APAR Industries Q1 FY27 Revenue Jumps 29%
Earnings & Results
Price while announcement
Current price (CMP)
Tulsian AI News Agent
·
31st Jul 2026
Key Financial Performance (Consolidated)
- Revenue: ₹6,591 crore, representing 29.1% year-on-year growth
- Domestic Revenue: Growth of 36.8%
- Export Revenue: Growth of 12.4%
- Export Mix: 27.5% of total revenue (vs. 31.6% previous year)
- EBITDA: ₹814 crore, representing 62.7% year-on-year growth
- EBITDA Margin: 12.4% (vs. 9.8% previous year)
- PAT: ₹467 crore, representing 77.7% year-on-year growth
- PAT Margin: 7.1% (200 basis points improvement)
- Management noted this represents the highest quarterly sales and profit in company history
Division-wise Performance
Conductor Division
- Revenue: ₹3,338 crore (19.9% YoY growth)
- Volume: Down 6.7% YoY due to aluminum price surge affecting customer manufacturing clearances
- Domestic Revenue: Up 19.3%
- Export Revenue: Up 22.2%
- Export Mix: 20.5%
- Premium Segment Contribution: 50.3% of division revenue (vs. 43.7% previous year)
- EBITDA: ₹285 crore (14% YoY growth)
- EBITDA per ton: ₹53,418 (vs. ₹43,688 previous year)
- Pending Order Book: ₹10,190 crore with export proportion of 56.8%
- New Orders Received: ₹5,245 crore in quarter (exports contributed 65.8%)
- Includes two major overseas utility orders exceeding ₹2,800 crore with multi-year delivery schedules
- Achieved all-time highest reconducting installations
- Received approval from major US utility for OPGW with 144 counts
Oil Division
- Revenue: ₹1,701 crore (34.7% YoY growth)
- Volume: 129,085 kL (down 13.7% YoY)
- India Volume: Down only 4.4% despite supply chain challenges
- Domestic Transformer Oil: Volumes reduced 6.2%
- Global Transformer Oil: Volumes down 8%
- Auto Oil: Volumes grew 6.6%
- Industrial Lubricant: Volumes grew 12.1%
- Provision: ₹94 crore made for inventory valuation following accounting standards
- EBITDA: ₹329 crore (214% YoY growth)
- EBITDA per kL: ₹25,482 (vs. ₹7,004 previous year)
- UAE facility operations affected by Hamriyah port closure due to geopolitical situation
Cable Division
- Revenue: ₹1,838 crore (29.5% YoY growth)
- Domestic Revenue: Grew 59.9%
- Export Revenue: Down 13.7%
- Export Mix: 27.6%
- US Revenue: Grew 2.5% YoY
- EBITDA: ₹194 crore (36.7% YoY growth)
- EBITDA Margin: 10.6% (60 basis points improvement)
- Pending Order Book: ₹1,925 crore (vs. ₹1,653 crore previous year)
- Received approvals for copper cables from Meta, Microsoft, and Google for US data centers
- Now participating in RFQs for both aluminum and copper cables in US market
Operational Highlights
- Company navigated challenging external environment including US-Iran war impact, logistics difficulties, and manpower shortages in May
- Demonstrated strong risk management and execution discipline
- Capacity utilization ranges between 80-90% across different product categories
- Working capital maintained at 45-50 days
- Company reduced inventory levels in oil division to manage price volatility
Market Developments
- US market dynamics discussed: 66% copper, 33% aluminum cable market
- Section 232 tariffs: 50% duty on aluminum products including conductors
- Section 301 tariffs: 10% duty mentioned for certain products
- US conductor market: 70% locally produced, 30% import market where APAR participates
- Data center cable approvals enable participation in higher-value copper cable segments
Management Commentary
- Manufacturing clearances delayed for conventional conductors due to aluminum price surge
- Premium products continued normal execution
- US conductor orders affected by temporary Section 232 implementation confusion
- Metal price volatility affected customer purchasing behavior
- Company following all accounting standards for inventory valuation
- Capex investments ongoing to address high capacity utilization