Apar Industries Limited — Q1 FY26 earnings call

So, we continue with the same guidance, 30,000 plus tailwinds and the tailwinds will depend on the use of premium mix and non-premium mix on the various metals involved, the geography mix, the kind of products which are there. Comprehensive mix of that will determine the EBITDA for the quarter.

Clarifies that while current realization is high, the long-term guidance remains consistent, with actual performance influenced by a dynamic mix of factors.

Asked by Vidit Trivedi

The tariff in the US, there is one which is a reciprocal tariff. However, the basic materials, which is steel, aluminum, copper and a few others are falling under a completely separate classification called Section 232, which are products of strategic nature to the government of the United States. There, the tariff is an absolute tariff. Currently, for all of these three items, that is steel, aluminum and copper, it is at 50%.

Provides crucial detail on the complex US tariff structure, distinguishing reciprocal tariffs from absolute Section 232 tariffs on raw materials, which significantly impacts manufacturing costs and strategic decisions.

Asked by Nitin Arora

A larger portion has gone to the US market. Part of it was, as I mentioned in my opening remarks, to try to pick up a tariff where it had been declared at that 10%. There has been some impact that has happened because in some contracts, the customer has paid the higher tariff, the 10% reciprocal tariff. In some cases, we have had to negotiate and compromise with the client and make sure that all of this product has gone through.

Explains that the surge in US cable exports was partly due to pre-buying ahead of tariff changes, involving complex negotiations and freight costs, which influenced margins rather than a fundamental shift in business economics.

Asked by Amit Anwani

Tariff today is coming as a line item. So, it comes with a straightforward assumption today saying that, okay, the tariff at the moment that we priced it like this, whatever changes happen is not to APAR's account, it will be to the client's account. And if the client is not willing to accept that, then we are actually not taking on the business and we are just sitting it out.

Reveals the company's proactive strategy to de-risk new orders by making tariffs a client responsibility, indicating a cautious approach in an uncertain trade environment.

Asked by Nikhil

No, so the market segment, the geographic mix is very different for our transformer oil business compared to what we do on conductor and cables. In conductor and cables, both of their largest market outside India is the America. ... If you look at our transformer oil business, we are very strong in Asia, all across Asia, right, including Australia. We have a very strong position in South Africa. We have a strong position in Turkey. And we are the largest in the GCC.

Clarifies that the oil business operates with a distinct geographic footprint and faces different market dynamics and project-related delays compared to the conductor and cable segments.

Asked by Himanshu Upadhyay

So, we have been doing our homework on it. However, at this stage, until this whole tariff thing becomes clear, because suddenly there was this increase from 25% to 50% for import of aluminum, ingots, copper rods, all these things. So, that would obviously have a material impact if you were to manufacture locally in the United States. So, we have been doing our homework quietly in terms of figuring out what could be the possibilities there. But we haven't taken a call. I think we need more clarity before a commitment can be made.

Indicates that while local US manufacturing is being explored, the decision is on hold due to the volatile and unclear raw material tariff situation, highlighting a key strategic uncertainty.

Asked by Sagar Dhawan

We are pretty much for most of the products on the conductor side, we are running at capacity. However, you know, as part of the Rs. 1,300 crores, there is almost Rs. 400 crores, Rs. 300 and odd crores into expanding the conductor, various products that are in that division. ... Equipment are starting to come in and getting installed, but a chunk of them are coming actually in Q3 and early Q4.

Confirms high capacity utilization in conductors and details the timeline for new capacity coming online, which is crucial for meeting strong demand and sustaining growth.

Asked by Sagar Dhawan

There are players who are getting into the business. The largest is clearly ourselves. Then after that, you have Sterlite Power and following that is JSK. But the way we do the business is not just supplying the conductor but we also do the entire solution for the utility. So, it's one thing to produce a conductor. It's another thing to be able to provide that solution.

Provides insight into the competitive landscape of the reconductoring market and highlights Apar's strategic advantage in offering end-to-end solutions rather than just product supply.

Asked by Amit Anwani