APL Apollo shares: Nuvama maintains 'BUY' on record Q3 volumes, raises target price
Volumes were subdued in October at around 270k tonnes, but November and December saw strong traction even as hot-rolled coil (HRC) prices continued to remain under pressure.
- Jan 1, 2026,
- Updated Jan 1, 2026 5:09 PM IST
Nuvama Institutional Equities said APL Apollo Tubes Ltd reported its highest-ever quarterly sales volumes at 917k tonnes in Q3 FY26, rising 11 per cent year-on-year (YoY) and 7 per cent sequentially. The performance exceeded Nuvama's estimate of 903k tonnes. Volumes were subdued in October at around 270k tonnes, but November and December saw strong traction even as hot-rolled coil (HRC) prices continued to remain under pressure.
The domestic brokerage highlighted that APL Apollo continues to command a pricing premium, with the general structure EBITDA per tonne staying above Rs 3,000.
The company has been aggressively pushing its SG premium brand, which currently sells at a discount of Rs 4–6 per kg to the APL brand and is gaining market interest due to better channel margins.
The value-added product mix improved to 57 per cent in Q3 FY26 from 56 per cent in Q3 FY25. Rust-proof structures grew 20 per cent YoY and 3 per cent QoQ, while rust-proof sheets surged 37 per cent YoY and 2 per cent QoQ.
Apollo Galv reported 8 per cent YoY and 41 per cent QoQ growth, and general structures climbed 9 per cent YoY and 6 per cent QoQ.
Nuvama expects APL Apollo to deliver Q3 FY26 EBITDA of Rs 447 crore, translating to around Rs 4,900 per tonne, supported by improved operating leverage and sustained brand premium.
The brokerage noted that APL managed to import HRC at cheaper rates during the quarter, while prices of APL-branded products remained largely stable despite nearly a 5 per cent drop in HRC prices from the start of Q3 FY26.
Reiterating the company as one of its top picks, Nuvama maintained its 'BUY' rating on APL Apollo and revised its target price to Rs 2,188 from Rs 2,093 earlier. The stock is currently valued at 30x FY28E PE.
Nuvama Institutional Equities said APL Apollo Tubes Ltd reported its highest-ever quarterly sales volumes at 917k tonnes in Q3 FY26, rising 11 per cent year-on-year (YoY) and 7 per cent sequentially. The performance exceeded Nuvama's estimate of 903k tonnes. Volumes were subdued in October at around 270k tonnes, but November and December saw strong traction even as hot-rolled coil (HRC) prices continued to remain under pressure.
The domestic brokerage highlighted that APL Apollo continues to command a pricing premium, with the general structure EBITDA per tonne staying above Rs 3,000.
The company has been aggressively pushing its SG premium brand, which currently sells at a discount of Rs 4–6 per kg to the APL brand and is gaining market interest due to better channel margins.
The value-added product mix improved to 57 per cent in Q3 FY26 from 56 per cent in Q3 FY25. Rust-proof structures grew 20 per cent YoY and 3 per cent QoQ, while rust-proof sheets surged 37 per cent YoY and 2 per cent QoQ.
Apollo Galv reported 8 per cent YoY and 41 per cent QoQ growth, and general structures climbed 9 per cent YoY and 6 per cent QoQ.
Nuvama expects APL Apollo to deliver Q3 FY26 EBITDA of Rs 447 crore, translating to around Rs 4,900 per tonne, supported by improved operating leverage and sustained brand premium.
The brokerage noted that APL managed to import HRC at cheaper rates during the quarter, while prices of APL-branded products remained largely stable despite nearly a 5 per cent drop in HRC prices from the start of Q3 FY26.
Reiterating the company as one of its top picks, Nuvama maintained its 'BUY' rating on APL Apollo and revised its target price to Rs 2,188 from Rs 2,093 earlier. The stock is currently valued at 30x FY28E PE.