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Metal price spike disrupting order inflow
View Risks →Apar Industries Limited — Q2 FY26
APAR Industries reported a strong Q2 FY26 with consolidated revenue of INR 5,715 crores (+23.1% YoY), EBITDA of INR 499 crores (+24% YoY), and PAT of INR 252 crores (+30% YoY).
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APAR Industries reported a strong Q2 FY26 with consolidated revenue of INR 5,715 crores (+23.1% YoY), EBITDA of INR 499 crores (+24% YoY), and PAT of INR 252 crores (+30% YoY). Growth was driven by volume expansion across all divisions, particularly in conductors (+34.9% revenue) and cables (+25.1% revenue), with exports surging 43% YoY. The conductor order book stood at INR 7,168 crores. However, management flagged near-term headwinds: a spike in aluminum and copper prices has paused new orders globally, and U.S. tariffs (Section 232) caused a two-month order drought in Q2. While order inflow has resumed in Q3, revenue recognition will shift to Q4, pressuring Q3 performance. Domestic transmission line execution also lags targets. Medium-term fundamentals remain intact, supported by renewable energy investments and grid modernization. Key risk: sustained high metal prices or tariff escalation could further delay order conversion.
एपीएआर इंडस्ट्रीज ने दूसरी तिमाही में अच्छा प्रदर्शन किया। कंपनी की कुल कमाई 5,715 करोड़ रुपये रही, जो पिछले साल से 23.1% ज्यादा है। कमाई में से खर्चे निकालने के बाद बचा मुनाफा (EBITDA) 499 करोड़ रुपये (+24%) और शुद्ध मुनाफा (PAT) 252 करोड़ रुपये (+30%) रहा। यह ग्रोथ सभी डिवीजनों में बिक्री बढ़ने से हुई, खासकर कंडक्टर (+34.9%) और केबल (+25.1%) में। निर्यात में 43% का उछाल आया। कंडक्टर के ऑर्डर बुक में 7,168 करोड़ रुपये के ऑर्डर हैं। लेकिन कंपनी ने कुछ मुश्किलें भी बताईं: एल्युमीनियम और तांबे के दाम बढ़ने से दुनिया भर में नए ऑर्डर रुक गए। अमेरिकी टैरिफ (सेक्शन 232) की वजह से दूसरी तिमाही में दो महीने तक कोई ऑर्डर नहीं आया। तीसरी तिमाही में ऑर्डर आने शुरू हो गए हैं, लेकिन उनकी कमाई चौथी तिमाही में दिखेगी, जिससे तीसरी तिमाही पर दबाव पड़ेगा। घरेलू ट्रांसमिशन लाइन का काम भी लक्ष्य से पीछे है। लंबी अवधि में, नवीकरणीय ऊर्जा और ग्रिड सुधार से कंपनी को फ
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Read Transcript →Quarter Snapshot
Conductor volume growth
16.2%
+16.2% YoY
Volume growth in conductor division for Q2 FY26.
Conductor order book
INR 7,168 crores
N/A
Total order book for conductor division at end of Q2.
Cables export mix
42.3%
+13.3pp YoY
Export share of cables revenue in Q2 FY26, up from 29% a year ago.
US revenue growth (H1)
145% (conductors), 127.7% (cables)
+145% YoY (conductors), +127.7% YoY (cables)
First half US revenue growth for conductors and cables divisions.
What Changed vs Last Quarter
NEW
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.
NEW
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.
NEW
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.
UPDATED
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.
DROPPED
Conductor volume growth of 10% annually
Management reiterated guidance for 10% volume growth in conductors on an annual basis, with some quarterly variation.
DROPPED
Cable segment 25% value growth
Management guided for 25% value growth in the cable segment, despite US tariff uncertainty.
DROPPED
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.
NEW RISK
Metal price spike disrupting order inflow
Sharp increase in aluminum and copper prices has led customers to delay new orders globally, expecting price corrections.
NEW RISK
US tariff impact on Q3 revenue and margins
Section 232 tariffs caused a two-month order halt; new orders are at lower margins and revenue will be recognized in Q4, pressuring Q3.
NEW RISK
Domestic transmission line execution lag
Transmission line additions in H1 were only 39% of target, and right-of-way issues may delay conductor offtake in H2.
NEW RISK
Competitive disadvantage from non-metal tariff differential
India's reciprocal tariff on non-metal portion (54%) is higher than Middle East/UK (10%), creating a cost disadvantage despite metal duty equalization.
RISK GONE
US tariff uncertainty impacting exports
Uncertainty around reciprocal tariffs and Section 232 duties on aluminum/steel could affect landed costs and demand for conductors and cables in the US.
RISK GONE
Chinese subsidized competition in non-US markets
Chinese products continue to enjoy 8-12% subsidies, reducing APAR's success ratio in export markets like Africa and Latin America.
RISK GONE
Project delays in oil export markets
Transformer oil projects in Saudi Arabia, South Africa, and Australia have been delayed, pushing out execution of the strong order book.
RISK GONE
Potential competitive disadvantage if US tariffs favor other countries
If US finalizes lower reciprocal tariffs with countries like Vietnam or Indonesia, India could be at a disadvantage, impacting export competitiveness.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q1 FY26, Q2 FY25, Q3 FY25, Q4 FY25
Chinese products continue to enjoy 8-12% subsidies, reducing APAR's success ratio in export markets like Africa and Latin America.
Mentioned in Q1 FY25, Q1 FY26, Q2 FY25, Q3 FY25
Management reiterated guidance for 10% volume growth in conductors on an annual basis, with some quarterly variation.
Mentioned in Q1 FY26, Q3 FY25
Management guided for 25% value growth in the cable segment, despite US tariff uncertainty.
Mentioned in Q2 FY25, Q3 FY25
Cable margins remain low due to competitive pricing in the domestic market, with management citing price competition as a key factor.
Mentioned in Q3 FY25, Q4 FY25
Oil division targets volume growth of 6-8% and EBITDA per kiloliter in the range of INR 5,000-6,000 for FY2026.
Fast read
Guidance and risk preview
Despite recent performance of INR 39,636 per ton, management maintains medium-term guidance of INR 30,000 per metric ton for conductors.
Sharp increase in aluminum and copper prices has led customers to delay new orders globally, expecting price corrections.
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