Author: Nishtha Mehrotra | EQMint

Synopsis:

• APL Apollo Tubes reported 26.8% year-on-year growth in Q2 FY27 revenue and profit after tax.
• Operating margins improved as higher sales helped control employee and other operating costs.
• Rising finance costs and a higher tax rate remain key concerns.
  
  

APL Apollo Tubes reported consolidated revenue from operations of ₹7,001.70 crore for Q2 FY27, up 26.6% year-on-year. Total income rose to ₹7,041.86 crore, while profit after tax (PAT) increased 26.8% to ₹382.42 crore.

Sequentially, PAT jumped 45.3% from ₹263.11 crore in Q1 FY27, reflecting a sharp improvement in business performance. For the first half of FY27, total income grew 18% to ₹12,688.09 crore, while PAT increased 19.8% to ₹645.53 crore.

Operating margin improved to approximately 8.3%, supported by higher sales and better absorption of employee and other operating expenses. However, finance costs surged 89.9% year-on-year to ₹52.40 crore, while the effective tax rate increased to around 23.5%, limiting profit growth.

The company’s basic earnings per share stood at ₹13.62 for the quarter, compared with ₹10.86 a year earlier.

Investors will watch whether the second-quarter growth momentum continues, alongside finance costs, sales volumes, margins and working capital requirements.

Disclaimer: This article is for information purposes only and is not investment advice.

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