Apollo Pipes Limited

Apollo Pipes reported Q4 FY26 revenue of approximately INR350 crores. For the full year FY26, the company's consolidated EBITDA declined 30% due to significant PVC price volatility, aggressive pricing strategies, and fixed expenses associated with new business verticals. Despite these challenges, Apollo Pipes successfully crossed 1 lakh ton in annual sales volume, with standalone sales volume growing 7%, although Kisan's sales volume remained flat year-on-year.

The company has laid out an ambitious 5-year growth plan targeting a 35% revenue CAGR to achieve INR5,000 crores in revenue by FY31. This growth will be driven by leveraging the existing INR3,000 crores capacity, establishing a new INR1,000 crores capacity plant in South India, and expanding into allied products like windows and bath fittings. The Group Chairman, Mr. Sanjay Gupta, has joined the Board to guide this vision.

Gross margins in Q4 FY26 deteriorated due to a strategic decision to maintain aggressive pricing for volume growth, initial costs associated with the new window profile business, and write-downs on finished goods inventory. Management expects PVC resin prices to remain under pressure for the next few months but anticipates stability within a +/- 5% range, providing some predictability for future margins. The company aims for Apollo Pipes' EBITDA margin to be INR9,000-10,000 per ton.

Kisan Mouldings saw its Q4 FY26 revenue increase to INR80 crores from INR60 crores in Q3, with volumes rising to 7,000 tons from 5,000 tons. The company plans to expand Kisan's capacity to achieve INR1,000 crores in revenue with a 10-12% EBITDA margin, involving an additional INR50-60 crores in brownfield expansion. Management confirmed that they are actively working on merging Kisan Mouldings into Apollo Pipes Limited, with further updates expected in future investor calls.

The working capital cycle increased from 35 days in FY25 to 45-46 days in FY26, primarily due to an increase in inventory days from 70 to 80. Management expects to reduce working capital days by 5-10 days in FY27, targeting below 35 days by March '27. Channel inventory, which was high at the end of March, has since destocked, and management anticipates a pick-up in channel filling in May and June, contributing to the Q1 FY27 revenue target of INR400 crores+.

Capital expenditure for FY26 was INR150 crores. For FY27, the company projects approximately INR100 crores in capex, allocated for expanding Kisan's capacity to INR1,000 crores revenue and brownfield expansions in existing plants. The new South India plant, a key part of the long-term growth strategy, is expected to become operational by the end of FY28, following the successful ramp-up of the Varanasi plant.