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US tariff uncertainty persists
View Risks →Apar Industries Limited — Q3 FY26
APAR Industries reported a solid Q3 FY26 with consolidated revenue of INR 5,480 crore (+16.2% YoY) and EBITDA of INR 483 crore (+20.4% YoY), driven by strong domestic performance and favorable product mix.
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APAR Industries reported a solid Q3 FY26 with consolidated revenue of INR 5,480 crore (+16.2% YoY) and EBITDA of INR 483 crore (+20.4% YoY), driven by strong domestic performance and favorable product mix. The conductor division saw EBITDA per metric ton surge to INR 44,195 (+49% YoY) as premium product mix rose to 44.2%. However, cable exports to the US were hit by Section 232 tariffs, with US revenues down 65% in Q3. Management secured INR 500 crore in new US cable orders during Q3, expected to largely execute in Q4. The domestic business grew 30% YoY, offsetting export weakness. The company maintained its guidance of 20%+ revenue growth for cables and double-digit volume growth for conductors in FY27. A key risk is sustained US tariff uncertainty, which could pressure cable margins despite strategic price adjustments.
एपीएआर इंडस्ट्रीज ने तीसरी तिमाही में अच्छा प्रदर्शन किया। कुल कमाई 5,480 करोड़ रुपये रही, जो पिछले साल से 16.2% ज्यादा है। कंपनी का मुनाफा (EBITDA) 483 करोड़ रुपये रहा, जो 20.4% बढ़ा। इसकी वजह देश में मजबूत बिक्री और अच्छा उत्पाद मिश्रण है। कंडक्टर डिवीजन में प्रति टन मुनाफा 44,195 रुपये हो गया, जो 49% ज्यादा है। लेकिन अमेरिका में केबल निर्यात पर टैरिफ लगने से वहां बिक्री 65% गिर गई। हालांकि, कंपनी को अमेरिका से 500 करोड़ रुपये के नए ऑर्डर मिले हैं, जो अगली तिमाही में पूरे होंगे। भारत में कारोबार 30% बढ़ा, जिससे निर्यात की कमजोरी की भरपाई हुई। कंपनी को अगले साल केबल में 20% और कंडक्टर में दो अंकों की बढ़ोतरी की उम्मीद है। लेकिन अमेरिकी टैरिफ अनिश्चितता एक बड़ा जोखिम है।
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Conductor EBITDA per metric ton
INR 44,195
+49% YoY
EBITDA per metric ton for conductor division in Q3 FY26, up from INR 29,593 in Q3 FY25, driven by premium product mix.
Premium product mix (conductor)
44.2%
+680bps YoY
Share of premium products in conductor sales increased from 37.4% in Q3 FY25, boosting margins.
US cable order inflow (Q3)
INR 500 crore
Recovery from near-zero in Q2
New US cable orders booked in Q3 FY26, expected to largely execute in Q4, signaling demand resilience.
Conductor order book
INR 7,396 crore
Exports 32% of total
Strong order book provides visibility; exports constitute 32%, indicating diversified demand.
What Changed vs Last Quarter
NEW
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.
NEW
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.
NEW
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.
NEW
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.
DROPPED
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
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.
DROPPED
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.
DROPPED
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.
NEW RISK
US tariff uncertainty persists
Section 232 tariffs at 54% continue to impact US cable exports; management had to reduce prices to secure orders, compressing margins.
NEW RISK
Commodity price volatility may delay customer deliveries
Rising copper and aluminum prices could prompt customers to postpone project deliveries, affecting Q4 and Q1 FY27 volumes.
NEW RISK
Transformer bushing shortage delays conductor execution
Delays in transformer deliveries due to bushing supply constraints have slowed conductor volume growth; resolution expected in 6 months.
NEW RISK
Chinese competition in non-US export markets
Increased competition from Chinese players in Asia, Africa, and Middle East impacted conductor volumes in non-US geographies.
RISK GONE
Metal price spike disrupting order inflow
Sharp increase in aluminum and copper prices has led customers to delay new orders globally, expecting price corrections.
RISK GONE
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.
RISK GONE
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.
RISK GONE
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.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q1 FY26, Q2 FY26, Q4 FY25
Total capital expenditure for FY26 across all divisions is approximately INR 1,300 crores, with INR 400 crores incurred in H1.
Mentioned in Q1 FY26, Q2 FY25, Q2 FY26, Q4 FY25
Despite recent performance of INR 39,636 per ton, management maintains medium-term guidance of INR 30,000 per metric ton for conductors.
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
Management expects cable division to achieve over 20% revenue growth for the full year, driven by domestic strength and US order recovery in Q4.
Section 232 tariffs at 54% continue to impact US cable exports; management had to reduce prices to secure orders, compressing margins.
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