Apollo Pipes Limited – Investor Presentation Summary

Key Operational Highlights

  • Sales Volume: 24,477 MT in Q1FY27, representing a 3% YoY decrease and 22% QoQ decrease
  • Manufacturing Capacity: 240,000 tons across 7 manufacturing plants
  • Product Portfolio: 3,000+ SKUs serving agriculture, water management, construction, and industrial segments
  • Distribution Network: 1,000+ channel partners and 3,000+ retailers

Key drivers of operational performance: Channel partners deferred purchases and rationalized inventories due to sharp polymer price fluctuations in April 2026.

Financial Highlights

Revenue: ₹295.4 Cr (7% YoY increase, 15% QoQ decrease)

EBITDA: ₹3.0 Cr (85% YoY decrease, 83% QoQ decrease)

PAT: ₹-8.6 Cr loss (compared to ₹8.1 Cr profit in Q1FY26)

EBITDA Margin: 1.0% (649 bps YoY decrease, 417 bps QoQ decrease)

Cash Profit: ₹6.3 Cr (69% YoY decrease, 61% QoQ decrease)

YoY/QoQ comparison: Q1FY27 performance declined significantly compared to both previous quarter and same quarter last year.

Drivers of financial performance: Sharp decline in profitability due to polymer price fluctuations impacting demand and margins.

Key Risks: Raw material price volatility, inventory management challenges in distribution channel.

Balance Sheet Snapshot

Net Debt: ₹59 Cr in Q1FY27 (compared to ₹40 Cr Net Cash in FY26)

Net Working Capital Days: 44 days in Q1FY27 (45 days in FY26)

ROCE: 1.1% in FY26 (6.6% in FY25)

ROE: 0.8% in FY26 (4.2% in FY25)

Financial Health Insights: Transition from net cash to net debt position due to business conditions.

Capex & Cash Flow Health

Capital Expenditure: Ongoing expansion with 20,000 ton Greenfield Varanasi Plant and 2,000 ton window & door profiles expansion by FY27

Brownfield Expansion: 28,000 ton planned

Total Planned Capacity: 288,000 tons in 2 years (from current 240,000 tons)

Investment Rationale: Phase-wise capacity expansion at existing facilities to strengthen pan-India foothold.

Strategic & R&D Initiatives

Investments in Innovation: Partnership with Lubrizol Advanced Materials for CPVC resin using TempRite® Technology

Strategic Acquisition: Acquired 61.94% stake in Kisan Mouldings Ltd (capacity: ~58,000 tons) for ₹156 Cr

Expected impact on growth: Technology collaboration expected to improve product mix, brand lift, and win-rates in projects.

Strategic Rationale: Expanding product basket to 4,000+ products and penetrating neighboring markets in Central, Western and Eastern India.

Industry Trends & Business Environment

Macro/Industry Trends: Indian PVC pipes and fittings market expected to register 15% CAGR during FY25-FY28; domestic plastic pipes industry size ~₹350 Bn; organized players account for ~70% market share

Impact on Company: Government push for cleanliness and sanitation, affordable housing schemes, and irrigation infrastructure development creating growth opportunities.

Management Commentary & Growth Outlook

Strategic Outlook: "With PVC prices stabilizing, we are confident of delivering a significantly better performance in H2FY27" - Mr. Sameer Gupta, Managing Director

FY Guidance: Targeting 25%+ revenue growth CAGR over next three years; focus on improving utilization at existing manufacturing plants

Risks and Opportunities: Inventory normalization across distribution channel expected to revive demand gradually; committed to funding expansion from internal cashflow generation without leveraging balance sheet

ESG Updates

  • Achieved 67th Percentile in industry in S&P Global Corporate Sustainability Assessment (CSA) 2025
  • Installed rooftop solar plant at Dadri; evaluating installations at Ahmedabad and Bengaluru
  • Complete in-house set-up for re-use of Polymer Waste ensuring nil environmental pollution
  • Associated with Bharat Lok Shiksha Parishad and FCS Foundation for scholarship programs