Apar Industries Limited — Q4 FY25 earnings call

Call held 14 May 2025

Management summary

APAR Industries reported an all-time high Q4 FY25 performance, with consolidated revenue crossing ₹5,000 crores, driven by strong domestic demand and a recovery in US exports. All three business verticals demonstrated growth, contributing to a 15% YoY increase in full-year revenue. The company announced a significant CAPEX plan of ₹1,300 crores to double cable capacity and expand conductor and oil businesses, aiming for substantial future growth despite ongoing US tariff uncertainties and Chinese competition in non-US markets.

Highlights

  • Consolidated revenue for Q4 FY25 reached ₹5,210 crores, marking a 16.9% YoY increase and an all-time high.

  • Full-year FY25 consolidated revenue stood at ₹18,581 crores, up 15% YoY.

  • Q4 FY25 EBITDA was ₹483 crores, a 5.7% increase, with an EBITDA margin of 9.3%.

  • Profit after tax for Q4 FY25 grew 5.9% to ₹250 crores, achieving a 4.8% PAT margin.

  • The cable business revenue for Q4 FY25 grew 29.9% to ₹1,410 crores, with US revenues up 268% YoY.

  • Conductor division's order book stands at ₹7,163 crores, with new orders of ₹2,114 crores received in Q4.

  • The company plans a substantial CAPEX of ₹1,300 crores over the next 12-15 months to double cable capacity and expand other segments.

Key financials

2 periods

Q4 FY25

  • Consolidated Revenue
    ₹5,210 Cr
    YoY +16.9%
  • EBITDA
    ₹483 Cr
    YoY +5.7%
  • EBITDA Margin
    9.3%
  • PAT
    ₹250 Cr
    YoY +5.9%
  • PAT Margin
    4.8%

FY25

  • Consolidated Revenue
    ₹18,581 Cr
    YoY +15%

What they filed

Q1 FY27: revenue up 29.1%, net profit up 77.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue4,645 4,716 5,210 5,104 5,715 +23%5,480 +16%6,603 +27%6,591 +29%
EBITDA357 356 455 452 465 +30%452 +27%496 +9%758 +68%
Net profit194 175 250 263 252 +30%209 +19%253 +1%467 +78%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

SegmentRevenue Growth (Q4 FY25)Revenue Growth (FY25)Volume Growth (Q4 FY25)US Revenue Growth (Q4 FY25)
Conductor Division24.5%19.3%5.9%142.6%
Oil Business3.3%5.2%9.3%—
Cable Business29.9%28.1%—268%

Order book

high confidence

Total value

₹7,163 Cr

as of 2025-05-14 quantified

Inflow this quarter

₹2,114 Cr

Composition

Mix 2 segments
  • Conductor Division ₹7,163 Cr 82.7%
  • Cable Business ₹1,500 Cr 17.3%

Share of order book by segment, derived from disclosed amounts

The order book for conductors is strong, with significant new orders received during the quarter. The cable business also has a healthy pending order book.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹1,300 Cr New plan — to double capacity and meet growing demand · Rs. 650 crores from equity (internal accruals/cash) and Rs. 650 crores from long-term debt (1:1 equity-debt combination)
    • Cable business expansion (new site, 4x MV/HV capacity, 2x LV/Windmill capacity) ₹800 Cr
    • Conductor business expansion (10% capacity addition, 25,000 tons for premium products) ₹300 Cr
    • Oil business (new storage terminal at JNPT, expanding Hamriyah UAE storage) ₹200 Cr
    We completed CAPEX of about Rs. 500 crores in FY '25. We have a plan of adding Rs. 1,300 crores of CAPEX through FY '26 and running into the 1st Quarter of FY '27. So the CAPEX should go in the next 12 to 15 months. And considering commissioning, in about 18 months we should have most of this equipment up and running. This includes about Rs. 800 crores on the cable side with building of a brand new site... We are looking at adding about Rs. 300 crores of CAPEX to the conductor business... We are also expecting to spend about Rs. 200 crores in the oil business... And the plan is to do Rs. 650 crores coming from our equity and Rs. 650 crores coming from a long-term debt.
  • Debt Debt disclosed
    And the plan is to do Rs. 650 crores coming from our equity and Rs. 650 crores coming from a long-term debt.
  • Liquidity Liquidity disclosed The company has deployed available profits into cash purchases and internal accruals, which will fund part of the planned CAPEX.
    Yes. Because we have deployed a lot of cash into cash purchases, the available profits have been deployed into cash purchases, and that's where as you know. And also, the earlier statement that we talked about the funding of that, half of it will be debt and half of it will actually be internal accruals, just instead of equity.

Guidance & targets

Volume

  • Oil Division Volume Growth Volume · FY26 · High confidence 6% to 8%
    So in terms of oil division, the volume growth we are looking at about 6% to 8%

    — Ramesh Iyer

  • Conductor Division Volume Growth Volume · FY26 · High confidence 10%
    And conductor division, we are looking at a volume growth of about 10%

    — Ramesh Iyer

Profitability

  • Oil Division EBITDA per KL Profitability · FY26 · High confidence Rs. 5,000 to Rs. 6,000
    EBITDA guidance is about Rs. 5,000 to Rs. 6,000 per KL.

    — Ramesh Iyer

  • Cable Division EBITDA Margin Profitability · FY26 · High confidence 10% to 12%
    and EBITDA range of 10% to 12% on a 12-month basis.

    — Ramesh Iyer

  • Conductor Division EBITDA per Metric Ton Profitability · medium-term (annualized basis) · High confidence Rs. 30,000 plus tailwinds

    Previously Rs. 27,000 to Rs. 28,000 → Rs. 30,000 plus tailwinds

    And EBITDA per metric ton of Rs. 30,000 plus tailwinds on a 12 months basis... Now with the mix of products and what we see, we can further upgrade it to Rs. 30,000.

    — Ramesh Iyer

Revenue

  • Cable Division Value Growth Revenue · FY26 · High confidence 25%
    In case of cable business it would be value growth of 25%

    — Ramesh Iyer

  • EHV Cable Revenue Contribution Revenue · FY27-FY28 · Medium confidence small portion in FY27, larger portion in FY28
    So, you will see that revenue not coming in FY '26 at all, you may start seeing small portion coming in FY '27 but a larger portion coming in FY '28.

    — Kushal Desai

Capex

  • Total Capex Spend Capex · next 12-15 months (FY26 and Q1 FY27) · High confidence Rs. 1,300 crores
    We have a plan of adding Rs. 1,300 crores of CAPEX through FY '26 and running into the 1st Quarter of FY '27. So the CAPEX should go in the next 12 to 15 months.

    — Kushal Desai

Capacity

  • Cable Business Revenue Capacity Capacity · within 18 months of commissioning · High confidence Rs. 10,000 crores

    Previously Rs. 5,000 crores → Rs. 10,000 crores

    Post this expansion, we would expect a turnover to be able to be generated from that complex, which would take the business up to about Rs. 10,000 crores of capacity that we would have from what we have executed this year, which is close to Rs. 5,000 crores.

    — Kushal Desai

  • Conductor Division Capacity Addition Capacity · High confidence 25,000 tons (10% increase)
    It could be about 10% will get added. So about 25,000 tons, but this 25,000 tons is capable of being made for all the premium type products as well

    — Kushal Desai

Product Development

  • EHV Cable Production Capability Product Development · after cable expansion completion · High confidence up to 220 kV

    Previously up to 66 kV → up to 220 kV

    So, as we complete our expansion in the cables side, currently we are able to produce up to 66 kV. So this will go up to 220 kV that we will be able to produce.

    — Kushal Desai

What to watch in Q1 FY26

Resolution of US Tariff Situation

next few weeks/90-day period
Current Overhang with 10% additional duty on cables, DTA pending
Target Clarity on tariffs, favorable outcome for India

Why it matters

Resolution of tariffs will provide pricing stability and clarity for US exports, a key growth driver.

The US tariff situation continues to have a bit of an overhang until there is a DTA in place with the US. Hopefully, this is at an advanced stage, and we hope that the outcome will be favorable for India relative to what tariff is being charged to other countries.

Risks & concerns

  • US tariff situation and trade policy uncertainty

    medium

    The US tariff situation continues to have a bit of an overhang until a DTA is in place, potentially causing short-term disruption.

    Management acknowledged

  • Chinese competition in non-US export markets

    medium

    Increased Chinese competition, potentially due to subsidies, is posing a challenge in export markets outside the US, Africa, Latin America, and Europe.

    Management acknowledged

  • Long permitting times for transmission infrastructure in the US

    medium

    Building transmission lines in the US can take 10-12 years for permitting, significantly longer than in India, impacting infrastructure development.

    Management acknowledged

  • Transmission line project execution delays in India

    low

    Right-of-way constraints, land acquisition hurdles, and manpower shortages during the election period impacted transmission line network growth in India.

    Management acknowledged

Q&A highlights

6 direct
Conductor EBITDA per ton and US business uncertainty Direct
So, as you see, in this particular Q4, we have about 45% of the products coming from the premium products that we have... Secondly, if you see, this particular quarter we have rebounded in terms of the US business. The turnover from the US business has increased, where the margins are higher, and that has also resulted in high margin, especially in this particular quarter.

Clarified the drivers for strong EBITDA per ton despite non-premium sales and acknowledged the rebound in US business, which is a key export market.

Asked by Mohit Kumar

Impact of US tariffs on Q1 FY26 sales and future outlook Partial
So, Mohit, Q1, actually, we are still continuing, on the cable side still we have got a green signal for a lot of the material which had been planned to be produced in the month of April, May and June. As you know, the tariff falls has happened up to the 9th of July. So, a lot of the order book which was there, we got to continue to execute that. Some of the customers who are already at advanced stages of executing on their projects have even agreed to pay whatever is the differential tariff that comes in post the 9th of July as well, because the cables are required to complete their projects. So, you would not see that dip actually taking place substantially in Q1.

Addressed concerns about Q1 impact from US tariffs, indicating continued execution of existing orders and some customers agreeing to bear differential tariffs, suggesting less immediate impact than feared.

Asked by Mohit Kumar

Chinese competition in non-US markets and strategy Direct
So the thing is, with the Chinese government policies, we have seen in the past also, at times they kind of subsidized the aluminum and steel in China. So that has given the advantage at that time. But these things go in cycles and cannot be predicted... rather than looking at backward integrating and doing anything in China, we are looking more in terms of wanting to produce and expedite production in the United States, given that market is such a large market, and will continue to be a large market over the next decade or so.

Explained the cyclical nature of Chinese subsidies impacting non-US markets and outlined a strategic shift towards potential US manufacturing to serve that large market directly, rather than competing on price with subsidized Chinese products globally.

Asked by Nitin

Funding plan for the large CAPEX of Rs. 1,300 crores Direct
And the plan is to do Rs. 650 crores coming from our equity and Rs. 650 crores coming from a long-term debt. So, we will use a one-to-one equity-debt combination to fund this.

Provided clear details on the funding mix for the substantial CAPEX, indicating a balanced approach between internal accruals and debt, which is crucial for assessing financial health.

Asked by Maulik Patel

Evolution of cable business and its future contribution to overall business mix Direct
So I think, Maulik, our position is that we want to support all the three businesses, be agnostic to supporting one business more versus the other... So, you will see the cable forming a larger percentage of the total revenue because it is going to grow at a faster pace than conductors, and the oil business will probably be at the slowest pace of the three. Already, in FY '26, you will find the cable business being larger than the specialty oil business in terms of revenue.

Clarified the company's strategic focus on all three segments while acknowledging the cable business's faster growth trajectory and its increasing contribution to overall revenue, indicating a shift in business mix.

Asked by Maulik Patel

US tariffs on cables and how they are being managed with customers Direct
So there are different contracts with the customers. Some contracts are on FOB, some contracts are on DDP. Some are deliveries below, before July 9. Some are deliveries after July 9. In some cases, we are talking to some of the customers who are agreeing to share a part of the duty. So those all mix and combinations are actually happening at the moment... So overall, we would not see some major impact, at least for this 10% tariff field.

Provided insight into the company's approach to managing US tariffs, indicating a flexible strategy with customers to mitigate impact, suggesting limited downside from the 10% tariff.

Asked by Avnish Tiwari

Trump administration's stance on renewable energy and its impact on demand Direct
So, the point of view that we have been able to gather through various customers and whoever we are in touch with, including developers in the United States, is that solar and solar including the energy storage, the ESS system, is the cheapest form of energy available to add in the shortest period of time. So the solar side of the business is going to continue... So we do not see the renewable story completely ending. We see the subsidy story ending.

Addressed concerns about potential policy shifts impacting renewable energy demand in the US, differentiating between sustainable growth driven by economics (solar) and subsidy-dependent segments (offshore wind), providing clarity on market resilience.

Asked by Nikhil Poptani

Progress on liquid cooling solutions for data centers Partial
So we, at the moment, I am not we have developed a product here. We are still looking at how to test market it, etc., because, the liquid dielectric, first of all, most of the data centers today do not use liquid. There are a few companies overseas that have been, supplied as a system. So we have not really made any progress on that front. We are still working, knocking on doors and trying to figure out how we can get a trial for that to happen.

Provided an update on a niche, high-potential product, indicating that while development is ongoing, market adoption is slow and trials are still being sought, suggesting a longer gestation period for this revenue stream.

Asked by Vimox Shah

3 min read 6 chapters

Detailed narrative

Record Q4 and Full-Year Performance

APAR Industries achieved an all-time high quarterly revenue of ₹5,210 crores in Q4 FY25, representing a 16.9% year-on-year growth. The domestic business showed robust growth, increasing by 31.4% compared to the previous year. For the full fiscal year 2025, consolidated revenues reached ₹18,581 crores, a 15% increase over FY24. EBITDA for Q4 FY25 was ₹483 crores, up 5.7%, with a margin of 9.3%, while PAT grew 5.9% to ₹250 crores, reflecting a 4.8% margin.

Segmental Growth Drivers

The Conductor division's revenues grew 24.5% in Q4 FY25, driven by strong domestic demand and a 142.6% increase in US exports. The premium product mix contributed 45.9% to the division's revenue. The Oil business saw a 3.3% revenue growth and 9.3% volume growth in Q4, with EBITDA per KL at ₹5,873. The Cable business posted a significant 29.9% revenue growth to ₹1,410 crores in Q4, with US revenues surging by 268% year-on-year, and its EBITDA post-forex grew 21.5% to ₹150 crores.

Substantial CAPEX for Future Growth

The company plans a substantial CAPEX of ₹1,300 crores over the next 12-15 months, following ₹500 crores spent in FY25. This investment includes ₹800 crores for the cable business to build a new site and double its capacity to generate ₹10,000 crores in revenue. An additional ₹300 crores is allocated to the conductor business to add 25,000 tons of capacity, and ₹200 crores for the oil business to establish a new storage terminal at JNPT and expand facilities in UAE. The CAPEX will be funded through a 1:1 mix of equity (internal accruals) and long-term debt.

Strategic Focus on Product Mix and US Market

APAR is actively focusing on a higher premium product mix, with 45.9% of conductor products being premium in Q4 FY25. The company is also systematically enhancing its presence in the US market, including securing global vendor listing for data center supplies and expanding its on-the-ground team. Despite tariff uncertainties, the US market remains strategic due to its significant import demand (over $20 billion annually) and ongoing electrification trends, with APAR aiming to produce and expedite production in the US in the future.

Guidance for FY26

For FY26, the Oil division is projected to achieve 6-8% volume growth with an EBITDA per KL of ₹5,000-₹6,000. The Cable division targets 25% value growth and an EBITDA margin of 10-12%. The Conductor division expects 10% volume growth and an EBITDA per metric ton of ₹30,000 plus tailwinds, an upgrade from previous guidance. The company anticipates the cable business to grow at a faster pace, becoming a larger percentage of total revenue than the specialty oil business by FY26.

Addressing Market Challenges and Competition

Management acknowledged the ongoing US tariff situation as an 'overhang' but expressed optimism for a favorable resolution, noting that India is not at a disadvantage compared to other key exporting countries. They also highlighted increased Chinese competition in non-US markets, often driven by subsidies, but emphasized APAR's strategy of focusing on value-added products and exploring US manufacturing to serve that market directly. The company is also expanding its E-beam house wire (Anushakti) business, which grew 37% in FY25 to ₹375 crores.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Capital Goods earnings calls