Apollo Pipes returns to profit, but other income drives the quarter
Revenue rose +4.81% QoQ while expenses rose +1.97%, lifting operating margin 2.68 percentage points; the 3.71% margin remained below the 11.5% peer median.
Filed 05 Nov 2026, 14:55 IST · Apollo Pipes Ltd (APOLLOPIPE)
Key takeaways
- Consolidated net profit recovered to Rs 0.63 cr from a Rs 11.11 cr loss in Q1FY27 as operating margin improved 2.68 percentage points to 3.71%.
- Other income of Rs 8.15 cr represented 1198.53% of pre-tax profit, making the Rs 0.63 cr net profit heavily dependent on non-operating income.
- At 3.71%, Apollo Pipes' operating margin was 7.79 percentage points below the 11.5% Industrials median across 178 reported peers.
Price around the results
Q2FY27 brought a sequential operating recovery
On a consolidated basis, revenue increased +4.81% QoQ to Rs 309.64 cr, while expenses rose only +1.97% to Rs 298.14 cr. The gap between revenue and expense growth lifted operating profit +278.29% to Rs 11.5 cr and moved net profit from a Rs 11.11 cr loss in Q1FY27 to Rs 0.63 cr. The presentation said Q2 sales volume increased 13% YoY to 24,501 tons.
Margin improved, but earnings quality remains weak
Operating margin expanded 2.68 percentage points QoQ to 3.71% because expenses grew more slowly than revenue. Interest increased +1.97% and depreciation rose +6.66%, leaving profit before tax at only Rs 0.68 cr despite Rs 11.5 cr of operating profit. Other income was Rs 8.15 cr, equal to 1198.53% of pre-tax profit, while the tax rate fell 4.30 percentage points to 7.74%, also supporting net profit.
Margin remains below peers despite the Q1 rebound
The 3.71% operating margin was 7.79 percentage points below the 11.5% median for 178 Industrials peers that had reported the quarter. The sequential direction improved from 1.03% in Q1FY27, but the available trend shows only one quarter of recovery rather than a multi-quarter improvement.
Management links H2 priorities to volume, mix and capacity
Management said its H2FY27 priorities are to accelerate volume growth, improve product mix and raise profitability. It also said recovering demand and greater PVC price stability should improve business momentum, while polymer price volatility had moderated from Q1 levels. Management said annual capacity is planned to rise to 288,000 tons within two years from 240,000 tons, and highlighted the Lubrizol CPVC resin partnership and entry into ceramic tiles through Mazzini Tiles.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹310 cr | ₹295 cr | +4.81% |
| Other income | ₹8 cr | ₹2 cr | +267.12% |
| Expenses | ₹298 cr | ₹292 cr | +1.97% |
| Operating profit | ₹12 cr | ₹3 cr | +278.29% |
| Operating margin (%) | 3.71% | 1.03% | — |
| Interest | ₹3 cr | ₹3 cr | +1.97% |
| Depreciation | ₹16 cr | ₹15 cr | +6.66% |
| Profit before tax | ₹1 cr | ₹-13 cr | — |
| Tax | ₹0 cr | ₹-2 cr | — |
| Net profit | ₹1 cr | ₹-11 cr | — |
| EPS (₹) | ₹0.14 | ₹-2.52 | — |
Operating margin of 3.71% compares with a Industrials sector median of 11.50% across 178 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -3.69% | -5.71% |
Volume on the results session was 0.71× 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
- Q2FY27 sales volume increased 13% year on year to 24,501 tons.
Guidance & outlook
- The company plans to accelerate volume growth, strengthen product mix and improve profitability in H2FY27.
- Apollo Pipes expects improved business momentum from recovering demand and greater PVC price stability.
- The company is confident of delivering improved performance in the coming year.
Expansion
- Apollo Pipes plans to expand annual capacity to 288,000 tons within the next two years from 240,000 tons.
New initiatives
- Apollo Pipes entered a partnership with Lubrizol to supply CPVC resin made using Lubrizol’s TempRite technology.
- The Lubrizol collaboration supports specification-driven growth with consultants and institutional buyers.
- Apollo Pipes has entered the ceramic tiles business through Mazzini Tiles.
Competition
- Apollo Pipes described itself as among the top six leading piping solution providers in India.
Problems & risks
- Polymer price volatility had moderated from the levels seen in the first quarter.
- Geopolitical uncertainties in West Asia continued to influence raw material prices.
- The company cited a gradual recovery in demand as a support for future momentum.
What to watch
- Whether operating margin holds above 3.71% after the 2.68-percentage-point QoQ improvement.
- Whether net profit remains positive without other income accounting for 1198.53% of pre-tax profit.
- Whether volume growth stays at 13% YoY from the reported 24,501 tons.