APL Apollo Delivers Mixed Q1 Earnings; SEBI RAs Divided Over Near-term Growth

While one analyst sees a bullish flag forming, another urges caution until a stronger signal emerges.

Shares of APL Apollo Tubes were down over 5% on Friday after posting mixed quarterly earnings.

Earnings Review

While sales volume increased 10% year-over-year, it declined 7% on a sequential (QoQ) basis. Revenue rose 15% YoY to ₹5,402 crore, while profit after tax grew 7% YoY to ₹203 crore, despite a 10% QoQ dip due to seasonality and operational bottlenecks. Margins held steady at 7.6%. The company’s net cash position also declined to ₹2.1 billion from ₹3.1 billion in Q4FY25.

Looking ahead, the company has outlined a clear long-term growth strategy. It plans to ramp up annual steel tube production capacity from 4.5 million tons to 6.8 million tons by FY28. To support this, a ₹1,500 crore capex has been earmarked over the next three years for brownfield and greenfield expansion.

Technical Analysis

APL Apollo Tubes stock breached the 200-day exponential moving average (EMA) and is hovering near the 50% Fibonacci retracement level, noted SEBI-registered analyst Mayank Singh Chandel.

While some support zones exist nearby, there’s currently no strong technical signal for a reversal, Chandel added. The price action reflects caution, and unless a decisive bounce emerges, the chart does not currently offer a buy setup.

Although short-term financial pressures are visible, long-term investors should monitor how the capital expenditure plan impacts earnings, Chandel recommended.

On the other hand, SEBI analyst Saurabh Sahu sees a bullish flag pattern forming near a strong support zone at ₹1,650 - ₹1,660.

APL Apollo Tubes is showing signs of a technical turnaround after a recent pullback from its June high of ₹1,950, Sahu said. The stock remains in a medium-term uptrend.

The relative strength index (RSI) appears to be cooling off, and price action near this zone suggests a potential reversal is taking shape.

Key support levels for the stock are at ₹1,650 and ₹1,580, while resistance lies between ₹1,750 and ₹1,825.

Sahu recommends buying on dips near ₹1,650, placing a stop-loss below ₹1,580. The upside target over the next couple of months is expected to be in the ₹1,825 - ₹1,950 range.

And Financial Independence is positive on APL Apollo Tubes after they reported strong volume-led growth with margin improvement. They added that the expansion in value-added segments and continued infra demand strengthen the medium-term outlook.

Retail sentiment on Stocktwits turned ‘bullish’ from ‘neutral’ the day before.

Year-to-date, the stock has seen a marginal growth of 1.7%.

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