Synopsis:- Strong Q3 saw 37% YoY EBITDA growth with volumes up 11% to 25.6 lakh tonnes. Capacity utilization reached ~90% of 5 MT, with a roadmap to 10 MT by FY30. Margins are improving, ROCE may hit 40%, supported by premium products and ₹1,500 crore expansion.
India’s metals and mining sector is powering up in FY2026, fueled by surging production and infrastructure demand. Mineral output kicked off strong with iron ore at 53 MMT and refined copper up 43.5% in early months, while mining GVA grew 6.8% in late 2025. Coal hit 200 MT from non-captive mines by March, up 10.56% YoY, signaling robust momentum amid reforms. The sector eyes 2.5% GDP share soon.
With a market capitalization of Rs 55,330.08 crore, the shares of APL Apollo Tubes Ltd closed at Rs 1,992.90 per share, increased around 0.96 percent as compared to the previous closing price of Rs 1,974.00 apiece.
Vision 2030 Growth
APL Apollo Tubes delivered a strong Q3FY26 performance, with EBITDA rising 37% YoY and 6% QoQ to ₹472 crore, beating estimates by 6%. Moreover, 9MFY26 volumes grew 11% YoY to 25.6 lakh tonnes, while EBITDA per tonne stood at ₹5,030 (Q3: ₹5,145). This was supported by premium products commanding ₹3,000–4,000 per tonne, higher realization.
Building on this, volume visibility remains strong with December 2025 sales at 370 kt, implying an annualized run rate of 4.4 million tonnes. Consequently, guidance has been upgraded to 20% YoY growth for Q4FY26 and FY27. Capacity has increased to 5 MT (from 4.5 MT in Q2), with utilization already reaching ~90%.
Looking ahead, the company targets 10 MT capacity by FY30, doubling from 5 MT currently. Capacity is expected to reach 6–6.5 MT in FY27 and 8 MT in FY28. This expansion includes 2 MT greenfield, 1 MT debottlenecking by FY28, and an additional 2 MT specialty tubes by FY30, backed by ₹1,500 crore capex.
Furthermore, financials remain strong with EBITDA/t guidance raised to ₹5,500 from ₹4,800–5,000 earlier. Net cash stands at ₹560 crore, expected to rise to ₹1,500 crore by Q4FY26. ROCE of ~33% in Q3FY26 is projected to reach 40% by FY27, while valuation remains at 35x P/E versus 36x historical average. Axis Direct gave a ‘Buy’ recommendation with the target price of ₹2,170, indicating a 9% upside.
APL Apollo Tubes Ltd is India’s leading structural steel tube manufacturer, known for its strong distribution network and diverse product portfolio. The company focuses on value-added products, premium branding, and capacity expansion. With consistent volume growth and improving margins, it plays a key role in infrastructure, construction, and industrial applications.
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