APOLLOPIPENSEQ4 FY26May 11, 2026

Apollo Pipes Limited

5,717words

81turns

11analyst exchanges

5executives

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Management on call

Sameer Gupta

CHAIRMAN AND MANAGING

Arun Agarwal

JOINT MANAGING DIRECTOR – APOLLO PIPES LIMITED

Ajay Kumar Jain

CHIEF FINANCIAL OFFICER

Anubhav Gupta

GROUP CHIEF STRATEGY

Biplab Debbarma

EMKAY GLOBAL FINANCIAL SERVICES

Key numbers — 40 extracted

15%

FY26 earnings call. The FY26 was the year full of roller coaster rides. The PVC prices dropped by 15% in the first 8 months, then rallied 75% in next 4 months and then again fell by 25% in 2 months t

75%

r full of roller coaster rides. The PVC prices dropped by 15% in the first 8 months, then rallied 75% in next 4 months and then again fell by 25% in 2 months to settle down at the current price of IN

25%

es dropped by 15% in the first 8 months, then rallied 75% in next 4 months and then again fell by 25% in 2 months to settle down at the current price of INR84 per kg. I believe my team manoeuvred t

INR84

5% in next 4 months and then again fell by 25% in 2 months to settle down at the current price of INR84 per kg. I believe my team manoeuvred this tide well wherein we crossed 1 lakh ton of annual sales

1 lakh

e current price of INR84 per kg. I believe my team manoeuvred this tide well wherein we crossed 1 lakh ton of annual sales volume. Apollo Pipes' standalone sales volume increased by 7% and Kisan was f

we crossed 1 lakh ton of annual sales volume. Apollo Pipes' standalone sales volume increased by 7% and Kisan was flat on Y-o-Y basis. Needless to say that the demand remained impacted due to slowd

30%

tate sector and government infrastructure spending throughout the year.Our consol EBITDA declined 30% for the full year due to inventory write-downs, aggressive pricing and fixed expenses for our new

35%

for our new business verticals. 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. We are ready with 3 plants, which can give

INR5,000 crore

als. 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. We are ready with 3 plants, which can give revenue of INR1,000 crores each. We

INR1,000 crore

and hit INR5,000 crores revenue by FY31. We are ready with 3 plants, which can give revenue of INR1,000 crores each. We will set up a new plant of INR1,000 crores capacity in South India and then INR1,000 cr

INR400 crore

1 of FY27, which normally is like strong quarters within the financial year. So we are targeting INR400 crores plus revenue for the quarter 1 FY27. And all our strategies in terms of pricing, marketing, bran

rs,

wed, so that will also help us in pushing for our brand towards our dealer network, channel partners, plumbers and consumer. So we are pretty bullish on FY27 now. And not only FY27, we want to carry t

Guidance — 20 items

Sameer Gupta

opening

“The FY26 was the year full of roller coaster rides.”

Sameer Gupta

opening

“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

opening

“I'm sure that under his guidance and supervision, we will be able to achieve these targets.”

Aryamaan Agarwal

“And also what sort of impact can we expect by the rise of this crude prices due to the conflict on PVC prices and our overall, I would say, demand and supply scenario?”

Anubhav Gupta

“And we have been very aggressive like in last 4, 5 months and you could see the results as well in terms of our volume and revenue in quarter 4 FY26.”

Anubhav Gupta

“So we want to carry this momentum into quarter 1 of FY27, which normally is like strong quarters within the financial year.”

Anubhav Gupta

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

Anubhav Gupta

“And not only FY27, we want to carry this momentum over the next 4, 5 years, like Sameer ji mentioned that now Sanjay Gupta ji is the Chairman.”

Anubhav Gupta

“So under his supervision guidance, we will leverage the group network like we are already talking to large dealers within the group, and they have already come forward and started taking up PVC pipe dealerships, right?”

Anubhav Gupta

“And like I said, next 4, 5 years, we want to grow our business by 35% on CAGR basis.”

Risks & concerns — 8 flagged

Needless to say that the demand remained impacted due to slowdown in both the private real estate sector and government infrastructure spending throughout the year.Our consol EBITDA declined 30% for the full year due to inventory write-downs, aggressive pricing and fixed expenses for our new business verticals.

— Sameer Gupta

It may impact, but it's very uncertain right now to predict anything about the PVC resin or any other polymer prices, because markets or the situations are very uncertain.

— Sameer Gupta

But of course, it will remain under pressure for the next few months.

— Sameer Gupta

So that is not a big challenge right now because already channel is cautious regarding the prices.

— Sameer Gupta

Kisan, I mean, in the year 1, the margins were at INR4,000, INR5,000 per ton, but last year, it was like barely EBITDA positive, reason being that there was a lot of pressure on the demand.

— Anubhav Gupta

And that's why out of the pressure, all the top players in the industry, they started reducing pricing.

— Anubhav Gupta

But again, the channel will be cautious regarding that because once again, with the higher level of imports, the traders always faces losses because of those things, higher inventories.

— Sameer Gupta

But seeing a monsoon season post 1st July or August, you can say that the demand will be under pressure in that quarter 2.

— Sameer Gupta

Q&A — 11 exchanges

What I want to understand is how the demand scenario is shaping up overall now. Is this quarter look more encouraging than the previous few years? And also what sort of impact can we expect by the rise of this crude prices due to the conflict on PVC prices and our overall, I would say, demand and supply scenario?

Anubhav Gupta

So if you look at the demand scenario or the current trends, we feel they are pretty encouraging, okay? So whatever happened with the settlement of PVC prices and of course, last 2 years had been pretty slow in terms of the end demand from the construction sector or from the government infrastructure. So we believe that industry is sitting at very low base, so this gives us a strong headroom to increase our sales at least, okay? And we have been very aggressive like in last 4, 5 months and you could see the results as well in terms of our volume and revenue in quarter 4 FY26. So we want to car

Sir, I just wanted to understand for this quarter, despite like 13%, 14% increase in realization, our gross margin kind of deteriorated from both quarter-on-quarter and Y-o-Y. So could you just help us explain what is the reason for that?

Anubhav Gupta

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 str

So I wanted to get a sense, as you highlighted, you're getting aggressive for volumes. So how you want to balance the volume and profitability side? How should we see the margin going forward?

Anubhav Gupta

So if you look at like Apollo Pipes, right, on a stand-alone basis, our target is between INR8,000 per ton to INR10,000 per ton, depending on like what kind of sentiments market has. If it is like a lot of push, then margins would be like INR8,000 to INR9,000 per ton. If there is natural pull, then it would be INR10,000 to INR11,000 a ton. So Apollo, we are like targeting 10% margin, like around INR9,000 to INR10,000 per ton at EBITDA level. Kisan, I mean, in the year 1, the margins were at INR4,000, INR5,000 per ton, but last year, it was like barely EBITDA positive, reason being that there w

Can you give me some color regarding how the demand is shaping up in urban and rural market?

Anubhav Gupta

So let's break the demand in 2 segments. One is plumbing construction, second is agri. And so rural is all agri. So that demand is good because of the main season for the water pipes. So that segment is doing fine. Now in terms of construction plumbing, rural and urban, I mean, I would say that demand is good in both the regions. Yes, I mean, rural is outperforming urban in last 2, 3 months. This is what we are witnessing. Okay. Also, just wanted to understand how is the competitive intensity in the plastic pipe space given that the promoter of Ashirvad pipes is planning to come up with a larg

I wanted to understand management's long-term strategy for Kisan Mouldings. So Apollo Pipes has steadily increased its stake in the last few quarters. So should investors expect Kisan to continue as a separately listed entity? Or could there be a merger or consolidation with Apollo Pipes to be considered in the near future? And what are the broader strategic plans for Kisan over the next 3 to 5 years?

Anubhav Gupta

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 c

So I just wanted to know what do you think about the market structure going forward? I think because of a lot of sector weakness, we should be seeing or targeting for some market share gains, right, in the next 1 or 2 years. I wanted to know what you think about this?

Anubhav Gupta

Yes. So see, I mean, if you look at my revenue base of INR1,100 crores on market size of, say, INR55,000 today, we are at around 2%, 2.5% market share, right? And given the ramp-up, which is going to happen from the existing plants plus our new South India plant and then Varanasi plant has to show results, right, which it will. So we are looking at like 3%, 3.5% market share, okay, in next 3, 4 years, assuming industry will grow at 7%, 8%. So that's how we're going to achieve our 35% revenue CAGR, what we are guiding today. And market share will, I mean, come at the cost of the smaller, weaker

I just had like a 2-part question. One is just on the product split within pipes. If you could just let us know broadly what's the current and what do you intend it to be, right, with also CPVC, I'm assuming ramping up?

Anubhav Gupta

So if you look at our sales split, right, let's start from the top. So one is the plumbing construction, second is agriculture and government infra. So plumbing construction is around 60%, 65%, okay, of the total pie and then the rest 35% is agri and government infra. Within the construction plumbing, see, I mean, CPVC is growing at like 10%, 12%, water tank is growing at 20%, 30%, window profile business is like ramping up like quarter 4 contribution was small. But this year, we expect a minimum like 4%, 5% contribution in the total revenue for the construction plumbing segment. And then yes,

So in Kisan Mouldings, the last quarter the commentary was that the performance we should start seeing improvement in Q4. But as we see that the performance is more or less below the last 2, 3 quarters. So if you can help to understand what has gone wrong in this quarter for Kisan Mouldings?

Anubhav Gupta

So as I could understand, you're asking about Kisan Mouldings quarterly performance. Correct, correct. So see, I mean, quarter 4 revenue for Kisan was INR80 crores, which was like INR60 crores in quarter 3, okay? So there is a good jump on quarter-on-quarter basis. In terms of volume also from 5,000 ton, it did like 7,000 ton on a quarter-on-quarter basis. So yes, I mean, there is in terms of volume ramp-up and revenues, there was a good jump. In margin, yes, there was some disappointment. Reason being like the Jan and Feb months were not too good in terms of like demand only recovered towards

Just couple of questions from my end. You said from quarter 1 onwards, you shall see margin improvement. But what we understand is there have been aggressive pricing, which even you have opted for even the competitive intensity continues to remain high. With share of agri being higher in quarter 1, how do you plan to achieve higher margins?

Anubhav Gupta

So Sneha, see, I mean, if you look at the EBITDA, right, look at Apollo stand-alone and look at Kisan. So Apollo stand-alone has been in the range of INR8,000 to INR10,000 per ton on a regular basis. Given that, I mean, volume will increase within standalone Apollo, there will be a lot of operating leverage benefits we will see. So that's the like, I would say, positive tone, which we highlighted that there will be a gradual improvement in the spreads for Apollo standalone from INR8,000 to INR8,500, INR9,000 per ton. So that much improvement you will keep on seeing. Kisan right now is at like

Sir, just a follow-up on the South plant, when do we plan -- what is the progress like because we have the warrant expiring this year. So like what is the plan? Because in the capex you mentioned is only INR100 crores for this year. So are we factoring anything for the South plant?

Anubhav Gupta

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 experti

Hello, everyone. I thank you all for joining us today for this con call. We appreciate your continued support and interest in our company. We look forward to updating you on our progress in future calls. If you have any further questions, please feel free to reach to us. Thank you, and have a great day.

Management

Speaking time

Anubhav Gupta

Moderator

Varun Julasaria

Sameer Gupta

Keshav Lahoti

Anu Parakh

Roshan Nair

Sneha Talreja

Sushant Soni

Aryamaan Agarwal

Opening remarks

Biplab Debbarma

Thank you. Good morning, everyone. I would like to welcome the management and thank them for this opportunity. We have with us today, Mr. Sameer Gupta, Chairman and Managing Director, Mr. Arun Agarwal, Joint Managing Director, Mr. Ajay Kumar Jain, Chief Financial Officer; and Mr. Anubhav Gupta, Group Chief Strategy Officer. I shall now hand over the call to the management for the opening remarks. Over to you, gentlemen.

Sameer Gupta

Good morning, everyone. This is Sameer Gupta, CMD of Apollo Pipes. I have joined today with Mr. Arun Agarwal, JMD; Mr. A.K. Jain, CFO; and Mr. Anubhav Gupta, Group CSO. I would like to extend a warm welcome to all of you to our Q4 FY26 earnings call. The FY26 was the year full of roller coaster rides. The PVC prices dropped by 15% in the first 8 months, then rallied 75% in next 4 months and then again fell by 25% in 2 months to settle down at the current price of INR84 per kg. I believe my team manoeuvred this tide well wherein we crossed 1 lakh ton of annual sales volume. Apollo Pipes' standalone sales volume increased by 7% and Kisan was flat on Y-o-Y basis. Needless to say that the demand remained impacted due to slowdown in both the private real estate sector and government infrastructure spending throughout the year.Our consol EBITDA declined 30% for the full year due to inventory write-downs, aggressive pricing and fixed expenses for our new business verticals. As we move forward

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