Shares of APL Apollo Tubes Ltd dropped nearly 5% in early trade on Friday after the company trimmed its full-year volume and profitability guidance for FY26, citing geopolitical tensions and an early monsoon that disrupted infrastructure activity in key regions. As of 10:09 AM, the shares were trading 4.77% lower at Rs 1,606.00.
For Q1FY26, APL Apollo reported sales volume of 794 kilotonnes (KT) — up 10.2% year-on-year but down 6.6% sequentially. The decline was largely attributed to the onset of monsoon rains and geopolitical unrest in North India and the Middle East, which together slowed construction activity and weakened dealer liquidity.
In response, the company revised its volume growth guidance for FY26 to 10–15% YoY, down from the earlier range of 15–20%. Similarly, EBITDA per ton guidance was cut to ₹4,600–5,000, compared to the previous target of ₹5,000.
Despite short-term pressures, management remains optimistic about the second half of FY26. With government infrastructure spending expected to pick up post-monsoon, the company anticipates stronger volume growth and margin recovery. APL Apollo is also focused on geographic expansion, with new plants underway in Kolkata, Gorakhpur, and New Malur, aimed at boosting its presence in eastern and southern India.
In addition, the company is targeting a ramp-up in exports — aiming to increase export contribution to 10% in FY26, up from 6% last year — with a new 300 KT plant coming up in Bhuj, strategically located near ports to support outbound shipments.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
