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).
neutral
medium
✓ 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.
68%Questions answered2Evaded / deflected11Questions auditedContradictedNumbers vs filing
Evasive
High priority
Revision of EBITDA per ton guidance given consistent performance near INR 40,000?
Asked by Umesh Raut, Nomura
Management acknowledged actuals above guidance but refused to revise guidance upward.
maintained conservative guidance despite outperformanceno commitment to revise
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Question
Any revision in terms of guidance now considering that consistent performance of EBITDA per ton, more of closer to INR 40,000 per ton?
Kushal Desai, Chairman and Managing Director
We will continue our guidance of 30,000 per metric ton. Despite that, we have got INR 35,000-INR 40,000 EBITDA per metric ton. For the time being, we'll continue to guide INR 30,000 per metric ton.
Partial answer
Medium priority
Breakdown of US demand between data centers and government projects.
Asked by Umesh Raut, Nomura
Management gave directional answer but no quantitative breakdown.
no exact breakup givenonly estimates provided
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Question
If you can divide that demand in case of data center and then other government-related projects, and where exactly do you see post-commitments happening?
Kushal Desai, Chairman and Managing Director
Data centers is definitely one of the major drivers... we don't have the exact breakup, but our estimate is that the major part of the demand currently in the U.S. is actually coming because of the data centers.
Deflected
Medium priority
Import share of conductors/cables from Middle East and Europe into US.
Asked by Umesh Raut, Nomura
Management did not answer the specific question about import share.
did not provide import shareexplained tariff structure instead
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Question
How much of that portion which is coming in from Middle East and Europe into U.S. market as a part of total demand?
Kushal Desai, Chairman and Managing Director
The duty on these, irrespective of the country from which the metal is being imported, is attracting a duty of 50%... India actually has gained to some extent because it's normalized to the extent of the metal portion.
Answered
High priority
EBITDA margin outlook for cables business.
Asked by Umesh Raut, Nomura
Management provided clear margin range guidance.
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Question
How should one think about EBITDA margin in the cables business going forward?
Kushal Desai, Chairman and Managing Director
On a medium to long-term basis, we expect the margins to hover around 10%-12%, as we have been guiding earlier.
Declined
Low priority
Breakup of cables margins by end-user market.
Asked by Umesh Raut, Nomura
Management declined to share any margin breakdown.
refused to provide breakup
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Question
Is it possible to share any breakup in between end-user markets where you experience relatively higher margin for those specific applications?
Kushal Desai, Chairman and Managing Director
No, there is no fixed pattern as such. It all depends on the composition, on the requirements, on the mixed specifications.
Answered
High priority
Impact of metal price rise on gross margins and ordering.
Asked by Amit Anwani, PL Capital
Management clearly stated no impact on gross margins due to hedging.
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Question
What is the assessment with respect to impact of this metal prices in the near term? Any impact on the gross margin because of this?
Kushal Desai, Chairman and Managing Director
The answer to that is no because we run a completely hedged book. So we do not take on the risk of the metal.
Partial answer
High priority
Impact of tariffs on US sales in Q2.
Asked by Amit Anwani, PL Capital
Management described impact qualitatively but did not quantify sales impact.
no specific amount or percentage given
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Question
Any impact you witnessed, if you could explain any amount or percentage where, despite negotiation with the customer, we had an impact on sales in U.S. markets?
Kushal Desai, Chairman and Managing Director
For almost two months, which is your August and September of the last quarter, the order inflow had almost completely stopped... This would definitely have a short-term impact in our booking of revenues in Q3 of FY26.
Answered
Medium priority
Reason for low domestic cables sales growth and high exports despite tariffs.
Asked by Amit Anwani, PL Capital
Management explained both domestic slowdown and export surge clearly.
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Question
For cables, we can see this quarter... sales was about INR 85 crores for domestic business, which is kind of hardly 1-2% growth. Any reason there? Exports for cables were significantly higher despite the tariff.
Kushal Desai, Chairman and Managing Director
In terms of the cables exports to the U.S., because the tariffs were the periods were already announced... a lot of customers have taken delivery of product to meet with those deadlines. The domestic market Q2 is normally the slowest period.
Answered
High priority
Impact of tariffs on US EBITDA pattern for conductors and cables.
Asked by Amit Anwani, PL Capital
Management explained the hit was passed through, no net profit impact.
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Question
Has there been any impact on the U.S. EBITDA pattern? If you could just highlight negative or positive because of the recent developments of tariff.
Kushal Desai, Chairman and Managing Director
The EBITDA pattern for the U.S. markets across both conductors and cables have both obviously taken a hit... But we have been able to pass on this hit to the customers. So there is no net impact on our profitability.
Partial answer
Medium priority
Impact on cables growth if tariff situation resolves.
Asked by Prathmesh Salunkhe, PL Capital
Management discussed near-term impact but did not commit to maintaining growth rate.
no specific growth guidance for next year
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Question
If and when this tariff situation resolves, what kind of impact we can see going forward? Can the cables business maintain this kind of growth in next year as well?
Kushal Desai, Chairman and Managing Director
There will be a definite impact in Q3 of FY26 because there were two months of really no order inflow... From Q4 onwards, you will see again the momentum starting to pick up.
Answered
High priority
Is US revenue slowdown only in Q3 with Q4 recovery?
Asked by Nitin Arora, Axis Mutual Fund
Management confirmed Q3 slowdown and Q4 recovery with order inflow details.
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Question
Is just the U.S. revenue part which you see some slowness coming in Q3, and Q4 is where you again start seeing a bump up? And is the order run rate similar?
Kushal Desai, Chairman and Managing Director
We've seen a large intake come in at the end of, through the Diwali... A whole spate of orders has come in from the U.S. market. So you'll see a reasonably strong execution happening from November onwards.
Answered
Medium priority
Progress on conductor capacity expansion and timeline.
Asked by Kumari Nitisha, ICICI Securities
Management provided clear timeline for capacity completion.
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Question
What is the progress on that, and by when do we expect the entire capacity to come online?
Kushal Desai, Chairman and Managing Director
It is all going as per schedule. Almost all the product lines, we are increasing our capacity. And we envisage that the bulk of it will be done by March 26, and some part of it will get done by the Q1 of the next financial year.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Cables EBITDA margin guidance 10%-12% | 11% | 8.7% | Overstated vs filing |
| Domestic cables sales INR 85 crores in Q2 | ₹85 cr | ₹5,715 cr | Understated vs filing |
| US revenue FY25 full year INR 1,600 crores | ₹1,600 cr | ₹5,715 cr | Understated vs filing |
| US revenue H1 FY26 already INR 1,600 crores | ₹1,600 cr | ₹5,715 cr | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.