Apar Inds. Q1 FY27 Earnings Call — Analysis (NSE: APARINDS)
APAR Industries reports highest ever quarterly revenue and profit in Q1FY27, driven by premium conductor mix and oil inventory gains, while securing major US data center cable approvals and multi-year utility orders.
The take
Q1FY27 Consolidated Revenue ₹6,591 Cr ( +29.1% YoY ) . New guidance — FY27-FY30 large conductor orders from u.s… ₹2,800 Cr . New story: Premium product mix shift in conductors .
Results
Revenue ₹6,591 Cr +29.1% YoY; EBITDA ₹814 Cr +62.7% YoY (margin 12.4% vs 9.8%); PAT ₹467 Cr +77.7% YoY; all three divisions posted strong year-on-year profit growth, with oil EBITDA surging 214% due to inventory gains.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Consolidated Revenue | ₹6,591 Cr | +29.1% | yoy · Q1FY27 |
| Consolidated EBITDA | ₹814 Cr | +62.7% | yoy · Q1FY27 |
| Consolidated EBITDA Margin | 12.4% | +260 bps | yoy · Q1FY27 |
| Consolidated PAT | ₹467 Cr | +77.7% | yoy · Q1FY27 |
| Conductor Revenue | ₹3,338 Cr | +19.9% | yoy · Q1FY27 |
| Conductor Volumes | down 6.7% YoY | -6.7% | yoy · Q1FY27 |
| Conductor EBITDA | ₹285 Cr | +14% | yoy · Q1FY27 |
| Conductor EBITDA per ton | ₹53,418 | +₹9,730 | yoy · Q1FY27 |
| Conductor Pending Order Book | ₹10,190 Cr | point_in_time · Q1FY27 · as of Jun-26 | |
| Conductor New Orders Received | ₹5,245 Cr | none · Q1FY27 · Q1FY27 inflow | |
| Oil Revenue | ₹1,701 Cr | +34.7% | yoy · Q1FY27 |
| Oil Volumes | 129,085 kL | -13.7% | yoy · Q1FY27 |
| Oil EBITDA | ₹329 Cr | +214% | yoy · Q1FY27 |
| Oil EBITDA per kL | ₹25,482 | +₹18,478 | yoy · Q1FY27 |
| Cable Revenue | ₹1,838 Cr | +29.5% | yoy · Q1FY27 |
| Cable EBITDA | ₹194 Cr | +36.7% | yoy · Q1FY27 |
| Cable EBITDA Margin | 10.6% | +60 bps | yoy · Q1FY27 |
What management committed to
- Cable division has received approvals from Meta, Microsoft, and Google for data center cables in the U.S., enabling participation in [copper cable] RFQs. — ongoing
- Conductor division received two large orders exceeding INR2,800 crores from a U.S. utility and a European utility, with delivery spread over the next few years. — INR2,800 crores, FY27-FY30
Key themes
Premium mix surge and US approvals fuel record quarter
How the narrative shifted
- Domestic T&D and renewable capex cycle: Delays in conventional conductor volumes due to metal price volatility are framed as temporary within an otherwise robust demand environment.
- Premium product mix shift in conductors: The temporary volume decline in conventional conductors actually improved mix further, reinforcing the strategy.
- U.S. market penetration and tariff rationalization: Previously framed as near-term revenue surge; now repositioned as a slower but deeper penetration with validated approvals and contract wins.
- Capex front‑loading for demand visibility: Management mentioned 'doing a fair amount of capex' and building capacity, but provided no new numbers or split, reducing airtime versus prior call.
- Near‑term headwinds from Middle East conflict: Previously a pure headwind; now showcased as a risk-management success, with inventory provisions taken transparently.
- Competitive intensity in wires and cables: Not mentioned in the current call; no update on competitive dynamics.
- Metal price and freight escalation delaying orders: The impact is now quantified: Q1 volume decline, but order book intact and clearances resuming.
- Data center cable approvals (U.S. hyperscalers): New thread: previously not present; marks a structural entry into high-growth data center cabling market.
Operational commentary
- Received product approvals from Meta, Microsoft and Google for cable supplies to US data centers, enabling participation in RFQs for copper cables (low and medium voltage), a new market beyond the earlier aluminum-only cable exports.
- Secured two large multi-year conductor orders aggregating over ₹2,800 Cr from major electric utilities in the US and Europe, with deliveries spread over the next few years.
- Premium conductor mix rose to 50.3% of divisional revenue (vs 43.7% a year ago) driven by HTLS installations, copper conductors, railways and busbars; conventional conductor deliveries were delayed due to metal price surge.
- Achieved all-time highest quarterly reconducting installations in the conductor division.
- Received critical OPGW approval with 144 count fiber from a large US utility, reflecting growing data-transfer needs in transmission infrastructure.
- Wires business (B2C retail) grew 46% YoY on the back of 25% distributor addition, 51% increase in retail account presence and 73% expansion in active towns for LDC cables through the B2B channel (up 92% YoY).
- UAE oil facility operations were restricted due to closure of Hamriyah port following the US-Iran conflict; only local deliveries from existing inventory were possible, impacting overall oil volumes.
- Working capital days remained stable at 45-50; conductor division debtors and inventory days improved despite sharp commodity price movements, aided by inventory reduction in the oil division.
Analyst Q&A
Q. Whether the high oil EBITDA per kL (₹25,482) is sustainable and if business will be as usual in the remaining period.
Management explained the gain arose from low-cost inventory sold at elevated market prices but refused to comment on future margin sustainability, citing regulatory restrictions on forward-looking statements.
Q. Whether APAR plans to set up manufacturing presence outside India to capture large utility orders.
Kushal Desai called the question beyond the 'Lakshman Rekha' and pointed to past earnings-call commentary for cues, declining to directly answer.
Q. Providing EBITDA per ton split between premium and standard products in the conductor division.
Ramesh Iyer stated 'We don't actually give this breakup' and only provided the blended number, without detailing segment-level profitability.
Research and educational content only. Not investment advice.