APL Apollo Tubes Limited – Investor Presentation Summary

Key Operational Highlights

  • Q1FY27 Sales Volume: 744,823 tons (6% YoY decrease, 19% QoQ decrease)
  • Total manufacturing capacity: 11 facilities with total capacity of 5 Mn Ton
  • Pan-India presence with 11 units: Hyderabad, 3 plants at Sikandarabad (UP), Bangalore, Hosur (Tamil Nadu), 2 plants in Raipur (Chhattisgarh), Malur (Karnataka), Murbad (Maharashtra) and Umm AI Quwain (UAE)
  • Multi-product offerings include over 5,000+ varieties for building material structural steel applications
  • Vast 3-tier distribution network of over 800 Distributors spread across India, presence in over 300 towns and cities

Key drivers of operational performance: Soft demand for structural steel tubes due to geopolitical situation and challenging macroeconomic environment

Segment-wise Performance

| Product Category (Ton) | Q1FY27 | Q4FY26 | Q3FY26 | Q2FY26 | Q1FY26 |

| APL Apollo Brand | 568,691| 697,094| 664,992| 653,680| 640,258|

| SG Premium Brand | 58,686 | 90,504 | 87,860 | 38,356 | 14,141 |

| UAE Operations | 25,929 | 49,835 | 58,093 | 57,931 | 48,162 |

| Roofing Products | 91,516 | 87,447 | 106,031| 105,071| 91,788 |

| Total | 744,823| 924,881| 916,976| 855,037| 794,350|

Explanation of significant changes in segment performance: Overall volume decline across all segments due to challenging demand environment

Financial Highlights

  • Revenue: ₹56.067 billion (8% YoY increase, 11% QoQ decrease)
  • EBITDA: ₹4.113 billion (11% YoY increase, 20% QoQ decrease)
  • PAT: ₹2.631 billion (11% YoY increase, 26% QoQ decrease)
  • EBITDA/ton: ₹5,522 (18% YoY increase, Flat QoQ)
  • Margins: EBITDA margin not explicitly stated
  • Trading revenue for Q1FY27: ₹2.4 billion

Drivers of financial performance: Improving sales mix and brand power resulting in better margins despite volume decline

Comparison to market estimates: Not Specified

Key Risks: Geopolitical situation, challenging macroeconomic environment, raw material price fluctuations

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not Specified

Regional Breakdown: UAE operations contributed 25,929 tons in Q1FY27

Balance Sheet Snapshot

  • Net Cash: ₹14.1 billion in Q1FY27 (FY26 was ₹15.3 billion)
  • Net Debt/Equity: Not Specified
  • Reserves: Not Specified
  • Current Assets/Liabilities: Receivables ₹3.507 billion (FY26), Inventories ₹14.453 billion (FY26)
  • Working Capital/Leverage Metrics: Net WC 0 days in Q1FY27 (FY26 was 0 days)

Financial Health Insights: Strong net cash position, zero net working capital days

Capex & Cash Flow Health

  • Capital Expenditure: ₹2.160 billion in Q1FY27 (₹6.520 billion in FY26)
  • Free Cash Flow: ₹(2.868) billion in Q1FY27 (₹13.364 billion in FY26)
  • Operating Cash Flow: ₹(0.302) billion in Q1FY27 (₹20.023 billion in FY26)
  • Net Debt Movement: Net cash decreased from ₹15.323 billion to ₹14.064 billion

Investment Rationale: Capacity expansion to 5 Mn Ton by FY28

Strategic & R&D Initiatives

Investments in Innovation: Steel for Green concept including readymade Doorframe, Fence, Plank and Hand rails; narrow and thicker color coated galvanized sheets

Expected impact on growth: Products saving 250,000 trees every year

Strategic Rationale: Replacing conventional wood application in building construction; expanding into high-growth markets

Industry Trends & Business Environment

Macro/Industry Trends: Structural steel tube market share (percentage of steel consumption) expected to increase to 8% by FY31 from 6% in FY26; HR Coil based steel tube market to grow faster vs sponge iron tube market due to superior quality, better cost efficiencies, commissioning of new blast furnace HRC mills, and pollution concerns from local/unorganized sponge iron melting mills

Impact on Company: Positioned to benefit from market growth and shift toward higher quality HR Coil based products

Management Commentary & Growth Outlook

Strategic Outlook: "We expect demand conditions to improve in the coming quarters on the back of an improved government budget allocation for the infrastructure sector. We are ready with our capacity, product range, distribution network and brand pull. Henceforth we expect 2HFY27 to perform much better than 1HFY27."

FY Guidance: Not Specified

Market Share Targets: Not Specified

Risks and Opportunities: Geopolitical situation, macroeconomic environment, government infrastructure spending

ESG Engagement

  • Committed to reducing Scope 1&2 emissions by 25% by 2030 vs. FY22
  • Committed to Net Zero by 2050
  • Renewable energy contribution target: 47% by 2030 from 38%
  • SBTi validation achieved on 27th February 2025
  • Female workforce target: Increase by 1% every year
  • Current achievements: All plants have access to green energy, 2 plants have more than 85% dependency on green energy, almost all plants have rainwater harvesting facilities