APL Apollo Tubes Q2 FY27 Results (NSE: APLAPOLLO)

26 Oct 2026 · Analysis by Alpha Inflection

Signal: Growth reaccelerated

The read

The trajectory remains growth-positive but margin-led upside has paused: revenue accelerated to ₹7,001.70 crore, +26.6% YoY, while EBITDA grew approximately 21.9% and operating margin contracted 34bps YoY to 8.25%; the sequential margin rebound from 7.34% provides recovery evidence, but higher finance costs of ₹52.40 crore and the absence of gross-margin expansion keep the thesis dependent on sustained volume growth and operating-cost control.

P&L walk

Revenue accelerated to ₹7,001.70 crore, +26.6% YoY and +24.9% QoQ, with gross margin broadly stable at 15.75%; EBITDA margin declined 34bps YoY to 8.25% as employee and other expenses rose with scale, while PAT increased 26.8% to ₹382.42 crore.

Key positives

• Revenue from operations reached ₹7,001.70 crore, up 26.6% YoY and 24.9% QoQ, with sale of products up 26.7% YoY to ₹6,796.65 crore.
• PAT rose 26.8% YoY to ₹382.42 crore and 45.5% QoQ, while operating margin recovered 91bps sequentially to 8.25%.
• Operating cash flow was ₹593.89 crore in H1FY27 versus ₹600.05 crore in H1FY26, remaining broadly stable despite higher revenue.
• The asset base expanded by ₹102.87 crore through higher PPE and CWIP, and depreciation rose 13.3% YoY to ₹65.87 crore, a clean depreciation-to-capex signal.

Key concerns

• Operating margin fell 34bps YoY to 8.25% despite revenue growth of 26.6%, indicating that fixed and operating expenses absorbed part of the growth benefit.
• Finance costs increased 89.9% YoY to ₹52.40 crore, materially faster than revenue and reducing conversion from operating profit to PAT.
• Gross margin expanded only 14bps YoY to 15.75%, so the quarter does not yet show a meaningful raw-material or mix-led margin tailwind.

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