Apollo Pipes Limited — Q4 FY26 earnings call

Call held 8 May 2026

Management summary

Apollo Pipes reported a challenging FY26 with a 30% consolidated EBITDA decline, primarily due to PVC price volatility, aggressive pricing, and new business costs. Despite this, the company achieved over 1 lakh ton in annual sales volume and outlined an ambitious 5-year plan for 35% revenue CAGR to reach INR5,000 crores by FY31. Management is focused on volume growth, margin improvement, and strategic capacity expansion, with a Q1 FY27 revenue target of over INR400 crores.

Highlights

  • Crossed 1 lakh ton of annual sales volume in FY26, demonstrating strong operational scale.

  • Apollo Pipes' standalone sales volume increased by 7% in FY26, indicating core business growth.

  • Ambitious 5-year growth plan targeting 35% revenue CAGR and INR5,000 crores revenue by FY31, supported by new capacities.

  • Targeting INR400 crores+ revenue for Q1 FY27, showing confidence in near-term demand recovery.

  • Group Chairman Mr. Sanjay Gupta joined the Board, expected to provide strategic guidance.

  • CPVC segment expected to grow >20% in FY27, outpacing overall market growth.

Concerns

  • Consolidated EBITDA declined 30% for FY26 due to inventory write-downs, aggressive pricing, and fixed expenses for new business verticals.

  • PVC prices experienced significant volatility (15% drop, 75% rally, 25% fall) impacting margins and creating uncertainty.

  • Gross margin deteriorated in Q4 FY26 due to aggressive pricing, new business costs (window profiles), and finished goods inventory write-downs.

  • Working capital days increased from 35 days in FY25 to 45-46 days in FY26, primarily due to inventory buildup.

  • Demand remained impacted in FY26 due to slowdowns in private real estate and government infrastructure spending.

Key financials

2 periods

Headline

  • Annual Sales Volume
    1,00,000 tons
  • Apollo Pipes Standalone Sales Volume Growth
    7%
    YoY +7%
  • Kisan Sales Volume Growth
    0%
    YoY 0%
  • Consolidated EBITDA Decline
    -30%
    YoY -30%
  • Working Capital Days FY25
    35 days
  • Working Capital Days FY26
    45 days
  • Inventory Days FY25
    70 days
  • Inventory Days FY26
    80 days

Q4 FY26

  • Revenue
    ₹350 Cr
  • NSR
    ₹110/kg

What they filed

Q1 FY27: revenue up 7.3%, net profit down 237.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue250 308 315 275 236 −6%247 −20%347 +10%295 +7%
EBITDA19 23 24 21 16 −16%12 −48%18 −25%3 −86%
Net profit4 6 10 8 1 −75%-5 −183%0 −100%-11 −237%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Kisan Mouldings
    ₹80 Cr Q4 FY26 Revenue₹60 Cr Q3 FY26 Revenue7,000 tons Q4 FY26 Volume5,000 tons Q3 FY26 Volume

Order book

medium confidence

Total value

₹1,100 Cr

as of 2026-03-31 quantified

Composition

Mix 3 products
  • Plumbing Construction 62.5%
  • Agri and Government Infra 37.5%
  • Window Profiles 1.5%

Share of order book by product

Pipeline

capacity and future projects

Future revenue potential from existing capacity, new South India plant, and allied products.

The company has established a strong revenue base of INR1,100 crores in FY26 and has existing capacity of INR3,000 crores, with plans for significant expansion and new product lines to achieve INR5,000 crores revenue by FY31.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹100 Cr
    • Kisan plant capacity expansion to INR1,000 crores revenue
    • Brownfield expansions in existing plants
    So capex, see, I mean, we spent INR150 crores for the FY26. FY27, our commitments are to ensure that the Kisan plant has the capacity to throw INR1,000 crores kind of revenue and plus some brownfield expansions in the existing plants which are going on. So for FY27, the total capex requirement would be near about INR100 crore.
  • M&A Kisan Mouldings Merger · Announced

    Leverage group network and synergies, achieve 10-12% EBITDA margin for Kisan.

    Kisan plant to achieve INR1,000 crores revenue with a minimum 10% to 12% kind of EBITDA margin.

    merge Kisan Mouldings in Apollo Pipes Limited. we are already working on how to go about it. Maybe in next few investor calls, you will hear from us like about the time lines of the merger.

Guidance & targets

Revenue

  • Revenue CAGR Revenue · next 5 years (to FY31) · High confidence 35%
    As we move forward, we have drawn a 5-year growth plan to achieve 35% revenue CAGR and hit INR5,000 crores revenue by FY31.

    — Sameer Gupta

  • Total Revenue Revenue · by FY31 · High confidence INR5,000 crores

    — Sameer Gupta

  • Q1 FY27 Revenue Revenue · Q1 FY27 · High confidence INR400 crores+
    So we are targeting INR400 crores plus revenue for the quarter 1 FY27.

    — Anubhav Gupta

  • Kisan Mouldings Revenue Revenue · future · High confidence INR1,000 crores
    So I'll address second question first. Kisan Mouldings plant right now is capable of generating INR400 crores, INR500 crores of revenue. I mean we closed at around INR200 crores, INR250 crores last year, okay? So first strategy is to take this to like INR500 crore. For that, there is some like INR30 crores, INR40 crores of capex, which we have already incurred, right? Then we want to build capacity for INR1,000 crores within this plant.

    — Anubhav Gupta

  • Plumbing Construction Segment Contribution Revenue · FY27 · High confidence 4-5%
    But this year, we expect a minimum like 4%, 5% contribution in the total revenue for the construction plumbing segment.

    — Anubhav Gupta

  • Existing Plants Revenue (North, West, Varanasi) Revenue · next 5 years · High confidence INR1,000 crores each
    We have to take these plants to INR1,000 crores revenue in the next 5 years.

    — Sameer Gupta

Profitability

  • Apollo Pipes EBITDA Margin Profitability · ongoing · High confidence INR9,000-10,000 per ton
    So Apollo, we are like targeting 10% margin, like around INR9,000 to INR10,000 per ton at EBITDA level.

    — Anubhav Gupta

  • Kisan EBITDA Margin (sustainable) Profitability · ongoing · High confidence INR5,000-6,000 per ton
    So for Kisan, the first target is to take it to INR5,000, INR6,000 per ton on sustainable basis.

    — Anubhav Gupta

  • Kisan EBITDA Margin (eventual) Profitability · next 2-3 years · Medium confidence INR10,000 per ton
    And then eventually, as the like further ramp-up takes place beyond INR500 crores, INR600 crores of revenue from Kisan, then the margins will improve further towards INR10,000 per ton. So on a consol basis, you can assume that INR6,000, INR7,000, INR8,000 per ton then the journey towards INR10,000, INR11,000, INR12,000 per ton in next 2, 3 years.

    — Anubhav Gupta

Market Share

  • Market Share Market Share · next 3-4 years · High confidence 3-3.5%

    From 2-2.5% today

    So we are looking at like 3%, 3.5% market share, okay, in next 3, 4 years, assuming industry will grow at 7%, 8%.

    — Anubhav Gupta

Volume

  • CPVC Segment Growth Volume · FY27 · High confidence >20%

    From 10% today

    So like I said, I mean, CPVC grew for us by 10% in FY26. And with this is all tie-up and support, we are expecting more than 20% growth in FY27 within CPVC segment.

    — Anubhav Gupta

Working Capital

  • Working Capital Cycle Working Capital · FY27 · High confidence <35 days

    From 45-46 days today

    So I guess FY27, we should be like closing below 35 days. And although our internal target is 30 days, right, as at March '27. But yes, it will be like touching the FY25 number minimum.

    — Anubhav Gupta

Capex

  • Total Capex Capex · FY27 · High confidence INR100 crores
    So for FY27, the total capex requirement would be near about INR100 crore.

    — Anubhav Gupta

Capacity

  • South India Plant Operational Capacity · FY28 end · High confidence Operational
    So you can expect that South India plant will come somewhere in like FY28 end, towards FY28.

    — Anubhav Gupta

What to watch in Q1 FY27

Q1 FY27 Revenue Performance

next quarter
Current Q4 FY26 revenue ~INR350 crores
Target INR400 crores+

Why it matters

Verifies the company's ability to achieve its short-term revenue growth targets and indicates demand recovery.

So we are targeting INR400 crores plus revenue for the quarter 1 FY27.

Risks & concerns

  • PVC Price Volatility

    medium

    PVC prices dropped 15% in 8 months, rallied 75% in 4 months, then fell 25% in 2 months, impacting margins; expected to remain under pressure for a few months.

    Management acknowledged

  • Demand Slowdown

    medium

    Demand remained impacted in FY26 due to slowdowns in private real estate and government infrastructure spending.

    Management acknowledged

  • Competitive Intensity

    medium

    Competition has increased significantly, leading to aggressive pricing and margin pressure, though it also leads to consolidation.

    Management acknowledged

  • Increased Working Capital Days

    medium

    Working capital days increased from 35 days in FY25 to 45-46 days in FY26, mainly due to higher inventory.

    Management acknowledged

  • Monsoon Season Demand Pressure

    low

    Expectation of demand pressure in Q2 (monsoon season) post July/August.

    Management acknowledged

Q&A highlights

6 direct
Gross margin deterioration in Q4 FY26 Direct
So there are 3 main reasons, Varun. Number one being that, like in our last earnings call, we did mention that we want to be very aggressive in terms of pricing, okay, because we want to catch up on the momentum of volume growth first. And then once the base is set then we'll look at the pricing. So despite the NSR going up, despite PVC prices going up, we continued with our aggressive pricing strategy because that's what we had like, promise with our dealers, okay? So we continued with that. We didn't want to be very opportunistic that prices are going up. So we pull out of our aggressive strategies just to maintain the dealer confidence level, and this will benefit us in quarter 1. So one is that. Second is because the window profile business is getting built up. So there were some costs associated to that, whether they were like sampling, etcetera, at various showrooms we had to give right. So some of that, which got accounted in the gross margin. And third, now that, we want to have a base, okay, which can deliver 35% volume CAGR, right? So there were some like finished good inventory, which was lying in the books, right, in our plants, basically, which was like debt inventory, which was unsold inventory. So we thought that now that the volume we have to catch up, we had to clear some space, right? So there was some like sellout of the finished good inventory, which was like unsold finished good inventory. So there were some write-downs on that.

Management provided a detailed explanation for margin pressure, citing strategic aggressive pricing for volume, new business costs, and inventory write-downs, which are key factors for profitability.

Asked by Varun Julasaria

Kisan Mouldings long-term strategy and potential merger Direct
Okay. So I'll address second question first. Kisan Mouldings plant right now is capable of generating INR400 crores, INR500 crores of revenue. I mean we closed at around INR200 crores, INR250 crores last year, okay? So first strategy is to take this to like INR500 crore. For that, there is some like INR30 crores, INR40 crores of capex, which we have already incurred, right? Then we want to build capacity for INR1,000 crores within this plant. And for that, another INR50 crores, INR60 crores will be spent for brownfield expansion within the premises. So we want to take Kisan plant to INR1,000 crores revenue with a minimum 10% to 12% kind of EBITDA margin. So that's the product SKU range they have. That's the brand value it carries within the Western Indian markets. During this time, I mean, we will ultimately merge Kisan Mouldings in Apollo Pipes Limited. we are already working on how to go about it. Maybe in next few investor calls, you will hear from us like about the time lines of the merger.

Management confirmed plans to merge Kisan Mouldings into Apollo Pipes Limited and outlined ambitious revenue and margin targets for Kisan, indicating a strategic integration and growth focus.

Asked by Abhishek Sanghvi

Channel inventory status and April volume growth Direct
See, definitely, channel inventory got like heavy, right, towards end of March. And it did impact April to some extent, right? But like I said, I mean, INR400 crores of revenue for quarter 1, we have factored in like whatever April went through, okay? And there was expectation that, yes, after strong March, April will be light. But then from May, June, again, things will pick up. So we are already seeing pick up in inventory in channel filling up, right? So yes, I mean, things are pretty much on track.

Management clarified the impact of high March inventory on April sales but expressed confidence in Q1 FY27 revenue target due to channel restocking in May/June, providing insight into demand trends.

Asked by Varun Julasaria

Working capital days increase and normalization Direct
So see, I mean, FY25 was a very solid year with 35 days of working capital cycle. This year, FY26, we closed at 46 days -- 45 days. So there is like 10 days of increase in the net working capital cycle, which has mainly come from the inventory days. Inventory was 70 in FY25 and 80 days in FY26. So as plants are ramping up, right, and some clarity on the PVC price settlement, this inventory days shall come down by like 5 to 10 days during this financial year. And our channel financing program is also undergoing pretty smoothly. So I guess FY27, we should be like closing below 35 days. And although our internal target is 30 days, right, as at March '27. But yes, it will be like touching the FY25 number minimum.

Management explained the reason for increased working capital days (inventory) and provided clear targets for its reduction in FY27, crucial for cash flow management.

Asked by Sneha Talreja

South India plant timeline and progress Direct
So South, see, I mean, right now, we have a plant within Bangalore region, okay, Tumkur to be precise. I mean what we believe is that whenever we go and set up the base, it will be near that area only, Malur, Tumkur, Bangalore belt. I think the work for that will start after 1 year in terms of land acquisition, etcetera. First, I mean, this year, the target is to ramp-up Varanasi, which is now fully operational, okay? So once we have like confidence, conviction that, yes, Varanasi is on track, then immediately, we'll start working on South India plant. I mean, as per our experience and expertise, what we have built in the project execution. And we believe that within 18 months from like the day we finalize the land and 18 months from that date, we can have the plant go live. So you can expect that South India plant will come somewhere in like FY28 end, towards FY28.

Management provided a detailed timeline and strategy for the South India plant, linking its progress to the successful ramp-up of the Varanasi plant, offering clarity on future capacity expansion.

Asked by Varun Julasaria

PVC resin price outlook Direct
Prices, like I told before earlier, the prices should be right now on the lower side. It may go down by, let's say, 3% or 4%, not too much downward is there. Again, on the higher side, there is not too much scope also there. So again, as I said 4% or 5% plus side we see. So we are not seeing too much of ups and downs in the PVC prices in the near future. It should remain stable in the within range of plus/minus 5% only.

Management offered a specific outlook on PVC prices, expecting stability within a narrow range, which is critical for margin predictability in the coming months.

Asked by Anu Parakh

2 min read 6 chapters

Detailed narrative

Q4 FY26 Performance and Full Year Overview

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.

Ambitious 5-Year Growth Strategy

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.

Margin Pressures and Pricing Outlook

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 Integration and Expansion

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.

Working Capital and Inventory Management

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+.

Capex Plans and Capacity Development

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.

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