APL Apollo Rallies 4% After Posting Record Q3 Volumes and Profit

APL Apollo Tubes Ltd saw its shares climb more than 4% on Thursday, riding strong quarterly earnings, as the steel tubes maker reported significant growth in revenue, profitability and operational metrics for the third quarter of FY26. Revenue rose 7% year-on-year to ₹5,815 crore, while net profit jumped nearly 43% to ₹310 crore, compared with ₹217 crore in Q3FY25. This marked improvement boosted investor sentiment and lifted the company’s stock amid broader market activity.

The share price advanced as much as 4.5% intraday to ₹1,964.8, before paring gains to trade 3.6% higher at ₹1,947.2 around early afternoon. The uptick represented one of the strongest moves in the stock since mid-2025 and came even as the benchmark Nifty 50 rose only modestly to 0.21%. APL Apollo’s stock has gained about 2% so far this year, outperforming the broader index’s 3% decline.

Operational and Financial Performance

APL Apollo delivered a substantial increase in EBITDA, which climbed 36.5% to ₹472 crore from ₹346 crore in the year-ago quarter, reflecting both higher volumes and better cost absorption. The EBITDA margin expanded to 8.1% from 6.4%, indicating improved operational efficiency and pricing discipline in a challenging macro environment.

The firm also recorded high sales volume, with 916,976 tonnes sold in Q3FY26, compared to 828,200 tonnes in Q3FY25 and 855,037 tonnes in Q2FY26. It was 11% year-on-year and sequential growth, as healthy demand in the infrastructure, housing, and industrial segments continues to drive progress and traction in value-added and branded products.

What Does the Management Commentary Say?

Commenting on the quarterly performance, Sanjay Gupta, Chairman, APL Apollo, said the company delivered its best-ever quarterly results in Q3FY26, achieving record sales volumes, EBITDA, and profit after tax.

“It is a remarkable milestone given the challenging demand environment faced by the construction material industry,” Gupta said. He added that despite multiple headwinds, including the construction ban in Delhi-NCR due to elevated pollution levels, a subdued macroeconomic backdrop, global trade uncertainty, and a slowdown in government infrastructure spending, APL Apollo was able to deliver strong operational performance.

Gupta attributed the outcome to the company’s execution capabilities and operational resilience, which helped sustain growth momentum even as sector-wide conditions remained challenging.

What It Means for Investors?

According to Q3FY26 results, APL Apollo registered higher volumes, margins, and profitability in the quarter, and this was reflected in the stock price's strong market response. The performance is based on the company's operating metrics over the time frame, including increases in revenue, EBITDA, and net profit, as well as the highest quarterly sales volumes ever recorded.

However, investors should continue watching steel price volatility and input cost trends, which can impact margins in the coming quarters, along with any changes in macroeconomic or infrastructure spending patterns that influence demand.

Source:

CNBC

Business Insider

Whalebook