Apollo Pipes Limited has informed the Exchange about Transcript of the conference call held on August 08, 2025
APOLLOPIPE · price
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Apollo Pipes reported a weak Q1 FY26 with consolidated volumes down 4% year-on-year due to weak real estate demand, delayed government infrastructure spending, and PVC resin price volatility that triggered channel destocking. Margins were under pressure from low capacity utilization (~45-50%) and heightened competition as every player tried to fill capacity built up over the last 2-3 years. Management guided for low to mid double-digit volume growth in FY26, expecting demand to recover from September as monsoon ends and government spending resumes. Key growth levers include ramping up the West India (Kisan) plant, launching the Varanasi plant by end of calendar 2025, expanding CPVC share from 15% to over 20% via a co-marketing tie-up, and entering UPVC doors and windows (~Rs. 50 crore revenue target for FY26). CAPEX of Rs. 70 crore was spent in Q1 with ~Rs. 70-80 crore more planned; total capacity to rise to 2,86,000 tons in ~2 years without adding debt, targeting ~Rs. 3,000 crore revenue and 5% market share in 3-4 years.
Near-term outlook remains soft with margin pressure likely to persist until weaker competitors exit, but management's explicit guidance on EBITDA per ton improving to Rs. 10,000-11,000 (Apollo standalone) and Rs. 7,000-8,000 (Kisan) signals confidence in operating leverage as utilization improves. Shareholders should watch for Q2 demand pickup post-monsoon and government spending revival as key catalysts.