APL Apollo Tubes’ profitability in focus after volumes fail to impress

APL Apollo Tubes reported Q1FY27 volumes of 744,823 tonnes, down 6% year-on-year and 19% sequentially, missing its 875,000-tonne guidance. Weak domestic demand and lower Dubai utilisation due to West Asia conflict dragged volumes, with UAE volumes plunging 46%. Brokerages Nuvama and JM Financial have cut FY27/28/29E EPS by 3-6% and flagged risk of downward revision to full-year volume guidance; investor focus now shifts to Ebitda per tonne, expected around Rs 5,500, when Q1 results are announced.