Apollo Pipes slips into a Rs 11.11 cr loss as operating margin falls to 1.03%
Depreciation and interest outweighed operating profit, while management pointed to Lubrizol and capacity additions as business initiatives.
Filed 30 Jul 2026, 15:07 IST · APOLLOPIPE (APOLLOPIPE)
Key takeaways
- Consolidated Q1FY27 operating profit of Rs 3.04 cr was more than absorbed by Rs 14.87 cr of depreciation, resulting in a Rs 12.64 cr pre-tax loss.
- Operating margin was 1.03%, while management reported an 85% year-on-year decline in EBITDA and a 649-basis-point margin contraction.
- Management said the Lubrizol partnership should improve product mix and project win-rates, alongside 20,000 tonnes of ongoing and 28,000 tonnes of brownfield expansion.
Depreciation turned a thin operating profit into a loss
Apollo Pipes reported consolidated revenue of Rs 295.43 cr and operating profit of Rs 3.04 cr in Q1FY27, leaving little cover for below-operating costs. Depreciation of Rs 14.87 cr and interest of Rs 3.04 cr drove profit before tax to a loss of Rs 12.64 cr. A tax credit of Rs 1.52 cr reduced the net loss to Rs 11.11 cr, with EPS at negative Rs 2.52.
Margin pressure was the central operating issue
The 1.03% operating margin reflects the limited conversion of revenue into operating profit. Management reported that Q1FY27 EBITDA fell 85% year on year and that EBITDA margin declined by 649 basis points. Other income of Rs 2.22 cr provided only a partial offset to the loss before tax rather than changing the quarter's operating outcome.
Lubrizol and capacity additions are management's stated growth levers
Management said the partnership with Lubrizol will supply CPVC resin using TempRite technology and is expected to support product mix and project win-rates. The company told investors that 20,000 tonnes of expansion is ongoing and that brownfield projects add 28,000 tonnes. Management also presented a greenfield Varanasi plant planned to add 18,000 tonnes by FY27.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹295 cr |
| Other income | ₹2 cr |
| Expenses | ₹292 cr |
| Operating profit | ₹3 cr |
| Operating margin (%) | 1.03% |
| Interest | ₹3 cr |
| Depreciation | ₹15 cr |
| Profit before tax | ₹-13 cr |
| Tax | ₹-2 cr |
| Net profit | ₹-11 cr |
| EPS (₹) | ₹-2.52 |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Q1FY27 sales volume was 24,477 MT.
Guidance & outlook
- Apollo Pipes expects the Lubrizol partnership to improve product mix and project win-rates.
Expansion
- The capacity expansion plan includes 20,000 tonnes of ongoing expansion.
- The capacity expansion plan includes 28,000 tonnes of brownfield expansion.
- The greenfield Varanasi plant is planned to add 18,000 tonnes by FY27.
New initiatives
- Apollo Pipes has partnered with Lubrizol to supply CPVC resin made using TempRite technology.
- Apollo Pipes has set up an in-house system to reuse polymer waste.
Competition
- Organized players account for approximately 70% of the domestic plastic pipes industry.
Problems & risks
- Q1FY27 EBITDA decreased 85% year on year.
- Q1FY27 EBITDA margin declined by 649 basis points year on year.
What to watch
- Whether operating margin moves up from 1.03%.
- Whether sales volume builds from 24,477 MT.
- Progress on the stated 20,000 tonnes of ongoing and 28,000 tonnes of brownfield expansion.