Apollo Pipes Ltd

Transaction overview

• Target: Apollo Pipes Limited
• Disclosing Party: S Gupta Holding Private Limited and Dhruv Gupta; promoter group
• Transaction: Acquisition of 13,50,000 equity shares via open market
• Pre-transaction holding: 2,27,80,000 voting rights; 51.72%; encumbrances NIL
• Post-transaction holding: 2,41,30,000 voting rights; 54.78%; encumbrances NIL
• Mode: Open market
• Dates: 04-08-2026; 05-08-2026; 06-08-2026

Transaction details

• Acquired per date: 04-08-2026: 4,50,000; 05-08-2026: 4,00,000; 06-08-2026: 5,00,000
• Total acquired: 13,50,000 (3.06% of paid-up capital)
• Post-dilution voting share: 52.40%
• Diluted post-capital: Rs 46,04,82,060; 4,40,48,206 shares + 20,00,000 warrants

Capital context

• Equity capital before: Rs 44,04,82,060; 4,40,48,206 shares
• Equity capital after: Rs 44,04,82,060; 4,40,48,206 shares
• Total diluted capital after: Rs 46,04,82,060; 4,40,48,206 shares + 20,00,000 warrants

Meeting Details

• Date and time: July 31, 2026 at 01:00 P.M. IST.
• Type and mode: group conference call, virtual.
• Organizer: Apollo Pipes Limited.
• Purpose: discuss unaudited quarterly results for quarter ended June 30, 2026.

Participants

• Key company participant: Company Secretary and Compliance Officer.

Additional Notes

• Recording: audio recording available on the company website.

Issue Overview

• Type: preferential issue of warrants convertible into equity shares.
• Total issue size; net proceeds partially received; remainder pending.
• Main objectives: capex for expansion and working capital post expansion.

Utilisation of Proceeds

• Utilisation is as per offer disclosures; no material deviations noted.
• Deviations/changes in allocation: Nil.
• Capex: funds received and utilised; Working capital: not utilised; funds to be received later.
• Unutilised funds: Nil; Rs 82.50 crore yet to be received.

Governance & Compliance

• All statutory approvals obtained.
• Market price risk: CMP around Rs 495 vs warrant price Rs 550.
• Operational milestones: Dadri expansion in operation; Varanasi project commissioned.
• Balance proceeds expected to be received in 2-3 months.

GCP

• GCP: Not applicable.

Q1FY27 Consolidated Highlights

• Sales volume 24,477 MT, down 3% YoY.
• Revenue ₹3.0 bn, up 7% YoY.
• EBITDA ₹30 mn, down 85% YoY.
• Net loss ₹86 mn vs ₹81 mn profit in Q1FY26.
• Q1FY27 net debt ₹59 cr; FY26 net cash ₹40 cr.

Outlook and Capacity Expansion

• Capacity expansion target to 288,000 tonnes in 2 years from 240,000.
• Plan to fund expansion from internal cashflow without leveraging balance sheet.
• Expect improved performance in H2FY27 as PVC prices stabilize.
• Target revenue CAGR of 25%+ over next 3 years.

Financial performance

• Consolidated revenue from operations for quarter ended June 30, 2026: Rs 29,543.49 lakh.
• Consolidated total income: Rs 29,765.46 lakh.
• Consolidated net profit after tax attributable to owner: Rs (856.91) lakh.
• Consolidated earnings per share: Basic and diluted Rs (2.52).
• Standalone revenue from operations for quarter ended June 30, 2026: Rs 24,432.43 lakh.
• Standalone total income: Rs 24,652.87 lakh.
• Standalone net profit attributable to owner: Rs (439.81) lakh.
• Standalone earnings per share: Basic and diluted Rs (1.00).
• Board approved unaudited results for quarter ended June 30, 2026; Limited Review completed.
• One operating segment: Manufacturing and Trading of Plastic Pipes, Fittings & Allied Products.

Meeting Details

• Date and time: Friday, 31 July 2026 at 1:00 PM IST.
• Type and mode: group earnings call, virtual conference.
• Organizer: DAM Capital Advisors Ltd.
• Key company participants: MD, Joint MD, CFO, Group Chief Strategy Officer.
• Purpose: discuss Apollo Pipes Q1FY27 results.
• Materials: post-results presentation will be available.

Overview

• Standalone BRSR prepared for Apollo Pipes Limited, FY2025-26.
• Manufactures plastic pipes and fittings: cPVC, UPVC, HDPE.
• PAN India operations with six plants and two offices.
• Exports contribute about 0.15% of turnover.

Key ESG Risks & Opportunities

• Water risk: potential production disruption; zero water discharge target; PWM/EPR framework; penalties risk.
• Human rights and diversity: regulatory risk; UNGC signatory; training and equal opportunity policies.
• Energy management: renewable energy approx. 28%; cost savings; target 50% renewables by 2030.
• Waste management: plastics recycling/reuse; EPR framework; ongoing waste reduction initiatives.
• Cybersecurity and data privacy: policy in place; zero breaches FY2025-26; external assurance not universal.
• Product safety/quality: strong supplier vetting; robust product safety and brand assurance.

Governance & Policy Highlights

• Board oversight via Risk Management Committee overseeing ESG; Audit, Nomination, CSR, Risk, Stakeholder committees.
• Policies include Code of Conduct, Vigil Mechanism, Related Party Transactions, Anti-Bribery policy, HR and Diversity policies.
• No penalties or adverse orders reported; no bribery-related disciplinary actions in FY2025-26.
• Some emissions data externally assured; Sustainability Actions Pvt Ltd assessed Scope 1/2 emissions.
• ISO 9001 quality management and ISO 45001-aligned safety practices present.

Social Responsibility & Workforce

• Total employees 411; permanent 411; women 3.4% of staff; board has 16.7% women.
• Turnover: permanent employees 15%, permanent workers 4%.
• Health benefits: 87% of employees covered by health insurance; ESI and gratuity coverage noted.
• LTIFR: Employees 4; Workers 12; zero fatalities.
• CSR Committee; aspirational districts; 11,155 beneficiaries; 100% from vulnerable groups.

Environmental Performance

• Total energy 220,879 GJ; renewables 62,446 GJ (~28%); non-renewables 158,433 GJ.
• GHG: Scope 1 2,615 tCO2e; Scope 2 22,946 tCO2e; intensity 28.8 tCO2e per INR crore.
• Water: withdrawal 105,494 kl; consumption 58,022 kl; groundwater primary source.
• Waste: total 5,112.9 t; plastics reused 3,866 t; recycled 636 t; hazardous 2.8 t.
• No zero-liquid-discharge; PWM/EPR framework; 47,472 kl discharged to others.
• Certifications: ISO 9001; ISO 45001 aligned safety practices.

Stakeholder Engagement & Complaints

• Stakeholders: communities, customers/dealers, employees, government, shareholders/investors, suppliers; continuous engagement.
• Customer complaints: 387 filed; 16 pending at year end.
• Whistleblower and dedicated email channels; grievance policy link provided.
• Public policy advocacy not a major focus; no material policy actions reported.
• Value chain partner compliance checks and grievance mechanisms.

Other Notable Metrics

• Inputs from MSMEs: 26%; inputs from India: 100%.
• Related party transactions: purchases from RPTs 0.8%; investments in RPTs 98.6%.
• Cybersecurity policy; 0 data breaches; policy link provided.
• CSR projects in aspirational districts: 11,155 beneficiaries; 100% from vulnerable groups.
• Trade associations: Delhi Chamber of Commerce; FICCI.

Financial snapshot

• Consolidated revenue from operations: ₹1,104.92 crore; total revenue: ₹1,115.33 crore.
• Standalone revenue from operations: ₹887.45 crore; PAT: ₹12.18 crore.
• Consolidated EBITDA: ₹76.90 crore; PBT: ₹9.60 crore; Consolidated PAT: ₹4.66 crore.
• Final dividend proposed: ₹0.70 per share (7%), payout ₹308.34 lakh.
• Net debt: ₹11.98 crore; cash and cash equivalents: ₹80.27 crore; gearing: 0.01x.
• Warrants: 20 lakh convertible warrants issued; 25% money received ₹27.50 crore; balance on exercise.
• Fully diluted equity shares post-warrant: 46,048,206.
• FY26 capex around ₹125 crore; Mirzapur plant started commercial production; Varanasi commissioning.

Growth & capacity expansion

• Varanasi Greenfield plant commenced commissioning; adds 18,000 tpa by FY27.
• Mirzapur Greenfield plant commenced commercial production on 14 Apr 2026.
• Kisan Mouldings integration complete; Tarapur plant to ramp to 35,000–40,000 tpa in two years.
• uPVC windows/doors segment launched July 2025; capacity 3,000 t; add 2,000 t by FY27.
• Total installed capacity aimed at 288,000 tpa over two years via greenfield/brownfield expansions.
• Lubrizol TempRite CPVC resin partnership strengthens high-margin CPVC offerings (≈15% of volume).
• Product portfolio expanded beyond piping to 3,000 SKUs; building materials growth focus.
• FY26 capex around ₹125 crore; funded via internal accruals and warrant proceeds.

Market outlook & strategy

• PVC resin price volatility remains a near-term headwind; demand diversified across housing and infra.
• Government initiatives (PMAY, Jal Jeevan Mission, AMRUT 2.0) support long-term piping demand.
• Organised players gain due to quality standards and certification advantages.
• Housing plumbing remains a key volume driver; renewal demand from irrigation and urban infrastructure persists.
• Industry backdrop supports India PVC pipes market growth toward mid-2030s.

Capital structure & funding

• Equity capital ₹44.05 crore; fully diluted post-warrants ₹46.05 crore (46,048,206 shares).
• 20,00,000 warrants issued; ₹550 each; 25% ₹27.50 crore received; balance on exercise; total ₹110 crore potential.
• CRISIL rating reaffirmed: long-term A/Positive; short-term A1/Positive.
• Net debt ₹11.98 crore; cash and cash equivalents ₹80.27 crore; gearing 0.01x.
• Dividend policy in place; final dividend ₹0.70 per share under consideration; cash outflow ~₹308.34 lakh.
• Kisan Mouldings stake increased to 61.94% (subsidiary).
• Consolidated debt mix includes current ₹95.20 crore and non-current ₹28.22 crore borrowings.

Governance & leadership

• Sanjay Gupta appointed Chairman w.e.f 8 May 2026; Ashok Kumar Gupta resigned same date.
• Sameer Gupta: MD; Arun Agarwal: Joint MD; Parag Dadeech appointed COO w.e.f 2 Mar 2026.
• AKGVG & Associates appointed Statutory Auditors for five years; prior VAPS & Co..
• Independent Directors meeting held on 29 Jan 2026; four independent on Audit Committee.
• CSR and Risk Management Committees in place; comprehensive governance framework.

ESG & CSR highlights

• CSR expenditure ₹52.02 lakh; ₹40 lakh transferred to unspent CSR account; CSR obligation ₹91.15 lakh.
• Total energy use: 220,879 GJ; 28.8 tCO2e per ₹ crore turnover; 28% renewables.
• Water: withdrawal 105,494 KL; consumption 58,022 KL; discharge 47,472 KL.
• Waste: 5,112.69 MT; 99% recycled; no e-waste or hazardous waste in FY26.
• Scope 1+2 emissions: 25,561 tCO2e; intensity 28.80 tCO2e per ₹ crore turnover; 0.30 tCO2e per MT.
• No data breaches; POSH complaints: zero in FY26; 100% human rights training for staff.

Operations & supply chain

• Eight owned plants plus two subsidiaries; total capacity ~240,000 tonnes.
• Pan-India footprint with 1,000+ channel partners and 10,000+ touchpoints.
• New product lines: PVC-O, PLB duct pipes, gas pipes, and uPVC window/door profiles.
• Kisan Mouldings consolidation strengthens West India presence; integration across functions completed.
• Supplier diversification and enhanced logistics using digital platforms.

Subsidiaries & related-party disclosures

• Kisan Mouldings Limited: 61.94% ownership; step-down subsidiary KML Tradelinks Private Limited.
• Consolidated entities include Kisan Mouldings and several group companies; related-party transactions disclosed and approved.
• Warrants and share issuances disclosed; intercompany lending and guarantees managed under policy.