: So, I'd now like to hand over the call to Anurag for his opening remarks. Over to you, Anurag.

Speaker #3: Thanks, Pallava, for hosting Apollo Tubes for its Q1 FY27 earnings call. I apologize to all the participants for starting this call a bit late.

Anubhav Gupta: Thanks, Pallav, for hosting APL Apollo Tubes for its Q1 FY27 earnings call. I apologize to all the participants for starting this call a bit late. There was technical issue with the operator. Thanks for joining in. Just to highlight that Mr. Rahul Gupta, the Director, and Chetan Khandelwal, the CFO, they have gone for an urgent meeting. The call is being attended by Mr. Sanjay Gupta, myself, Anubhav, and Mr. Deepak Goyal, the Director, Operations. Q1 FY27 was a mixed quarter. Hello, can I go ahead?

Speaker #3: There was a technical issue with the operator. Thanks for joining in. Just to highlight that Mr. Rahul Gupta, the Director, and Cheetan Khandelar, the CFO, have gone for an urgent meeting.

Speaker #3: So the call is being attended by Mr. Sanjay Gupta, myself, Anurag, and Mr. Deepak Goel, the Executive Director. So, quarter one, FY27, was a mixed quarter.

Speaker #3: So, Pallava, can I go ahead?

Speaker #1: Yes, sir. Please go ahead.

Operator: Yes, sir. Please go ahead.

Speaker #3: So, quarter one FY27 was a mixed quarter, wherein the volume was below expectations, but the profitability was better than expectations despite the declining quarterly volume.

Anubhav Gupta: Q1 FY27 was the mixed quarter wherein the volume was below expectation, but the profitability was better than expectation despite decline in the quarterly volume. We have to decode the volume of 745,000 tons for the quarter, and if we map it with the Q4 FY26 volume, there were three, four factors which impacted the volume. Number one, of course, being the UA operations, which were hit because of the geopolitical situation there, and we lost almost 25,000 tons quarter-on-quarter. Number two reason was decline in the volume of SG Premium brand, which of course is in competition with the secondary material. Because of a price gap which was pretty high, the volume suffered there. Number three reason was the energy crisis in India, which impacted our volume for some of the products like rustproof pipes and roofing products.

Speaker #3: So, we have to decode the volume of 745,000 tons for the quarter. And if we map it with the Q4 FY26 volume, there were three or four factors which impacted the volume.

Speaker #3: Number one, of course, being the UAE operations, which were hit because of the geopolitical situation there. And we lost almost 25,000 tons quarter-on-quarter.

Anubhav Gupta: Number one, of course, being the UA operations, which were hit because of the geopolitical situation there, and we lost almost 25,000 tons quarter-on-quarter. Number two reason was decline in the volume of SG Premium brand, which of course is in competition with the secondary material. Because of a price gap which was pretty high, the volume suffered there. Number three reason was the energy crisis in India, which impacted our volume for some of the products like rustproof pipes and roofing products.

Speaker #3: Number two, the reason was a decline in the volume of the LG Premium brand, which, of course, is in competition with secondary material. So because the price gap was pretty high, the volume suffered there.

Speaker #3: Number three reason was the energy crisis in India, which impacted our volume for some of the products like dustproof pipes and roofing products. So there also, we lost 25,000 to 30,000 tons volume.

Anubhav Gupta: There also we lost 25,000, 30,000 in volume. The last reason being high factory inflation during the quarter, which led to the softer demand in the construction industry. It impacted both primary sales and secondary sales. Primary sales because prices were pretty high, and there was fear of correction in basic commodities. This led to destocking by our channel partners. Secondary demand which comes from the EPC contractors and real estate developers, and not only structural steel pipes, but other construction materials like cement, tile, plywood, plumbing pipes, cables and wires, electrical fittings, bath fittings, every construction material product prices went up. The EPC contractors and developers, they kind of delayed their purchases, which impacted the primary sales. Sorry, the secondary sales for APL Apollo. Now the run rate was around 250,000 tons per month for the Q1.

Speaker #3: And the last reason was high factory inflation during the quarter, which led to softer demand in the construction industry. It impacted both primary and secondary sales.

Speaker #3: Primary sales were impacted because prices were pretty high and there was a fear of correction in all commodities. This led to destocking by our channel partners. Secondary demand, which comes from the EPC contractors and real estate developers, affected not only structural steel pipes but also other construction materials like cement, tiles, plywood, plumbing pipes, cables and wires, electrical fittings, and bath fittings.

Anubhav Gupta: Secondary demand which comes from the EPC contractors and real estate developers, and not only structural steel pipes, but other construction materials like cement, tile, plywood, plumbing pipes, cables and wires, electrical fittings, bath fittings, every construction material product prices went up. The EPC contractors and developers, they kind of delayed their purchases, which impacted the primary sales. Sorry, the secondary sales for APL Apollo. Now the run rate was around 250,000 tons per month for the Q1.

Speaker #3: Every construction material product price went up, so the EPC contractors and developers kind of delayed their purchases, which impacted the primary sales—sorry, the secondary sales—for Apollo Steel Pipes.

Speaker #3: Now, the run rate was around 250,000 tons per month for Q1. Our focus was on maintaining profitability because the situation was so uncertain due to the ongoing geopolitical events.

Anubhav Gupta: Our focus was on maintaining the profitability because the situation was so uncertain because of the ongoing geopolitical situation. We chose to focus on profitability and as a result, you would see that our gross profit per tonne increased by INR 1,000 on QOQ basis. This was of course due to our better pricing power as we were holding on to prices. If steel prices were going up by INR 1,000 per tonne, we try to improve our prices for our product by +INR 100, +INR 200 per tonne over and above steel price increase. Because of our strong brand positioning and pricing power, we could sustain that.

Speaker #3: So we chose to focus on profitability, and as a result, you would see that our gross profit per ton increased by ₹1,000 on a quarter-on-quarter basis.

Speaker #3: This was, of course, due to our better pricing power as we were holding onto prices. If steel prices were going up by ₹1,000 per ton, we tried to improve our prices for our product by plus ₹100, plus ₹200 per ton, over and above the steel price increase.

Speaker #3: And because of our strong brand positioning and pricing power, we could sustain that. And because of improvement in gross profit by ₹1,000 per ton, our EBITDA per ton was flattish, above ₹5,500 per ton on a QOQ basis.

Anubhav Gupta: Because of improvement in gross profit by INR 1,000 per tonne, our EBITDA per tonne was flattish above INR 5,500 per tonne on QOQ basis, despite the negative operating leverage which arose because of 20% decline in volume on QOQ basis. Now that scenario is slightly improving, we are again focusing on volume growth, and in month of July, the volumes are up by 20% on month-on-month basis. We of course tweaked some pricing for some of the product categories. We do expect that our EBITDA spreads will remain in range of INR 5,000 to INR 5,500 per tonne throughout the year. For full year, we do expect and we are confident that we will be able to achieve 20% growth in absolute EBITDA. QOQ basis, it is tough to anticipate absolute volume and absolute EBITDA per tonne.

Speaker #3: Despite the negative operating leverage, which arose because of a 20% decline in volume on a QoQ basis, the scenario is now slightly improving. We are again focusing on volume.

Speaker #3: Growth, and in the month of July, the volumes are up by 20% on a month-on-month basis. We, of course, tweaked some pricing for some of the product categories.

Anubhav Gupta: We of course tweaked some pricing for some of the product categories. We do expect that our EBITDA spreads will remain in range of INR 5,000 to INR 5,500 per tonne throughout the year. For full year, we do expect and we are confident that we will be able to achieve 20% growth in absolute EBITDA. QOQ basis, it is tough to anticipate absolute volume and absolute EBITDA per tonne.

Speaker #3: So, we do expect that our EBITDA spreads will remain in the range of ₹5,000 to ₹5,500 per ton throughout the year. For the full year, we do expect, and we are confident that we will be able to achieve 20% growth in absolute EBITDA.

Speaker #3: On a quarter-on-quarter basis, it is tough to anticipate absolute volume and absolute EBITDA per ton. But we are confident that for the full year, we will be able to achieve 20% EBITDA growth in FY27 versus FY26.

Anubhav Gupta: We are confident that for the full year we will be able to achieve 20% EBITDA growth in FY27 versus FY26. Now the capacity which is coming online, whether it is Gorakhpur which is 200,000 tonne plant, then Siliguri 300,000 tonne plant, then new Malur, which is almost a 1 million tonne plant, and another 0.5 million tonne plant, which we are contemplating in either Maharashtra or North Karnataka. Put together 2 million tonne plant capacity will come online over the next two and a half years, and over and above 1 million tonne of new capacity through debottlenecking across our plants. With this 8 million tonne, our share of value-added products, which right now is like 65%, it will increase to almost 75%, 80%.

Speaker #2: Now, the capacity which is coming online, whether it is Gorakhpur, which is a 200,000-ton plant; then Siliguri, a 300,000-ton plant; then New Malur, which is almost a 1 million-ton plant; and another 0.5 million-ton plant, which we are contemplating in either Maharashtra or North Karnataka.

Speaker #2: Put together, 2 million tons of plant capacity will come online over the next two and a half years. Over and above that, 1 million tons of new capacity will come through debottlenecking across the plants.

Anubhav Gupta: Put together 2 million tonne plant capacity will come online over the next two and a half years, and over and above 1 million tonne of new capacity through debottlenecking across our plants. With this 8 million tonne, our share of value-added products, which right now is like 65%, it will increase to almost 75%, 80%.

Speaker #2: So with this 8 million ton, our share of value-added products, which right now is like 65%, it will increase to almost 75, 80 percent.

Speaker #2: So, as a portfolio, we are continuing to de-commoditize so that the impact of steel price volatility and the gap between primary and secondary steel continues to have less and less impact on our performance.

Anubhav Gupta: As a portfolio, we are continuing to de-commoditize so that impact of steel price volatility and gap between primary and secondary steel, it continues to have lesser and lesser impact on our performance. On balance sheet front, the working capital days remain below zero and the cash on books which we hit INR 15 billion in March 2026, it remains at similar level at INR 14 billion in Q2 as well. We continue to remain prudent in our working capital efficiencies. All in all, we can say that Q2 will be better than Q1 in terms of volume and absolute EBITDA. Second half, the macro factors should come into play in positive manner, which will boost H2 performance for APL Apollo better than H1. It will give us room to achieve our annual guidance of 20% EBITDA growth.

Speaker #2: On the balance sheet front, the working capital days remain below zero. The cash on books, which we hit at ₹15 billion in March '26, remains at a similar level at ₹14 billion in the June quarter as well.

Speaker #2: And we continue to remain prudent in our working capital efficiencies. All in all, we can say that Q2 will be better than Q1 in terms of volume and absolute EBITDA.

Anubhav Gupta: We continue to remain prudent in our working capital efficiencies. All in all, we can say that Q2 will be better than Q1 in terms of volume and absolute EBITDA. Second half, the macro factors should come into play in positive manner, which will boost H2 performance for APL Apollo better than H1. It will give us room to achieve our annual guidance of 20% EBITDA growth.

Speaker #2: And in the second half, the macro factors should come into play in a positive manner, which will boost second half performance for Apollo, better than H1.

Speaker #2: And it will give us it will give us room to achieve our annual guidance of 20% EBITDA growth. And the new capacity expansion, which will start coming in phases from second half of this year, till FY28, we will continue to improve our financial performance over the next three to four years from FY28 to FY30.

Anubhav Gupta: The new capacity expansion which will start coming in phases from H2 of this year till FY28, we will continue to improve our financial performance over the next 3 to 4 years from FY28 to FY30. That's all from our side. We'll be happy to take questions now.

Speaker #2: That's all from our side. We'll be happy to take questions now.

Speaker #1: Thank you. Ladies and gentlemen, we will now begin with the question and answer session. Anyone wishing to ask a question may please press star and one on the attached telephone.

Operator: Thank you. Ladies and gentlemen, we will now begin with the question and answer session. Anyone wishing to ask a question may please press star and one on your touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is on the line of Shaleen Kumar from UBS India. Please go ahead.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Shaleen Kumar from UBS India.

Speaker #1: Please go ahead.

Speaker #4: Yep. Thank you. Thank you. And congrats on the good setup numbers despite the tough macro. Thank you a lot. Thank you, Anjuli. So, Anjuli, I have a question for you.

Shaleen Kumar: Yes. Thank you. Thank you and congrats for the good set of number despite tough macro. Thank you Anup. Thank you, Sanjiv.

Anubhav Gupta: Thank you.

Shaleen Kumar: I have a question with you. Sanjay, beginning of the year expectation volume?

Speaker #4: Anjuli, beginning of the year expectations were that we would do volume of around 15% to 20%. That is still the same. So sir, for Q1 basically we are saying that in the next 9 months, we can do almost 20%.

Anubhav Gupta: Yes, Shaleen.

Shaleen Kumar: Basically 20% in next nine months.

Speaker #2: Shaleen, मोटा मोटी we are trying our level best to achieve these numbers, कि 15 to 20% in the volume growth, and 20% and above EBITDA growth.

Anubhav Gupta: Shaleen, we are trying our level best to achieve these numbers, 15% to 20% in the volume growth and 20% and above in EBITDA growth.

Speaker #4: Okay. Okay. So, आप अपनी guidance maintain कर रहे हैं।

Shaleen Kumar: Okay.

Speaker #2: 101% कर रहा हूं।

Anubhav Gupta: 101%

Speaker #4: Okay, that's very good to hear, sir. Sir, the second thing I want to understand is like Dubai, Dubai UAE as a market, right? So where is it right now?

Shaleen Kumar: Okay. That's very good to hear, sir. Sir, second thing I want to understand Dubai as a UAE as a market, right? Where is it right now and is it right to assume that there will be a pent-up demand as well as a reconstruction demand going forth. Second part of this would be- Go ahead, sir, please. Second part of that question is- obviously, Middle East reconstruction demand how participate capacity export question.

Speaker #4: And in this, is it right to assume that there will be a pent-up demand as well as a reconstruction demand going forward? And the second part of this question would be—go ahead, sir, please.

Speaker #4: So, second part of that question is, हाँ, मैं पूरा करता हूं पहले। तो पहली बात यही है कि वहाँ पे एक pent-up demand होगी, क्योंकि पिछले तीन-चार महीने से—I don't know, आप बताएंगे कि काम कैसा चल रहा है। दूसरी बात, obviously Middle East में जो भी issues हुए हैं, उसकी वजह से reconstruction demand आएगी। तीसरा question ये होगा कि उस demand में हम participate कैसे करेंगे?

Speaker #4: सिर्फ वहाँ की capacity से या फिर हम यहाँ से export भी कर सकते हैं? तो इस पे ये question है, sir.

Speaker #2: Shaleen, first of all, ये Dubai means कि हम almost zero पर पहुँच गए थे, 5-6 हज़ार टन महीने पर पहुँच गए थे। क्योंकि वहां incoming और outgoing दोनों बंद थे। Now, from July onwards, incoming तो हमारी, जो transit में material थे, काफी आ गया है। No doubt, हमको उसमें कुछ pricing में hit लेना पड़ा, damages हमारी seats पर काफी लगे हैं। We have a stock of almost inventory of 70,000 tons in transit in our plant.

Anubhav Gupta: Shaleen, first of all, Dubai means we have almost reached zero. We had reached 5,000, 6,000 tons per month because both incoming and outgoing were closed there. Now from July onwards, a lot of material has come in the transit of incoming demand. Roughly we had to take some hit in it in pricing, our fees have increased a lot. We have a stock of almost 70,000 tons in transit in our plant. For two, three months we do not have any problem there. In July we have done 15,000 ton in- 10,000 to 12,000 ton in the month of July. This month we are targeting that 60,000 to 70,000 ton will reach our plant. In August and September, I think we will capture what we committed 24,000 to 25,000. Local demand is creating very well there.

Anubhav Gupta: We have a stock of almost 70,000 tons in transit in our plant. For two, three months we do not have any problem there. In July we have done 15,000 ton in- 10,000 to 12,000 ton in the month of July. This month we are targeting that 60,000 to 70,000 ton will reach our plant. In August and September, I think we will capture what we committed 24,000 to 25,000. Local demand is creating very well there.

Speaker #2: तो अभी दो-तीन महीना तो हमको वहां पर कोई दिक्कत नहीं है। और July में we have done 15,000 ton and 10-12,000 ton in the month of July.

Speaker #2: This month we are targeting कि 16-17,000 ton हमारा plant पहुंच जाएगा वापस। और August में हमको ये September में हमको लगता है वापस जो हम 24-25 का हमने capture किया था, वो कर लेंगे। Demand वहां पर local demands बहुत अच्छी create हो रही है। वहां पर हमारी एक ही थोड़ी problem है कि अब हमारे पास 70,000 का अभी raw material का कोई lineup नहीं है। तो अभी जैसे-जैसे Senado improve हो रहा है, तो हम raw material वापस lineup करेंगे। तो Dubai से we are very hopeful कि हमारा margins भी और demand भी अच्छी रहेगी। Number two, हमारा गोरखपुर जो नई नया area है इस zone में, हमारा सितंबर में किसी भी time चालू हो जाएगा। तो Q3 में वो भी हमको पूरा ramp up volume देगा। Q4 में हमारा Siliguri ramp up volume देगा हमको। और हमारे कुछ अपने AB12 में एक line हमारी ये roofing product की चालू हो रही है, वो भी हमको एक 20,000 ton का ramp up volume देगी। तो this 3-4 extraordinary things and plus हम अब market marketing में भी काफी aggressive हो गए हैं July से। I don't think कि I have any problem to cross 15% volume growth। हाँ, कुछ tailwind साथ चाहिए होगा, 20% cross करने के लिए। वो थोड़ा सा अभी मैं confidence से नहीं कह सकता। 50% I can say confidently।

Anubhav Gupta: The only problem we have there is that we do not have any line up of 70,000 raw material. As soon as the scenario is improving, we will line up the raw material again. From Dubai we are very hopeful that our margins and demand will also be good. Number two, our Gorakhpur, which is a new area in this zone, will start sometime in September. In Q3 that too will give us complete ramp-up volume. In Q4, our Siliguri will give ramp-up volume. Some of our roofing products line is starting in APL. That too will give us a ramp-up volume of 20,000 tons. These three, four extraordinary things and plus we have become very aggressive in marketing since July. I don't think that I have any problem to cross 15% volume growth. Yes, some tailwind will be needed to cross 20%.

Anubhav Gupta: In Q3 that too will give us complete ramp-up volume. In Q4, our Siliguri will give ramp-up volume. Some of our roofing products line is starting in APL. That too will give us a ramp-up volume of 20,000 tons. These three, four extraordinary things and plus we have become very aggressive in marketing since July. I don't think that I have any problem to cross 15% volume growth. Yes, some tailwind will be needed to cross 20%. I cannot say that with confidence right now. 15% I can say confidently

Anubhav Gupta: I cannot say that with confidence right now. 15% I can say confidently

Speaker #4: सर, अगर साल का 15% करेंगे तो, अगले 9 महीने में 20% तो हो ही जाएगा।

Shaleen Kumar: अगर साल का 15% करेंगे तो next नौ महीने में 20% तो हो ही जाएगा।

Speaker #2: हाँ, मालूम है, Shaleen। 4 million ton cross करना पड़ेगा मेरे को। Number समझ रहा हूँ मैं भी। क्या बोल रहा हूँ, वो भी समझ रहा हूँ मैं।

Sanjay Gupta: हाँ, मालूम है। 4 million ton cross करना पड़ेगा मेरे को number. समझ रहा हूँ मैं भी। क्या बोलना है वह भी समझ रहा हूँ मैं।

Speaker #4: Okay. Okay. So basically, we are confident because of the new capacity coming, and in Q2, 10,000.

Shaleen Kumar: Okay. Basically we are confident because of the new capacity coming.

Sanjay Gupta: Q2 में 10 lakh ton cross करने की पूरी कोशिश कर रहे हैं। हम July में 3 lakh ton plus कर लिया है। August में we are targeting 330-335. September में we are targeting 350-360 के आसपास करके 10 plus करेंगे। बाकी इतना sellable है, काफी तेज change होता है तो ज्यादा confidently मैं number नहीं बोलता। पर मैं full year के लिए एकदम confident हूँ कि मैं अपने जो guidelines दे रखा हूँ, उनको किसी भी तरह से achieve करूँगा।

Speaker #2: ton cross करने की पूरी कोशिश कर रहे हैं। हमने, सर, ये July में 3,000 ton plus कर लिया है। August में we are targeting 330-335। September में we are targeting 350-360 के आसपास करके 10 plus करेंगे। थोड़ा सा बाकी, इतना सेनेरियो थोड़ा सा काफी तेज change होता है, तो ज्यादा confidently मैं सब numbers नहीं बोलता। पर मैं full year के लिए एकदम confident हूं कि मैं अपने जो guideline दे रखा है, उसको किसी भी तरह से achieve कर लूंगा।

Shaleen Kumar: That's very good to hear, sir. Sir, एक last thing because the commodity price inching up, the gap between Patra and steel again increases. How is it impacting us?

Speaker #4: That's very, very good to hear, sir. That's very good to hear. सर, one last thing, because you know, commodity prices are inching up and the gap between 17 and steel is increasing again.

Speaker #4: So, how is it impacting us?

Speaker #2: ये बहुत बड़ा impact है, Shaleen। अगर ये impact नहीं होता तो मैं confidently तुमको 25% का भी growth बोल देता, जो small ये जनवरी-मार्च में चल रहा था, तो I can say 25%. But इसमें hopeful thing क्या है कि अगर आप देखोगे तो इसकी capacity बहुत build up हो रही है, Shaleen। उसके लिए maybe मेरे को एक-दो quarter, तीन quarter और pain झेलना पड़ सकता है। But जिस हिसाब से steel capacity across India आ रही है, तो I am very hopeful। ये, this is a matter of time। मेरे को बस मैं उस time का wait कर रहा हूं, कि जहां पर आके ये gap... आप देखो कि ये steel plants में जिस हिसाब से 15-20,000 ton के EBITDA आ रहे हैं, तो capacity तो हिंदुस्तान में आएगी ही आएगी। और capacity आएगी तो secondary को तो खत्म होना ही पड़ेगा क्योंकि उसकी cost primary के against में बहुत ज्यादा है। तो the real tailwind Apollo का तब आएगा, जिस capacity का मैं तैयार बैठा हुआ हूं। अभी मैं इससे पूछूंगा तो I am passing the time.

Sanjay Gupta: यह बहुत बड़ा impact है। क्या करें, impact नहीं होता तो मैं confidently तुमको 25% का भी growth बोल देता जो small January-March में चल रहा था तो I can say 25%. इसमें hopeful thing क्या है कि अगर आप देखोगे तो steel capacity बहुत build-up हो रही है। उसके लिए maybe मेरे को एक, दो quarter, तीन quarter और pain झेलना पड़ सकता है। जिस हिसाब से steel capacity across the India आ रही है तो I am very hopeful. This is a matter of time.

Sanjay Gupta: मैं उस time का wait कर रहा हूँ कि जहाँ पर आकर यह gap, आप देखोगे steel plants में जिस हिसाब से 15-20 हजार ton के EBITDA आ रहे हैं तो capacity तो इस time आएगी। और capacity आएगी तो secondary को तो खत्म होना ही पड़ेगा क्योंकि उसकी cost primary के मुकाबले बहुत ज्यादा है। The real turnaround APL में तब आएगा, जिस capacity के लिए मैं तैयार बैठा हुआ हूँ। अभी मैं passing the time.

Speaker #4: I hear you, sir. I hear you. Okay.

Shaleen Kumar: I hear you, sir.

Sanjay Gupta: Capacity बहुत जबरदस्त तरीके से आ रही है। जितने भी steel की capacity शुरू हो, हर side से announcement आ रही है। Jayant Steel ने 15 million ton का capacity announce किया हुआ है। उस पर बहुत तेज काम चल रहा है। Vizag में 10-12 million ton का capacity लग रहा है। Jindal Group बहुत capacity announce कर रहा है। Tata Steel capacity announce कर रहा है, JSW Steel capacity announce कर रहा है। BSL का एक नया plant मैंने अभी just read किया, नागपुर के आसपास आ रहा है। तो जिस हिसाब से capacity आएगी तो हिंदुस्तान में downstream का time तो आएगा। अगर आप Patra material देखो तो study करो आप, हिंदुस्तान के अलावा Patra कहीं नहीं होता। यह हमारे 30% business में बड़ा impact है इसका, no doubt.

Speaker #2: Capacity बहुत जबरदस्त तरीके से आप जितने भी steel की capacity शुरू करें, हर तरफ से announcement आ रही है। Royal steel ने 15% 15 million ton का capacity announce किया हुआ है। उसमें बहुत तेज काम चल रहा है। AMS ने भी उधर Vizag में एक 10-12 million ton का capacity लग रहा है। DSW बहुत capacity announce कर रहा है। Tata capacity announce कर रहा है। JSPL capacity announce कर रहा है। GSL का एक नया plant मैंने अभी Dusty read कर रहा था। ये नागपुर के आसपास आ रहा है। तो जिस हिसाब से capacity आएगी तो हिंदुस्तान में downstream का time तो आएगा। अगर आप 15 material देखो तो study करोगे आप हिंदुस्तान के अलावा 15 का ही नहीं होता। ये हमारे 30% business में बड़ा impact है इसका। No doubt। आपको हम plan A और plan B दोनों लेके चल रहे हैं। दूसरी तरफ अपने आप को non-15 segment में भी काफी हम अपनी capacity बढ़ा रहे हैं। जिससे हमारा इसका impact भी खत्म हो जाए। Plus ये तो आ गया तो हमारे लिए सोने पर सुहागा है।

Sanjay Gupta: हम plan A और plan B दोनों लेकर चल रहे हैं। दूसरी तरफ अपने आप को non-पत्रा segment में भी काफी हम अपनी capacity बढ़ा रहे हैं, जिससे हमारा इसका impact भी खत्म हो जाए। Plus यह तो आ गया कि हमारे लिए सोने पर सुहागा है।

Speaker #4: Okay. Okay. Okay, sir. Sir, I think that's it from my side, sir. I will join back the queue, and congratulations on a good setup. Thank you.

Shaleen Kumar: Okay, sir. Great, sir. I think that's it from my side, sir. I will join back the queue, congratulations on a good quarter. Thank you.

Speaker #2: Thank you, Shaleen. Maybe आपको निराश नहीं करेगी। हमारी पूरी team लगी हुई है उस तरीके से।

Sanjay Gupta: Thank you, Salim. Maybe आपको निराश नहीं करेंगे। हमारी full team लगी हुई है।

Shaleen Kumar: For sure, sir. Thank you, sir.

Speaker #4: For sure, sir. Thank you, sir.

Speaker #2: Thank you। Thank you।

Operator: Thank you.

Speaker #1: Thank you. The next question is from the line of Sneha from Novama. Please go ahead.

Operator: Thank you. The next question is from the line of Sneha from Nomura. Please go ahead.

Speaker #3: Hi, good day। Good morning team and thanks for the opportunity। Couple of questions from my end। One is to clarify the guidance already। I would like to ask सर you also mentioned that you know Tata Zindal you know everyone is adding capacity on the you know on the upstream segment। But what we also understand while doing channel checks are these example Tata is you know expanding capacity from two and you know has planned to even go to up to four to five million tons into pipes also। They are also getting aggressive with respect to servicing। What's your take on the competitive intensity in the coming sectors?

[Analyst] (Nuvama Wealth Management): Hi, good evening. Good morning, team, and thank you for the opportunity. A couple of questions from my end. One is you clarified the guidance already. I would like to ask, sir, you also mentioned that Tata, Jindal, everyone is adding capacity on the upstream segment. What we also understand while doing channel checks are these, like example, Tata is expanding capacity from 2 and has plans to even go to up to 4 to 5 million tons into pipes also. They are also getting aggressive with respect to servicing. What's your take on the competitive intensity in the coming quarters? How is it at this point of time, and how is it likely to be going ahead? What are the measures that we are taking in order to retain market share and in fact, keep improving? That's first.

[Analyst] (Nuvama): Hi, good evening. Good morning, team, and thank you for the opportunity. A couple of questions from my end. One is you clarified the guidance already. I would like to ask, sir, you also mentioned that Tata, Jindal, everyone is adding capacity on the upstream segment. What we also understand while doing channel checks are these, like example, Tata is expanding capacity from 2 and has plans to even go to up to 4 to 5 million tons into pipes also.

[Analyst] (Nuvama): They are also getting aggressive with respect to servicing. What's your take on the competitive intensity in the coming quarters? How is it at this point of time, and how is it likely to be going ahead? What are the measures that we are taking in order to retain market share and in fact, keep improving? That's first.

Speaker #3: How is it at this point in time? And how is it likely to be going ahead? And you know, what are the measures that we are taking in order to retain market share and, in fact, keep improving?

Speaker #3: That's first।

Speaker #2: Good morning, Sneha. Yeh Sneha steel capacity toh aa hi rahi hai. Abhi pipe mein bhi I also heard and I also read ki Tata is also adding a capacity of four million ton. But I don't know, this is ki usko poora describe nahi kiya hua ki kitna structural tube hai, kitna automatic tube hai, kitna API tube hai. Agar aap dekhoge aur bhi bahut saare pipe mein sectors hain, humko ek hi sector mein hai. Toh is sector mein unka kitna target hai I don't know. But abhi tak humko market se sir, aapko feel aa raha hai kisi bhi competitors ka? Abhi tak humko aisa koi feel bhi nahi ki humko market se lose kar rahe hain. Theek hai, dealers thode bahut upar neeche karte rehte hain ki yeh aa gaya, woh aa gaya. It's a part of life and business. Aur baaki 100% market se toh hum kabhi le hi nahi sakte. Koi bhi player aayega toh we have to, agar hum 60-65% apna market share le jaate hain 50-55 se, toh this is good enough for us. Toh 35% mein kaun aata hai nahi aata hai, we are not bothered aur utna sahi uske liye humko koi game plan bana bhi nahi sakte. Our target is to maintain our 60-65% market share.

Sanjay Gupta: Good morning, Sneha. Steel capacity तो आ ही रही है। अभी pipe के लिए I also heard and I also read that Tata is also adding a capacity of 4 million ton. But I don't know because उसको पूरा describe नहीं किया कि कितना structural tube है, कितना auto body tube है, कितना API tube है। अगर आप देखोगे और भी बहुत सारे pipe के sectors हैं। हम तो एक ही sector में हैं। तो इस sector में उनका कितना target है I don't know. अभी तक हमको market से ऐसा कुछ feel आ रहा है किसी भी competitors का। अभी तक हमको ऐसा कुछ feel भी नहीं कि हम कोई market share lose कर रहे हैं। ठीक है, dealers थोड़े बहुत ऊपर-नीचे करते रहते हैं कि यह आ गया, वह आ गया। It's a part of life and business.

Sanjay Gupta: और बाकी 100% market share तो हम कभी ले ही नहीं सकते। कोई भी player आएगा तो we have to around 60-65% अपना market share ले आते हैं, 50-55 से। this is good enough for us. तो 35% में कौन आता है, नहीं आता है, we are bothered not. उतना फिर उसके लिए हम कोई implant लगा भी नहीं सकते हैं। Our target is to maintain our 60-65% market share.

[Analyst] (Nuvama Wealth Management): Understood, sir. Sir, while you are already showing optimism that 20% growth will be achieved in 9 months, how is July been for us and what has changed between June to July? ऐसा क्या हुआ है which is further giving us optimism. जैसे April start हुआ था तो you already hinted for a slower quarter. आपने बताया था 2.5 lakh tons हुआ है। If at all you could tell us that how July month has been and why you are so optimistic that Q2 onwards things are looking up. Like changes क्या हुए हैं between June to July? Has the primary and the secondary steel spread reduced? Has the demand on ground increased? Infra spend बढ़े हैं। What are the things we would like to hear?

[Analyst] (Nuvama): Understood, sir. Sir, while you are already showing optimism that 20% growth will be achieved in 9 months, how is July been for us and what has changed between June to July? ऐसा क्या हुआ है which is further giving us optimism. जैसे April start हुआ था तो you already hinted for a slower quarter. आपने बताया था 2.5 lakh tons हुआ है। If at all you could tell us that how July month has been and why you are so optimistic that Q2 onwards things are looking up. Like changes क्या हुए हैं between June to July? Has the primary and the secondary steel spread reduced? Has the demand on ground increased? Infra spend बढ़े हैं। What are the things we would like to hear?

Speaker #1: While you were already, you know, showing optimism that, you know, 20% growth will be achieved in nine months, how is July being for us, and what has changed between June to July?

Speaker #1: ऐसा क्या हुआ है, you know, which is further giving an optimism? जैसे April start हुआ था, तो you already hinted for a slower quarter। आपने बताया था 2.5 lakh ton हुआ है. If at all you could tell us how July month has been and why you are so optimistic that Q2 onwards, you know, things are looking up. Like what changes हुए हैं between June to July?

Speaker #1: Has the primary and the secondary steel spread reduced? Has the demand on ground, you know, increased? Infrastructure पड़े, you know, what are the things we would like to hear?

Speaker #2: Sneha, ये ऐसा कुछ बड़ा change नहीं हुआ है। ये, and steel primary steel up। But ये अप्रैल में जो मेरे को hint आ गया था कि price में इतना, almost 7-8 thousand की price increase हुआ था Q4 में। तो everybody is thinking कि कुछ price soft turn होगा। तो मेरे को मालूम था dealer अपने आपको restocking करेंगे ही करेंगे, चाहे हम कुछ मर्जी कर लें। उसके लिए मैंने पहले ही थोड़ा सा soft volume का indicate कर दिया था। Demand कभी भी इतनी up-down नहीं होती है। ये जो dealer restocking और destocking होता है न, उसमें हमेशा demand up और down का फर्क पड़ता है। अगर आप last level पर demand रखोगे तो उतनी ही रहती है। उसमें hardly 5-7%, 10% का फर्क पड़ता है। But जो dealers अपने restocking और destocking करते हैं, उसमें हम लोगों को, बड़े players को, थोड़ा उस चीज़ का impact आ जाता है। अब क्या है कि price downward जाने का सारा जो movement था, खत्म हो चुका है। Everybody is clear कि price down नहीं जाएगा। तो वापस से demand peak होना शुरू हो गया है। Dealers अपने normal stock position पर जाने लग गए हैं। और July में भी now done 3 lakh ton plus। हमने July में अच्छा किया है। और in this scenario भी very hopeful कि आगे भी हमारी demand अच्छी रहेगी और हम उसको पूरा कर लेंगे।

Sanjay Gupta: यह ऐसा कुछ बड़ा नहीं हुआ है कि steel price still up but April में मुझे hit आ गया था। क्या है कि price में almost ₹7,000-₹8,000 price increase हुआ था Q4 में। तो everybody thinking कि कुछ price soften होगा। तो मुझे लगता है dealer अपने को up to restocking करेंगे ही करेंगे। चाहे कुछ मर्जी कर लें। उसके लिए मैंने पहले ही थोड़ा soft volume का indicate कर दिया था। demand कभी भी इतनी up down नहीं होती है। यह जो dealer destocking और restocking होता है ना, उसमें हमेशा demand up और down का फर्क पड़ता है। अगर आप last level पर demand देखोगे तो उसी रहती है। उससे hardly 5%, 7%, 10% का फर्क पड़ता है। but जो dealers अपने destocking और restocking करते हैं, उसमें हम लोगों को impact है। जो बड़े players को थोड़ा उस चीज का impact आ जाता है। अब क्या है कि price down जाने का सारा जो movement था, खत्म हो चुका है। Everybody clear की price down नहीं जाएगा तो वापस से demand pick होना शुरू हो गया है। dealers अपने normal stock position पर जाने लग गए हैं और July भी we have done 300,000 ton plus। हमने July में अच्छा किया है और in this January we are very hopeful कि आगे भी हमारी demand अच्छी रहेगी और हम उसको पूरा कर लेंगे।

Speaker #1: Understood। That was quite helpful सर। और और 3 lakh tons volume and the amount of July। Last question from my end। आप सब you know you gave the guidance that आप लोग value added product segments में you are adding you know capacity। जो जिसमें आप share और value added में go through 75-80%। तो could you help us कि what are the things that we are doing value added?

[Analyst] (Nuvama Wealth Management): Understood. That was quite helpful sir of 300,000 tons volume in the month of July. Last question from my end. You gave the guidance that आपने value added product segment में you are adding capacity जिसमें आप share of value added will go to 75% to 80%. Could you help us कि what are the things that we are doing value added. Example 1,000 by 1,000 is we recently launched and which are the other products like roofing product you said. On the value added portion add करें which will take this portion higher.

[Analyst] (Nuvama): Understood. That was quite helpful sir of 300,000 tons volume in the month of July. Last question from my end. You gave the guidance that आपने value added product segment में you are adding capacity जिसमें आप share of value added will go to 75% to 80%. Could you help us कि what are the things that we are doing value added. Example 1,000 by 1,000 is we recently launched and which are the other products like roofing product you said. On the value added portion add करें which will take this portion higher.

Speaker #1: For example, 1,000 by 1,000 as we recently launched. And you know, which are the other products, like roofing products you mentioned. What value-added portion can we add, which will take this portion higher?

Speaker #2: ये Sneha, हमारा जो गोरखपुर plant आ रहा है और सिलीगुड़ी plant आ रहा है, these two plants are in totally different regions, जो हमको हमारा सीधा volume increase करने में directly impact करेगा। क्योंकि अभी हमारा market share वहां पर कुछ भी नहीं है, बहुत negligible है। क्योंकि हमारा freight cost इतना ज्यादा होता है कि we are unable to service। और जो हमारा मालूर plant आ रहा है, this plant is totally different। ये one million ton का है, इतना detail product मैं नहीं दे सकता हूं। ये अनुभव talk one-to-one। But वो जो हमारा one million ton का plant है, totally value-added plant है, जहां पर we are thinking कि हमारा जो margins हैं, EBITDA margin ₹8,000 plus रहेगा।

Sanjay Gupta: Sneha, हमारा जो गोरखपुर plant आ रहा है और Siliguri plant आ रहा है these two plants in the totally different regions जो हमको सीधा volume increase करने में directly impact करेगा। क्योंकि अभी वहाँ का market share कुछ भी नहीं है। बहुत negligible है। क्योंकि हमारा freight cost इतना ज्यादा होता है कि we are unable to service. और जो हमारा Malur plant आ रहा है this is totally different. यह 1 million tons का है। इतना detail product wise मैं नहीं दे सकता हूँ। Anubhav can talk one-to-one. वो हमारा 1 million tons का plant है totally value added plant है। We are thinking कि हमारा EBITDA margin INR 8,000 plus रहेगा।

[Analyst] (Nuvama Wealth Management): Understood sir. That was very helpful. Thanks a lot. I will take the rest with Anubhav. Thank you so much.

[Analyst] (Nuvama): Understood sir. That was very helpful. Thanks a lot. I will take the rest with Anubhav. Thank you so much.

Speaker #1: Understood, sir. That was very helpful. Thanks a lot, sir. I'll take the rest with अनुभव. Thank you so much. All the best, sir.

Speaker #2: Thank you। Thank you।

Sanjay Gupta: Thank you.

[Analyst] (Nuvama Wealth Management): All the best.

[Analyst] (Nuvama): All the best.

Sanjay Gupta: Thank you.

Speaker #1: Thank you. The next question is from the line of Bharat Shah from BCF Capital Ideas Private Limited. Please go ahead.

Operator: Thank you. The next question is from the line of Bharat Shah from BCS Capital Ideas Private Limited. Please go ahead.

Speaker #4: संजय जी नमस्कार।

Bharat Shah: संजय जी नमस्कार।

Speaker #2: नमस्कार Bharat भाई नमस्कार।

Sanjay Gupta: नमस्कार भाई, नमस्कार।

Speaker #4: नमस्कार। First of all, in a very challenging quarter, very difficult conditions, I think APL Apollo Tubes has performed with a great degree of aplomb, I must say. Because this has not been an easy quarter to deal with, with too many variables and too many challenges around. So, while there may be perception of some volume decline, but I would say it is a very creditable delivery in a very, very difficult quarter, where too many things were reflecting as moving part challenges. Sanjay ji, at work stage, believe me, sometime next year we can be safe that the focus on quarterly or periodic steel price fluctuation, volume up and down due to demand conditions, we can reasonably leave behind and we can purely target profitable growth in a very considered, predictable way, with the rising share of value-added products, etcetera. तो अगले साल में हम कह सकते हैं कि शायद we should be at that situation where, of course, volumes will grow with the strategy in our strong product portfolio. But profitable growth in a very predictable way—हम अगले साल से शायद वो स्थिति में पहुंच जाएंगे।

Bharat Shah: नमस्कार। First of all, in a very challenging quarter, very difficult conditions. I think APL Apollo Tubes has performed with a great degree of aplomb, I must say. This has not been an easy quarter to deal with too many variables and too many challenges around. While there may be perception of some volume decline, I would say it is a very creditable delivery in a very difficult quarter where too many things were reflecting a moving part challenges. Sanjay ji, at what stage will it be sometime next year can we say that the focus on quarterly or periodic steel price fluctuation, volume up and down due to demand conditions we can reasonably leave behind and we can purely confidently focus on profitable growth in a very considered predictable way with the rising share of value added products etc.?

Bharat Shah: Sanjay ji, at what stage will it be sometime next year can we say that the focus on quarterly or periodic steel price fluctuation, volume up and down due to demand conditions we can reasonably leave behind and we can purely confidently focus on profitable growth in a very considered predictable way with the rising share of value added products etc.?

Bharat Shah: अगले साल में हम कह सकते हैं कि शायद we should be at that situation where of course volumes will grow with the strategy in our strong product portfolio. Profitable growth in a very predictable way, हम अगले साल से शायद उस स्थिति में पहुंच जाएगे।

Speaker #2: Bharat भाई आप अगर देखो last volume one and a half year से पहले we are struggling for 4000 rupees turn of EBITDA। Then we increase ourselves to 4000 to 4500 rupees per ton। From 4500 to we stable ourselves to 5000 rupees per ton EBITDA margin। Now we are trying to reach the 55000 rupees per EBITDA per ton quarter on quarter basis। हम उसको पिछले दो तीन ये quarter से काफी try कर रहे हैं कि हम 5500 margins को stable रखें जिस तरह इस quarter में आप देखोगे in spite of the cost increase by 1000 rupees ton। Due to low volume फिर भी हमने अपने margins को 5500 पर maintain करके गए हैं। तो margins हमारा धीरे-धीरे मेरे को लगता है stable होता जा रहा है। Volume there is no doubt कि scenario के हिसाब से थोड़ा सा up-down हो रहा है। उसको भी मेरे को लगता है जो मेरा मालूर वाला plant जब आएगा ये मैंने अगले साल July October quarter में तो ये 27 Q3 से मेरा ये भी challenge खत्म हो जाएगा। अब हम काफी stability volume as well as margin तो काफी हमारी stability आ जाएगी जब हमारा पूरा 7 million ton का CATEX plant खत्म होगा तो।

Sanjay Gupta: Bharat bhai, aap agar dekho, last one and a half year se pehle we are struggling for INR 4,000 ton of EBITDA. We increase ourself to INR 4,000 to INR 4,500 per ton. From INR 4,500 to we stable ourself to INR 5,000 per ton EBITDA margin.

Sanjay Gupta: Now we are trying to reach the ₹5,500 EBITDA per ton quarter on quarter basis। हम पिछले दो-तीन quarter से काफी try कर रहे हैं कि हम ₹5,500 per ton margin को stable रखें। इस quarter में आप देखोगे in spite of the cost increase by ₹1,000 ton due to low volume, फिर भी हमने अपने margins को ₹5,500 पर maintain करके गए हैं। तो margin संभालना धीरे-धीरे मुझे लगता है stable होता जा रहा है। Volume there is no doubt कि standard के हिसाब से थोड़ा up down हो रहा है। उसको भी मुझे लगता है जो मेरा Malur वाला plant जब आएगा अगले साल July October quarter में तो Q3 FY27 से मेरा यह भी challenge खत्म हो जाएगा। हम काफी stability volume as well as margin पर काफी हमारी stability आ जाएगी जब हमारा पूरा 7 million ton का capex plant खत्म होगा तो।

Speaker #4: हाँ, '27 Q3' मतलब December 26 की बात कर रहे हैं।

Bharat Shah: Q3 मतलब December 26 की बात कर रहे हैं।

Speaker #2: Next year December तक। Next year December तक।

Sanjay Gupta: Next year December तक.

Speaker #4: हाँ, December 27 की बात कर रहे हो न आप?

Bharat Shah: December 27 की बात कर रहे हो ना आप?

Sanjay Gupta: Yes. Q4. यह Q3 था। Q3.

Speaker #2: Yes yes Q4। Q3 Q3।

Speaker #4: हाँ तो।

Bharat Shah: हाँ।

Speaker #2: वहाँ पर हमारा जैसे बस 7 million ton का हमारा पूरा CATEX plant पूरा खत्म होगा, तो हमारा जो business plan है, उसके हिसाब से हम इन चीजों से भी बाहर आ जाएंगे।

Sanjay Gupta: वहां पर जैसे seven minute का पूरा capex plan पूरा खत्म होगा तो हमारा जो business plan है उसके हिसाब से हम इन चीजों से भी बाहर आ जाएंगे।

Speaker #4: बिल्कुल। मतलब second half या last quarter of next year।

Bharat Shah: बिल्कुल. मतलब H2 या Q4 of next year.

Sanjay Gupta: 28 Q4, 27-28 Q4। हमारे एकदम stable quarter होगा जहां पर हम stocking disturbance हो गया, pricing ऊपर नीचे हो गया, ये सब कहना छोड़ देंगे।

Speaker #2: Q4 '28 की मैं ये... Q4 '27, '28, Q4 हमारा एकदम stable quarter होगा, जहाँ पर हम stocking, restocking हो गया, prices ऊपर नीचे हो गया, अभी सब कहना छोड़ देंगे।

Speaker #4: बिल्कुल। मतलब वो quarter से, संजय जी, हम उस स्थिति में होंगे कि profitful predictability and its growth will be almost reasonably under our control, rather than worrying about many of these other variables which have engaged our mind time to time, sometime or the other. That will be fair.

Bharat Shah: बिल्कुल. मतलब वो Q से Sanjay जी, हम उस स्थिति में होंगे कि profitable predictability and its growth will be almost reasonably under our control rather than worrying about many of these other variables which have engaged our mind time to time, sometime or the other. That will be fair.

Speaker #2: ये अभी भी है, but ठीक है, अभी I can say कि 70-75 percent है। वहाँ पर हम 100 percent हो जाएंगे।

Sanjay Gupta: यह अभी भी है, ठीक है। मैं कह सकता हूं कि 70-75% है। वहां पर हम 100% हो जाएंगे।

Speaker #4: बिलकुल, समझ गया। और संजय जी, value-added total product का share जो हम 75–80 प्रतिशत कह रहे हैं, वो कब तक हम expect करते हैं?

Bharat Shah: बिल्कुल, समझ गया। और Sanjay जी value added product का share जो हम 75, 80% कह रहे हैं वो कब तक हम expect करते हैं?

Sanjay Gupta: वही Bharat Shah भाई हमारे Malur plant से आएगा। यह 27 December तक। Q4 next year हमारा यह value added product का sale जो है 75% to 80% आ जाएगा।

Speaker #2: वही हमारे मालूर plant से आएगा, Bharat भाई, ये 27 December तक। ये Q4 next year हमारा ये value-added product का sale जो है, 75-80 percent आ जाएगा।

Speaker #4: Fantastic. नहीं, once again संजय जी।

Bharat Shah: Fantastic. नहीं once again Sanjay जी.

Speaker #2: Q4, Q4 next year—'25, '27, '28 में Q4 quarter से हमारा value added का product का जो ratio है, 75 percent cross कर जाएगा।

Sanjay Gupta: Q4 next year FY27, 28 में Q4 quarter से हमारा value-added product का जो ratio है 75% cross कर जाएगा.

Speaker #4: समझ गया। Thank you, संजय जी, and once again, compliments to you and the APL Apollo team। In a very difficult situation, very, I would say, impressive performance। Congratulations।

Bharat Shah: समझ गया. Thank you Sanjay ji and once again compliments to you and APL Apollo team in very difficult situation. I would say impressive performance. Congratulations.

Speaker #2: Thank you, Bharat भाई. Thank you, Bharat भाई, for showing confidence in us. ठीक है, कभी एक-आधा quarter हम ऊपर नीचे हो जाएँ, तो हमको माफ़ करना। बाकी, हम अपनी तरफ से कोई कमी नहीं छोड़ेंगे।

Sanjay Gupta: Thank you, Bharat भाई for showing confidence on us. ठीक है कभी एक-आध quarter ऊपर-नीचे हो जाता है, हमको माफ करना। बाकी हम अपनी तरफ से कमी कोई नहीं छोड़ेंगे।

Speaker #4: नहीं, मैं तो कल, आज और परसों भी मानता हूँ कि संजय जी इस देश के एक यूनिक एन्त्रेप्रेन्योर हैं। So happy with him.

Bharat Shah: नहीं, मैं तो कल, आज और परसों भी मानता हूं कि संजय जी एक unique entrepreneur हैं इस देश के। Hearty wishes.

Sanjay Gupta: Thank you. So nice of you, Bharat भाई. हमारी पूरी कोशिश होगी हम अपनी तरफ से कोई कमी नहीं छोड़ेंगे। एकदम हमारे approach से ही बाहर हो जाए। हमारे efforts में आप 0.1% भी कभी नहीं दिखा पाओगे।

Speaker #2: Thank you. So nice of you, Bharat bhai. अब हमारी पूरी कोशिश होगी, हम अपनी तरफ से कोई कमी नहीं छोड़ेंगे। एकदम हमारे approach से ही बाहर हो जाए। But हमारे efforts में आप 0.1% भी कमी नहीं दिखा पाओगे।

Speaker #4: जी, जी, जी। Thank you, and all the best.

Bharat Shah: Ji. Thank you and all the best.

Speaker #2: Thank you. Thank you, Bharat Bhai.

Sanjay Gupta: Thank you, Balram bhai.

Speaker #1: Thank you. We'll move on to the next question. That is on the line of Akshay from AK Investments. Please go ahead.

Operator: Thank you. We move on to the next question that is on the line of Akshay from AK Investments. Please go ahead.

Speaker #5: Hi, sir. Thanks for the opportunity, and congratulations on the good setup numbers in a difficult time. So, sir, my first question is about EBITDA per ton.

[Company Representative] (AK Investment): Hi sir, thanks for the opportunity and congratulations on the good set of number in difficult time. My first question is about EBITDA per ton. As you have already guided that INR 5,000 to 5,500 will be the range for FY27. Going forward, in the FY28, FY29, how much EBITDA per ton are we expecting? How much year-on-year incremental in EBITDA per ton are we expecting going forward?

Akshay Kaila: Hi sir, thanks for the opportunity and congratulations on the good set of number in difficult time. My first question is about EBITDA per ton. As you have already guided that INR 5,000 to 5,500 will be the range for FY27. Going forward, in the FY28, FY29, how much EBITDA per ton are we expecting? How much year-on-year incremental in EBITDA per ton are we expecting going forward?

Speaker #5: So as you already guided that ₹5,000 to ₹5,500 will be the range for FY27. So, going forward, in FY28 and FY29, how much EBITDA per ton are we expecting?

Speaker #5: How much year-on-year increment in EBITDA per ton are we expecting going forward?

Speaker #2: So, Akshay, see, I mean, right now the focus is to maintain EBITDA spreads between 5,000 to 5,500. Of course, the last two quarters have been good.

Anubhav Gupta: Akshay, see, right now the focus is to maintain EBITDA spreads between INR 5,000 to 5,500. Of course, last two quarters have been good at INR 5,500 per ton. But now that for the next nine months, we need to cover up on the volume which we lost. There could be some tweaking which we did in our pricing, and there could be INR 100, INR 200 here and there for INR 5,500. Again, as the volumes ramp up, we could gain traction from the operating leverage benefits, which could come as a surprise. We'll wait for that how much it comes up. Going forward as our whole value added product portfolio keeps on increasing. Idea is to improve EBITDA spreads INR 100, INR 200 per ton on yearly basis.

Speaker #2: At 5,500 per ton. But now, for the next nine months, we need to cover up on the volume which we lost, so there could be some tweaking which we did in our pricing.

Speaker #2: And there could be 100–200 here and there for. Then again, as the volumes ramp up, we could gain traction from the operating leverage benefits, which could come as a surprise.

Speaker #2: So we'll wait for that, see how much it comes up. Going forward, as our more value-added product portfolio keeps on increasing, the right idea is to improve EBITDA spreads by Rs. 100-200 per ton on a yearly basis.

Anubhav Gupta: We'll wait for that how much it comes up. Going forward as our whole value added product portfolio keeps on increasing. Idea is to improve EBITDA spreads INR 100, INR 200 per ton on yearly basis. Our target is that Apollo at 8 million tons should be generating INR 6,000 per ton EBITDA over the next two, three years when we ramp up this capacity.

Speaker #2: And our like our target is that Apollo at 8 million ton should be should be generating 6000 rupees per ton. EBITDA right over the next two three years when we ramp up this capacity.

Anubhav Gupta: Our target is that Apollo at 8 million tons should be generating INR 6,000 per ton EBITDA over the next two, three years when we ramp up this capacity.

Speaker #5: Okay, sir. Fair enough. Thank you. Thank you for the opportunity. All the best.

[Company Representative] (AK Investment): Okay, sir. Fair enough. Thank you for the opportunity. All the best.

Akshay Kaila: Okay, sir. Fair enough. Thank you for the opportunity. All the best.

Speaker #1: Thank you. The next question is from the line of Dhananjay Bagrodia from Alchemy. Please go ahead.

Operator: Thank you. The next question is from the line of Dhananjay Bagrodia from Alchemy. Please go ahead.

Speaker #4: Hello. Hello. Hello. So, first, congratulations on a fantastic set of numbers on EBITDA per ton in such a tough environment. I wanted to understand, in pre-engineered buildings, do we have any thought process on how that could be for us, let's say a year from today? Is that a segment we are looking at actively growing? And, with steel prices stabilized, should we then be targeting a higher EBITDA per ton?

Dhananjay Bagrodia: Hello.

Dhananjai Bagrodia: Hello.

Operator: Yes, please proceed.

Dhananjay Bagrodia: Firstly, congratulations on a fantastic set of numbers on EBITDA per ton and it is such a tough environment. I wanted to understand in pre-engineered buildings, do we have any thought process on how that could be for us, let us say a year from today? Is that a segment we are looking at actively, growing it, and B, with steel prices stabilized, should then we be targeting a higher EBITDA per ton?

Dhananjai Bagrodia: Firstly, congratulations on a fantastic set of numbers on EBITDA per ton and it is such a tough environment. I wanted to understand in pre-engineered buildings, do we have any thought process on how that could be for us, let us say a year from today? Is that a segment we are looking at actively, growing it, and B, with steel prices stabilized, should then we be targeting a higher EBITDA per ton?

Speaker #2: So Dhananjay, currently, for pre-engineered building structures, 20 percent is steel pipes. Okay?

Anubhav Gupta: Dhananjay, currently for the pre-engineered building structures, 20% is steel pipes. Okay?

Speaker #4: Yes.

Dhananjay Bagrodia: Yes.

Dhananjai Bagrodia: Yes.

Speaker #2: And it's a 100-ton structure. 20 percent, or 20 tons, is approximately steel pipe, which is used, right? And the sizes range from 150 millimeter by 150 millimeter, and it goes up to 1000 millimeter by 1000 millimeter, with thickness starting from 4 in general and going up to 40, right?

Anubhav Gupta: If it's 100 tons structure, 20 tons is approximate steel pipe which is used. The sizes range from 115mm by 115mm, it goes up to 1,000mm by 1,000mm with thickness starting from 4mm in general and goes up to 40mm. In this category, our market share is again 65% and 70%. All the top PEB companies in India I mean, they will be buying 60% and 70% of the requirement from APL Apollo. They buy from us directly also, and they also buy from our distributors. Larger players, they want to have contracts directly with Apollo and medium to small size players, they buy through our distribution channel. It's a growing segment, right? It's a growing segment and we continue to focus heavily to service this industry.

Speaker #2: So, in this category, our market share is again 65 to 70 percent. All the top PB companies in India, I mean, they will be buying 60 to 70 percent of their requirement from APL Apollo. They buy from us directly also, and they also buy from our distributors.

Speaker #2: Larger players want to have contracts directly with Apollo, and medium- to small-sized players buy through our distribution channel. So it's a growing segment, right?

Anubhav Gupta: Larger players, they want to have contracts directly with Apollo and medium to small size players, they buy through our distribution channel. It's a growing segment, right? It's a growing segment and we continue to focus heavily to service this industry.

Speaker #2: It's a growing segment, and we continue to focus heavily on servicing this industry.

Speaker #4: But is it a sector which we would look to directly speak to an end customer? Because if we have the raw material, we have the know-how, is that something you would look to do more in depth?

Dhananjay Bagrodia: Is this a sector which we would look to directly speak to an end customer? Because if we have the raw material, we have the know-how, is that something which we would look to do more in depth?

Dhananjai Bagrodia: Is this a sector which we would look to directly speak to an end customer? Because if we have the raw material, we have the know-how, is that something which we would look to do more in depth?

Speaker #2: No, no, no, no. We are happy servicing this sector. That's all.

Anubhav Gupta: No, we are happy servicing this sector. That's all.

Speaker #4: Okay, fine. Sure. Thank you so much.

Dhananjay Bagrodia: Okay, fine. Sure. Thank you so much.

Dhananjai Bagrodia: Okay, fine. Sure. Thank you so much.

Speaker #1: Thank you. A reminder to the participants: anyone wishing to ask a question may please press star one. The next question is on the line from Aditya Velekar of Access Securities.

Operator: Thank you. A reminder to the participants, anyone wishing to ask a question, may please press star and one. The next question is on the line of Aditya Velukar from Axis Securities. Please go ahead.

Speaker #1: Please go ahead.

Speaker #6: Yeah. Thank you for the opportunity. So my question is to confirm so just wanted to understand what's happening between quarter one FY26 to quarter one FY27 on a year on year basis.

Aditya Velukar: Yeah. Thank you for the opportunity. My question is to Anubhav. Just wanted to understand what's happening between Q1 FY26 to Q1 FY27 on a year-on-year basis. We have seen that the volumes have declined, but EBIT per ton have increased. If I see the branded products where we earn higher premium, like APL Apollo brand and UA operations, the volumes have decreased. Despite of the low operating leverage and higher cost, our EBIT per ton has increased. Within this specific brand, APL Apollo brand, what's happening? Are we able to increase the generator within the brand because of the product mix?

Aditya Welekar: Yeah. Thank you for the opportunity. My question is to Anubhav. Just wanted to understand what's happening between Q1 FY26 to Q1 FY27 on a year-on-year basis. We have seen that the volumes have declined, but EBIT per ton have increased. If I see the branded products where we earn higher premium, like APL Apollo brand and UA operations, the volumes have decreased. Despite of the low operating leverage and higher cost, our EBIT per ton has increased. Within this specific brand, APL Apollo brand, what's happening? Are we able to increase the generator within the brand because of the product mix?

Speaker #6: We have seen that the volumes have declined, but EBITDA per ton has increased. But if I look at the branded products, where we have a higher premium, like the APL Apollo brand and the way operations are, the volumes have decreased. But despite the low operating leverage and higher costs, our EBITDA per ton has increased.

Speaker #6: So, within this specific brand—APL Apollo brand—what's happening? Are we able to increase or generate within the brand because of the product? I want to understand.

Speaker #1: Sorry to interrupt, sir. Your voice is breaking up.

Operator: Sorry to interrupt, sir. Your voice is breaking up.

Speaker #6: Hello. Is it audible?

Aditya Velukar: Hello, is it audible now?

Aditya Welekar: Hello, is it audible now?

Speaker #1: Yes sir. Please proceed.

Operator: Yes, sir. Please proceed.

Speaker #6: Yeah, so my question is: I want to understand, on a year-on-year basis, if we see that the EBITDA per ton has increased despite the drop in volumes, and within volumes also, if we see the branded products like the APL Apollo brand and Dubai operations, the volumes have decreased. So, despite the lower operating leverage, our EBITDA per ton has increased.

Aditya Velukar: My question is to Anubhav. I want to understand on a year-on-year basis, if we see the EBIT per ton has increased despite the drop in the volumes. Within volumes, also if we see the branded products like APL Apollo brand and UA operations, the volumes have decreased. Despite the lower operating leverage, our EBIT per ton has increased. I understand that we are increasing our value-added products, on the face of it, if we see the absolute volumes of APL Apollo brand and UA operations, those have decreased. What explains this EBIT per ton increase on a year-on-year basis?

Aditya Welekar: My question is to Anubhav. I want to understand on a year-on-year basis, if we see the EBIT per ton has increased despite the drop in the volumes. Within volumes, also if we see the branded products like APL Apollo brand and UA operations, the volumes have decreased. Despite the lower operating leverage, our EBIT per ton has increased. I understand that we are increasing our value-added products, on the face of it, if we see the absolute volumes of APL Apollo brand and UA operations, those have decreased. What explains this EBIT per ton increase on a year-on-year basis?

Speaker #6: So, I understand that we are increasing our value-added products, but on the face of it, if we look at the absolute volumes of the APL Apollo brand and UAE operations, those have decreased.

Speaker #6: So, what explains this EBITDA per ton increase on a year-on-year basis?

Speaker #2: Aditya this pertains to our pricing strategy which we adopted in the month of January of 2025 wherein we decided that we need to reposition APL Apollo branded the market and we increase the pricing by almost 500 rupees per ton okay so that is what that is what boosted our EBITDA spreads starting Q4 FY25 and all four quarters of FY26 I mean you saw the better spreads right and it continued in quarter one of FY27.

Anubhav Gupta: Aditya, this pertains to our pricing strategy, which we adopted in the month of January 2025, wherein we decided that we need to reposition APL Apollo branded products, okay, in the market, and we increased the pricing by almost INR 500 per ton. Okay? That is what boosted our EBIT spreads starting Q4 FY25 and all four quarters of FY26. I mean, you saw the better spreads, right? It continued in Q1 FY27. Despite the drop in volume, our better pricing strategy has worked to boost the EBIT spreads.

Speaker #2: So, despite the drop in volume, our better pricing strategy has worked to boost the EBITDA spreads.

Speaker #6: Okay, understood. And second question, Anubhav, is on the solar opportunity. So, if we refer to your slide, we are saying almost 30 to 35 gigawatts of annual solar additions, and that translates to almost 830 KT of addressable market.

Aditya Velukar: Okay, understood. Second question, Anubhav, is on the solar opportunity. If we refer to your slide, we are saying almost 30 to 35 gigawatts of annual solar additions, and that translates to almost 830 KT of addressable market. So far are we catering to, so far have we started supplying to this market? Out of that total opportunity, how much is our share?

Aditya Welekar: Okay, understood. Second question, Anubhav, is on the solar opportunity. If we refer to your slide, we are saying almost 30 to 35 gigawatts of annual solar additions, and that translates to almost 830 KT of addressable market. So far are we catering to, so far have we started supplying to this market? Out of that total opportunity, how much is our share?

Speaker #6: So, so far, are we catering to—means, so far, have we started supplying to this market, and out of the total opportunity, how much is our share?

Speaker #2: So, yes, there are two types of products which we have launched in the market and which are supporting this industry. The traction is there, right?

Anubhav Gupta: Yes, there are 2, 3 types of products which we have launched in the market and which is supporting this industry. The traction is there, right? Right now the contribution is a bit low, but over the next 2, 3 years, we expect this to contribute 4% to 5% to the total volume.

Speaker #2: Right now, the contribution is a bit low, but over the next two to three years, we expect this to contribute four to five percent to the total volume.

Speaker #6: Understood. The reason I'm asking is because this solar capacity addition—the LEP has huge targets—means they want to, at least, this theme of solar capacity addition will...

Aditya Velukar: Understood. Why I'm asking because this solar capacity addition, this NEP has huge targets. This theme of solar capacity addition will persist for next five years and more. This will be an additional lever for our volumes if I understand.

Aditya Welekar: Understood. Why I'm asking because this solar capacity addition, this NEP has huge targets. This theme of solar capacity addition will persist for next five years and more. This will be an additional lever for our volumes if I understand.

Speaker #6: For the next five years and beyond, this will be an additional lever for our volumes, if I understand correctly.

Speaker #2: Definitely yes, Aditya, and that's why we got into this space. Like I said, we are as optimistic as the government is to boost the renewable energy contribution in India, and we have a good portfolio to support this industry as well.

Anubhav Gupta: Definitely, yes, Aditya, that's why, I mean, we got into this space and like I said, we are as optimistic as the government is to boost their renewable energy contribution in India, and we have a good portfolio to support this industry also.

Speaker #6: Okay, Anubhav. Thank you. That's it from my side.

Aditya Velukar: Okay, Anubhav. Thank you. That is it from my side.

Aditya Welekar: Okay, Anubhav. Thank you. That is it from my side.

Speaker #1: Thank you. The next question is from the line of Darshan Mehta from Daulat Capital. Please go ahead.

Operator: Thank you. The next question is on the line of Darshan Mehta from Dolat Capital. Please go ahead.

Speaker #5: Yeah. Hi. Thanks for giving me the opportunity. So, my first question was about this SG Premium brand. How should we look at the realizations?

Darshan Mehta: Yeah. Hi. Thanks for giving the opportunity. My first question was for this SG Premium brand. How should we look at the realizations? I mean, what are the current realizations and what kind of EBIT per ton do we make in this product? And how would that product grow as a percentage of total volumes for FY2027 and FY2028? That was my first question. Hello?

Speaker #5: I mean, what are the current realizations and what kind of EBITDA per ton do we make in this product? And how would that product grow as a percentage of total volumes for FY27 and FY28?

Speaker #5: So that was my first question. Hello.

Speaker #2: Yeah. Darshan so SG Premium right now I mean the current pricing will be around 58,000 rupees per ton. Which is almost six to seven percent lower than brand APL Apollo products.

Anubhav Gupta: Yeah, Darshan. SG Premium right now, I mean, the current pricing will be around INR 58,000 per ton, which is almost 6% to 7% lower than brand APL Apollo products. EBIT spreads range from INR 0 to INR 1,000 per ton, depending on market opportunity, what kind of volume we want to gain in one micro market. EBIT spread would vary from micro market to micro market. Okay? We also use this as strategy to boost volume, to cut down competition, to take market share from Patra players. It plays differently in different micro markets.

Speaker #2: EBITDA spreads range from zero to ₹1,000 per ton depending on market opportunity and what kind of volume we want to gain in one micro market.

Speaker #2: So EBITDA spreads would vary from micro market to micro market. Okay. We also use this as a strategy to boost volume, to cut down competition, and to take market share from smaller players.

Speaker #2: So, it plays differently in different micro markets.

Speaker #6: Okay. Okay. And so, currently, as you said, it is hovering around zero to one thousand rupees per ton depending on the market conditions and the volumes you choose to make over here.

Darshan Mehta: Currently as you said it is hovering around INR 0 to INR 1,000 per ton depending on the market conditions and the volume you choose to make over here. Let's say in next two years, I am referring to let's say after FY28, can we see this INR 1,000 per ton increase to maybe around let's say INR 1,200, INR 1,500 per ton or how are you looking at this product? Will you be making higher EBITDA per ton or is it something to control the Patra players? Whenever you think you want to control Patra players, that is when you start delivering high volumes on this side. I just want to understand the strategy for this product.

Speaker #6: So, can—let’s say in the next two years, I’m referring to after FY28—can we see this Rs. 1,000 per ton increase to maybe around, let’s say, Rs. 1,200–1,500 per ton, or would you basically—I mean, how are you looking at this product?

Darshan Mehta: Will you be making higher EBITDA per ton or is it something to control the Patra players? Whenever you think you want to control Patra players, that is when you start delivering high volumes on this side. I just want to understand the strategy for this product.

Speaker #6: Will you be making higher EBITDA per ton, or is it something to, you know, control the Patra players? Like, whenever you think you want to control Patra players, is that when you start, you know, delivering high volumes on this side? I just want to understand the strategy for this product.

Speaker #2: Darshan, good morning. इसमें, भाई, कोई strategy नहीं है. This is totally play against the capture of market share. और this is totally dependent on the pricing difference between the primary and the secondary.

Sanjay Gupta: Darshan.

Sanjay Gupta: Darshan. Good morning. इसमें भाई कोई strategy नहीं है। This is totally play and it's the capture the market share. This is totally dependent on the pricing of difference between the primary and the secondary. अगर primary और secondary में gap, जिसका आज के date में INR 10 to INR 12 kilo का है, तो इसमें हमारे हाथ में कुछ ज्यादा play नहीं है और कोई cash loss करके हमको माल बेचने का कोई benefit नहीं है। This gap when come down to like Q4, INR 3, INR 4, INR 5 kg, this become a master stock. तब इसमें हमारा EBITDA margin भी INR 1,500, INR 2,000, INR 3,000 भी आ सकता है और इसमें हम बड़ा volume खेल सकते हैं। This strategy totally depend on how is the difference between the secondary and primary pricing.

Sanjay Gupta: Good morning. इसमें भाई कोई strategy नहीं है। This is totally play and it's the capture the market share. This is totally dependent on the pricing of difference between the primary and the secondary. अगर primary और secondary में gap, जिसका आज के date में INR 10 to INR 12 kilo का है, तो इसमें हमारे हाथ में कुछ ज्यादा play नहीं है और कोई cash loss करके हमको माल बेचने का कोई benefit नहीं है। This gap when come down to like Q4, INR 3, INR 4, INR 5 kg, this become a master stock. तब इसमें हमारा EBITDA margin भी INR 1,500, INR 2,000, INR 3,000 भी आ सकता है और इसमें हम बड़ा volume खेल सकते हैं। This strategy totally depend on how is the difference between the secondary and primary pricing.

Speaker #2: अगर primary और secondary में gap, जिसका आज के date में 10-12 रुपए किलो का है, तो इसमें हमारे हाथ में कोई ज्यादा play नहीं है और हम कोई cash loss करके माल बेचने का कोई benefit नहीं है। But this gap, when it comes down to like quarter four, three-four रुपए, पांच रुपए per kg, then this becomes a master stock.

Speaker #2: So, in this, our EBITDA margin can also be ₹1,500, ₹2,000, or ₹3,000, and we can play with a larger volume. But this strategy is totally dependent on how the secondary and the primary pricing—what is the difference between the secondary and the primary pricing.

Speaker #2: क्योंकि आज 10 12 किलो रुपए का gap है। हम दो रुपए किलो सस्ता भी करके बेच देंगे। हमारा ज्यादा volume नहीं होगा। But जब हमारा ये gap चार पांच रुपए किलो का होगा तो हम दो रुपए किलो सस्ता करके बेचते हैं तो हमारा volume बहुत होता है। तो इस समय ये जो हमने plan बनाया था with the stock of gap with between the secondary and the primary can't work.

Sanjay Gupta: क्योंकि आज ₹10, ₹12 kilo का gap है। हम ₹2 kilo सस्ता भी करके बेचते हैं, हमारा ज्यादा volume नहीं होगा। जब हमारा यह gap ₹400, ₹500 kilo का होगा तो हम ₹2 kilo सस्ता करके बेचते हैं तो हमारा volume बहुत होता है। तो इस समय यह जो हमने plan बनाया था with the stock of gap between the secondary and the primary can't work.

Speaker #6: Okay. Okay. Thank you, Sanjay ji. And sir, this Gorakhpur capacity would be coming in Q3, you said, right? So there are two—haan—and one more capacity, you said it would be coming, which one?

Darshan Mehta: Okay. Thank you, Sanjeev. Sir, this Gorakhpur capacity would be coming in Q3 you said, right? One more capacity you said it would be coming-

Sanjay Gupta: Siliguri.

Darshan Mehta: Which one? Siliguri.

Speaker #6: Achha, Siliguri. Okay. Okay. So basically, I think when you are saying this 2050, 20% volume growth, you are, I think, this...

Sanjay Gupta: Siliguri.

Darshan Mehta: Okay. basically I think when you are saying this 20% volume growth you are I think this growth of the.

Speaker #2: 20% 20% growth का जो मैं कह रहा हूँ, तो उसमें मेरा गोरखपुर भी play करेगा, सिलीगुड़ी भी play करेगा, and export market, जिस पर हमने काफी काम किया—दुबई and as well as अभी तो इंडिया से export बंद हुआ हुआ है due to high container prices.

Sanjay Gupta: 20% growth का जो मैं कह रहा हूँ तो उसमें मेरा Gorakhpur भी play करेगा, Siliguri भी play करेगा और export market जिस पर हमने काफी काम किया Dubai और as well as अभी तो India से export बंद हुआ है due to high container prices. वो जैसे slow down होगा container prices तो हमारा export भी बहुत बढ़ेगा। तो ये दो-तीन factor भी इसमें include है।

Speaker #2: वो जैसे slow down होगा container prices, तो हमारा export भी बहुत बढ़ेगा। तो ये दो-तीन factor भी उसमें include हैं।

Speaker #6: And sir, we will give volume. Sure. Sir, and Leah, I think this is the plant at West Coast. I think we were thinking about boost, right?

Darshan Mehta: Sir.

Sanjay Gupta: से भी ramp up volume देंगे।

Darshan Mehta: Sir, earlier I think this the plant at West Coast I think we were thinking about Bhuj. Now that Bhuj is out and I think.

Speaker #6: So now that boost is out, and I think maybe—

Speaker #2: We changed our plan from Boost to—we shifted to our Mumbai plant, because the Mumbai plant जो हमारा था, उसको हमने export पर shift करते जाना है पूरा। क्योंकि और हम अभी, हम जो मुंबई से पूना market सब cater करते थे, we have a freight cost of almost ₹1,100–₹1,200 per ton.

Sanjay Gupta: We change our plan from Bhuj to we shifted to our Mumbai plant. Mumbai plant जो हमारा था उसको हमने export पर shift करते जा रहे हैं पूरा। अभी हम जो Mumbai से Pune market सब cater करते थे we have a freight cost of almost INR 1,100, INR 1,200 per ton. अब हम जो नया plant 5 lakh ton का लगा रहे हैं, हम around Pune corridor के आसपास लगाएंगे, जहां से हमारा freight cost भी Pune market के लिए INR 200, INR 300 per ton रह जाएगा।

Speaker #2: तो अब हम जो नया plant 5 लाख टन का लगा रहे हैं, हम arounding ये पूना corridor के आसपास लगाएंगे, जहाँ से हमारा freight cost भी पूना market के लिए ₹2,300 per ton रह जाएगा।

Speaker #6: Okay. And sir, we have made some investment in this group shared services company. तो ये company का what would be the function and what purpose will it serve?

Darshan Mehta: Okay. Sir, we have made some investment in this group shared services company. This company what would be the function and what purpose will it serve?

Speaker #2: ये ये एक छोटा सा company हमने चालू किया सर हमारी बहुत सारी जो common ये activities होती है like HR IT branding ये सब जो हम group level पर इकट्ठा करके उसको पूरे deal release करना चाहते हैं कि हमारा उससे cost अभी हम हर depart हर company का एक अलग अलग हमारे पास HR head है। हर company में एक अलग अलग IT head है। तो हमने कुछ cost company बना के सारा उसको हम contact देके अपनी cost को कम करना चाहते हैं।

Sanjay Gupta: यह एक छोटा सा company हमने चालू किया है, जिसमें हमारी बहुत सारी जो common activities होती हैं like HR, IT, branding ये सब हम group level पर इकट्ठा करके उसको पूरे deal में करना चाहते हैं कि हमारा उससे cost अभी हर department, हर company का एक अलग-अलग हमारे पास HR head है। हर company में एक अलग-अलग IT head है। तो हमने कुछ cost company बना के सारा उसको contact दे के अपनी cost को कम करना चाहते हैं।

Speaker #6: Okay. Okay. So you are saying that there would be a common HR head for maybe SG Mart and our जो group company है।

Darshan Mehta: Okay. We were saying there would be a common HR head for maybe SG Mart and our जो group companies हैं।

Speaker #2: SG, SG, and APL Apollo, as well as Apollo Pipe.

Sanjay Gupta: SG Pharma and APL Apollo as well as Apollo Pipe.

Speaker #6: Understood, sir. Thank you. Thank you very much.

Darshan Mehta: Understood, sir. Thank you very much.

Speaker #1: Thank you. The next question is from the line of Andre Purushottan from Kojito Advisors. Please go ahead.

Operator: Thank you. The next question is in the line of Andres Purushothaman from Cogito Advisors. Please go ahead.

Speaker #3: Thank you for taking my question. Congratulations on a good performance in these conditions. I had a very small question. Your employee costs last quarter have gone up significantly.

Andres Purushothaman: Thank you for taking my question. Congratulations for a good performance in these difficult conditions. I had a very small question. Your employee costs last quarter have gone up significantly. Is there an explanation of that and how should we look at this employee cost going forward? Is it likely to remain, and is that going to have any effect on damping others?

Andrey Purushottam: Thank you for taking my question. Congratulations for a good performance in these difficult conditions. I had a very small question. Your employee costs last quarter have gone up significantly. Is there an explanation of that and how should we look at this employee cost going forward? Is it likely to remain, and is that going to have any effect on damping others?

Speaker #3: So, is there an explanation for that? And how should we look at this employee cost going forward? Is it likely to remain, and is that going to have any effect on directing budgets?

Speaker #2: Boss, due to low, low, low percent, the guy's cost is going high.

Sanjay Gupta: Boss, due to low processing the employee cost is gone high.

Speaker #4: And will increment.

Darshan Mehta: Annual increment.

Andrey Purushottam: Annual increment.

Speaker #2: Plus some part of the annual increment.

Sanjay Gupta: It's a sub part of annual increment.

Speaker #3: Sorry?

Andres Purushothaman: Sorry.

Andrey Purushottam: Sorry.

Speaker #2: Employee cost हमारी सिर्फ annual increment के कारण ही बढ़ी है, जो हमारा हर साल increment होता है। And number, हाँ, ये आ गया। And number two, जो हमारा per ton पर अगर आप देखोगे तो ये due to हमारा low percent के कारण employee cost बढ़ा है। अब अगर amount wise देखोगे तो increment के कारण बढ़ा है।

Sanjay Gupta: कुछ annual increment के कारण ही हमारा employee cost बढ़ा है। जो annual हमारा increment होता है। Number two, हमारा per ton तो अगर आप देखोगे तो ये due to हमारे low processing के कारण employee cost बढ़ा है। अब अगर amount wise देखोगे तो increment के कारण बढ़ा है।

Speaker #3: ठीक है। तो मतलब ये बिलकुल normal है। इसमें कोई खास वजह नहीं है इसकी।

Andres Purushothaman: ठीक है। तो मतलब ये बिल्कुल normal है। अब इसमें कोई खास वजह नहीं है।

Andrey Purushottam: ठीक है। तो मतलब ये बिल्कुल normal है। अब इसमें कोई खास वजह नहीं है।

Speaker #2: नहीं, नहीं, नहीं, नॉर्मल है। वो इस क्वार्टर में जैसे मतलब वॉल्यूम ट्रैक पर लाएंगे तो हमारा वापस कम हो जाएगा।

Sanjay Gupta: नहीं, normal है। इस quarter में जैसे हम अपना volume track पर लाएंगे तो हमारा वापस कम हो जाएगा।

Speaker #3: ठीक है, ठीक है. Thank you. Thank you, sir.

Andres Purushothaman: ठीक है. Thank you, sir.

Andrey Purushottam: ठीक है. Thank you, sir.

Speaker #1: Thank you. The next question is from the line of Vikas Singh from IT Securities. Please go ahead.

Operator: Thank you. The next question is from the line of Vikas Singh from ICICI Securities. Please go ahead.

Speaker #6: Good afternoon, sir, and thank you for the opportunity. Sir, in this quarter, what was our value-added versus general product mix? And secondly, like you said, in the previous year, you made a conscious decision that you would not reduce prices. But looking at the current commentary, in order to gain market share, are we reversing that strategy and now aiming for higher volumes, even if it is in the general category, versus focusing on pricing management?

Vikas Singh: Good afternoon, sir, and thank you for the opportunity. Sir, this quarter value added versus general product mix. Secondly, like you said, previous year, conscious decision price. Looking at current commentary in order to gain the market share, are we reversing that strategy and now will go for a higher volume even if it is in general category versus the pricing management?

Speaker #2: Boss, इसका define करना बड़ा मुश्किल होता है, but some of our product range of total basket का fifteen, fifteen-twenty percent में we have done some aggressive pricing, pricing policy.

Sanjay Gupta: Some of our product range of total basket of 15% to 20%, we have tweaked some pricing policy.

Speaker #3: So, Vikas, this is for twenty percent of the portfolio, not across the segment. We are saying we will reduce the pricing only for the twenty percent of the portfolio where we have tweaked some pricing to gain volumes.

Anubhav Gupta: Vikas, this is for the 20% of the portfolio, not across the segment that we are saying we will reduce the pricing. Only for the 20% of the portfolio, we have tweaked some pricing to gain volumes.

Speaker #6: ठीक है। नहीं, क्योंकि अगर मैं देखूं कि अगर मैं एक million ton भी इस quarter पे कर लेता हूँ, despite monsoon, मेरा asking rate would be चार लाख ton per month, to which even the fifteen percent volume growth... तो एक लाख additional per month मैं कहाँ से करूँगा, और it would be more of a general और value-added, ये major concern था मेरा।

Vikas Singh: Despite monsoon, volume would be 4 lakh tons per month to reach even the 15% volume growth. Per month it would be more of a general or value added, major concerns?

Sanjay Gupta: Boss, brief define boss. 300,000 tons July, INR 3.5 lakh tons, INR 3.25 lakh, INR 3.35 lakh we are targeting in August. September we are targeting INR 3.5 lakh plus. We can't explain, boss. Possible.

Speaker #2: बॉस इसको इतना brief define करना बड़ा मुश्किल है बॉस। मतलब हमारा इतना clear है हमको कि हमने तीन लाख ton जुलाई में कर लिया है three point five लाख ton we have three point two five three point three point three five के आसपास हम we are targeting अगस्त and सितंबर we are targeting three point five plus। अब उसमें किस segment में दस हजार ton फालतू बिकेगा जिसमें दस हजार कम बिकेगा इसको we can't explain बॉस नहीं possible है।

Speaker #6: No, समझ गया Sir. खाली इस quarter पे मेरा general product का percentage क्या था, ये बता दीजिए आप।

Vikas Singh: No, sir. This quarter general product percentage.

Speaker #2: Total thirty five percent।

Anubhav Gupta: Total 35%.

Speaker #3: Thirty-five percent के आसपास था।

Sanjay Gupta: 35%.

Speaker #6: ठीक है, मेरी तरफ से इतना ही। धन्यवाद।

Speaker #2: Thank you।

Vikas Singh: Thank you.

Speaker #1: Thank you. The next question is from the line of Bigeesh Shukla from Incorrect Capital. Please go ahead.

Operator: Thank you. The next question is from the line of Brijesh Shukla from Intraday Capital. Please go ahead.

Brijesh Shukla: Hello, sir. Thank you for the opportunity. I just wanted to confirm one thing. Actually, we were not audible at that time. The guidance for this year, EBITDA growth for the whole FY27 is 20%, and the volume growth guidance is also same, right?

Speaker #6: Hello sir. Thank you for the opportunity. I just wanted to confirm one thing. Actually, we were not audible at that time. The guidance for this year's EBITDA growth for the whole FY27 is 20 percent, and the volume growth guidance is also the same, right?

Speaker #2: It's fifteen to twenty percent।

Sanjay Gupta: It's 15% to 20%.

Speaker #6: Volume is 15 to 20 percent, and EBITDA is 20 percent.

Brijesh Shukla: Volume is 15% to 20%, and EBITDA is 20%.

Sanjay Gupta: Sir, it's more than 20%.

Speaker #2: More than twenty percent।

Speaker #6: Sorry, EBITDA is more than 20%.

Brijesh Shukla: Sorry, EBITDA is more than 20%.

Speaker #2: And volume growth is 15 to 20 percent.

Sanjay Gupta: Volume would be 15% to 20%.

Speaker #6: And what about, sir, next financial year? Any guidance on this?

Brijesh Shukla: What about, sir, next financial year? Any guidance on that FY28?

Speaker #2: अभी, बॉस, अभी तो एक-एक महीने का कहना मुश्किल है। हमारा target तो हमेशा 20% plus रहता है।

Sanjay Gupta: difficult always 20%.

Speaker #6: Okay।

Brijesh Shukla: Okay. Okay, sir. That's it from my side. Thank you.

Speaker #2: हाँ।

Speaker #6: Okay, sir. That's it from my side. Thank you.

Speaker #2: Thank you।

Sanjay Gupta: Thank you.

Speaker #1: Thank you. The next question is from the line of Rajesh Ravi from HDFC Securities. Please go ahead.

Operator: Thank you. The next question is from the line of Rajesh Ravi from HDFC Securities. Please go ahead.

Speaker #6: Thank you. Good afternoon, and congrats on this set of numbers and the margins plan. My question is regarding the volume reporting, which you have done this quarter and which I believe is more representative of the business.

Rajesh Ravi: Hi, sir. Good afternoon, and congrats on good set of numbers on the margins front. My question pertains to, first, the change in volume reporting which you have done this quarter, which I believe is more representative of the business. Would you also like to share the EBITDA margin number for the segment as you were declaring earlier across Apollo Structural, Apollo Z, and Apollo Galv. For the new business segments now, the new reporting segments that you have created, would you like to report the EBITDA margin number also? Am I audible?

Speaker #6: So, would you also like to share the EBITDA per ton number for the segment, as you were, you know, declaring earlier across Apollo Structure, Apollo Z, and Apollo Galvanized?

Speaker #6: So, for the new business segment—like, you know, the new reporting segments that we have created—would you like to report the EBITDA margin number also?

Speaker #6: Can I audible?

Speaker #2: Yeah. So Rajesh, see, I mean there are, like, four broad categories: Apollo branded products, SG premium branded products, UA operations, and roofing products. So Rajesh, in Apollo and roofing products, we are targeting Rs 6,000 to 7,000 per ton.

Anubhav Gupta: Yeah. Rajesh-

Rajesh Ravi: Yeah.

Anubhav Gupta: See, I mean, there are four broad categories: Apollo branded products, SG Premium branded products, UA operations, and roofing products.

Sanjay Gupta: Rajesh, APL Apollo and roofing products we are targeting INR 6,000 to 7,000 per ton, EBITDA target.

Sanjay Gupta: Rajesh, APL Apollo and roofing products we are targeting INR 6,000 to 7,000 per ton, EBITDA target. SG Premium around INR 500 per ton.

Speaker #2: EBITDA target. SG premium around five hundred rupees per ton. And UA को अभी कुछ भी define करना थोड़ा सा मेरे लिए मुश्किल है वहाँ क्या volume कर पाते हैं क्या वहाँ पर cost of हमारा process रहता है उस पर बहुत depend करेगा उसको थोड़ा define करना आज की date में थोड़ा सा मुश्किल है। But अगर वो ramp up हो गया तो वो वो भी five six thousand के आसपास आ जाएगा।

Sanjay Gupta: SG Premium around INR 500 per ton.

Rajesh Ravi: Okay.

Sanjay Gupta: UA volume cost proportion. Define difficult.

Sanjay Gupta: UA volume cost proportion. Define difficult. Ramp up 6,000.

Sanjay Gupta: Ramp up 6,000.

Speaker #6: Okay. And roofing also—you are counting that in the 6,000–7,000 bracket, right?

Rajesh Ravi: Okay. Roofing also you are accounting in the 6,000, 7,000 bracket, right?

Speaker #2: हाँ, अभी हम जो चल रहे हैं, वह छह से सात हजार के बीच में चल रहे हैं।

Sanjay Gupta: Six to 7,000.

Speaker #6: Understood. No I was referring to earlier in preceding quarters in your presentation you used to share segmental EBITDA margins you know so I was talking from that perspective would you like to start with that practice we have given the volumes for past two years you know so I like to like comparison Rajesh sir हमारे business में बहुत impact आ रहा था with the competitors जिस जिस से हमारा margin ज्यादा निकले तो वही पर ज्यादा hit करते थे इसलिए technically point of view से हमने उसको खत्म किया उसका। No issue sir.

Rajesh Ravi: Understood, sir. No, I was referring to earlier in preceding quarters in your presentation, you used to share segmental EBITDA margins. I was talking from that perspective. Would you like to-

Sanjay Gupta: Yeah

Rajesh Ravi: Start with that practice? We have given the volumes for past two years for a like-to-like comparison.

Sanjay Gupta: Rajesh business competitors margin hitch.

Rajesh Ravi: I understood.

Sanjay Gupta: Technically done.

Rajesh Ravi: No issues, sir. I understood, sir. Sir, coming on to the volume growth, even if I look at 15% full year volume growth target, do you believe there is a risk of missing that guidance because given the Q2 traction which you have mentioned, volume in Q2 may be higher by 10% to 15% year-on-year, and hence the H2, the volume requirement would be closer as one of the earlier participant asked, the ask rate for H2 will be closer to 4 lakh per ton on a monthly run-rate basis.

Speaker #6: Understood understood sir. Coming on to the volume growth even if I look at fifteen percent full year volume growth target do you do you believe there is a risk of you know missing that guidance because given the Q2 traction which you have mentioned volume in Q2 may be higher by ten to fifteen percent year on year and hence the second half H2 the volume requirement would be closer as you know one of the earlier participant asked the ask rate for H2 will be closer to four lakhs per ton on a monthly rendered basis.

Speaker #6: So first yeah.

Sanjay Gupta: Q4 technically पूछोगे तो Q1 हमारा 5.5 लाख ton के आसपास हुआ है। Q2 we are targeting about 10 लाख ton. Q3 we are targeting 10.5 लाख ton के आसपास करेंगे target. Q4 में full capacity जो हमारा 5.2 million ton plus गोरखपुर और श्रीगुरू हमारा start हो जाएगा तो वहां पर full 12 लाख ton करने की कोशिश करेंगे।

Speaker #2: राजेश, हमारा main जो main game play करेगा, Q4 करेगा। Technically पूछोगे तो Q1 हमारा साढ़े सात लाख टन के आसपास हुआ है। Q2 में हम लगभग दस लाख टन का टार्गेट कर रहे हैं। Q3 में हम टार्गेट लगभग दस दशमलव पांच लाख टन के आसपास करेंगे। Q4 में हम full capacity—जो हमारा 5.2 million ton है—plus गोरखपुर और सिलीगुड़ी हमारा स्टार्ट हो जाएगा, तो वहाँ पर full बारह लाख टन करने की कोशिश करेंगे।

Speaker #6: Understood, understood. But in this, sir, what will drive the volume growth? Will your Apollo brand or the SG premium take a massive share?

Rajesh Ravi: Understood sir. What will drive the volume growth? Your Apollo brand or the SG Premium will take massive share?

Speaker #2: No, no, Apollo brand roofing and SG Premium ka to abhi hum kuch nahi keh sakte. Woh toh secondary ya primary ke difference ke upar depend karega. Mainly toh Apollo brand UAE and roofing product ke upar depend hoga.

Sanjay Gupta: Apollo brand roofing and SG Premium का तो अभी हम कुछ नहीं कह सकते हैं. वो secondary or primary के difference के ऊपर depend करेगा. Mainly तो Apollo brand UAW and roofing product के ऊपर depend होगा.

Speaker #6: Understood. So, I was just trying to understand—when you, you know, write this strong growth, your margins of this 5,500 may not be at risk. This is what the basic purpose of the thing is.

Rajesh Ravi: Understood. I was just trying to understand when you ride this strong growth, your margins of this INR 5,500 may not be at risk. This is what the basic purpose of the thing.

Speaker #2: बॉस इसको अभी राजेश दो तीन चीजें अभी के pricing policy के हिसाब से मैं two three hundred rupees का hit है हमको। But लगता है हम जैसे ही operational leverage में जाएंगे तो वो cover up हो जाएगा।

Sanjay Gupta: राजेश, दो-तीन चीजें। अभी के pricing policy के हिसाब से हमारे INR 200-300 के hit है हमको। लगता है जैसे ही operational leverage पर जाएंगे तो वो cover up हो जाएगा।

Speaker #6: Understood. Understood. So anything north of 5,000 is doable.

Rajesh Ravi: Understood. Anything north of INR 5,000 is doable.

Speaker #2: No, no, five thousand से ऊपर नीचे जाने का कोई मतलब ही नहीं है।

Sanjay Gupta: नहीं, 5,000 से ऊपर नीचे जाने का कोई मतलब ही नहीं है।

Speaker #6: Understood। Understood।

Rajesh Ravi: Understood।

Speaker #2: Rajesh just to add to it those closer question by saying that we are targeting twenty percent EBITDA growth on absolute basis right। So that is the goal post for us। Now volume is fifteen percent sixteen percent seventeen percent growth। EBITDA per ton is fifty five hundred fifty six hundred fifty four hundred। That will depend on quarter on quarter how things shape up। But our goal post is twenty percent EBITDA growth on absolute basis।

Anubhav Gupta: Rajesh, just to add to it and close your question by saying that we are targeting 20% EBITDA growth on absolute basis. Right? That is the goal post for us. Now volume is 15%, 16%, 17% growth. EBITDA pattern is 5,500, 5,600, 5,400. That will depend on quarter-on-quarter how things will shape up. Our goal post is 20% EBITDA growth on absolute basis.

Speaker #6: Understood. Twenty percent absolute EBITDA growth. That's great. I'll come back and see. Thank you, and all the best.

Rajesh Ravi: Understood 20% absolutely. That's great. I'll come back and see. Thank you and all the best.

Speaker #2: And our target is to come back to quarter ROC, which was around 30%. Our target is to bring it back to around 40%.

Sanjay Gupta: हमारा इस quarter में ROCE 30% के आसपास था। उसको वापस 40% के आसपास लाने का हमारा target है।

Speaker #6: Superb. Great, sir. I'll come back and see. Thank you.

Rajesh Ravi: Superb. Great, sir. I'll come back and see. Thank you.

Speaker #2: Thank you।

Sanjay Gupta: Thank you.

Speaker #1: Thank you. Ladies and gentlemen, that is the last question. I will now hand the conference over to the management for their closing comments.

Operator: Thank you. Ladies and gentlemen, that was the last question. I now hand the conference over to the management for the closing comments.

Speaker #2: Thanks, everyone, for joining our call, and apologies again for starting this call a bit late. Thanks, Antique, for hosting us. Look forward to seeing you again.

Anubhav Gupta: Thanks everyone for joining our call. Apologize again to start this call a bit late. Thanks Antique for hosting us. Look forward to see you again. Thank you everyone. Have a good day.

Speaker #2: Thank you, everyone. Have a good day.

Speaker #1: Thank you, members of the management team. Ladies and gentlemen, with that we conclude today's conference. We thank you for joining us. You may now disconnect your lines.

Operator: Thank you, members of the management team. Ladies and gentlemen, with that, we conclude today's conference. We thank you for joining us. You may now disconnect your lines. Thank you.

Browse all earnings call transcripts

Q1 2027 APL Apollo Tubes Ltd Earnings Call

Request TrialDemo

APL Apollo

Earnings