Apollo Pipes Limited has informed the Exchange about Transcript of the conference call held on May 12, 2025.
APOLLOPIPE · price
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Apollo Pipes held its Q4 FY25 earnings call where management described FY25 as one of the toughest years for the PVC pipe industry, which declined about 5%. Despite this, the company managed 23% volume growth backed by inorganic expansion, while EBITDA stayed flat at INR95 crores due to margin pressure. Management guided for 20-25% volume growth in FY26, driven by three new revenue streams: oPVC pipes, window profiles (launching June 2025), and the new Varanasi plant. Capacity will rise from 232,000 tons to 260,000 tons by year-end FY26 with INR100 crores of remaining capex. The company highlighted net cash of INR46 crores, working capital at 36 days, and an equity infusion of INR110 crores from an Oman-based fund (INR28 crores already received) for a South India greenfield plant. Management targets consolidated EBITDA margin improving from ~8.5% to 10-12% over 2-3 years, aiming for 25% ROCE on INR2,500 crores revenue, with Kisan's margin targeted to expand from 3-4% currently to 8-9% in 2-3 years.
The aggressive 20-25% volume growth guidance for FY26 contrasts sharply with weak industry conditions, making this a high-conviction but high-risk call for shareholders. Margin expansion to 10-12% over 2-3 years and 25% ROCE target are positive signals, but execution depends on new product ramps (oPVC, window profiles) and macro recovery in H2 FY26. Investors should watch for evidence of these growth drivers materializing, as the stock may react to any signs of guidance slipping.