Apar Inds. Q2 FY27 Earnings Call — Analysis (NSE: APARINDS)
APAR Industries reported Q2 FY27 consolidated revenue of ₹6,931 Cr (+21.3% YoY) and PAT of ₹447 Cr (+77.8% YoY), supported by record conductor order books and data center wins despite ₹800 Cr of exports deferred in transit.
Result quality: stable — Results context unavailable. Management sentiment: optimistic.
The take
Q2FY27 Consolidated Revenue ₹6,931 Cr ( +21.3% YoY ) . Guidance raised — FY27 cable full year revenue growth 25% . But missed — Metal price and freight escalation delaying ord… . New story: Premium product mix shift in conductors .
Results
Revenue rose 21.3% YoY to ₹6,931 Cr; EBITDA increased 57.8% YoY to ₹787 Cr (margin 11.4%, +270 bps); PAT rose 77.8% YoY to ₹447 Cr.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Consolidated Revenue | ₹6,931 Cr | +21.3% | yoy · Q2FY27 |
| Consolidated EBITDA | ₹787 Cr | +57.8% | yoy · Q2FY27 · post open period forex |
| Consolidated PAT | ₹447 Cr | +77.8% | yoy · Q2FY27 |
| EBITDA Margin | 11.40% | +270bps | yoy · Q2FY27 |
| PAT Margin | 6.50% | +200bps | yoy · Q2FY27 |
| Conductor Order Book | ₹12,025 Cr | point_in_time · Q2FY27 · Sep-26 | |
| Cable Order Book | ₹3,000 Cr | point_in_time · Q2FY27 · Sep-26 | |
| Conductor EBITDA per MT | ₹48,241 | +22.5% | yoy · Q2FY27 · per metric ton |
| Oil EBITDA per KL | ₹23,262 | +254.1% | yoy · Q2FY27 · per kilo litre |
Guidance
Management guided for 25% value growth in cables with 10-12% EBITDA margin and an H2 FY27 volume rebound in conductors.
What management committed to
- We expect Q3 and Q4 [FY27] should be strong than Q1 and Q2 [FY27] in terms of the volume numbers. — FY27
- We are quite confident that on factory dispatches, cable division growth will meet ~25% [for FY27]. — 25%, FY27
- Our target is to get to between 11% and 12% [cable EBITDA margin]. — 11% to 12%, medium-term
- The US SPARK program (USD 1.9B federal funding) is expected to unlock 23 gigawatts of transmission capacity, generating demand for APAR's HTLS and reconductoring products. — FY28-FY30
- Power cable [voltage capability] up to 132 kV and eventually to 220 kV is in the pipeline, with business expected in FY28. — FY28
Key themes
Record order book and data center expansion
How the narrative shifted
- Domestic T&D and renewable capex cycle: The narrative evolved from a simple T&D capex cycle to actively incorporating specific new regulatory tailwinds (thermal margin limit, N-1 mandate) and government announcements to counterbalance the negative volume data.
- Premium product mix shift in conductors: Management downplayed the dip in premium mix percentage, focusing instead on absolute margin strength and introducing specific cutting-edge product wins to argue the strategy is accelerating rather than weakening.
- U.S. market penetration and tariff rationalization: The story was reframed from 'tariff headwinds resolved' to 'transit delay blip', using large order inflows as the primary signal of health versus short-term revenue recognition timing.
- Near‑term headwinds from Middle East conflict: The narrative is unchanged; the conflict persists and management consistently emphasizes its disciplined, conservative operating philosophy in this segment.
- Metal price and freight escalation delaying orders: Elevated from a supporting headwind to the primary explanatory narrative for the volume miss, heavily featured in the opening remarks and Q&A to proactively manage expectations on the disappointing volume data.
- Data center cable approvals (U.S. hyperscalers): The emphasis shifted from 'approval achieved' to 'large orders booked', transforming the narrative from potential to tangible success.
- QIP fundraise and balance sheet strengthening: The successful INR2,500 Cr QIP and subsequent credit rating upgrade to AA are presented as a strategic boost to financial flexibility, enabling cash purchases of raw materials, reducing working capital pressure, and supporting future growth without debt burden.
- US SPARK program for reconductoring boom: The US Department of Energy's SPARK program (USD 1.9B for 31 projects) is introduced as a concrete, formal policy catalyst creating a large US reconductoring market, validating APAR's HTLS focus and international strategy.
- Oil division strategic margin discipline: Management explicitly states a strategic pivot from volume to margin and ROCE in the oil division, prioritizing high-quality customers and consistent supply over low-value volume, which explains the 20% volume drop alongside a 185% EBITDA surge.
Operational commentary
- Conductor order book hit an all-time high of ₹12,025 Cr (inflow of ₹4,725 Cr in Q2, +82% YoY), including ₹3,000 Cr of utility orders from US/UK and Scandinavian offshore wind farm Z-shaped conductor orders.
- Won turnkey 48-fiber OPGW order worth ₹960 Cr from KPTCL with IP-MPLS technology in tie-up with Nokia, and first 144-fiber OPGW order in Central America.
- Secured ~₹1,000 Cr data center cable orders from Google (US) and Amazon Web Services (India).
- Recognized ₹800 Cr of cables and conductors in transit sold on DDP basis to US customers, deferring revenue recognition into Q3 FY27 due to container shipping disruptions.
- Silvassa CTC plant experienced 20 days of downtime during Q2 due to severe flooding, impacting dispatches.
- Approved enabling resolution to invest up to $100M into Singapore subsidiary (PSPL) for overseas capacity expansion.
Analyst Q&A
Q. Outlook on conductor profitability and EBITDA per MT given H1 strength above ₹48,000-50,000/MT?
Maintains medium-to-long term baseline guidance of ₹35,000-36,000/MT plus variable tailwinds; actual per-ton margins will depend on premium mix and export execution, with high raw material volatility requiring operating buffers.
Q. Details on the proposed $100M investment into Singapore subsidiary PSPL and overseas expansion plans?
Stated that this is currently an enabling resolution to fund overseas expansion options, and full specifics will be disclosed to stock exchanges when finalized.
Q. Will elevated base oil prices keep specialty oil volumes subdued, and what is the normalized margin expectation?
Operating philosophy deliberately prioritizes margins and cash flow over chasing volume by avoiding spot purchases and price-sensitive clients; Q2 EBITDA/KL benefited from contracted pricing and is above long-term normal levels.
Research and educational content only. Not investment advice.