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%) an...
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
71%Questions answered2Evaded / deflected12Questions auditedContradictedNumbers vs filing
Answered
High priority
What is driving the strong EBITDA and volume outlook for conductors?
Asked by Amit Anwani, PL Capital
Management clearly explained the premium mix increase and volume expectations.
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Question
So what do you mean by product mix? Is it the premium product where we have seen the contribution of 44%-45% in 9M versus last 9M was about 37%? So would you be able to explain more in terms of what is driving this strong EBITDA part and for conductors? And also would like to understand the volume scope.
Kushal Desai, Chairman and Managing Director
It is largely because of increase in the premium mix as compared to the total sales of the conductor. ... last quarter three, we had a premium mix of about 37%, which in this particular quarter has grown to 44%, due to which our EBITDA margins have been higher.
Evasive
High priority
Is the EBITDA guidance of INR 30+ thousand being revised upward?
Asked by Amit Anwani, PL Capital
Management did not provide a revised number or specific outlook despite strong performance.
no revision givenrepeated same guidance
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Question
So the sustainable EBITDA part, are you revising that guidance of INR 30+ thousand because we have been delivering exceptionally well on EBITDA part and still despite the U.S. challenge?
Kushal Desai, Chairman and Managing Director
We'll continue with the same guidance that we have been giving in the past. ... But for now, we'll continue with the same guidance.
Answered
Medium priority
What is the impact of commodity prices on margins and demand?
Asked by Amit Anwani, PL Capital
Management explained pass-through model and potential delays but no direct margin hit.
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Question
So if at all there's an impact, is there a chance that we might also have to take a hit? Or what exactly are you anticipating for 4Q and Q1 in terms of commodity price impact, whether on the business or the margins?
Kushal Desai, Chairman and Managing Director
Our business model is a pass-through, so we are not taking any risk on the commodity prices per se. ... we have seen a little bit of that affecting us in this Q3, and it is possible in Q4 also there could be some.
Partial answer
High priority
What is the status of US business normalization under 50% tariff?
Asked by Amit Anwani, PL Capital
Management acknowledged tariff impact and price reductions but did not commit to a quarter for normalization.
no specific timeline for normalization
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Question
So what is the view now? Are we back on track in terms of better performance in 4Q? ... Is it Q4 or Q1 when we see the normalized business?
Kushal Desai, Chairman and Managing Director
The current tariff situation remains the same at 54%. ... we have had to reduce prices to some extent in order to book fresh product. ... our strategy is to continue to ride this period by making sure that we service customers there, even though it means at a slightly lower margin.
Declined
Medium priority
Can you share US revenue for nine months for conductors and cables?
Asked by Amit Anwani, PL Capital
Management did not provide the requested nine-month breakdown.
number not available
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Question
So possible to share the U.S. revenue for nine months basis for conductors and cables?
Kushal Desai, Chairman and Managing Director
We don't have that number handy right now. I have the six-month number, which was equal INR 1,600 crores is the six-month.
Partial answer
Medium priority
How big is the EU market and what is the impact of the India-EU FTA?
Asked by Umesh Raut, Nomura
Management gave qualitative view but no concrete numbers or timeline for impact.
no specific quantificationdeferred to later
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Question
So my first question is on recent FTA between India and EU. And I want to understand how big the EU market is in terms of conductor and cable, and how competition is also over there.
Kushal Desai, Chairman and Managing Director
The fine print of the EU deal is still something that we need to go through. ... The European market otherwise is very large, but the access to the market has been very restricted because the utilities there tend to prefer to buy EU-manufactured products locally.
Answered
High priority
What is the volume growth outlook for conductors in FY27?
Asked by Umesh Raut, Nomura
Management provided specific growth expectation (double-digit) and explained drivers.
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Question
So I think going into FY27, considering that there were delays in FY26, and there were also issues in FY25 as well, I think, how can one factor in volume growth for conductor business in FY27?
Kushal Desai, Chairman and Managing Director
So currently, there is a backlog which is there because of ... problem of transformer delivery ... In about six months' time, we expect that the domestic side will also increase. ... we expect next year volumes to again be past double-digit.
Answered
High priority
How is the cable business tracking towards the 20% CAGR and 11% margin target?
Asked by Umesh Raut, Nomura
Management gave specific numbers for revenue growth and EBITDA margin, explaining the impact.
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Question
So where are we on those plans on the top-line growth side for cable business? And second, I think on the EBITDA margin side, our endeavor is also to get into double-digit range more close to 11%.
Kushal Desai, Chairman and Managing Director
If you take the nine-month period, volume, I mean, our revenues are 22%. So we are tracking on a 20%+ CAGR growth. ... nine-month EBITDA is at 10%. And of course, the U.S. business actually I'm having to make some sacrifice on pricing.
Answered
Medium priority
What is the scope and opportunity of the new Kavach project order?
Asked by Kunal Sheth, B&K Securities
Management provided order value, timeline, and overall market opportunity.
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Question
Sir, first question is around this new line of business announcement that you have made, the INR 156 crore order. If you can talk more about it, our scope of work, and how big the opportunity is for APAR?
Kushal Desai, Chairman and Managing Director
It's really an extension of what we're trying to do in the cable solution space around telecommunication ... That package is about INR 153 crore. ... Execution time frame is approximately 22-24 months. ... Kavach projects are actually, if you see, totally the railway will be spending upwards of INR 40,000-INR 50,000 crore in upgrading safety standards.
Answered
Medium priority
What is the status of CapEx for conductors and cables?
Asked by Kunal Sheth, B&K Securities
Management gave specific CapEx numbers and timeline.
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Question
Sir, if you can quickly also give us some update on status of the CapEx on both conductors and the cable side, where are we on that?
Kushal Desai, Chairman and Managing Director
We are pretty much on plan. We've already completed about INR 500+ crore's worth of CapEx as of Q3 on our total plan of about INR 1,400 crore. We expect that in Q4 and Q1 of FY27, a large portion of that remaining CapEx will actually take place.
Answered
Medium priority
What are the demand drivers for cables in the domestic market?
Asked by Sanjeev Zarbade, Antique Stock Broking
Management listed specific sectors driving growth.
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Question
My question was regarding the demand drivers for the cables in the domestic market. I also wanted to understand what is the demand mix from the various sectors that we have in the cables.
Kushal Desai, Chairman and Managing Director
We have continued to see for us strong growth coming from the renewable energy side, especially given the fact that APAR cable division is the major supplier to all the windmill manufacturers. ... The railway business also has grown year-on-year. ... We are accessing and supplying to a number of data centers in India.
Partial answer
Medium priority
Why did the cable order book dip QoQ and what is the Q4 trend?
Asked by Nikhil Abhyankar, UTI Mutual Fund
Management explained the nature of the business but did not provide a specific Q4 trend.
no specific Q4 order inflow number
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Question
I was saying, sir, you mentioned that the order inflow has started to improve from Q3, but we see a dip in the order book for the cables division, QOQ. So just some clarity on that. And how has been the order inflow trend in Q4, if you can?
Kushal Desai, Chairman and Managing Director
Cable business typically operates on a low order book period. ... So I would not be very bothered about the pending order situation on the cable side. On the conductor side, it's a much longer cycle business, and I think that number then is far more important.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Cable revenue growth 22% in nine months | 22% | 16.2% | Overstated vs filing |
| Cable EBITDA margin 10% in nine months | 10% | 8.8% | Overstated vs filing |
| Domestic cable revenue up 33.4% in Q3 | 33.4% | 16.2% | Overstated vs filing |
| US six-month revenue equal INR 1,600 crores | ₹1,600 cr | ₹5,480 cr | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.