This article first appeared on GuruFocus .
Release Date: July 24, 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 ) reported a strong start to FY27 with consolidated revenues growing by 29.1% year-on-year, reaching 6,591 crores.
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The company's EBITDA grew by 62.7% year-on-year to 814 crores, with margins improving to 12.4% from 9.8% a year ago.
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Profit after tax increased by 77.7% to 467 crores, marking the highest quarterly sales and profit in the company's history.
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The conductor division saw a 19.9% revenue growth, with a significant contribution from premium products, which accounted for 50.3% of revenues.
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The oil division's EBITDA margins improved significantly to Rs.25,482/kl, with overall EBITDA growing by 214% to 329 crores.
Negative Points
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The conductor division experienced a 6.7% decline in volume due to a surge in metal prices, impacting delivery schedules.
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Export revenue in the cable division decreased by 13.7%, with the export mix dropping to 27.6%.
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The oil division's volume was down 13.7% year-on-year, affected by the closure of the Hamriya port in the UAE.
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The company faced challenges from external factors such as the US-Iran war and logistics difficulties in export markets.
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Apar Industries Ltd ( BOM:532259 ) is exposed to volatility in metal prices, which can impact margins if prices decline.
Q & A Highlights
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Q: Can you explain the high margin in the oil business this quarter and whether it will continue? A: The high margin in the oil business is due to the historical cost of inventory and rising gasoline prices, which allowed for premium pricing. This resulted in disproportionately higher margins. However, due to the volatile nature of crude oil prices, future margins cannot be predicted. (Unidentified_5)
Q: What is driving the growth in premium products, and when can we expect a rebound in the U.S. market? A: Growth in premium products is driven by HTLS installations and copper products. The U.S. market saw a temporary slowdown due to Section 232 tariffs, but approvals from major utilities and data centers are expected to drive future growth. (Unidentified_3)
Q: Can you provide details on the order backlog and its geographical mix? A: The order backlog is largely domestic, with exports making up 56.8%, primarily from the Americas and Europe. Most of the backlog is executable within a year, except for two large multi-year orders. (Unidentified_5)
Q: How are you managing the volatility in metal prices, and what impact does it have on your business? A: Volatility in metal prices has led to some customers delaying orders. However, as prices stabilize, manufacturing clearances are resuming. The company manages this volatility by hedging LME prices and locking in premiums with suppliers. (Unidentified_10)
Q: What is the impact of tariffs on your U.S. business, and how do you see future growth in this market? A: Tariffs under Section 232 have increased costs, but customers are absorbing these due to local production constraints. The cable market is less regulated, allowing for growth, while the conductor market is more dependent on regulatory approvals. (Unidentified_3)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
