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US tariff impact on export margins
View Risks →Apar Industries Limited — Q3 FY26
Apar Industries reported a solid Q3 FY26 with consolidated revenue of ₹5,480 crore (+16.2% YoY) and EBITDA of ₹483 crore (+20.4% YoY), driven by strong domestic growth (+30%) and favorable product mix.
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Apar Industries reported a solid Q3 FY26 with consolidated revenue of ₹5,480 crore (+16.2% YoY) and EBITDA of ₹483 crore (+20.4% YoY), driven by strong domestic growth (+30%) and favorable product mix. PAT came in at ₹209 crore (+19.4% YoY), despite a ₹25 crore exceptional provision for gratuity. The conductor division saw EBITDA per metric ton surge to ₹44,195 (+49% YoY) on premium mix expansion to 44.2%. However, export revenues fell 11.2% due to US tariff headwinds, with cable exports down 44.3%. Management expects a recovery in US cable exports in Q4, backed by ₹500 crore of new orders. The order book for conductors stands at ₹7,396 crore. Key risk: sustained US tariffs and commodity price volatility could pressure export margins and delay order execution.
अपार इंडस्ट्रीज ने वित्त वर्ष 2026 की तीसरी तिमाही में अच्छा प्रदर्शन किया। कंपनी की कुल आय ₹5,480 करोड़ रही, जो पिछले साल से 16.2% अधिक है। कमाई (EBITDA) ₹483 करोड़ (+20.4%) हुई, जिसका कारण घरेलू बिक्री में 30% की बढ़ोतरी और सही उत्पाद मिश्रण है। मुनाफा (PAT) ₹209 करोड़ (+19.4%) रहा, भले ही ग्रेच्युटी के लिए ₹25 करोड़ का अतिरिक्त खर्च हुआ। कंडक्टर डिवीजन में प्रति टन कमाई ₹44,195 (+49%) पहुंच गई। लेकिन अमेरिकी टैरिफ के कारण निर्यात 11.2% गिर गया, खासकर केबल निर्यात 44.3% घटा। कंपनी को उम्मीद है कि चौथी तिमाही में ₹500 करोड़ के नए ऑर्डर से केबल निर्यात सुधरेगा। कंडक्टर का ऑर्डर बुक ₹7,396 करोड़ है। जोखिम: अमेरिकी टैरिज और कच्चे माल की कीमतों में उतार-चढ़ाव से निर्यात मुनाफा प्रभावित हो सकता है।
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Read Transcript →Quarter Snapshot
Conductor EBITDA per metric ton
₹44,195
+49% YoY
EBITDA per metric ton for conductors improved sharply due to higher premium product mix (44.2% vs 37.4% YoY).
Conductor order book
₹7,396 crore
N/A
Order book remains strong with exports contributing 32%; new orders in 9M FY26 totaled ₹8,520 crore.
Cable US order inflow in Q3
₹500 crore
N/A
New US cable orders received in Q3, expected to be largely executed in Q4, signaling recovery after muted Q2.
Domestic revenue growth (overall)
30%
+30% YoY
Domestic business grew 30% in Q3, offsetting export weakness; 9-month domestic growth at 26.9%.
What Changed vs Last Quarter
NEW
Cable business to grow 20%+ in FY26
Management reiterated guidance of 20%+ revenue growth for the cable division for the full year, supported by strong domestic demand and US order recovery.
NEW
Conductor volume growth of 8-9% for FY26
Management expects full-year conductor volume growth to be in the 8-9% range, in line with 9-month YTD performance.
NEW
Capex of ₹1,400 crore largely completed by mid-FY27
₹500+ crore capex already done; remaining to be completed by Q1 FY27, with all facilities operational by September 2026.
UPDATED
Cable EBITDA margin to remain around 10%
Despite margin pressure from US business, management expects cable EBITDA margin to stay near 10% for the full year, similar to 9-month level.
DROPPED
Conductor EBITDA per ton guidance maintained at ₹30,000
Management reiterated medium-to-long-term guidance of ₹30,000 per metric ton EBITDA for conductors, despite recent outperformance.
DROPPED
Capex of ₹1,300 crore for FY26
Total capex for FY26 is approximately ₹1,300 crore across all divisions, with bulk of cable expansion commissioning by June 2026.
DROPPED
US order inflow resumed in Q3, revenue impact in Q4
New US orders started flowing in Q3 after a two-month pause, but revenues will be recognized in Q4, causing Q3 topline pressure.
NEW RISK
US tariff impact on export margins
Sustained 50% tariff under Section 232 continues to pressure US export margins; management had to reduce prices to secure orders, impacting profitability.
NEW RISK
Commodity price volatility delaying customer deliveries
Rising aluminum and copper prices may cause customers to postpone deliveries, affecting volume execution in Q4 and beyond.
NEW RISK
Chinese competition in non-US export markets
Increased Chinese competition in geographies outside the US impacted conductor volumes, as noted in the press release.
NEW RISK
Transformer bushing shortage delaying transmission projects
Shortage of bushings is delaying transformer deliveries and substation work, which in turn delays transmission line execution and conductor demand.
RISK GONE
US tariff uncertainty and margin compression
Section 232 tariffs (50% on metals) and reciprocal tariffs create cost disadvantages vs. Middle East/UK competitors; new orders are at lower margins.
RISK GONE
Metal price spike delaying orders
Sharp rise in aluminum and copper prices has caused customers to postpone orders globally, impacting near-term order inflow.
RISK GONE
Domestic transmission line execution lag
Transmission line additions in H1 FY26 were only 39% of target, and right-of-way issues continue to hamper execution.
RISK GONE
Q3 revenue and profitability pressure
Management acknowledged Q3 will see lower US billing and margins due to the order pause and metal price disruption.
Fast read
Guidance and risk preview
Management reiterated guidance of 20%+ revenue growth for the cable division for the full year, supported by strong domestic demand and US order re...
Sustained 50% tariff under Section 232 continues to pressure US export margins; management had to reduce prices to secure orders, impacting profita...
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