APL Apollo hits all-time high post Q3; brokerages upbeat on growth outlook

APL Apollo Tubes shares gained 4.9 per cent in trade, registering an all-time high at ₹2,069.9 per share on BSE. At 9:36 AM, APL Apollo Tubes’ share price was trading 3.73 per cent higher at ₹2,046 per share. In comparison, the BSE Sensex was up 0.09 per cent at  82,382.99. 

 

The buying on the counter came after most brokerages remained bullish on APL Apollo Tubes’ post its December quarter (Q3FY26) results.

APL Apollo Tubes Q3 results highlights:

APL Apollo Tubes released its Q3 results on Thursday, during market hours. In Q3, APL Apollo Tubes' net profit increased 42.9 per cent year-on-year (Y-o-Y) to ₹310 crore, up from ₹217 crore in the year-ago quarter. Its revenue for the quarter rose 7 per cent to ₹5,815 crore, compared with ₹5,433 crore in the corresponding period last year.

 

Operating performance improved significantly, with Ebitda jumping 36.5 per cent to ₹472 crore from ₹346 crore a year earlier. The Ebitda margin expanded to 8.1 per cent from 6.4 per cent.  Check Q3 results details here

Brokerages’ view on APL Apollo Tubes

Elara Capital | Upgrade to Buy from Accumulate | Target raised to ₹2,418 from ₹1,938

Elara expects near-term earnings support from channel restocking amid rising steel prices, inventory gains, and operating leverage. Over the longer term, capacity additions and a dual-brand strategy (value and premium segments) are expected to sustain earnings growth.

 

Given improving fundamentals and strong visibility, Elara raised its valuation multiple to 35x from 30x.

Motilal Oswal Financial Services | Buy | Target raised to ₹2,350 from ₹2,260

Analysts expect adjusted profit after tax (PAT) to continue its volume growth momentum, led by a better demand scenario and supported by capacity expansion in key markets, new product additions, and higher exports. 

 

Margin is also expected to improve further, driven by cost optimisation measures, increased automation, and a rising mix of value-added products (with a better geographical mix), driving steady growth in Ebitda/MT.

 

“We expect a compound annual growth rate (CAGR) of 14 per cent/31 per cent/35 per cent in revenue/Ebitda/PAT over FY25-28E. We value the stock at 35x FY28 earnings per share (EPS),” the brokerage said.

 

IDBI Capital | Upgrade to Buy from Hold | Target raised to ₹2,260 from ₹1,825

The brokerage said the company’s Q3FY26 performance was above expectations on all key parameters. Management aims to expand capacity from 5mnT to 8mnT by FY28 and further to 10mnT by FY30. Additionally, volume growth guidance has been revised upward from 10-15 per cent to 20 per cent for Q4FY26 and FY27 with 4.2mnT volume target and Ebitda/t target of ₹5,500, as compared to ₹5,000 previously. 

 

“We roll forward to FY28E and value the stock at a PER of 36x,” the brokerage said. 

 

 

Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers discretion is advised.