Why Is APL Apollo Tubes Gaining Market Share Despite Industry Softness?
About APL Apollo Tubes
APL Apollo Tubes is India’s largest structural steel tube manufacturer, with a dominant presence across branded and value-added steel applications. The company has consistently focused on capacity expansion, distribution strength and product innovation to stay ahead of unorganised competitors.
Despite persistent industry softness, APL Apollo has continued to deliver healthy volume growth.
Motilal Oswal highlights that the company registered 11 percent YoY volume growth in 9MFY26 and has reiterated FY26 volume growth guidance of 10–15 percent.
Key Growth Drivers
🔹 Market share gains from unorganised players.
🔹 SAPAT strategy aligned with India’s infrastructure push.
🔹 New-age applications driving demand.
The company continues to add capacity proactively, ensuring it remains ahead of peers and well-positioned to capture incremental demand as industry conditions normalise.
Steel sector participants often align exposure using a Nifty Options Strategy approach during consolidation phases.
Financial Growth Outlook
| Metric | FY25–28E CAGR |
|---|---|
| Revenue | ~14% |
| EBITDA | ~29% |
| PAT | ~33% |
|
Strengths
🔹 Branded leadership. 🔹 Extensive distribution. 🔹 Capacity expansion discipline. |
Weaknesses
🔹 Exposure to steel price volatility. 🔹 Cyclical end markets. |
APL Apollo’s strategy focuses on value-added products and penetration into new applications, improving pricing power and margin resilience.
|
Opportunities
🔹 Infrastructure capex revival. 🔹 Shift from unorganised sector. |
Threats
🔹 Prolonged industry slowdown. 🔹 Margin pressure from raw materials. |
Valuation & Investment View
Motilal Oswal values APL Apollo at 35x FY27E EPS and maintains a Buy rating with a target price of ₹2,260.
Steel traders often observe a BankNifty Options Strategy during sectoral cycles.
Investor Takeaway
Derivative Pro & Nifty Expert Gulshan Khera, CFP®, believes APL Apollo’s consistent execution, capacity leadership and market-share gains position it well for long-term compounding despite near-term industry softness. More structural insights are available at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
SEBI Disclaimer: The information provided is for informational purposes only and should not be construed as investment advice.
Written by Indian-Share-Tips.com, which is a SEBI Registered Advisory Services
