APL Apollo Tubes Reports (APLAPOLLO) Steel tube manufacturer achieves best-ever quarterly performance across all major financial metrics despite a challenging demand environment. High operational efficiency and debt reduction support continued ‘Strong Buy’ analyst ratings.
APL Apollo Tubes Limited delivered record-breaking financial performance in Q3 FY26, posting double-digit growth in both sales volumes and profitability. The company achieved all-time highs in sales volume, EBITDA, and net profit, even as management flagged a challenging demand environment. This strong operating performance has reinforced a positive financial trajectory and a bullish technical outlook for the stock, which has generated a 21% return over the past year.
Financial Highlights
On January 22, 2026, APL Apollo disclosed that its Q3 FY ’26 sales volume reached 916,976 tonnes, marking an 11% increase year-over-year. This volume also reflects a 7% sequential improvement over the second quarter of fiscal 2026. The increase in volume was a primary driver for the company’s best-ever quarterly performance across several material financial metrics.
For the quarter ended December 31, 2025, APL Apollo reported a net profit of ₹3.1 billion, a 43% year-on-year increase and a 3% sequential rise. EBITDA for the quarter grew 37% year-on-year to ₹4.7 billion, while EBITDA per ton stood at ₹5,146. While the EBITDA per ton increased 23% compared to the previous year, it experienced a 2% decline relative to the prior quarter.
For the nine months ended December 31, 2025, the company’s net profit surged 83% year-on-year to ₹8.5 billion. During this same nine-month period, EBITDA expanded by 64% to ₹12.9 billion on sales volumes of 2,566,363 tonnes. The company maintains strong efficiency metrics, including an average Return on Capital Employed (ROCE) of 27.96% and a low Debt to EBITDA ratio of 0.35 times.
Management Strategy & Valuation Indicators
Management’s stated strategy focuses on maintaining its leadership position in the construction material industry through innovation and a diversified product portfolio. Operational priorities include leveraging the company’s distribution network and brand strength to manage current market conditions. Additionally, the company is prioritizing prudent working capital management to maintain financial stability. Current analysis suggests the stock is valued at a Price/Earnings to Growth (PEG) ratio of 0.6, which indicates the company may be undervalued when adjusted for its recent earnings growth trajectory.
Market Position & Risk Profile
As a prominent midcap player in the Iron & Steel Products sector, APL Apollo currently holds a 53.03% institutional ownership stake, signaling high market confidence. While the company has demonstrated consistent operational excellence, its future performance remains subject to sector-specific risks, including commodity price volatility and cyclical demand shifts. Currently, the company is ranked in the top 1% of its market rating universe, reflecting its position as a leading contender in its industry.