Apar Inds.

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.

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.

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.

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.

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.

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.