Apollo Pipes reported a net loss of ₹2.5 crore for the first quarter of FY27, a sharp swing from the ₹12.5 crore net profit recorded in the same period a year earlier, as volatile PVC polymer prices weighed heavily on the company's operating performance.

Despite the loss, revenue rose 7.4% year-on-year to ₹295 crore, up from ₹275 crore in the year-ago quarter. However, sales volume declined 3% year-on-year to 24,477 tonnes.

Operating profitability deteriorated significantly during the quarter. EBITDA plummeted 85.3% year-on-year to ₹3.03 crore from ₹20.7 crore, while the EBITDA margin compressed to 1.03% from 7.52% a year earlier.

Managing Director Sameer Gupta attributed the weak performance to broader industry headwinds driven by sharp fluctuations in polymer prices. PVC, a petroleum-derived polymer, is the single largest input cost for pipe manufacturers, and its pricing tracks global petrochemical cycles tied to crude oil movements. A steep correction in PVC prices during April prompted channel partners to defer purchases and rationalise their inventories — a pattern typical in commodity-input industries where buyers postpone orders in anticipation of further price declines — resulting in subdued demand across the home plumbing and bath fittings industry, Gupta said.

The quarterly results underscore the broader challenge facing India's organised pipe sector, which supplies both real estate and infrastructure projects and remains highly sensitive to raw material cycles. Competitors across the PVC and CPVC pipe segment have faced similar margin pressures during periods of polymer price volatility.

Looking ahead, Gupta said the company expects business activity and volume growth to improve over the coming quarters as inventory levels across the distribution channel normalise and demand gradually recovers. With PVC prices now stabilising, Apollo Pipes said it anticipates a significantly stronger performance in the second half of FY27.

The company said it maintains a robust pipeline of new and value-added products and remains on track to expand its annual manufacturing capacity to 288,000 tonnes over the next two years from the current 240,000 tonnes, a 20% increase. The expansion will be funded entirely through internal cash flow generation without leveraging the balance sheet, the company added.

For FY27, Apollo Pipes reiterated its strategic priorities, including strengthening its pan-India presence, improving capacity utilisation across existing manufacturing facilities, expanding into neighbouring markets in central, western, and eastern India, and undertaking brand-building initiatives. The company is targeting revenue growth of more than 25% CAGR over the next three years.

Shares of Apollo Pipes Ltd. ended 0.95% higher at ₹505 on the NSE on Thursday following the release of the June quarter results. The stock gained ₹4.75 during the session despite the company posting a net loss and a sharp decline in operating margins.