APL Apollo Tubes Limited (NSE: APLAPOLLO) Q3 2026 Earnings Call dated Jan. 22, 2026
Corporate Participants:
Anubhav Gupta — Chief Strategy Officer
Sanjay Gupta — Chairman and Managing Director
Analysts:
Sneha Talreja — Analyst
Bharat Shah — Analyst
Aditya Welekar — Analyst
Unidentified Participant
Abhishek Ghosh — Analyst
Darshan Mehta — Analyst
Sanjay Nandi — Analyst
Harsh Vasa — Analyst
Prashant Sharma — Analyst
Ajit Sethi — Analyst
Mudit Bhandari — Analyst
Pallav Agarwal — Analyst
Kumar Saumya — Analyst
Presentation:
Anubhav Gupta — Chief Strategy Officer
[Technical Issues]
Hello. Hi. Good evening, everyone, and welcome to APL Apollo’s Quarter Three FY ’26 Earnings Call. I would like to take this opportunity to congratulate team Apollo on such a stupendous performance in a quarter that faced multiple headwinds, including a subdued macro, construction ban in Delhi-NCR and falling raw material prices.
If you look at our performance, I would like to highlight a few points. So, number one being that the nine-month sales volume increased 11% Y-o-Y, which is well within our guidance range of 10% to 15% growth, which we had communicated in the quarter one FY ’26 earnings call. And nine month EBITDA per ton is above INR5,000, which has surpassed our own guidance which we had given in quarter one earnings call.
So, our strategy of pricing premiumization by leveraging APL Apollo brand has worked excellently to expand our EBITDA spreads. And the launch of SG brand in the base category worked well to compete with the smaller players in the structural steel tube segment and the sponge iron pipe players. It’s been 12 months since we increased the selling price for APL Apollo branded products, which does suggest that the markets have successfully accepted our brand equity and the premium of INR3,000 to INR4,000 per ton for APL Apollo brand is a new normal for the structural steel tube segment.
Another highlight for the quarter three result is that we sold 375,000 tons of volume in December month, which implies the annual figure of 4.4 million tons. So, we have successfully tested our 5 million ton capacity as almost 90% utilization we could achieve in the December month of 2025. So, we are very confident of this momentum to continue. Hence, we are upgrading our sales volume growth guidance of 20% for quarter four FY ’26 and FY ’27, with EBITDA guidance of almost INR5,500 per ton.
And at the same time, we are aggressively pursuing capacity expansion to 8 million tons from current 5 million tons in next two years. which is a mix of four greenfield projects, two being in East India, one in South India, and one in West India, one being the brownfield project in Raipur for value-added products. And very interestingly, we identified 1 million ton expansion through debottlenecking, wherein we identified existing mills which could be replaced with much faster modernized mills, which will expand our ROCs to next levels because the investment over there will be very, very minimal. So, total investment to expand our capacity from 5 million tons to 8 million tons is around INR1,500 crores, and this will be funded from internal cash flows over the next two years.
Now one thing which obviously, we will be talking much more over our earnings call is the additional 2 million tons to achieve our vision of 10 million ton capacity by 2030. This incremental 2 million tons will be in the super-specialty segment, wherein we are identifying various targets worldwide for the JVs with Japanese, Korean and European and American companies to offer products in specialized segments like EV category, aerospace, petrochem, oil and gas, heavy engineering. We are already talking to a few targets. So over the next 12 months, there will be much more coming from our side. So, 8 million tons of structural steel tube capacity by FY ’28 and overall 10 million ton steel tube capacity by 2030. This is what vision every member in APL Apollo team is working on.
We are also working on a lot of cost control measures, which Sanjay ji will elaborate later in the call, so that we are able to achieve INR5,500 of EBITDA target on a per ton basis, because it’s a big jump in our guidance which we gave, from INR4,800 to INR5,000 to INR5,500 per ton. So, a lot of working has gone while we are giving or throwing up this number to our investors.
On cash flow generation, you could see that our balance sheet has a net cash flow of — has balance sheet of surplus cash flow of INR5.6 billion. Now, most of the capex is behind us, right? And the company is showing such large cash flows. Plus the sales run rate what we are achieving, so we are seeing a lot of opportunities to rationalize the inventory days, which right now is 30-plus, it will be in 20 days range. And with a strong Q4, our surplus cash on balance sheet could be INR1,500 crores, which was always our target that we will have as much cash on our books to match our current liabilities, so that we can be a liability-free company.
Debt-free company we became two years ago. Now, we are on the verge of becoming liability-free company. And with such high inventory churn and better EBITDA spreads and volume growth, our ROCE, which right now stands at 33%, it would also further expand to sub-40% levels. So things look very, very promising.
Thank you, everyone, for joining the call. We are happy to take questions now.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. [Operator Instructions] The first question is from the line of Sneha Talreja from Nuvama. Please go ahead.
Sneha Talreja
Hi, good evening team and many congratulations and great set of numbers. Just a couple of questions from my end. Did we hear it correctly that you said 20% volume growth in Q4 as well as FY ’27? I’m more concerned of FY ’27, while quarter four is understood.
And secondly, what’s changed in the last, I would say, three to four months or six months, where your EBITDA per ton guidance has suddenly moved up significantly, like you said, from INR4,800 to INR5,000 to now INR5,500. What are the measures you are taking or what are the developments which are happening in the product mix, which is leading to this kind of an increase in guidance?
Sanjay Gupta
Thank you, Sneha. Our mainly volume growth is coming from our strategy, where we have decided to go with the other brand also. Right now, you can say we are H1 in our segment in the market. And also, we are L1 in our market. [Foreign Speech] this trial is totally successful. We started in month of November, December, and till now, in January also we are going very good with our targets. So, I think [Foreign Speech]. Rightly, you can say 3.55 million ton [Foreign Speech]. During Q4, we are targeting 10 lakh ton to 11 lakh ton.
You can say 10.25 lakh ton or 10.5 lakh ton, we can easily achieve. [Foreign Speech] fixed cost 2.6 lakh ton per month [Foreign Speech] 3.7 lakh ton [Foreign Speech] we are doing so-so. Like we have done in October, 2.5 lakh ton. In November, we have done almost 3-plus — 3 lakh ton. And December, we have done 3.70 lakh ton. In January also, we are looking for 3.70 lakh ton or 3.80 lakh ton. [Foreign Speech] We have reduced our freight cost also by INR100 per ton, INR200 per ton. [Foreign Speech]. Thank you.
Sneha Talreja
Thanks. Thanks a lot, sir. Thank you so much, and all the very best team.
Sanjay Gupta
Thank you, Sneha.
Anubhav Gupta
Sneha, just to reiterate that we are saying 20% volume growth for Q4 FY ’26 and for the full year FY ’27 over FY ’26.
Operator
The next question is from the line of Bharat C. Shah from Bharat C. Shah [Phonetic].
Bharat Shah
[Foreign Speech]
Sanjay Gupta
Thank you, Bharat bhai. Namaste.
Bharat Shah
Namaste. [Foreign Speech] before I ask a question. [Foreign Speech]
Sanjay Gupta
[Foreign Speech] You’re absolutely right. [Foreign Speech] Very thankful to you. [Foreign Speech]
Bharat Shah
So, I just wanted to put that as the first point.
Sanjay Gupta
[Foreign Speech]. Pass or fail.
Bharat Shah
Okay. So basically, I think fundamentally, the most important change in strategic focus that we have now steered and which I think is providing superior outcomes is to focus on overall growth of the profit pool, whether it comes through volumes, it comes from the leverage due to volumes, or whether it comes through the mix. But I think we use those as levers, but the objective clearly is to grow the profit pools. And I think that strategy of focusing on the profit pool perhaps is the most important strategic change that we have initiated in the last few quarters and in my personal opinion and absolutely, the right area to focus on. So, I want to get your perspective on the matter.
Sanjay Gupta
[Foreign Speech] We are on a very comfort position.
Bharat Shah
Absolutely. [Foreign Speech]. Overall, that should culminate into profits. And focusing on profits and growing the profit pool is far more strategically simpler objective and, in my opinion, an efficient objective rather than getting carried away by moving parts. [Foreign Speech]. Of course, in between, we suffered from a particularly bad quarter where steel prices swung. Nobody can do anything. So that is something exempted…
Sanjay Gupta
[Foreign Speech]
Bharat Shah
[Foreign Speech]. Then second question I wanted to — when I’m looking at conversion of EBITDA into operational cash flow, in this particular period of nine months, it has suffered. And clearly, that has suffered because some amount of working capital has come into the play. But our free cash flow has gone up because our capex is now behind us. So the question that I wanted to raise was, Anubhav mentioned at the beginning, from a zero-debt company, zero debt balance sheet to liability-free balance sheet. If I had to interpret that appropriately, it will mean that basically even current liabilities probably will knock off, which means our management of inventory and account receivable is so efficient that the reduction of capital through current liability itself may be annulled as an objective. Is that the right understanding?
Anubhav Gupta
That’s right, Bharat bhai. So the working capital which right now stands at 3, it will go to negative.
Bharat Shah
[Foreign Speech]. Now that is the most worthy objective, because liability is a way of funding assets. [Foreign Speech].
Sanjay Gupta
[Foreign Speech].
Bharat Shah
Fantastic. Then the last question. [Foreign Speech].
Sanjay Gupta
[Foreign Speech]
Bharat Shah
[Foreign Speech]. This is music to the ears. And one last question. Given the fact that volume outlook also is now healthy, mix in any case is steadily improving, Dubai operation is moving forward on a fast forward basis and our strategic focus is now on raising the margins. And first time I have heard, right at the beginning, Anubhav spilling out EBITDA per ton objective. Otherwise, we typically would bring it out shyly at the end of some questions. So, that clearly tells me where things are. So will it be possible to see EBITDA of INR3,000 crores plus in ’27, or am I being greedy?
Sanjay Gupta
[Foreign Speech].
Bharat Shah
[Foreign Speech]. No, no, that’s a very fair answer, which means, ’28, INR3,000 crores in any case has to be achievable.
Sanjay Gupta
[Foreign Speech]
Bharat Shah
No, so delighted to hear all that I heard. And between what you stated and you didn’t state, I think this is a remarkable one. But that statement about challenges [Foreign Speech].
Sanjay Gupta
[Foreign Speech].
Bharat Shah
Fantastic. Sanjay ji [Foreign Speech] and Anubhav, and whole APL Apollo team, hearty congratulations.
Sanjay Gupta
Thank you. Thank you, Bharat bhai.
Operator
Thank you. [Operator Instructions] The next question is from the line of Aditya Welekar from Axis Securities. Please go ahead.
Aditya Welekar
Yeah. Thank you. Congrats for the great set of numbers. So my question is to Anubhav. Just a few bookkeeping questions on the capacity expansion front. So in the last quarter’s presentation, we have existing capacity of 4.5 million tons. So, now we have 5 million tons. So the increment has come from Dubai. And what else apart from Dubai?
Anubhav Gupta
So, this 4.5 million tons to 5 million tons capacity, one is super heavy, we had added. So that got added. Plus some capacity we added through debottlenecking only. So the team is working very aggressively, right, to identify that within the existing capacity how we can increase the capacities by doing small, small improvements. Like the mill has multiple components. So replacing the old component with new components, the efficiency improves. So 4.5 million tons to 5 million tons, new capacity got added by 100,000, 200,000 ton and rest 200,000, 300,000 ton is through debottlenecking only.
Aditya Welekar
Okay. And this specialty tubes, which we were projecting earlier 0.5 million tons, it will remain the same, the quantum, and…
Anubhav Gupta
Now, we are targeting 2 million tons. Beyond 8 million tons, to reach 10 million tons, 2 million tons will be specialty tubes. Earlier, it was 1 million tons. Now we have increased it to 2 million tons, because as we have started working, so we are identifying a lot of areas where our company can work upon.
Aditya Welekar
Yes. So what gives us — I mean, if you can throw some use cases or demand pointers that we are now projecting higher capacity additions. So anything on that front?
Anubhav Gupta
So from 5 million tons to 8 million tons journey, right, 2 million tons consists of four greenfield plants, one in Gorakhpur, another one in Siliguri, third one in New Malur, which is in South India, and fourth in Bhuj. So, these are the four greenfield plants. And one brownfield expansion in Raipur for value-added products. So, this put together will add 2 million tons over 5 million tons. And 1 million tons, again, through debottlenecking, we are going to increase. And the greenfield plus brownfield expansion will require INR1,300 crores and debottlenecking expansion will require INR200 crores.
Aditya Welekar
Yes. My question was on demand drivers. Since we are expanding the capacity, so from a demand perspective, do you see that — means, from an overall perspective because last few quarters, we have seen there was some subdued demand.
Sanjay Gupta
Yes. No, no. Demand is not subdued. We were selling the material in one segment. Now we have spread ourselves. Now what I’m [Foreign Speech], now we are H1 in the market, we are L1 in the market. We are not going to spread anything. [Foreign Speech] We are very clear.
Anubhav Gupta
So, what Sanjay ji is saying is that APL Apollo brand is the highest selling price point. SG brand is at the lower selling price point, correct? So that way, we have captured the market heavily. Second, see, all these expansions which are coming, so East India, we are not selling our products in East India because we don’t have any plant as yet. So, Gorakhpur and Siliguri will cater to all the new virgin market for APL Apollo. Then Bhuj. Bhuj is for export market, again, the segment where we have been lagging behind. New Bangalore, Malur project, right, there, the capacity for the existing products is already fully utilized.
So, we are adding new capacity. So whatever new capacity is coming, either it is for new areas or the products which are fully utilized as on date. And third, the roofing, the value-added products in Raipur, even Raipur plant today, the capacity utilization has reached 70%, okay, in quarter three. So, one year down the line, we also need to reinvest again in Raipur to expand the capacities, because the demand for some of the products is very, very strong. So, we’re just gearing for that. So this 2 million tons of incremental capacity, it’s not going to cannibalize existing sales. It’s from 3-point fundamentals, new markets, new products.
Sanjay Gupta
1 million ton debottlenecking we are saying.
Anubhav Gupta
This is overlap. This will be overlap, yes. But then the market will increase. Assuming India construction growth is 7%, 8% year-on-year, so that much market will increase.
Aditya Welekar
That’s very good to hear. Thanks, and all the best.
Operator
Thank you. The next question is from the line of Onkar Ghugardare [Phonetic] from Shree Investment [Phonetic]. Please go ahead.
Unidentified Participant
Congrats on a good set of numbers. I just wanted to know, the specialty tubes which you are talking about from FY ’28 to FY ’30, what kind of like EBITDA per ton is there? If you can give a range, that would be fine.
Anubhav Gupta
So if you look at the specialty tubes, some of the Indian companies are present and some of the global companies which we are studying, the EBITDA spreads are in the range of INR10,000 to INR15,000 per ton. It will depend like what kind of product segment we get into. It’s a bit early to comment. In next two, three quarters, we’ll have much more clarity that which global partner, which segment we are tying up with. But yes, whatever we do, it should be above INR10,000 per ton EBITDA.
Unidentified Participant
And here, you are talking about JVs, right, in international markets?
Anubhav Gupta
Yeah, that’s right. Because super-specialty products, now if we build this capacity in-house in India, it will take time. So a partnership with the global players always put things on fast track, and we can capture pretty quickly.
Unidentified Participant
Okay. Thanks. Second one is on the capacity you mentioned. I guess you will be doing around 3.6 million tons this year and then 42 million, 43 million tons — 4.2 million tons, 4.3 million tons in FY ’27. So is the understanding correct?
Sanjay Gupta
Yes. Minimum 4.2 million ton, minimum.
Unidentified Participant
Okay. And you’re talking about INR5,500 of EBITDA per ton, right?
Sanjay Gupta
Yes, minimum.
Unidentified Participant
Okay. This is minimum you are talking about. And then with all the efforts you are doing and with the free cash we’ll be generating, what kind of ROCEs you are targeting?
Anubhav Gupta
It could hit 40%.
Unidentified Participant
In FY ’27, right?
Anubhav Gupta
So optically right on. As on 5000 crores. For 50%.
Sanjay Gupta
40% [Foreign Speech]. So optically, right now, as on date INR5,000 crores [Foreign Speech].
Anubhav Gupta
So, 40% is what you can see within FY ’27.
Unidentified Participant
Okay. And like the free cash flow, which you will be generating, you will be using that to reduce the working capital days, or like you will be giving out some extra dividends, like increasing your dividend payout as well?
Sanjay Gupta
We’re going to increase some dividend payout, slowly, no doubt. Like right now, we achieved our targets what we are thinking. So right now, we are going with minimum 20% of dividend payout policy. We’ll increase to 25% minimum.
Unidentified Participant
Okay. All right. Thank you.
Operator
Thank you. The next question is from the line of Abhishek from DSP Mutual Fund. Please go ahead.
Abhishek Ghosh
Hello. Am I audible?
Operator
Yes, please proceed.
Abhishek Ghosh
Yeah. Sir, congratulations for a great set of numbers. [Foreign Speech] as far as steel mills are concerned. So is that sourcing advantage [Foreign Speech]
Sanjay Gupta
[Foreign Speech]
Abhishek Ghosh
[Foreign Speech].
Sanjay Gupta
[Foreign Speech]
Abhishek Ghosh
So if there’s a market tailwind, there can be upside to this number?
Sanjay Gupta
Yes.
Abhishek Ghosh
[Foreign Speech] Okay, sir. Thank you so much and wish you all the best.
Sanjay Gupta
Thank you.
Operator
Thank you. The next question is from the line of Darshan Mehta from Axis Capital. Please go ahead.
Darshan Mehta
Yes, sir. Thank you for taking my question. Sir, my question was also on the similar lines. When we target for INR5,500 per ton EBITDA, so what HRC price are we working with for this unique [Phonetic] EBITDA?
Anubhav Gupta
No, Darshan. So HRC is passed for us, right? So there is no assumption on the HR coil pricing. Whatever prices, up or down, it will be fully passed on to our customers.
Darshan Mehta
So we are able to fully pass on? Like there is no absorption that we have to take in our books? We are able to fully pass on to the end customers?
Anubhav Gupta
That’s right. That’s right, Darshan.
Darshan Mehta
Okay. And sir, just one more thing. In terms of reconciliation of the capacity, sir, in the presentation it’s given that for this 2 million ton greenfield capacity, Raipur would be close to 0.6 million tons. However, my understanding is this Raipur plant is for debottlenecking, right? It doesn’t fit into the greenfield capacity. So…
Anubhav Gupta
No, no. Within Raipur, same land parcel, there will be new sheds coming up, new machinery coming up for 6 lakh tons.
Darshan Mehta
Okay. Okay. So this Raipur 0.6 million tons is purely greenfield. And then can you give the breakup of this debottlenecking capacity of this 1 million tons?
Anubhav Gupta
That will be across the plants, Darshan. That will be across the plants.
Darshan Mehta
Okay. That would be across the plants. Okay. And one more question is on the — sir, we saw increase in interest cost this quarter. However, I think that our total debt quarter-on-quarter, which you give in the presentation, has decreased. So just wanted to know why did we see this increase in overall interest cost?
Anubhav Gupta
So, Darshan, if you see, like the debt we have on the books, right, the gross debt. Let’s not talk about the net debt. If we talk about the gross debt, on March ’25, it used to be around INR600 crores — INR615 crores, okay, March ’25. And nine months, we closed at INR548 crores okay? That’s the gross debt on the books. So because there was interest rate movement during the year, this is what it is and some bank charges because of bill discounting, etc., we do. So some increase in interest cost because of that.
Darshan Mehta
So basically, you are saying, also overall debt has gone down. Basically, there are some bank charges as well as maybe increase in overall borrowing rate, which has basically led to an increase in interest cost?
Anubhav Gupta
Yeah. That’s right. Yeah. So as we are going to have a lot of cash flow generation during quarter four, I mean, from quarter one FY ’27 onwards, this interest rate will reduce drastically down to almost zero levels.
Darshan Mehta
Okay. And just two more questions, if I can squeeze. So first was on the consolidated tax rate. Can we assume a lower tax rate going ahead once this Dubai facility comes into play? Already, I think we are now at 22%, 23%. Would there be any more reduction in tax rate going forward once this Dubai plant keeps running, like once it is on stream?
Anubhav Gupta
So Darshan, both Dubai and Raipur plants are at low tax rate, because Raipur, we started in 2018 under that scheme when the government gave tax benefits for the new ventures. So eventually, we expect our tax rate to be around 20%, when the contribution from both Dubai and Raipur will be at its peak.
Darshan Mehta
So can I say FY ’28 would see more like 20% tax rate?
Anubhav Gupta
Kind of, yes.
Darshan Mehta
Okay. And yeah, I think, done with my questions and congratulations on the numbers, sir. Thank you.
Operator
Thank you. The next question is from the line of Sanjay Nandi from VT Capital. Please go ahead.
Sanjay Nandi
Hello. Yeah. Congrats, sir, on a good set of numbers. Sir, just a broad vision picture kind of, like as we are heading for 10 million tons by 2030 from 5 million tons as we talk, so which of the industries where we can expect the green shoots from?
Anubhav Gupta
So from 5 million tons to 8 million tons, we are betting on our existing industry, which is structural steel tubing, which is linked to the construction across the country for residential, for commercial, government infrastructure, real estate, private. Construction has been on a slow track for the last two, two and a half years because of various reasons. But next three years, four years look very promising. And the government spending on infrastructure, once it kickstarts, then also there will be a lot of tailwinds coming in. So, we are very bullish on the construction and infrastructure spending over the next three years, four years. So, 5 million tons to 8 million tons is the existing structural steel tubing, and beyond 8 million tons, to reach 10 million tons, that is for the special segments, new emerging categories like EVs and aerospace and highly mechanical engineering, petrochem, and oil and gas segments. That we are still evaluating and studying. Maybe in two, three quarters’ time, we’ll have a fine blueprint that how we are going to cater to this segment.
Sanjay Nandi
So sir, in the specialized segment also, we are planning for supplying the structural steel, right?
Anubhav Gupta
Which one?
Sanjay Nandi
In the specialized field also, we are planning to supply the structural steel, right, in aerospace and all those segments?
Anubhav Gupta
No, that won’t be structural steel. That will be non-structural, like ground pipes or coated pipes or like titanium pipes. Structural steel tubes don’t require that kind of specialty…
Sanjay Nandi
No issues, sir. Sir, that’s it from my side, sir. Wish you all the very best. Thank you so much.
Operator
Thank you. The next question is from the line of Harsh Vasa from SBI Capital Securities. Please go ahead.
Harsh Vasa
Yeah. First of all, congratulations on a great set of numbers to the entire APL Apollo team and thank you for the opportunity. Sir, my question was that like currently, we have a capacity of 5 million tons at the end of FY ’26. Sir, by the time of FY ’27, sir, what would be our, like, exit capacity at the end of FY ’27? And what would be our FY ’28 volume growth, like, if you can tentatively give like ballpark number from FY ’27 Y-o-Y growth?
Anubhav Gupta
So FY ’26, the exit capacity will be 6 million tons. FY ’28, target is 8 million tons, right? So, almost 3 million tons will come in 24 months, from April ’26 to March ’28, okay? Now exact numbers, you can assume like 6 million tons, 6.5 million tons could be — 6 million tons, 6.25 million tons could be as at FY ’27 and 8 million tons by FY ’28. But majority of the capacity will come in FY ’28, because these are the greenfield plants we are setting up. So, bulk of that will start coming from Q1 of FY ’28. And as far as the volume growth for FY ’28, so our guidance is that we should continue 20% — we should maintain 20% growth rate for FY ’27 and FY ’28.
Harsh Vasa
Okay. Okay. Thank you.
Operator
Thank you. The next question is from the line of Radha from B&K Securities. Please go ahead. Radha, please proceed with your question.
Due to no response, we will take the next participant. The next question is from the line of Prashant Sharma from JM Financial. Please go ahead.
Prashant Sharma
Yeah. Sir, my question is regarding this new safeguard duty that has come into play in December. So what’s the impact of that on APL Apollo?
Anubhav Gupta
No impact on Apollo except the fact that our raw material prices went up, but that is fully passed on. So no impact as such.
Prashant Sharma
Okay. Thank you. That’s all from my end.
Operator
Thank you. The next question is from the line of Ajit Shetty [Phonetic] from Eiko Quantum Solutions. Please go ahead.
Ajit Sethi
Thanks for the opportunity. As we will be doing L1 going forward, so do we expect any realization hit going forward?
Anubhav Gupta
So, this is going to be a very small part of the business. You saw that contribution in Q2 and Q3 also. And we still maintain the EBITDA spread of INR5,200 per ton. So whatever projections, guidance we are giving in, we have built in the volume from low category brand.
Ajit Sethi
Okay. Thank you.
Operator
Thank you. The next question is from the line of Mudit Bhandari from IIFL Capital. Please go ahead.
Mudit Bhandari
Hi, sir. Just one question. In SG Premium, I think you said INR1,500 to INR2,000 is EBITDA per ton. So what kind of volumes did we make in 3Q FY ’26? And is there any — if we want to increase those volumes, would there be any additional assembly line or machinery different from what we are using would be required?
Sanjay Gupta
No, no. Machinery is almost same. We are doing almost 60,000 tons, 70,000 tons in Q3. It depends on our balanced product mix sales. If my sale is less in my premium products, maybe I’ll go for 1 lakh ton in a quarter. We have no problem at all because machinery is same.
Anubhav Gupta
I hope this answers your question. Can we take next one, please?
Operator
Thank you. The next question is from the line of Pallav Agarwal from Antique Stock Broking. Please go ahead.
Pallav Agarwal
Yeah. Good evening. And congratulations on the record quarter. So a couple of questions. One is, with the safeguard duty and HRC prices going up, are we seeing some restocking demand happening in the quarter so that can lead to better volumes?
Anubhav Gupta
Very minor, Pallav, because it’s too early for channel partners to act on this. Once there is more clarity on how prices will behave, then restocking should start.
Pallav Agarwal
Okay. The other question was on the purchase of stock in trade. So in some quarters, it is a pretty high number. So even this quarter, it’s about INR329 crores. So is this [Technical Issues].
Operator
Hello? Hello? Due to no response, we will take the next participant. The next question is from the line of Onkar Ghugardare [Phonetic] from Shree Investment. Please go ahead.
Unidentified Participant
Yeah. I just wanted to know, with the recent upside in all the commodities, I mean, will there be any impact on the guidance which you have given? I mean, you cannot comment on the revenue front, but what would be your prediction on that?
Anubhav Gupta
Sorry, say it again? Prediction on what?
Unidentified Participant
Prediction on overall guidance which you have given of 20% volume growth. I mean, where do you see the trajectory of commodity prices? And how much it can impact your overall revenue?
Anubhav Gupta
So we don’t factor in how steel prices will behave, because there is no major where we can have clarity while working on our business plan for next two years. We work on a simple fundamental that whatever increase or decrease in raw material prices we get, we immediately pass it on to our customers. And this we have been doing for many years now. And our channel partners, our network of 800 distributors, has also kind of got used to this model. And not only us, but our competitors also work on the same fundamental. So, industry has adopted this that the increase or decrease in raw material prices should be easily passed on to the customers.
Unidentified Participant
So generally, how much is the lag in that?
Anubhav Gupta
Five to eight days.
Unidentified Participant
Just five to eight days.
Anubhav Gupta
That’s right.
Unidentified Participant
So practically speaking, there should be no impact because of the steel prices or the commodity price increase, if it sustains like this?
Anubhav Gupta
Yeah. Yeah. Unless there is a drop or increase of like 10% or more in a single quarter, right, which happens like once in 10 years. So last year, we had this impact, but we don’t expect this to come again, such a sharp increase or decrease again during this decade at least.
Unidentified Participant
Okay. Less than that is easily passed on, right, as you said, within the same quarter or maybe in seven, eight days?
Anubhav Gupta
Yeah. Yeah, that’s right.
Unidentified Participant
Okay. All right. No problem. Thank you very much.
Operator
The next question is from the line of Kumar Saumya from Ambit Capital.. Please go ahead.
Kumar Saumya
Hi, Anubhav, Just one question from my side. I’m just trying to understand the math here. The market is roughly 10 million tons to 12 million tons. Assuming 55% is your HRC coil-based, that implies 5.5 million tons to 6.5 million tons. Now based on 20% guidance, you would be touching 4.5 million tons next year. And if I remove 200,000 tons for SG Premium and 300,000 tons of Dubai, you’re left with 4 million tons for domestic market. So that implies 65% market share. And your competition is also planning for capacity addition. So how comfortable are you with this volume?
Anubhav Gupta
So Kumar, 65% market share we’ve been maintaining for almost four years now after COVID. Before COVID, we were at 40%. Now after COVID, from 2021 straight into ’25, as we enter in ’26, we are above 60%. Sanjay ji, you want to add to this?
Sanjay Gupta
Yes. Number two, Kumar. [Foreign Speech]
Kumar Saumya
So sir, in this guidance of 4 million tons to 4.5 million tons, what is the estimate that SG Premium will command in terms of volume share?
Sanjay Gupta
[Foreign Speech].
Anubhav Gupta
Under 10%, Kumar.
Sanjay Gupta
Under 10%.
Kumar Saumya
Okay. Thank you sir. That will be all from my side. Thank you.
Sanjay Gupta
Thank you.
Operator
Thank you very much. As there are no further questions from the participants, I now hand the conference over to the management for the closing comments.
Anubhav Gupta
Thanks, Kumar, and Ambit for hosting Apollo for its quarter three earnings call. And thanks to all the participants who dropped by. Look forward to see you again during Q4 FY ’26 earnings call. Thank you so much.
Operator
[Operator Closing Remarks]