This article first appeared on GuruFocus .
Release Date: May 28, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Apar Industries Ltd ( BOM:532259 ) achieved an all-time high revenue of 22,902 crores in FY26, marking a CAGR of approximately 29% over five years.
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The company reported a significant growth in domestic revenues by 33.6% over Q4 FY25, with exports also increasing by 13.3%.
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EBITDA post ForEx for the quarter grew by approximately 19.3%, indicating strong operational performance.
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The conductor division achieved its highest top-line in Q4 FY26, with a 29.9% year-on-year growth driven by increased volume and improved product mix.
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The cable division revenues for the quarter reached 1,903 crores, up 35% over Q4 FY25, with domestic and export revenues both showing strong growth.
Negative Points
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The company faced challenges due to a sharp depreciation of the rupee, impacting the mark-to-market of an ECB loan.
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There were disruptions in the oil division's exports due to Middle East supply chain issues, affecting March operations.
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The export mix in Q4 FY26 was lower at 28% compared to 31% in Q4 FY25, indicating a shift in revenue sources.
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Higher metal prices and increased freight costs due to geopolitical tensions are expected to impact short-term demand and profitability.
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The company anticipates a short-term slowdown in ordering due to increased aluminum prices and other cost pressures.
Q & A Highlights
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Q: Can you provide an outlook on the US market, particularly regarding the data center opportunities and the impact of tariffs on your business? A: The US market is showing strong traction, especially in the data center sector. We've supplied major data center projects and are receiving more RFQs. The cable side for data centers is growing, and we've made CapEx provisions to meet US specifications. Despite tariff challenges, we expect a larger presence in the US market in FY27, driven by data center and utility projects. (Respondent: Chairman and Managing Director)
Q: What is the current capacity utilization across your divisions, and can you break down the planned CapEx for FY27? A: The conductor division is operating at 90-95% capacity, cables at 85-90%, and oil division at 65-70%. For FY27, we plan a CapEx of 1,500 crores: 400 crores for conductors, 200 crores for oil, and 850 crores for cables. (Respondent: CFO)
Q: How are the HVDC projects progressing, and are there any delays in domestic transmission line tenders due to inflationary pressures? A: HVDC projects have just been awarded, with significant business expected in FY27 and FY28. There are some delays in tender finalization due to inflation and manpower issues, but we anticipate a pickup in the second half of the year. (Respondent: Managing Director)
Q: Can you discuss the impact of the Middle East situation on your specialty oil business and the growth outlook for premium conductors? A: The Middle East situation has affected shipments, but sourcing from Saudi Aramco remains stable. We expect growth in premium conductors, with a current order book mix of over 50% in premium products. (Respondent: Chairman and Managing Director)
Q: How do you view the competitive landscape in the domestic market, particularly with new players entering the conductor segment? A: New entrants face high entry barriers due to performance requirements and the high cost of new technologies like ACCC conductors. Our established relationships and proven track record provide a competitive edge. (Respondent: Managing Director)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
