APL Apollo Tubes Q1 FY27 Results (NSE: APLAPOLLO)
Signal: Growth decelerated
The read
Q1FY27 results show continuance of the margin improvement trend (OPM +14bps YoY) on moderate revenue growth, though QoQ margins slipped from 8.15% (Q4FY26). Standalone profit quality is flagged due to one-off other income. The Blue Ocean Projects disinvestment is pending completion.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹5,606.71 Cr | 8.5% | -10.6% |
| EBIT | ₹391.37 Cr | 14.0% | |
| Net profit | ₹263.11 Cr | 11.0% | |
| EPS | ₹9.48 | 10.9% | |
| EBIT margin | 7.34% |
P&L walk
Revenue grew 8.5% YoY on improved volumes; EBITDA margin expanded 14bps YoY to 7.34% driven by cost control and a slight mix improvement; other income at 11.2% of PBT was benign; PAT up 11% YoY, broadly tracking operating profit.
Segments
Single operating segment – manufacturing of ERW steel tubes and pipes.
Key positives
- Revenue up 8.5% YoY to ₹5,607 Cr – volume-driven growth in a seasonal soft quarter.
- Operating margin expanded 14bps YoY to 7.34%, marking the 5th consecutive quarter of YoY OPM expansion (since Q4FY25).
- Consolidated EPS rose 10.9% YoY to ₹9.48, with clean earnings quality (other income <12% of PBT).
Key concerns
- Operating margin dipped sequentially from 8.15% (Q4FY26) to 7.34% – possibly due to lower volume absorption and fixed cost headwind.
- Standalone other income at ₹49.5 Cr (24.9% of PBT) inflated PAT; core operating profit growth was lower.
- QoQ revenue declined 10.6% (normal seasonal effect) but the sequential margin compression warrants monitoring.
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