Apar Industries Ltd (APARINDS) Q1 FY27 Earnings Call: Order Backlog Crosses Rs. 10,190 Cr, Secures Hyperscaler Data Center Approvals

Apar Industries Ltd held its Q1 FY27 earnings call on July 24, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Record Quarter Across All Divisions

• Consolidated revenue Rs.6,591 Cr in Q1 FY 2026-2027 — grew 29.1% YoY vs Q1 FY 2025-2026, the highest-ever quarterly sales in the company's history.
• EBITDA Rs.814 Cr in Q1 FY 2026-2027 — expanded 62.7% YoY, with margin improving to 12.4% from 9.8% a year ago.
• PAT Rs.467 Cr in Q1 FY 2026-2027 — grew 77.7% YoY, with PAT margin at 7.1%.
• All three divisions increased profitability year-on-year in Q1 FY 2026-2027 vs Q1 FY 2025-2026, led by conductor (EBITDA/tonne +Rs.10,000) and oil (EBITDA/KL +Rs.18,478).
• Management flagged this as the strongest quarter in terms of revenues and margins for Apar Industries, per Q1 FY 2026-2027 results.

Rs.10,190 Cr Conductor Backlog; Multi-Year Utility Wins

• Conductor order backlog Rs.10,190 Cr as of Q1 FY 2026-2027 — exports constitute 56.8%, primarily North America, South America, and Europe; balance is domestic India.
• New orders worth Rs.5,245 Cr received in Q1 FY 2026-2027 — including two large utility orders exceeding Rs.2,800 Cr from a US and a European utility.
• Two multi-year orders worth ~Rs.3,000 Cr — management stated these are "executable over the next four years (through ~FY 2029-2030)", primarily conventional products (ACSR, triple AC) with small quantities of premium (ACCC, OPGW).
• Majority of remaining backlog (excl. two large orders) — executable within the next year through mid-FY 2027-2028, per management.
• Management cited "multi-year single-vendor supply arrangements" for the two large utility orders from "two of the largest utilities in their geographies", potentially indicating recurring opportunities.
• HVDC orders received in small portion during Q1 FY 2026-2027 — Kushal Desai noted most HVDC and high-end product orders will flow over a multi-year timeline, with the Indian market yet to place the majority.
• Order inquiries and booking activity normalized after recent copper/aluminum price volatility, per management commentary in Q1 FY 2026-2027.

Approvals from Meta, Microsoft, Google; Tariff Landscape

• Apar received approvals from Meta, Microsoft, and Google in Q1 FY 2026-2027 to supply wires and cables for their US data centers — product design and standards differ completely from Indian supplies, requiring credentials built from scratch.
• Manufacturing capability in place in India — contractors assessed and approved infrastructure and quality systems, with no additional US investment required; orders received from electrical contractors and RFQ participation started in FY 2026-2027.
• Management declined to provide forward-looking order size guidance for US data centers — citing nascent stage and variable procurement patterns (full orders, monthly placements, or combination with local US supply).
• US customers currently absorbing the 50% Section 232 tariff on conductors — management clarified that local US conductor manufacturers also pay 50% duty on imported aluminum, leveling the competitive field.
• Section 301 tariffs for India at 10% currently — management noted final details are still under review, with bare aluminum products (including conductors) covered under Section 232 at 50% on full product value.
• ~70% of US conductor demand served by local producers — Apar participates in the 30% import-allowed segment; US cable market is less regulated with demand from residential, industrial, and data center applications. US cable revenue grew ~2.5% YoY in Q1 FY 2026-2027.

Premium Mix Drives Conductor Margins; Oil EBITDA/KL Surges

• Blended conductor EBITDA/tonne improved to Rs.53,418 in Q1 FY 2026-2027 from Rs.43,688 in Q1 FY 2025-2026 — driven by premium product share rising to 50.3% of domestic revenue from 43.7% (HTLS, copper transpose, railways busbars).
• Oil division EBITDA/KL surged to Rs.25,482 in Q1 FY 2026-2027 from Rs.7,004 a year ago — aided by inventory gains from rising gas oil prices and historical cost accounting, despite a Rs.93 Cr provision for price declines.
• Rs.93 Cr provision taken in Q1 FY 2026-2027 — management clarified it reflects sharp price declines from peak in accordance with accounting principles, with the trend beginning only days before the call.
• Management flagged oil margin sustainability as uncertain — citing volatility in crude/gas oil prices and no guidance on margin sustainability; the reverse effect of backward-looking contracts (65% of base oil) would hurt when prices decline.
• Cable EBITDA margin improved to 10.6% in Q1 FY 2026-2027 — management reiterated guidance of 10-11%, with domestic cable volume up 60% and margins up ~60 bps from mix including defense and railways.
• Working capital days stable at 45-50 days in the conductor division — despite significant commodity price increases, management cited good execution discipline.

Conductor Revenue +19.9%; Oil Volume -13.7%; Cable Domestic +60%

• Conductor: revenue Rs.3,338 Cr (+19.9% YoY) in Q1 FY 2026-2027 — domestic revenue +19.3%, export revenue +22.2%; total volume -6.7% due to order delays from surging metal prices (customers postponing manufacturing clearances).
• Oil: revenue Rs.1,701 Cr (+34.7% YoY) in Q1 FY 2026-2027 — volume -13.7% due to US-Iran war impact on UAE facility; Hamriyah plant production reduced significantly because of port closures; domestic oil volumes -4.4%.
• Cable: revenue Rs.1,838 Cr (+29.5% YoY) in Q1 FY 2026-2027 — domestic revenue +59.9%, exports -13.7%; export mix at 27.6%; US cable revenue +2.5%.
• B2C wire retail sales grew 46% in Q1 FY 2026-2027 — active towns +17%, distributors +25%, retail points +51%.
• B2B distribution sales grew 92% in Q1 FY 2026-2027 — distributors +60%, active towns +73%.
• Capacity utilization across three divisions at 80-90% in Q1 FY 2026-2027 — significant CAPEX underway for expansion and de-bottlenecking, per Ramesh Iyer.

Metal Volatility, Tariff Uncertainty, and Data Center Ramp

• Metal price volatility caused industry de-stocking in Q1 FY 2026-2027 — management believes end-demand (secondary sales) was not severely impacted; MJP premium cannot be hedged but Apar locks premiums with suppliers via mutually agreed contracts.
• Management expects export deliveries to normalize as orders from Q1 FY 2026-2027 are executed — after lag effects from Section 232 classification confusion in Q4 FY 2025-2026 stalled ordering.
• Apar reduced total inventory in specialty oils during Q1 FY 2026-2027 to operate on a more just-in-time basis — mitigating downside risk when prices reverse from backward-looking contract position (65% of base oil).
• Management declined to comment on overseas manufacturing plans — referring to prior commentary; no additional US investment required for data center cable supply.
• Domestic conductor orders delayed but not lost — customers postponed clearances during war-driven metal price spikes in Q1 FY 2026-2027, but resumed after prices eased to complete projects.
• Cable margin guidance reiterated at 10-11% — management did not provide specific FY 2026-2027 or FY 2027-2028 revenue guidance for the nascent US data center channel.