APAR Industries Limited – Investor Presentation Summary

Key Operational Highlights

  • Q2 FY27 revenue reached ₹6,931 crores, grew 21.3% over Q2 FY26 and grew 5.2% versus Q1 FY27
  • H1 FY27 revenue grew 25.0% over H1 FY26 to ₹13,522 crores
  • Domestic revenue up 34.3% over Q2 FY26 and up 4.9% versus Q1 FY27
  • Exports de-grew 3.3% over Q2 FY26 with export mix of 27.6% in Q2 FY27 versus 34.7% in Q2 FY26
  • US revenue in Q2 FY27 down 29.7% YoY, flat on sequential quarter basis, down 21.5% on half-year basis

Key drivers of operational performance: Higher realizations across divisions, strong domestic demand, despite volume declines in some segments due to increased metal prices and freight rates

Segment-wise Performance

Conductor Division:

  • Revenue: ₹3,753 crores in Q2 FY27, up 21.1% YoY
  • Volume: 57,137 MT in Q2 FY27, down 9.2% YoY
  • EBITDA: ₹276 crores, up 11.3% YoY
  • EBITDA per MT: ₹48,241, up 22.6% YoY
  • Premium product mix: 39.4% in Q2 FY27 versus 45.3% in Q2 FY26

Oil Division:

  • Revenue: ₹1,819 crores in Q2 FY27, up 35.6% YoY
  • Volume: 1,28,590 KL in Q2 FY27, down 20.0% YoY
  • EBITDA: ₹299 crores, up 185.7% YoY
  • EBITDA per KL: ₹23,262, up 256.9% YoY

Cable Division:

  • Revenue: ₹1,875 crores in Q2 FY27, up 22.1% YoY
  • EBITDA: ₹207 crores, up 31.9% YoY
  • EBITDA Margin: 11.0% versus 10.2% in Q2 FY26

Explanation of significant changes in segment performance: Oil Division showed exceptional margin expansion despite volume decline due to significantly higher realizations. Conductor Division growth driven by higher realizations offsetting volume decline. Cable Division showed steady growth with margin improvement.

Financial Highlights

Revenue: ₹6,931 crores (Q2 FY27)

EBITDA: ₹787 crores (Q2 FY27)

PAT: ₹447 crores (Q2 FY27)

EPS: Not Specified

Margins: EBITDA Margin 11.4% (Q2 FY27), Net Profit Margin 6.5% (Q2 FY27)

YoY/QoQ comparison: Q2 FY27 PAT grew 77.8% over Q2 FY26, declined 4.3% versus Q1 FY27

Drivers of financial performance: Higher revenue growth, improved realizations, operational efficiencies

Comparison to market estimates: Not Specified

Key Risks: Increased metal prices, higher freight rates, export market volatility

Geographical Revenue Split

Domestic vs Export/Regional Revenue:

  • Domestic: Up 34.3% over Q2 FY26, up 4.9% versus Q1 FY27
  • Export: De-grew 3.3% over Q2 FY26, grew 5.8% over Q1 FY27
  • Export mix: 27.6% in Q2 FY27 versus 34.7% in Q2 FY26

Regional Breakdown: US revenue down 29.7% YoY in Q2 FY27, flat sequentially

Balance Sheet Snapshot

Net Debt/Equity: Not Specified

Reserves: ₹8,478 crores (Other equity)

Current Assets/Liabilities: Current Assets ₹13,329 crores, Current Liabilities ₹6,976 crores

Working Capital/Leverage Metrics: Not Specified

Financial Health Insights: Strong cash position of ₹1,171 crores, increased investments to ₹275 crores from ₹44 crores

Capex & Cash Flow Health

Capital Expenditure: Acquisition of property, plant and equipment ₹407 crores (H1 FY27)

Free Cash Flow: Not Specified

Operating Cash Flow: Net cash used in operating activities ₹863 crores (H1 FY27)

Net Debt Movement: Not Specified

Investment Rationale: Capacity expansion, technology upgrades as evidenced by capital work-in-progress increasing to ₹903 crores from ₹539 crores

Strategic & R&D Initiatives

Investments in Innovation: Not Specified

Expected impact on growth: Not Specified

Strategic Rationale: Expanding order book with focus on premium products and export markets

Industry Trends & Business Environment

Macro/Industry Trends: Increased metal prices, higher freight rates affecting volumes

Impact on Company: Lower volumes in Conductor and Oil divisions despite higher realizations, affecting overall growth potential

Management Commentary & Growth Outlook

Strategic Outlook: Not Specified

FY Guidance: Not Specified

Market Share Targets: Not Specified

Risks and Opportunities: Not Specified

Order Book Status

Conductor Division: Pending order book stands at ₹12,025 crores, up 67.2% versus H1 FY26, export proportion 51.0%

Cable Division: Pending order book at ₹3,012 crores compared to ₹1,653 crores year ago, export mix 32.5%

New Orders: Conductor Division received new orders of ₹4,775 crores during Q2 FY27, up 123.1% versus Q2 FY26