Apollo Pipes Ltd. credit rating upgraded by CRISIL to AA- / A1+
Apollo Pipes Limited's credit ratings have been upgraded by CRISIL to 'CRISIL AA-/Stable' for long-term facilities and 'CRISIL A1+' for short-term facilities, totaling ₹280 crore. The upgrade reflects strong support from the SG group and improved operational integration. The company expects over 10% revenue growth medium-term and aims for a 7-8% EBITDA margin.
A credit rating upgrade directly impacts the company's borrowing costs, access to capital, and overall financial standing, making it a high-impact event for investors and lenders.
The credit rating upgrade by CRISIL to 'AA-' and 'A1+' from 'A' and 'A1' respectively, along with a stable outlook, is a positive development indicating improved financial health and reduced risk for the company.
Apollo Pipes Limited (APL) has announced an upgrade in its credit ratings by CRISIL Ratings Limited. The total bank facilities rated amount to ₹280 crore.
The long-term rating has been upgraded to 'CRISIL AA-/Stable' from 'CRISIL A', and the short-term rating has been upgraded to 'CRISIL A1+' from 'CRISIL A1'. CRISIL Ratings has also removed the ratings from ‘Rating Watch with Positive Implications’.
This upgrade reflects the strong support from the Sudesh Gupta (SG) group, following the appointment of Sanjay Gupta as Chairman of APL. It also factors in the company's operational and managerial integration with the SG group and its ability to leverage the established APL Apollo brand. The company is expected to benefit from the group's market position, business relationships, and financial flexibility to support growth and expansion initiatives.
APL's revenue declined by approximately 6% to ₹1,105 crore in fiscal 2026, impacted by lower PVC resin realisations and muted demand, although volumes saw a 2% increase. Revenue improved by 7% on-year to ₹295 crore in the first quarter of fiscal 2027. The company expects yearly revenue growth of over 10% over the medium term with the ramp-up of its Varanasi facility and expansion in value-added products.
Operating profitability moderated in fiscal 2026 with EBITDA margin declining to 6.0% from 8.3% in fiscal 2025, due to lower capacity utilization, volatile PVC resin prices, and aggressive pricing. The margin further declined to around 1.0% in Q1 fiscal 2027 due to inventory losses from a sharp correction in PVC resin prices and ramp-up costs. Profitability is expected to recover to an EBITDA margin of 7–8% over the medium term.
The financial risk profile remains strong, with gearing less than 1 time and a healthy interest coverage ratio of over 7 times in the past five fiscals. APL plans to fund its capital expenditure through equity or internal cash accrual. The company raised ₹259.6 crore through share warrants in fiscals 2024 and 2025 and is raising ₹110 crore in fiscal 2027 via preferential allotment for greenfield capex. Additionally, plans are underway to enter the tiles and ceramics segment with an estimated capex of approximately ₹300 crore, for which board approval has been obtained to raise ~₹189 crore through preferential warrants.
CRISIL Ratings has combined the business and financial risk profiles of APL and its wholly owned subsidiary, Kisan Mouldings Limited (KML), due to their operational and financial linkages. The ratings also factor in the business and financial support APL receives from the SG group.
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Apollo Pipes Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by Apollo Pipes Limited. Read the original for the full detail.