Apar Industries Limited — Q4 FY26 earnings call

Call held 28 May 2026

Management summary

Apar Industries delivered robust Q4 and annual FY26 results, with record revenues driven by strong performance in its Conductor and Cable divisions. Despite short-term headwinds from geopolitical conflicts, raw material volatility, and domestic competition, the company maintains an optimistic long-term outlook, underpinned by significant planned capex of INR1,500 crores for FY27 to capitalize on growth in energy infrastructure and the U.S. market.

Highlights

  • Consolidated revenue for Q4 FY26 grew 26.7% YoY to INR6,603 crores, almost equaling FY21 annual sales.

  • Annual FY26 revenue reached an all-time high of INR22,902 crores, up 23.3% YoY from FY25.

  • Conductor division achieved a historic milestone, crossing INR10,000 crores in revenue for FY26, reaching INR12,712 crores (32.7% growth).

  • Cable division revenue grew 25.8% YoY to INR6,220 crores in FY26, becoming the second-largest business segment.

  • Strong traction in the U.S. market, particularly in data centers and transmission, with U.S. revenues up 28.8% YoY in Q4 and 250% QoQ.

Concerns

  • Q4 FY26 PAT margin was 3.8%, 100 basis points lower YoY, impacted by one-time provisions of INR31 crores.

  • Oil division exports were severely affected in March due to Middle East disruption, leading to a 50% reduction in supplies from key refineries in April.

  • Short-term slowdown in ordering and potential margin impact due to higher metal prices, freight costs, and increasing domestic competition.

  • Manpower issues and port operation disruptions due to elections affected project sites and transit of goods, causing delivery postponements.

Key financials

2 periods

Q4 FY26

  • Consolidated Revenue
    ₹6,603 Cr
    YoY +26.7%
  • Consolidated EBITDA
    ₹584 Cr
    YoY +19.3%
  • Consolidated PAT Margin
    3.8%

FY26

  • Consolidated Revenue
    ₹22,902 Cr
    YoY +23.3%
  • Consolidated EBITDA
    ₹2,067 Cr
    YoY +23%
  • Consolidated PAT
    ₹977 Cr
    YoY +19%

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

Share of Revenue (FY26)
₹24,305 Cr Total
  • Conductor Division ₹12,712 Cr 52.3%
  • Cable Division ₹6,220 Cr 25.6%
  • Oil Division ₹5,373 Cr 22.1%

Order book

high confidence

Total value

₹7,671 Cr

as of 2026-03-31 quantified

Composition

  • Premium products (product) 50%
The order book is healthy and includes a significant portion of premium products, indicating continued growth in these areas.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹1,500 Cr New plan — to meet future demand given the longer capex cycle
    • Capacity expansion for Conductor division ₹400 Cr
    • Capacity expansion for Oil division ₹200 Cr
    • Capacity expansion for Cable division (including U.S. data center cables, medium voltage EPR/polymer-based cables, wind, solar, railways, defense) ₹850 Cr
    We plan to increase our capex for FY27 to about INR1,500 crores in addition to the FY26 capex that we have incurred of INR740 crores. This is to ensure that we have a capacity in place to meet future demand given the longer capex cycle that is taking place.
  • Debt Debt disclosed
    There is a mark-to-market impact of an ECB loan that the company has due to the sharp depreciation of the rupee that happened in the first quarter.

Guidance & targets

Capex

  • FY27 Capex Capex · FY27 · High confidence INR1,500 crores
    We plan to increase our capex for FY27 to about INR1,500 crores in addition to the FY26 capex that we have incurred of INR740 crores.

    — Kushal Desai

Profitability

  • Conductor EBITDA Margin Profitability · medium to long-term · High confidence INR35,000 to INR36,000 per metric ton
    our conductor margins could be in the range of INR35,000 to INR36,000 per metric ton.

    — Ramesh Iyer

Volume

  • Conductor Volume Growth Volume · annual · High confidence 10% YoY
    Overall figures, we are continuing to look at a 10% growth year-on-year on our Conductor side by volume.

    — Kushal Desai

  • Cable Volume Growth Volume · annual · High confidence 25% YoY
    We are looking -- continuing to look at growing by 25% a year in our cable side of the business as well.

    — Kushal Desai

Capacity

  • India Data Center Capacity Capacity · by 2030 · Medium confidence 5 gigawatts
    The current data center capacity in India is anywhere between 1.5 and 1.7 gigawatts, which is expected to scale in a base case to 5 gigawatts by 2030 with a more optimistic estimate going up to 7 to 8 gigawatts.

    — Kushal Desai

  • Interregional Transmission Capacity Capacity · by 2027 · High confidence 143 gigawatts
    And the interregional transmission capacity is also set to increase from 120 gigawatts to about 143 gigawatts by 2027 and by a further 168 gigawatts by 2032.

    — Kushal Desai

Sales

  • U.S. Market Sales (Cable Side) Sales · FY27 and FY28 · High confidence significant growth
    We feel that our business will go up in FY27. It will further go up in FY28 because we are spending a lot of time in getting approvals there and started getting from a much wider range of customers initial orders. So you'll see significant growth over the previous year in the U.S. market on the cable side.

    — Kushal Desai

What to watch in Q1 FY27

Oil Division Export Recovery

Next quarter (Q1 FY27)
Current Exports severely affected in March, supplies reduced by 50% in April, expected to restore in May.
Target Restoration of normal export volumes and supply chain stability.

Why it matters

Impacted Q4 performance; recovery is crucial for the oil segment's contribution and overall profitability.

exports were very severely affected in the month of March due to the Middle East disruption... Supplies against contracts to APAR reduced by 50% from the key contracted refineries in the month of April. And in the month of May now it is expected to get largely restored but, of course, at significantly higher prices.

Risks & concerns

  • Geopolitical Conflict (Middle East War)

    high

    Impacted specialty polymer availability/prices, freight costs, and oil division exports/supplies, leading to short-term slowdown.

    Management acknowledged

  • Raw Material Price Volatility

    medium

    Increased prices for aluminum, copper, and polymers limited ability to book orders for specialty cables and could impact margins.

    Management acknowledged

  • Manpower and Logistics Disruptions

    medium

    Elections in India caused manpower issues at project sites and port operations, leading to customer delivery postponements.

    Management acknowledged

  • Increased Domestic Competition

    medium

    New players increasing capacities, leading to some pricing pressure, but management believes the overall market is large enough for growth.

    Management downplayed

  • U.S. Tariffs (Section 232)

    low

    Previously caused uncertainty, but now provides clarity on landed costs, allowing for better planning and continued growth.

    Management acknowledged

Q&A highlights

7 direct
U.S. Data Center Opportunity and Capex Allocation Direct
So the U.S. market, we are seeing actually a very strong traction in the U.S. market. It is being clearly led by the data center opportunity there... We have also made certain capex provisions for adding specific capacity to produce the data center cables which are required in the U.S. that are of a significantly higher specification...

Clarified the strong demand drivers in the U.S. market and the strategic allocation of capex towards specialized U.S. data center cable production.

Asked by Nitin Arora, Axis Mutual Fund

Conductor Profitability Outlook and Export Mix Partial
So Nitin, we typically give guidance for medium to long-term perspective as we have always been doing consistently in the past. And based on the historical EBITDA margin that we have made, we expect that from a medium to long-term perspective, our conductor margins could be in the range of INR35,000 to INR36,000 per metric ton.

Reiterated the medium-to-long term margin guidance for the conductor business, indicating that current order book mix doesn't fully reflect future profitability.

Asked by Nitin Arora, Axis Mutual Fund

FY27 Capex Breakup and Purpose Direct
Around INR400 crores would be coming from conductor division, around INR200-odd crores on oil division, and cable would be in the range of INR850 crores.

Provided a clear segmental breakdown of the significant INR1,500 crores capex planned for FY27, showing investment priorities.

Asked by Umesh Raut, Nomura Holdings

Delays in HVDC Projects and Manpower Issues Direct
So the answer to the first question is no. These HVDC projects have just been awarded... Manpower is a big problem in India at the moment, especially with Bihar -- with the West Bengal elections and the elections in the Northeast. A lot of the workforce at project sites come from those areas and those jurisdictions. So there has been a little bit of a slowdown that's coming from these things.

Addressed potential delays in large infrastructure projects due to both project award timelines and external factors like manpower availability and logistics.

Asked by Umesh Raut, Nomura Holdings

Data Center Cable Value in U.S. vs. India Direct
But to give you an idea, a medium-sized data center that you would supply in the U.S. would be taking about $10 million to $12 million worth of cables -- of just the medium voltage cable. And you would probably have something equivalent in terms of the other low voltage cables in this. About $25 million, $30 million for a medium-sized data center in the U.S.

Quantified the significant revenue potential from data center cable supply in the U.S. market, highlighting the scale difference compared to India.

Asked by Umesh Raut, Nomura Holdings

Middle East Sourcing and Sales Impact on Oil Division Direct
On the sales side, our transformer oil, we have a very strong supply going into Saudi Arabia and Kuwait, and both of those had been affected. There were no shipments that went to these geographies in March. Nothing went in the month of April.

Detailed the specific impact of geopolitical events on the oil division's sales and sourcing, explaining the Q4 performance challenges.

Asked by Mohit Kumar, ICICI Securities

Export Potential for CTC Conductors Direct
So there is absolutely a possibility of exporting it... Initially, we have got approvals from Middle East manufacturers and has started exporting to them. We are now working towards getting approvals in Europe and the United States as well.

Indicated the company's strategic move to expand CTC conductor exports to new geographies after capacity expansion, despite existing U.S. tariffs.

Asked by Mohit Kumar, ICICI Securities

Domestic Competition and Entry Barriers for New Technologies Direct
The ACCC conductor is up to 3x more expensive than the ACSR, which is the cheapest base conductor... if someone comes up with a new composite core, it is not easy to actually just start getting large-scale orders on that... the entry barriers are extremely high.

Explained the high entry barriers and the need for proven field performance for new technologies in the conductor market, mitigating concerns about new domestic competition.

Asked by Amitoj Singh, 360 ONE Capital

3 min read 7 chapters

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.

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