Apollo Pipes Q1 FY27 Results (NSE: APOLLOPIPE)
Signal: Slipped to loss
The read
Apollo Pipes reported a sharp deterioration in Q1FY27: consolidated revenue grew modestly YoY but declined QoQ, gross margin compressed ~480bps, the sixth consecutive quarter of margin contraction, and the company swung to a net loss of ₹11.1 Cr from a profit of ₹8.2 Cr a year ago. The loss was amplified by subsidiary losses (Kisan Mouldings), which accounted for roughly two-thirds of the consolidated loss. Standalone operations also posted a loss, indicating broad-based pressure from input costs, elevated depreciation, and finance costs. No near-term catalyst is evident.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹295.43 Cr | 7.4% | -14.9% |
| EBIT | ₹-9.6 Cr | -183.0% | |
| Net profit | ₹-11.11 Cr | -236.2% | |
| EPS | ₹-2.52 | -236.2% | |
| EBIT margin | 1.78% |
P&L walk
Revenue grew 7.4% YoY but fell 14.9% QoQ; gross margin contracted 480bps YoY due to higher raw material cost as % of revenue (raw material cost 78.1% vs 76.3% a year ago); employee cost rose 62bps as % of revenue; EBITDA margin collapsed to 1.78% from 8.61% YoY, leading to a net loss of ₹11.1 Cr vs profit of ₹8.2 Cr last year.
Segments
The company operates as a single segment (plastic pipes, fittings & allied products). Consolidated net loss of ₹11.1 Cr is significantly worse than standalone loss of ₹4.4 Cr, indicating that subsidiary Kisan Mouldings (including step-down KML Tradelinks) contributed a loss of ~₹6.7 Cr, with non-controlling interest absorbing ₹2.5 Cr of that loss.
Key concerns
- Revenue declined 14.9% QoQ to ₹295.4 Cr, the second consecutive QoQ decline, signaling weak demand seasonality.
- Gross margin compressed 480bps YoY to 25.1%, raw material cost as % of revenue rose to 78.1% from 76.3% – sixth straight quarter of margin contraction, suggesting structural pricing or cost issues.
- EBITDA margin collapsed to 1.78% from 8.61% YoY; operating profit turned negative, resulting in a net loss of ₹11.1 Cr.
- Finance cost rose 24.6% YoY to ₹3.04 Cr, and depreciation grew 22.7% YoY, both outpacing revenue growth and exacerbating the loss.
- Consolidated loss far exceeds standalone loss, indicating subsidiary Kisan Mouldings is a significant drag on profitability.
Research and educational content only. Not investment advice.