Apar Industries Limited — Q1 FY26
Apar Industries reported a strong Q1 FY26 with revenue of ₹5,104 crore (+27.3% YoY), EBITDA of ₹501 crore (+27% YoY), and PAT of ₹263 crore (+30% YoY).
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.
64%Questions answered3Evaded / deflected11Questions auditedContradictedNumbers vs filing
Evasive
High priority
Sustainability of conductor realizations at INR 43,000 vs earlier guidance.
Asked by Vidit Trivedi, Asian Market Securities
Management reiterated existing guidance without addressing sustainability of current high realizations.
repeated guidance without specificsno commitment on sustainability
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Question
We have seen the realization is close to INR 43,000. My question is how sustainable are these levels or should we stick to the earlier guided range of INR 30,000+ tailwinds?
Kushal Desai, Chairman and Managing Director
We continue with the same guidance. INR 30,000+ tailwinds. The tailwinds will depend on the use of premium mix and non-premium mix on the various metals involved, the geography mix, and the kind of products which are there.
Answered
High priority
Whether 83% US conductor growth is due to pre-buying.
Asked by Vidit Trivedi, Asian Market Securities
Management directly confirmed pre-buying contributed to US growth.
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Question
Second, on the U.S. growth this year in the conductor division, it's close to 83%. Can we assume that this is also because of the pre-buying?
Chaitanya Desai, Managing Director
Yes, to some extent, yes, we can. See that one of those activities, because this duty structure is uncertain at this stage, and therefore customers are being insisting for some early deliveries.
Answered
High priority
Whether conductor realization growth came from domestic side and outlook on AL59 pricing.
Asked by Nitin Arora, Axis Mutual Fund
Management confirmed domestic drove growth and gave volume vs margin outlook for AL59.
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Question
When we look at your export mix, on a quarter-on-quarter basis it has still not moved that much as a share in conductors. It looks like to us that this realization growth has come from the domestic side largely. Can you throw some light, is this analysis correct and how you're seeing domestic prices, specifically AL59?
Chaitanya Desai, Managing Director
On the first point, it is correct that the domestic market is the one which has driven the growth compared to the export. On the second point, the various products which we have been expanding in on the copper side as well as on the aluminium side, both have grown in the domestic market. We see more of a possibility of growth in volume rather than expansion in margins, especially on AL59.
Partial answer
High priority
Why cables exports surged but margins stayed at 10%.
Asked by Amit Anwani, PL Capital
Management explained export growth sources but did not quantify margin impact or provide a clear reason for margin stability.
no specific margin breakdownattributed to multiple factors without quantification
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Question
This quarter we saw pretty strong exports growth. Export number for cables is almost INR 586 crore versus almost INR 350 crore-400 crore run rate for the whole of last year. Despite that, the margins are keeping at about 10%. First thing I would like to understand is this strong export coming from only the U.S. or are there other functions? Second, despite export contribution going up this quarter, why are the margins still at this level?
Kushal Desai, Chairman and Managing Director
There is an overall growth in exports. A larger portion has gone to the U.S. market. Part of it was as I mentioned in my opening remarks, to try to pick up a tariff where, you know, it had been declared as that 10%. There has been some impact that has happened because in some contracts the customer has paid the higher tariffs. In some cases, we have had to negotiate and compromise with the client.
Answered
Medium priority
Why only 17% of annual transmission target achieved in Q1.
Asked by Garvit Goyal, Nvest Analytics Advisory LLP
Management directly attributed the shortfall to monsoons and right-of-way issues.
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Question
From your opening remarks, you mentioned about the transmission lines that we have achieved 17% of our annual target for FY 2026. Is it due to monsoons entering earlier in India or any structural issues that you are seeing?
Kushal Desai, Chairman and Managing Director
No, sir, last year. The last year number was very majorly affected because of the elections as well. If you are talking about so far in the first quarter, 17% of the planned quantity has been executed. If you were to split into four quarters, it should have been about 25%. There is a little bit of a, you know, part of it is because the monsoons did come in a bit early. There is also a right-of-way issue.
Evasive
Medium priority
Demand-supply and growth outlook for premium conductors in domestic market.
Asked by Charanjit Singh, DSP
Management declined to provide market size or growth outlook, citing lack of data.
no market size givenno growth forecast
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Question
My question is on the premium conductors, especially in the domestic market. If you can help us understand in terms of the demand supply scenario and from the growth perspective, what is the current size of the market and how do you see over the next two to three years.
Kushal Desai, Chairman and Managing Director
There is no challenges, there are no sources to get the market information on this kind of premium products. What is also happening due to various right-of-way issues and the general increase in electrification, there is more tendency to switch to reconductoring.
Answered
High priority
Whether 25% value growth guidance for cables still stands.
Asked by Nikhil Poptani, Kizuna Wealth
Management reaffirmed the guidance clearly.
Read the exchange
Question
My first question is like with so much uncertainty to cables exports, are we still guiding 25% value growth in cable segment?
Kushal Desai, Chairman and Managing Director
Yes, we are still guiding 25% value growth on the cables.
Partial answer
Medium priority
Why oils business margins haven't improved despite better product mix and lower crude prices.
Asked by Himanshu Upadhyay, BugleRock Capital
Management highlighted absolute margin level but did not explain why margins haven't improved despite mix and crude.
compared to prior year quarter, not sequentialdid not address crude price impact
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Question
What we are seeing is we are having pretty good growth rate on the better products, transformer oil, auto oil, and which we have been highlighting in industrial lubricants versus rubber processing oil and some of those tech times. The margins wise it seems there is not much of an improvement, though it seems year over year it is some improvement, but again the price of crude has fallen.
Kushal Desai, Chairman and Managing Director
The reference which you know, I read out and I mentioned during my opening remarks is a quarter-to-quarter reference. If you see in the first quarter of last year it was also the highest margin that was there in the year. If you see on an absolute level the margin of INR 7,000 + EBITDA per kL is one of the higher margins that we've had.
Answered
High priority
Outlook on US demand after the 'big beautiful bill' and renewable project deadlines.
Asked by Sagar Dhawan, ValueQuest
Management provided a detailed outlook on US demand, segmenting renewables and expressing confidence.
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Question
My question is on the U.S. demand sir, basically if you just keeping the tariff related oil central aside for a minute, what is your outlook on the U.S. demand after the big beautiful bill getting passed as an act because it puts a predictive service deadline for the renewable projects to come in to amend the incentives. Does it change anything on the demand front for you in the U.S.?
Kushal Desai, Chairman and Managing Director
If you look at the renewable, it falls under actually three buckets. You have solar, you have onshore wind, you have offshore wind. ... We don't expect any massive change coming from the solar side. ... We feel that there'll still continue to be a growth in the North American market.
Evasive
Medium priority
Whether conductor realization of INR 480,000 per ton is sustainable.
Asked by Amit Anwani, PL Capital
Management declined to forecast realization, shifting focus to EBITDA per ton.
refused to give guidance on realizationredirected to EBITDA per ton
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Question
Just a couple of things on conductor as the realization has been high in Q4. Are we expecting a similar number like INR 480,000 per ton?
Kushal Desai, Chairman and Managing Director
That's what we reported. Just wanted to understand on realization going forward for conductors it depends on the product mix, Amit. It's not possible to predict that way. ... We are more guided with the EBITDA per ton.
Answered
Medium priority
Reason for lower interest outflow in Q1 vs Q4.
Asked by Vignesh Iyer, Sequium Investment
Management clearly explained the reduction in finance cost due to cash purchases.
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Question
My first question is on the interest that we face for the quarter, which is around INR 85 crore. Even though our execution is almost similar to what we did in quarter four, I wanted to understand if this lower interest outflow is majorly because of a lower net working capital cycle or if it is because we paid off some long-term borrowings and our total costs have come down.
Kushal Desai, Chairman and Managing Director
We have used cash and internal accruals to fund our purchases as compared to the letter of credit. When you do the letter of credit, you have an interest element, but when you do cash purchases, that kind of cost comes down.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Cables exports INR 586 crore in Q1 | ₹586 cr | ₹5,104 cr | Understated vs filing |
| Sharjah plant revenue INR 1,000 crore in FY25 | ₹1,000 cr | ₹5,104 cr | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.