Apar Industries FY26 Annual Earnings Summary

Section 232 tariffs (50% on metals) and reciprocal tariffs create cost disadvantages vs. Middle East/UK competitors; new orders are at lower margins.

Management acknowledged Q3 will see lower US billing and margins due to the order pause and metal price disruption.

Sustained 50% tariff under Section 232 continues to pressure US export margins; management had to reduce prices to secure orders, impacting profitability.

War in the Middle East has caused refinery supply cuts, freight spikes, and project delays, impacting oil division volumes and margins in the near term.

Sharp increases in aluminum, copper, and polymer prices, along with higher freight and war premiums, are causing customers to postpone orders and deliveries.

Sharp rise in aluminum and copper prices has caused customers to postpone orders globally, impacting near-term order inflow.

Transmission line additions in H1 FY26 were only 39% of target, and right-of-way issues continue to hamper execution.

Rising aluminum and copper prices may cause customers to postpone deliveries, affecting volume execution in Q4 and beyond.

Increased Chinese competition in geographies outside the US impacted conductor volumes, as noted in the press release.

Shortage of bushings is delaying transformer deliveries and substation work, which in turn delays transmission line execution and conductor demand.

New entrants like UltraTech and Adani are investing in wire and cable capacity, potentially pressuring margins in the building wire segment, though management sees limited impact on specialty cables.

While Section 232 tariffs have stabilized, any further changes could affect competitiveness; Chinese dumping remains a threat in certain markets.