APL Apollo’s margin reaches 8.29% as revenue growth outpaces costs
Net profit rose +149.56% YoY, while management said 2HFY27 should perform better than 1HFY27.
Filed 26 Oct 2026, 12:24 IST · APL Apollo Tubes Ltd (APLAPOLLO)
Key takeaways
- Standalone operating profit rose +111.51% YoY as revenue grew +46.12% while expenses grew +42.14%, lifting operating margin by 2.56 percentage points.
- Standalone net profit increased +149.56% YoY to Rs 265.13 cr, while other income contributed 11.23% of pre-tax profit and the tax rate fell 0.23 percentage points.
- Operating margin reached 8.29%, still 2.74 percentage points below the 11.03% median of 25 reported Industrials peers.
Price around the results
Value-added products drove the margin recovery
APL Apollo reported standalone revenue growth of +46.12% YoY, ahead of the +42.14% increase in expenses, which lifted operating margin by 2.56 percentage points to 8.29%. Management said a greater contribution from value-added offerings supported the improvement, despite disruption in its UAE operations. Operating profit consequently grew +111.51% YoY to Rs 386.07 cr.
Margin has improved for two straight quarters
Operating margin rose from 5.73% in Q2FY26 to 5.42% in Q3FY26, 7.19% in Q4FY26 and 8.29% in Q2FY27, marking a recovery after the Q3 dip. Net profit growth of +149.56% YoY also reflected a 0.23 percentage-point reduction in the tax rate, while interest expense increased +59.93%. Other income was 11.23% of pre-tax profit, so reported earnings were not entirely operating-led.
APL Apollo remains below the Industrials margin median
The company’s 8.29% operating margin was 2.74 percentage points below the 11.03% median for the 25 Industrials peers that had reported the quarter. APL Apollo ranked eighth from the bottom on this measure, despite the year-on-year margin improvement.
Management sees better demand and added capacity ahead
Management said demand should improve over the coming quarters, supported by higher government infrastructure allocations, and that 2HFY27 should perform better than 1HFY27. The company said it plans to raise total capacity to 8 million tons by FY28 through greenfield and brownfield expansion and debottlenecking. The stated expansion covers eastern, southern and western coastal locations, alongside plant modernisation and mill replacement.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | YoY |
|---|---|---|
| Revenue | ₹4,656 cr | +46.12% |
| Other income | ₹40 cr | +137.63% |
| Expenses | ₹4,270 cr | +42.14% |
| Operating profit | ₹386 cr | +111.51% |
| Operating margin (%) | 8.29% | — |
| Interest | ₹41 cr | +59.93% |
| Depreciation | ₹30 cr | -2.74% |
| Profit before tax | ₹354 cr | +148.81% |
| Tax | ₹89 cr | +146.62% |
| Net profit | ₹265 cr | +149.56% |
| EPS (₹) | ₹9.44 | +146.48% |
Operating margin of 8.29% compares with a Industrials sector median of 11.03% across 25 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +2.17% | +1.50% |
Volume on the results session was 1.92× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- A greater contribution from value-added offerings supported margin improvement in the quarter.
Guidance & outlook
- The company expects demand to improve over the coming quarters, supported by higher government budget allocations for infrastructure.
- The company expects the second half of FY27 to perform better than the first half.
- The company targets net zero emissions by FY2050 and a 58.8% reduction by FY2034 against FY2024.
Expansion
- The company plans to increase total capacity to 8 million tons by FY28 through greenfield and brownfield expansion and debottlenecking.
- The FY28 expansion plan covers eastern, southern and western coastal locations and includes plant modernization and mill replacement.
Competition
- The company said product quality, customer focus, distribution reach and brand pull continue to strengthen its competitive position.
Problems & risks
- The company said its performance was achieved despite disruption in its UAE operations.
What to watch
- Whether standalone operating margin stays above 8.29% as the value-added mix develops.
- Whether other income’s contribution to pre-tax profit moves from 11.23% in the next quarter.
- Progress against management’s stated plan to reach 8 million tons of capacity by FY28.