Apollo Pipes faced a challenging first 9 months of FY26 with flat sales volumes due to market headwinds and price volatility, leading to negative volume growth and margin compression in Q3. However, management is confident of a strong Q4, citing recent 25% Y-o-Y sales growth, strategic market share expansion, and upcoming capacity additions like the Varanasi plant. The company continues its CAPEX plans without debt and expects inventory levels to normalize.
vs Q4 FY26
| Metric | Value | YoY |
|---|---|---|
| EBITDA per ton (Q3 FY26) | ₹6500 | — |
| Inventory Loss (Q3 FY26) | 50 million | — |
| Other Income (Q3 FY26) | 56 lakhs | — |
| Metric | Latest | Trend |
|---|---|---|
| Consolidated Sales Volume Growth(yoy_growth) | 0.08 |
| Category | Headline | |
|---|---|---|
Capex | ₹150 crores entirely through internal accruals without debt | |
Debt | Debt disclosed | |
M&A | Kisan Mouldings acquisition · integrated | |
Liquidity | Liquidity disclosed Warrants of Rs. 110 crores (25% received in April 2025, 75% by Oct 2026) from Kitara Capital to fund expansion. |
| Category | Target | Priority |
|---|---|---|
| Volume | Q4 FY26 Sales Volume→32,000-35,000 tons | High |
| Volume | FY26 Sales Volume→106,000-107,000 tons | High |
| Volume | FY26 Overall Volume Growth→high single-digit | Medium |
| Volume | FY27 Sales Volume Growth→high-digit double growth | High |
| Product Mix | Housing Portfolio Share→70%-75% | High |
| Capacity Utilization | Kisan Mouldings Capacity Utilization→70% (35,000-38,000 tons) | High |
| Profitability | Kisan Mouldings EBITDA per ton→Rs. 4,000-5,000 | High |
| Profitability | Apollo Pipes EBITDA per ton→Rs. 9,000-10,000 | High |
| Inventory | Inventory Days→60 days | High |
| # | Metric | |
|---|---|---|
| 01 | Q4 FY26 Sales Volume | |
| 02 | Inventory Days | |
| 03 | Varanasi Plant Commissioning | |
| 04 | Kisan Mouldings Sales Traction and Utilization | |
| 05 | PVC Resin Price Stability |
| Severity | Risk |
|---|---|
high | Weak end-user demand, oversupply, and price war in PVC pipe industry The first 9 months of FY26 were challenging due to these factors, leading to flat sales volume and margin pressure. Management |
high | High volatility and unpredictability of PVC resin prices Sharp fluctuations in prices (e.g., Rs. 11/kg fall in Q3, Rs. 7-8/kg recovery in Jan) make forecasting difficult and impact channel partner behavior and inventory levels. Management |
medium | High inventory levels as of December 2025 Inventory levels were at 80 days in December 2025 due to lower-than-expected sales, though expected to reduce to 60 days in Q4. Management |
medium | Potential dumping from China due to VAT rebate removal Removal of VAT rebate on exports by China from April 1st could lead to increased material flow from China, potentially impacting domestic PVC resin prices. Analyst |
The first nine months of FY26 proved to be the most challenging period for the Indian PVC pipe industry, characterized by weak end-user demand, heightened raw material price volatility, market oversupply, and intense price wars. This environment led to flat sales volumes for Apollo Pipes, contrary to expectations of double-digit growth. In response, the company adopted a more aggressive strategy for market share expansion, which has begun to show positive results from December onwards, with a 25% Y-o-Y sales volume growth observed in the last six weeks.
Despite the overall market challenges🌐, Apollo Pipes' housing segment, accounting for 60% of its total business, demonstrated robust performance, growing over 10% Y-o-Y in the first nine months of FY26. The fittings business and CPVC volumes also grew by 10% Y-o-Y, while the water tank business achieved high double-digit growth. The company is actively diversifying its product portfolio by adding new offerings such as PLB ducts, DWC pipes, PE gas pipes, PVC-O pipes, and UPVC doors and windows, aiming to strengthen its presence in the building materials space.
Apollo Pipes incurred a CAPEX of Rs. 125 crores in the first nine months of FY26, with a total FY26 CAPEX projected to reach Rs. 150 crores. The company plans to expand its total installed capacity to 2,86,000 tons over the next two years without incurring any additional debt. The West India facility is now fully integrated and operational, and the new Varanasi plant is expected to commence operations next month (March 2026), which will significantly enhance the company's market reach in Eastern India.
The PVC resin market experienced extreme volatility, with prices falling by approximately Rs. 11/kg from October to December 2025 (from Rs. 72 to Rs. 61) before recovering by Rs. 7-8/kg in January. This unpredictability led to cautious behavior and continuous restocking by channel partners, contributing to high inventory levels (80 days) as of December 2025. However, management anticipates that strong sales momentum in Q4 will help reduce inventory days to 60 by Jan-Feb 2026.
The integration of Kisan Mouldings, acquired in FY25, has been completed, with all key functions now streamlined. Although the business faced initial struggles, its foundation is now set, and management expects traction from Q4 onwards. Kisan Mouldings currently operates at 40% utilization (21,000-22,000 tons/year), with a target to reach 70% utilization (35,000-38,000 tons/year) in the next two years. A CAPEX of Rs. 30-40 crores is planned for modernization to boost capacity by 15-20%, with an expected EBITDA of Rs. 4,000-5,000 per ton in FY27/FY28.
Apollo Pipes secured Rs. 110 crores through warrants in April 2025, with 25% already received and the remaining 75% expected by October 2026. These warrants are held by Kitara Capital, a Middle Eastern fund, and are intended to support the company's capacity expansion plans without increasing its debt burden. Management clarified that there are no outstanding warrants from the promoter entity, as all promoter warrants were fully exercised in 2025.