The shares of the small-cap company, specializing in manufacturing and trading of cPVC, uPVC, and HDPE pipes, PVC taps, fittings, water storage tanks, and solvent cement, are in focus after management expects a 25 percent higher volume growth than previously guided, with an expected volume of around 25,000–30,000 tons for FY26.
With a market capitalization of Rs. 1,763.03 Crores on Thursday, the shares of Apollo Pipes Limited rose by 0.75 percent after making a high of Rs. 403.00 compared to its previous closing price of Rs. 400.
Apollo Pipes Limited at a Glance
Apollo Pipes Limited is a prominent Indian manufacturer specializing in polyvinyl chloride (PVC) pipes and fittings. Established in 1985 and headquartered in Noida, Uttar Pradesh. Apollo Pipes Ltd is one of India’s top six leading PVC pipe manufacturers, renowned for its high-quality products and strong brand presence built over three decades.
The company operates eight manufacturing plants with a total capacity of 2,25,500 tons, offering more than 2,600 SKUs through a wide network of over 1,000 channel partners. Apollo Pipes has demonstrated robust growth with a 17% compound annual growth rate (CAGR) in sales volume, 24% CAGR in revenue, and 16% CAGR in EBITDA over the past five years, reflecting its strong market position and consistent financial performance.
Guidance of Apollo Pipes Ltd
According to the company’s recent conference call update, Apollo Pipes has set internal targets of achieving 25,000–30,000 tons in sales volume for FY26, which is higher than its earlier guidance of 25 percent volume growth. Additionally, the company expects to add another 8,000–9,000 tons in FY27, further strengthening its growth trajectory for the coming years.
Financials & Others
Apollo Pipes Ltd delivered a robust performance in Q4FY25, reporting a net profit (PAT) of Rs. 9.8 crore, marking a 45 percent YoY and 58 percent QoQ increase. Revenue for the quarter stood at Rs. 314.8 crore, up 23 percent YoY and 2 percent QoQ, while cash profit reached Rs. 22 crore, reflecting a 45 percent YoY rise.
The company maintained an EBITDA margin of 7.6 percent, though this was a 231 basis points YoY decline, it improved by 8 basis points on a QoQ basis. Sales volume for the quarter was 25,991 MT, up 22 percent YoY but down 4 percent QoQ.
Apollo Pipes ended FY25 with a net cash position of Rs. 46 crore, a turnaround from Rs. 7 crore net debt in FY24, and generated an EBITDA of Rs. 24 crore, which was 5 percent lower YoY but 3 percent higher QoQ. Return on equity (ROE) stood at 4.2 percent for FY25, compared to 6.4 percent in FY24, and return on capital employed (ROCE) was 7.3 percent versus 10.1 percent last year.
Apollo Pipes is advancing its long-term growth strategy through significant capacity expansion, aiming to increase its available capacity from 225,500 MTPA to 286,000 MTPA over the next three years. The company targets a healthy 25 percent plus CAGR, supported by establishing new manufacturing lines for value-added products at strategic locations and focusing on improving utilization at its Dadri, Ahmedabad, Bengaluru, and Raipur plants.
A key part of this plan includes brownfield expansion at the Dadri facility to meet strong demand in North India, alongside greenfield projects and new product introductions to strengthen its market presence and operational efficiency
Written by Sridhar J
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