APLAPOLLO Q2 FY27 Results Analysis: Volumes Jump 13% To Record, EBITDA Per Ton Clears Guidance Floor

APLAPOLLO's Q2 FY27 numbers came in strong, with revenue of Rs. 7,001.70 Cr (+26.58% YoY) and PAT growth of +26.82% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

APL Apollo delivered record volumes of 963,143 tons (+13% YoY) with revenue up 26.58% YoY and EBITDA/ton of Rs.5,999 clearing management's Rs.5,500 guided floor by ~Rs.500, though the quarter narrowly missed the 10-lakh-ton volume target. Margin resilience despite a ~Rs.6,000/tonne HRC price spike and a 55% YoY UAE volume decline demonstrates pass-through pricing power in the India branded core. FY27 volume and PAT growth guidance now require a back-loaded H2 acceleration (+25.3% to +34.7% YoY volume), making the Gorakhpur/Siliguri ramps and UAE recovery the key watch items.

Key Investment Insights

Key Positives

• Revenue grew 26.58% YoY to Rs.7,001.70 Cr on record volume of 963,143 tons (+13% YoY, +29% QoQ)
• EBITDA/ton of Rs.5,999 exceeded management's Rs.5,500 guided floor by ~Rs.500/ton, up Rs.477 QoQ and Rs.771 YoY
• PAT grew 26.82% YoY to Rs.382.42 Cr; normalized PAT (ex-Rs.9.70 Cr BOPL gain) grew 24.36% YoY
• Materials cost fell to 79.93% of revenue from 83.60% in Q1FY27 (+367 bps QoQ) despite HRC rising ~Rs.6,000/tonne to a four-year high
• H1 EBITDA grew 20.77% YoY, on track for management's >20% FY27 EBITDA growth target
• Net cash position of Rs.1,766.40 Cr; debt-equity at (0.28)x; DSCR 6.05x
• Inventory turnover improved to 15.12x annualized from 9.76x a year ago; bad debts at 0.00% of receivables
• Traded-goods purchases fell 53.23% YoY, tilting mix toward own-manufacture

Risk Factors

• Q2 volume of 963,143 tons missed management's 10-lakh-ton target (~96% of target)
• UAE volumes fell 55% YoY to 26,227 tons and SG Premium volumes fell 30% YoY to 26,910 tons
• FY27 volume growth guidance of 15-20% requires H2 growth of +25.3% to +34.7% YoY against H1's +4%
• Finance costs rose 89.86% YoY to Rs.52.40 Cr on Rs.538.36 Cr higher short-term borrowings
• PAT growth guidance of 25-30% requires sharp H2 acceleration from H1's +19.83%