Detailed Narrative
Robust Q4 and Annual FY26 Financial Performance
Apar Industries concluded FY26 with an all-time high revenue of INR22,902 crores, demonstrating a 29% CAGR over the last five years. Q4 FY26 consolidated revenue reached INR6,603 crores, a 26.7% YoY growth, primarily driven by strong domestic business which grew 33.6%. Annual EBITDA for FY26 grew 23% to INR2,067 crores, achieving a 9% margin, while PAT increased 19% to INR977 crores, despite one-time📎 provisions of INR31 crores impacting Q4 PAT.
Conductor Division Achieves Historic Milestone and Strong Order Book
The Conductor division achieved a significant milestone, surpassing INR10,000 crores in revenue for FY26, reaching INR12,712 crores, a 32.7% YoY growth. Q4 revenue for the segment was INR3,764 crores, up 29.9% YoY, with premium products contributing 49.3% to Q4 revenue. The division recorded an order inflow of INR11,450 crores for FY26, resulting in a healthy order book of INR7,671 crores as of March 31, with premium products accounting for over 50% of the current order book.
Cable Division Emerges as Second Largest Segment with Strong Growth
The Cable division reported FY26 revenues of INR6,220 crores, a 25.8% YoY growth, positioning it as the company's second-largest business segment, surpassing the Oil division. Q4 revenue for the Cable division grew 35% to INR1,903 crores, achieving an EBITDA margin of 10.6%. The B2B channel business, in its second year of operation, crossed INR500 crores, supported by the addition of 120 new B2C and 25 new B2B distributors.
Strategic Capex Plan to Meet Future Demand
Apar Industries plans a substantial capex of INR1,500 crores for FY27, in addition to the INR740 crores incurred in FY26, to ensure capacity is in place for future demand. This investment is broadly allocated across segments: approximately INR400 crores for Conductor, INR200 crores for Oil, and INR850 crores for the Cable division. The capex is aimed at expanding capacity for medium-voltage cables, U.S. data center cables, and products for the wind, solar, railways, and defense sectors.
Short-Term Headwinds from Geopolitical and Market Factors
The company faced short-term challenges in Q4, including severe disruptions to the Oil division's exports in March due to the Middle East conflict, leading to a 50% reduction in supplies from key refineries in April. Increased prices for aluminum, copper, and specialty polymers, coupled with higher freight costs, also limited the ability to aggressively book orders for specialty cables. Additionally, manpower issues and port operation disruptions in India caused delivery postponements for some customers.
Optimistic Long-Term Outlook Driven by Energy Infrastructure Growth
Despite short-term uncertainties, management expressed strong optimism about the long-term prospects, citing robust energy infrastructure fundamentals. Key growth drivers include T&D expansion, rising electricity demand, data center growth (India's capacity projected to reach 5-8 GW by 2030), and significant investments in ultra-high voltage transmission. The company believes these factors provide a strong runway for sustained growth over the next 3-5 years.
U.S. Market Traction and Tariff Clarity
The U.S. market is showing strong traction, particularly in data centers and transmission grid modernization, with U.S. revenues up 28.8% YoY in Q4 and 250% QoQ. While Section 232 tariffs (50% for conductors, 25% for cables) are in place, their clarity has settled previous uncertainty, allowing for better planning. Apar expects significant growth in U.S. sales for FY27 and FY28, especially on the cable side, supported by new capacity for higher-specification products and an expanding customer base.