APL Apollo Tubes Limited (NSE: APLAPOLLO) Q3 2026 Earnings Call dated Jan. 22, 2026
Corporate Participants:
operator
Anubhav Gupta — Chief Strategy Officer
Sanjay Gupta — Chairman & Managing Director
Sanjay Gupta — Chairman & Managing Director
Analysts:
Unidentified Participant
Sneha Talreja — Analyst
Aditya Welekar — Analyst
Abhishek Ghosh — Analyst
Darshan Mehta — Analyst
Sanjay Nandi — Analyst
Harsh Vasa — Analyst
Prashant Sharma — Analyst
Mudit Bhandari — Analyst
Kumar Saumya Singh — Analyst
Sneha Talreja — Analyst
Aditya Welekar — Analyst
Pallav Agarwal — Analyst
Presentation:
Anubhav Gupta — Chief Strategy Officer
Hi. Good evening everyone and welcome to APL Apollo’s quarter three FY26 earnings call. I would like to take this opportunity to congratulate Team Apollo for such a stupendous performance in a quarter which had multiple headwinds such as 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. Number one being that the nine month sales volume increased 11% bio wide which is well in our guidance range of 10 to 15% growth which we had communicated in the quarter 1 FY26 earnings call and 9 month EBITDA per ton is above 5000 rupees 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 these 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 three to four thousand rupees 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 20% for quarter four, FY26 and FY27 with EBITDA guidance of almost almost 5,500 rupees per ton. And at the same time we are aggressively pursuing capacity expansion to 8 million tonnes from current 5 million tonnes 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 groundfield project in RIPUR for for value added products.
And very interestingly we identified the 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 to 8 million ton is around 1500 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 tonne to achieve our vision of 10 million ton capacity by 2030.
This incremental 2 million ton 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 few targets. So over the next 12 months there will be much more coming from our site. So 8 million ton of structural steel tube capacity by FY28 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 fall so that we are able to achieve 5,500 ton of EBITDA target on per ton basis. Because it’s a big jump in our guidance which we gave from 4800 to 5000 to 5500 rupees 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 surplus cash of 5.6 billion rupees. Now most of the capex is behind us, right? And the company is throwing such large cash flows.
Plus the. Plus the sales run rate what we are achieving. So we are seeing lot of opportunities to rationalize the inventory day which right now is 30 plus it will be in 20 days range. And with the strong Q4 our surplus cash on balance sheet could be 1500 crore rupees 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 ROC 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 poll. We are happy to take questions now.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants, you 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 from the line of Sneha Talrecha from Nuama. Please go ahead.
Sneha Talreja
Hi, good evening team and many congratulations and great set of numbers. Just couple of questions from my end. Did we hear it correctly that you said 20% volume growth in Q4 as well as FY27? I’m more concerned of FY27 while quarter four is understood. And secondly, what’s changed between 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 4800 to 5000 to now 5500. 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 increase in guidance?
Sanjay Gupta
Thank you. Shinha. Our mainly volume growth is coming from our strategy Japan. We have decided to go with the. Other brand also. Right now you can say we are H1 in the our segment in the market and also we are elbow in our market. Who said this trial is totally successful. We started in the month of November, November, December and till now in January also we are going very good with our targets. So I think. Volume growth rightly you can say 3.55 million tons of Q4 may we are targeting 10 to 11 lakh ton K target you can say 10.25 or 10.5. We can easily achieve. 2.6 lakh per month, 3.7 cost weight of a year fixed cost leverage come Korea plus Apollo pricing.
As a brand stabilized OGA margin but due to premium. Overall otherwise. But as a brand abnormal growth in a thousand musk. But. October we are doing so. So like we had done in October 2.5 lakh ton number we have done almost 3 plus 3 lakh ton. And December we have done 370. January also we are looking for 370 or 380. Business. We have reduced our freight cost also by 100200 rupees tonight. 92 units October 3rd December, May 18th December Occupant 84 December 84. Margin increase. Thank you.
Sneha Talreja
Thanks. Thanks a lot. So thank you so much and all the very best team.
Sanjay Gupta
Thank you. Thank you.
Sanjay Gupta
Just to reiterate that we are seeing 20% volume growth for Q4 FY26 and for the full year FY27 over FY26.
operator
Thank you. The next question is from the line of Bharat Sesha. From Bharat Sesha, please go ahead.
Unidentified Participant
Namaste Sandeji.
Sanjay Gupta
Thank you. Namaste.
Unidentified Participant
Namaste. Point. Before I ask a question, I think we should stop writing.
Sanjay Gupta
You’re absolutely right. First of all, very thankful to you.
Unidentified Participant
I just wanted to put that as the first point.
Sanjay Gupta
Pass or fail.
Unidentified Participant
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 degree grade due to volumes or whether it comes to the mix. But I think we use those as levers. But 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 last few quarters and in my personal opinion and absolutely the right area to focus on. Yes. So want to want to get your perspective on the matter.
Sanjay Gupta
Egg to Apollo brand is a MEM 2 lakh 40,000 tons per month Beach Dubai plant almost Patriot Hamala Cap holding. Or ag premium. Apollo may we are targeting Apollo dubai may have 7000 easily we have no problem at all roofing maybe 7000 gas. Total average calculated is close to 6000 rupees button in 3 lakh 70 thousand ton. 3 lakh 70 thousand ton into 6000 rupees 220 crore rupees per month. So. These types of strategies. 2600 rupees per tonaratha average or a local class say 1157 or 2526 hundred faith makeup Karnata local lorries can aid both paragraph. Strategically come here to serve benefit of economy liar free cash flow. Plant. Mixture. We are a very comfort position. Basically volume technical strategy. 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 you know, getting carried away by moving parts. Of course in between we suffered from a particularly bad quarter with spill prices one nobody can do anything. So that is something exempted. We are targeting of 1900.
Unidentified Participant
Then a second question I wanted to When I am 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 has gone up because our capex is now behind us. So the question that I wanted to raise was Anubhav mentioned at the beginning. Somaya 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 very knockoff.
Which means our management of inventory and account receivable is so efficient that the reduction of working capital through current liability itself maybe annull. There’s an objective. Is that the right understanding?
Anubhav Gupta
That’s. That’s right. So. So the working capital which right now standard three will go to negative. Now that is the most worthy objective. Because liability is a way of funding assets. So working capital. I think working capital Inventory or receivables Working capital. Fantastic. Including sub plant of a laga inventory. December, january. December. That. Performance.
Unidentified Participant
Now this is music to the ear. 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 margin. 10 first time I have heard right at the beginning Anubhav spilling out EBITDA pattern objective. Otherwise we typically would bring it out shyly at the end of some questions. You know. So yeah that. That clearly tells me where things are. So will it be. Will it be possible to see EBITDA of 3000 crore plus in 27 or am I being greedy?
Sanjay Gupta
No, you are right now you are greedy. You. Frankly you ask me 42 million ton, a 4.2 million ton or 5,500 super. The last 20 years. The 4.2 million ton plus volume a 5,500 rupees.
Unidentified Participant
No, no. That’s a very very fair answer. Which means 28,3000 crore in any case has to be. 10 million to. No. So delighted to hear all that I heard. And between what you stated and you didn’t speak I think this is a remarkable one. But that statement about challenges.
Sanjay Gupta
Guidelines. Come Kidina. The boss system.
Unidentified Participant
Fantastic. Team. Happy. Congratulations.
Sanjay Gupta
Thank you. Thank you.
operator
Thank you. A reminder to all the participants. You may press star and one to ask a question. The next question is from the line of Aditya Valikar from Access Securities. Please go ahead.
Aditya Welekar
Yeah, thank you. Congrats for the great set of numbers, sir. 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 tonnes. So the increment has come from Dubai. And what else apart From Dubai.
Anubhav Gupta
So this 4 1/2 to 5 capacity 1 is super heavy. We had added. So that got added plus some capacity we added to deep bottlenecking only. So the team is working very, very aggressively. Right. To identify that within the existing capacity how we can increase capacities by doing small, small improvements. Like the mill has multiple components. So replacing old component with new components, the efficiency improves. So 4 and a half to 5 new capacity got added by 100 200,000 ton and rest to 300,000 ton is through the bottlenecking only.
Aditya Welekar
Okay. And this specialty tools which we were projecting earlier, 0.5 million tonnes. It will remain the same the quantum.
Anubhav Gupta
And now we are now we are targeting 2 million tons beyond 8 million ton to reach 10 million ton. 2 million ton will be specialty tubes. Earlier it was 1 million ton, now we have increased it to 2 million ton. Because as we have started working, as we started working so we are identifying lot of areas where our company can work upon.
Unidentified Participant
Yeah. 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 five to eight journey. Right. Two million ton consists of four greenfield plants. One in Gorakpur, another one in Siliguri, third one in New New Mallor which is in South India and fourth in Bhoj. 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 ton over 5 million ton and 1 million ton again through debottlenecking we are going to increase and the greenfield plus brownfield expansion will require 1300 crores and de bottlenecking expansion will require 200 crores. Yeah.
Aditya Welekar
My question was on demand drivers since we are expanding the capacity. So from demand perspective, do you see. That means from an overall perspective because last few quarters we have seen there was some subdued demand. Yes.
Sanjay Gupta
No, no. Demand is not subdued. We are selling the material in one segment. Now we are spread ourselves. Now what I’m see last minutes starting maybe bullet. Now we are actual in the market. We are elbow in the market. We are not going to spread anything. We are very clear.
Anubhav Gupta
So. So what Sange is saying is that APL Apollo brand is the highest selling price point. SG brand is at the lowest selling price point. Correct. So that way we have captured the market heavily. Second, see all these expansions which are coming? No. So East India, we are not selling our products in East India because. 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. Again the. Again the segment where we have been lagging behind.
New Bangalore Mallor 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 Vaiforce, even rifle plant. Today the capacity utilization has reached 70% in quarter three. So one year down the line we also need to reinvest again in RIPUR to expand the capacities. Because the demand for some of the products is very, very strong. So we’re just gearing for that.
So there’s 2 million ton of incremental capacity. It’s not going to cannibalize existing sales. It’s. It’s on three point. Yeah, it’s on three point. Fundamentals. New market, new product. This is, 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 Gurgale from SRI Investment. Please go ahead.
Unidentified Participant
Good set of numbers. I just wanted to know this specialty tubes which you are talking about from FY28 to FY30. What kind of like EBITDA per ton. You can give a range that would be.
Anubhav Gupta
So if you look at these 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 10,000 to 15,000 rupees per ton. It will depend like what kind of product segment we get into. It’s a bit early to comment. In next 2, 3/4 we’ll have much more clarity that which global partner, which segment we are tying up with. And. But yes, whatever we do, it should be above 10,000 rupees 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, if we. If we build this capacity in house in India, it will take time. So partnership with a global player always put things on fast track and we can capture pretty quickly.
Unidentified Participant
Okay, thanks. The second one is on the capacity you mentioned. I guess you will be doing around 3.6 million ton this year and then 40 to 43 million ton 4.2, 4.3 million ton in FY27. So is the understanding correct?
Sanjay Gupta
Yes, very. Minimum. 4.2 million then. Minimum.
Unidentified Participant
Okay. And you are talking about 5,500 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 will be generating what kind of rocs you are targeting.
Anubhav Gupta
Can it could hit 40%.
Sanjay Gupta
How?
Unidentified Participant
In FY27. Right.
Anubhav Gupta
So optically right on. As on 5000 crores. For 50%. So 40% is what you can see within FY27.
Unidentified Participant
Okay. And like the free cash flow which you will be generating, you are like. 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 some increase of some dividend payout, surely. No doubt. Like right now we are. We achieved our targets what we are thinking. So right now we are going with minimum 20% of dividend payout policy. We 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. Congratulations for great set of numbers. Sourcing advantages we built in capacity as far as steel mills are concerned. So is that sourcing advantage already?
Sanjay Gupta
I’m not looking the backward. Have to take the more material. So sourcing advantage.
Abhishek Ghosh
Okay, okay.
Anubhav Gupta
Because.
Abhishek Ghosh
Okay. Even market tailwind, you are confident of that? If there’s a market tailwind, there can. Be upside to this number.
Sanjay Gupta
Yes.
Abhishek Ghosh
Okay, sir. Thank you so much and wish you all.
Anubhav Gupta
Thank you.
operator
Thank you. The next question is from the line of Darshan Mehta from Access Capital. Please go ahead.
Darshan Mehta
Yes, sir. Thank you for taking my question. My question was also on the civil life. When we target for 5500 per ton EBITDA. So what. What HRC price are we working with for this unitary editor?
Anubhav Gupta
So HRC is possible for us. Right. So there is no assumption on the HR coil pricing. Whatever price is up or down, it will. It will be fully passed on our customers.
Darshan Mehta
So we are able to fully pass it. Like there is no absorption that we. We have to take in our box. We are able to fully pass it to the end.
Anubhav Gupta
That’s right. That’s right. Joshua.
Darshan Mehta
Okay. Okay. And so just one for one more thing. When in terms of reconcile cancellation of the capacity. So in the present issue it’s given that to for this 2 million 10 greenfield capacity. Right. Would be close to 0.6 million ton. However my understanding is this ripened plant is for debottle. Right. It doesn’t fit into the creep green free capacity. So.
Anubhav Gupta
No, no. Within ripur same land, same land parcel. There will be new sheds coming up. New machinery coming up for 6 lakh tons.
Darshan Mehta
Okay. Okay. So. So this Raipur 0.6 million ton is purely greenfield. And then can you give the breakup of this deep bottlenecking capacity of this 1,000,010.
Anubhav Gupta
That will be across the plants. Darshan. That will be across the plants.
Darshan Mehta
Okay. That would be across the plantation. Okay. And one more question is on the 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 it is. So if you see like the. 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 25th it used to be around 600 crore rupees. 615 crores. Okay. March 25th and nine months we closed at 548 crores. Okay. That’s the gross debt on the books. So. So because there was interest rate movement during the year. This is what it is. And charges because of, because of bill discounting etc. We do so some increase in interest cost because of that.
Darshan Mehta
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. Yeah. So.
Anubhav Gupta
So as we are going to have a lot of cash flow generation during quarter four. I mean from quarter one FY27 onwards this interest rate will reduce drastically down to almost zero levels. Okay.
Darshan Mehta
And just one, two more question before I can. So one first was on the consolidated tax rate. Can we, can we assume lower tax rate going ahead once this Dubai facility comes into play? Already I think we are at now at 20 to 23%. Would there be any more reduction in tax rate going forward once you know Dubai plant keeps running like ones that is on stream.
Anubhav Gupta
So Darshan, both Dubai and Rifle plants are at low tax rate. Because Rifle 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
Okay. So can I say FY28 would see more like 20% tax rate kind of.
Anubhav Gupta
Yes.
Darshan Mehta
Okay. Okay. Yeah. I Think done with my questions and the congratulations on the numbers. Thank you.
Anubhav Gupta
Thanks Arshan.
operator
Thank you. The next question is from the line of Sanjay Nandi from VT Capital. Please go ahead.
Sanjay Nandi
Hello. Yeah Congress sir on a good set of numbers. So just a broad vision picture. Kind of like as we are heading for 10 million ton by 2030 from 5 as we talk so which of. The industries where we can expect the green shoots from?
Anubhav Gupta
So from 5 to 8 we are betting on our existing industry which is a structural steel tube which is linked to the construction across the country for residential, for commercial, government, government infrastructure, real estate, private construction has been on a slow track for last two and a half years because of various reasons. But next three, four years look very promising. And the government spending on infrastructure once it kick starts 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, four years.
So 5 to 8 million ton is the existing structural steel tubing and beyond 8 million ton to reach 10 million tonnes. 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 will, that we are still evaluating and studying. Maybe in 2 3/4 time we’ll have a fine blueprint that how we are going to cater to this segment.
Sanjay Nandi
So sir, in the specific segment also we are planning for the structural steel to supplying the structural steel, right? Which one?
Sanjay Gupta
In the specialist field also we are planning to supply the structural steel. Right. In the respect of those segments that. Won’T be structural steel that will be, that will be non structural like round pipes or or coated pipes or like titanium pipes Structure structural steel tubes don’t require that kind of specialty. Yeah.
Sanjay Nandi
So that’s it. From my text I wish you all the videos. 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 EPA Lucknow team and thank you for the opportunity. So my question was that like currently we have a capacity of 5 million tons at the end of FY26. So by the time of FY27. So what would be our like exit capacity at the end of FY27 and what would be our FY28 like volume growth. Like if you can tentatively give like ballpark number from FY27 fire y growth.
Anubhav Gupta
So, so, so FY26 the exit capacity will be 6 million ton FY28 target is 8. 8 million tons. Right. So almost 3 million ton will come in 24 months from April 26th to March 28th. Okay. Now. Now exact numbers you can assume like 6, 6 and a half million ton could be 6. 6.25 million ton could be as at FY27 and 8 million ton by FY28. But majority of the capacity will come in FY28. Because these are the greenfield plants we are setting up. So bulk of that will start coming from Q1 of FY28. And as far as the volume growth for FY28.
So the guidance is that we should continue 20%. We should maintain 20% growth rate for FY27 and FY28.
Harsh Vasa
Okay. Okay. Thank you.
operator
Thank you. The next question is from the line of Radha from BNK 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, so my question is regarding this new safeguard duty that have come into play in December. So what’s the impact of that on the 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. 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 from ELCO Quantum Solutions. Please go ahead.
Unidentified Participant
Thanks for the opportunity. As we will be doing L1 going forward so do we expect any realization hits going forward?
Anubhav Gupta
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 5200 rupees per ton. So whatever projections guidance we are giving in we have built in the volume from low category brand.
Unidentified Participant
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 the SG Premium I think you said 1500 to 2000 is the EBITDA per ton. So what kind of volumes did we make in 3Q FY26 and is there any. If we want to increase those volumes. Will 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 doing almost 6070000 ton per ton a turn in quarter Q3. It depends on the our balance product mix sales. Right. If my sale is less than in this Other my premium products maybe I go for 1 lakh in a quarter. We have not. 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 Palav Agarwal from Antique stockbroking. Please go ahead.
Pallav Agarwal
Yeah, good evening and congratulations on the record quarter. So a couple of questions. One is you know did 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, you know it is a pretty high number. So even this quarter it’s about 329 crores. So is this.
operator
Hello. Due to no response we will take the next participant. The next question is from the line of Onkar Godare from Shri Investment. Please go ahead.
Unidentified Participant
Yeah, I just wanted to know with the recent upside in the 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 measure 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.
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
Oh just five to eight days.
Anubhav Gupta
That’s right.
Unidentified Participant
So practically speaking there should be no impact because of the commodity steel prices or the commodity price increase if it sustains like this.
Anubhav Gupta
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. 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
Thank you. The next question is from the line of Kumar Soumya from Abbott Capital. Please go ahead.
Kumar Saumya Singh
Hi Anubhav, Just one question from my side. I’m just trying to understand the math here. The market is roughly 10 to 12 million ton. Assuming 55% is your HRC coil based. That implies 5 and a half to 6 and a half million ton. Now based on 20% guidance, you would be touching 4 and a half million ton next year. And as if I remove 200,000 tons for SG premium and 300,000 tons in 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, you want to add to this?
Sanjay Gupta
Yeah. Number two. Kumaru, I think number two is your player. Like we are talking 4 lakh ton per month. The number two players were 15, 20,000. Okay. Whatever the price, maybe a price is less than HR coil or maybe price is less than Patra. Maybe the price is less than anything.
Kumar Saumya Singh
So sir, in this guidance of 4 to 4.5 what is the estimate that SG Premium will command in terms of volume share?
Sanjay Gupta
3 to 4 lakhs.
Anubhav Gupta
Under 10%.
Sanjay Gupta
Under 10%.
Kumar Saumya Singh
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 Embit for hosting a Polo for its quarter earnings call. And thanks to all the participants who dropped by. Look forward to see you again during Q4FY26 earnings call. Thank you so much.
operator
Thank you very much on behalf of Ambit Capital Limited. That concludes this conference. Thank you for joining with us today. And you may now disconnect your lines.