Apar Industries FY26 Annual Earnings Summary
3 quarters covered · ₹16,299 Cr revenue · ₹724 Cr PAT · 9.1% average EBITDA margin.
Quarter-by-quarter progression
Management promises made during the year
Promise tracking available after 2+ quarters of coverage.
Risks flagged during the year
Uncertainty around reciprocal tariffs and Section 232 duties on aluminum/steel could affect landed costs and demand for conductors and cables in the US.
Q1 FY26 · highIf US finalizes lower reciprocal tariffs with countries like Vietnam or Indonesia, India could be at a disadvantage, impacting export competitiveness.
Q2 FY26 · highSharp increase in aluminum and copper prices has led customers to delay new orders globally, expecting price corrections.
Q2 FY26 · highSection 232 tariffs caused a two-month order halt; new orders are at lower margins and revenue will be recognized in Q4, pressuring Q3.
Q3 FY26 · highSection 232 tariffs at 54% continue to impact US cable exports; management had to reduce prices to secure orders, compressing margins.
Q1 FY26 · mediumChinese products continue to enjoy 8-12% subsidies, reducing APAR's success ratio in export markets like Africa and Latin America.
Q1 FY26 · mediumTransformer oil projects in Saudi Arabia, South Africa, and Australia have been delayed, pushing out execution of the strong order book.
Q2 FY26 · mediumTransmission line additions in H1 were only 39% of target, and right-of-way issues may delay conductor offtake in H2.
Q2 FY26 · mediumIndia's reciprocal tariff on non-metal portion (54%) is higher than Middle East/UK (10%), creating a cost disadvantage despite metal duty equalization.
Q3 FY26 · mediumRising copper and aluminum prices could prompt customers to postpone project deliveries, affecting Q4 and Q1 FY27 volumes.
Q3 FY26 · mediumDelays in transformer deliveries due to bushing supply constraints have slowed conductor volume growth; resolution expected in 6 months.
Q3 FY26 · mediumIncreased competition from Chinese players in Asia, Africa, and Middle East impacted conductor volumes in non-US geographies.
What changed through the year
Q1 FY26 · Conductor volume growth of 10% annually
Management reiterated guidance for 10% volume growth in conductors on an annual basis, with some quarterly variation.
Q1 FY26 · Cable segment 25% value growth
Management guided for 25% value growth in the cable segment, despite US tariff uncertainty.
Q1 FY26 · Conductor EBITDA per ton guidance maintained at ₹30,000+ tailwinds
Management maintained the guidance of ₹30,000+ tailwinds for conductor EBITDA per ton, citing uncertainty from US tariffs and competition.
Q1 FY26 · Capex of ₹1,300 crore by June 2026
Planned capex of ₹1,300 crore, with ₹150 crore spent in Q1 and ₹350 crore expected in the next few months; major payouts in Nov-Dec-Jan.
Q2 FY26 · Conductor EBITDA per ton guidance maintained at INR 30,000
Despite recent performance of INR 39,636 per ton, management maintains medium-term guidance of INR 30,000 per metric ton for conductors.
Q2 FY26 · Cables EBITDA margin guidance of 10-12%
Management expects cables EBITDA margins to remain in the 10-12% range over the medium to long term.
Q2 FY26 · Cables capacity expansion to INR 10,000 crores revenue potential
INR 800 crores CapEx in cables will increase revenue capacity from INR 5,000 crores to INR 10,000 crores over time, with bulk commissioning by June 2026.
Q2 FY26 · FY26 CapEx of INR 1,300 crores
Total capital expenditure for FY26 across all divisions is approximately INR 1,300 crores, with INR 400 crores incurred in H1.
Q3 FY26 · Cable revenue growth of 20%+ for FY26
Management expects cable division to achieve over 20% revenue growth for the full year, driven by domestic strength and US order recovery in Q4.
Q3 FY26 · Conductor volume growth to return to double digits in FY27
After 8.5% volume growth in 9M FY26, management targets double-digit volume growth in FY27, supported by resolution of transformer bushing shortages and strong renewable energy demand.
Q3 FY26 · Capex plan of INR 1,400 crore on track
INR 500+ crore capex completed by Q3; remaining capex to be executed by Q4 and Q1 FY27, with all facilities operational by mid-FY27.
Q3 FY26 · Cable EBITDA margin to remain around 9.5%-10%
Despite margin pressure from US tariff adjustments, management expects cable EBITDA margin to stay in the 9.5%-10% range for FY26.