Apar Inds. Q4 FY26 Earnings Call — Analysis (NSE: APARINDS)
APAR reports record Q4 revenue of ₹6,603 Cr and outlines ₹1,500 Cr FY27 capex plan, driven by U.S. data center and domestic T&D opportunities, despite near-term disruptions.
The take
FY26 Consolidated Revenue (annual) ₹22,902 Cr ( +23.3% YoY ) . New guidance — FY27 conductor division volume growth 10% . New story: Premium product mix shift in conductors .
Results
Revenue ₹6,603 Cr +26.7% YoY; EBITDA ₹584 Cr +19.3%; adjusted PAT ₹285 Cr +14%; conductor EBITDA/MT at ₹44,919, supported by premium mix and U.S. recovery.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Consolidated Revenue | ₹6,603 Cr | +26.7% | yoy · Q4FY26 |
| Consolidated EBITDA (post forex) | ₹584 Cr | +19.3% | yoy · Q4FY26 |
| Consolidated PAT (adjusted for one‑offs) | ₹285 Cr | +14% | yoy · Q4FY26 · Excluding ₹31 Cr non‑operating provisions |
| Consolidated Revenue (annual) | ₹22,902 Cr | +23.3% | yoy · FY26 |
| Conductor Revenue | ₹3,764 Cr | +29.9% | yoy · Q4FY26 |
| Conductor EBITDA per MT | ₹44,919 | +8.4% | yoy · Q4FY26 · ₹41,430 a year ago |
| Cable Revenue | ₹1,903 Cr | +35% | yoy · Q4FY26 |
| Cable EBITDA margin | 10.6% | point_in_time · Q4FY26 · margin in Q4FY26 | |
| Conductor Order Book | ₹7,671 Cr | point_in_time · Q4FY26 · as of Mar 31, 2026 | |
| FY27 Planned Capex | ₹1,500 Cr | none · FY27 · planned, FY26 actual ₹740 Cr |
Guidance
FY27 capex at ₹1,500 Cr, conductor and cable volume growth targeted at 10% and 25% respectively, and medium-term conductor EBITDA margin guided at ₹35,000-36,000/MT plus tailwinds.
What management committed to
- Conductor division volume growth of ~10% year‑on‑year [in FY27]. — 10%, FY27
- Cable division volume growth of ~25% a year [in FY27]. — 25%, FY27
- Medium‑term to long‑term, conductor EBITDA margin will be in the range of ₹35,000‑36,000 per metric ton plus tailwinds. — ₹35,000-₹36,000 per metric ton, medium to long‑term
- FY27 capex will be about ₹1,500 crores, split as ~₹400 Cr conductors, ~₹200 Cr oil, ~₹850 Cr cables. — ₹1,500 crores, FY27
- U.S. revenues [for APAR] will be significantly higher in FY27 vs FY26, and will further increase in FY28. — FY27
Key themes
Capex pull‑forward, premium product shift, U.S. data center and grid opportunity
How the narrative shifted
- Domestic T&D and renewable capex cycle: Management positions the structural build‑out of India’s transmission and renewable energy infrastructure as a multi‑year demand driver for conductors, cables, and transformer oil.
- Premium product mix shift in conductors: Growing share of HTLS, AL59, CTC and copper products in the conductor portfolio is structurally lifting EBITDA per metric ton, with the order book now >50% premium.
- U.S. market penetration and tariff rationalization: Tariffs under Section 232 are seen as settled, removing uncertainty; APAR is building cable capacity for U.S. data centres and expects significant revenue ramp in FY27‑28.
- Capex front‑loading for demand visibility: The company is pulling forward capex by ~₹400 Cr, citing longer equipment lead times and strong long‑term demand signals from utilities and hyperscalers.
- Near‑term headwinds from Middle East conflict: War disrupted oil supply chain and polymer sourcing, causing volume deferrals and higher freight; management frames it as a temporary soft patch within an otherwise strong demand environment.
- Competitive intensity in wires and cables: Large conglomerates are entering the building‑wire segment; APAR downplays direct impact on its specialty cables and conductors, citing technical differentiation and long qualification cycles.
- Metal price and freight escalation delaying orders: Surging aluminum/copper prices and war‑driven freight premiums are causing customers to postpone deliveries; management expects a first‑half slowdown but no derailing of the structural demand.
Operational commentary
- Conductor order book stands at ₹7,671 Cr as of Mar‑26, with premium products (HTLS, AL59, CTC) comprising >50% of the backlog (Q4 mix 49.3%).
- U.S. business scaling up – Q4 conductor exports up 150% QoQ, cables up 52% YoY; supplied $15M of cables to three major data center projects; tariffs rationalised under Section 232 providing visibility.
- Capex front‑pulled – FY27 plan of ₹1,500 Cr (₹850 Cr cables, ₹400 Cr conductors, ₹200 Cr oil) to capture data centre, renewable and T&D demand; cable capacity expansion aimed at ₹10,000 Cr revenue milestone.
- Oil division severely disrupted by Middle East conflict – contract supplies from key refineries cut 50% in April; no shipments to Saudi Arabia/Kuwait in March‑April; resumed in May at higher freight rates. Domestic transformer oil grew 8.5% despite headwinds.
- CTC copper product seeing domestic deficit; after five expansions, exports commenced to Middle East, pursuing approvals in Europe and US.
- Cable B2B channel crossed ₹500 Cr in second year; distribution expanded by 120 B2C and 25 B2B distributors.
- Specialty polymer shortages from Middle East plants impacting near‑term cable order bookings and margins for specialty cables.
- Large HVDC projects awarded but conductor and oil material awards expected only in FY27‑28; APAR remains sole supplier of HVDC transformer oil to Hitachi, GE, Siemens.
Analyst Q&A
Q. Given conductor order book export mix is 39% and U.S. recovery, why not a higher FY27 EBITDA/MT guidance above ₹43,000?
Ramesh Iyer reiterated medium‑term margin range of ₹35,000‑36,000/MT plus tailwinds, stating “we don’t give the guidance for next year” and that the order book does not represent full‑year requirements.
Q. Size of data centre cable opportunity in the U.S. per megawatt/gigawatt and possibility of long‑term contracts?
Kushal Desai explained that a medium‑sized US data centre consumes ~$25‑30M of cables (MV + LV), specs differ from India, and no capacity blocking is occurring – orders flow via EPCs. No long‑term contracts seen yet.
Q. How will new domestic competitors with carbon‑core conductor technology affect APAR?
Chaitanya Desai stated PowerGrid tenders require past performance, limiting new entrants; existing products have long track record, so impact is near‑term minimal.
Research and educational content only. Not investment advice.