APAR Industries Limited – Investor Presentation Summary

Key Operational Highlights

  • Q1 FY27 consolidated revenue stands at ₹6,591 crores, up 29.1% over Q1 FY26 (₹5,104 crores) and down 0.2% versus Q4 FY26 (₹6,603 crores)
  • Domestic revenue up 36.9% over Q1 FY26 and flat versus Q4 FY26
  • Exports grew 12.4% versus Q1 FY26 and down 0.6% versus Q4 FY26
  • Export contribution: 27.5% of revenue in Q1 FY27 versus 31.6% in Q1 FY26 and 27.6% in Q4 FY26
  • US revenue down 11.1% YoY and down 14.6% QoQ
  • Volume declined in Conductor Division (down 6.7% YoY) and Oil Division (down 13.7% YoY)

Key drivers of operational performance: Product mix improvement, higher realizations, and strong domestic demand offsetting volume declines and Middle East crisis impacts

Segment-wise Performance

Conductor Division:

  • Revenue: ₹3,338 crores, up 19.9% YoY, down 11.3% QoQ
  • Volume: 53,279 MT, down 6.7% YoY, down 18.0% QoQ
  • EBITDA: ₹285 crores, up 14.0% YoY, down 2.5% QoQ
  • EBITDA Margin: 8.5% versus 9.0% in Q1 FY26 and 7.8% in Q4 FY26
  • Premium product mix: 50.3% in Q1 FY27 versus 43.7% in Q1 FY26 and 45.8% in Q4 FY26

Oil Division:

  • Revenue: ₹1,701 crores, up 34.7% YoY, up 29.8% QoQ
  • Volume: 1,29,085 KL, down 13.7% YoY, down 13.5% QoQ
  • EBITDA: ₹329 crores, up 214.2% YoY, up 289.7% QoQ
  • EBITDA Margin: 19.3% versus 8.3% in Q1 FY26 and 6.4% in Q4 FY26
  • Domestic Transformer oil volume degrew 6.2% YoY
  • Global transformer oil volume degrew 8.0% YoY
  • Auto oil volume grew 6.6% YoY
  • Industrial Lubricant oil volume grew 12.1% YoY

Cable Division:

  • Revenue: ₹1,838 crores, up 29.5% YoY, down 3.4% QoQ
  • EBITDA: ₹194 crores, up 36.7% YoY, down 3.7% QoQ
  • EBITDA Margin: 10.6% versus 10.0% in Q1 FY26 and 10.6% in Q4 FY26

Explanation of significant changes in segment performance: Conductor division impacted by surge in metal prices affecting order booking and delivery schedules; Oil division benefited from favorable pricing environment despite volume declines; Cable division showed strong domestic growth offsetting export weakness

Financial Highlights

Revenue: ₹6,591 crores

EBITDA: ₹814 crores (post open period forex adjustment)

PAT: ₹467 crores

EPS: ₹116

Margins: EBITDA Margin 12.4%, PAT Margin 7.1%

YoY/QoQ comparison: PAT up 77.7% YoY and up 84.2% QoQ; PAT margin up 190 bps YoY and up 330 bps QoQ

Drivers of financial performance: Higher realizations, product mix improvement, and operational efficiencies across divisions

Comparison to market estimates: Not Specified

Key Risks: Raw material price volatility, Middle East crisis impacting operations, forex fluctuations

Geographical Revenue Split

Domestic vs Export/Regional Revenue:

  • Domestic: Not specified absolute value, but grew 36.9% YoY
  • Export: Not specified absolute value, but grew 12.4% YoY, contributing 27.5% of total revenue

Regional Breakdown: US revenue declined 11.1% YoY and 14.6% QoQ

Balance Sheet Snapshot

Net Debt/Equity: Not Specified

Reserves: Not Specified

Current Assets/Liabilities: Not Specified

Working Capital/Leverage Metrics: Not Specified

Financial Health Insights: Strong cash flow generation evident from profitability improvement

Capex & Cash Flow Health

Capital Expenditure: Not Specified

Free Cash Flow: Not Specified

Operating Cash Flow: Not Specified

Net Debt Movement: Not Specified

Investment Rationale: Focus on premium product mix and international expansion

Strategic & R&D Initiatives

Investments in Innovation: Not Specified

Expected impact on growth: Large overseas orders exceeding ₹2,800 crores from two major overseas electric utility companies with delivery period spread over next 4 years

Strategic Rationale: Reinforcing investments behind transmission capex globally and expanding premium product portfolio

Industry Trends & Business Environment

Macro/Industry Trends: Surge in metal prices, Middle East crisis resulting in closure of Hamriyah port, global transmission capex investments

Impact on Company: Metal price surge impacted conductor order booking and delivery schedules; Middle East crisis affected Oil division volumes at UAE facility; Global transmission investments driving large order inflows

Management Commentary & Growth Outlook

Strategic Outlook: Not explicitly stated

FY Guidance: Not explicitly provided

Market Share Targets: Not Specified

Risks and Opportunities: Middle East crisis, raw material price volatility, and forex fluctuations highlighted as operational challenges

Order Book Position

Conductor Division: Pending order book ₹10,190 crores (exports contribute 56.8%); New orders received ₹5,245 crores in Q1 FY27 (exports contribute 65.8%)

Cable Division: Pending order book ₹1,925 crores compared to ₹1,653 crores year ago; New order inflow from US has started to increase