Apar Industries Ltd (APARINDS) Q1 FY27 Results Analysis: PAT Jumps 78%, EBITDA Margin Expands 264 bps

Apar Industries Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 6,591.06 Cr (+29.13% YoY) and PAT growth of +77.80% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

APARINDS delivered a strong Q1 with 29% revenue growth and 78% PAT growth, driven by a dramatic turnaround in the Transformer & Speciality Oils segment, which saw margins expand to 19.5%. EBITDA margin expanded 264 bps to 11.5% due to operating leverage. However, finance costs rose 43% YoY from higher debt, and conductor margins saw slight YoY compression.

Key Investment Insights

Key Positives

• Revenue from operations grew 29.13% YoY to Rs.6,591.06 crore.
• EBITDA increased 67.57% YoY to Rs.757.83 crore, with margin expanding 264 bps to 11.50%.
• PAT grew 77.80% YoY to Rs.467.45 crore.
• Transformer & Speciality Oils segment revenue grew 34.77% YoY and segment profit nearly tripled, with margin surging to 19.48%.
• Material cost ratio improved 143 bps YoY and other expenses dropped 20.44% QoQ, showing cost discipline.

Risk Factors

• Finance costs rose 42.69% YoY due to higher debt levels from the FY26 capex programme.
• Conductor segment margin compressed slightly YoY from 8.48% to 8.22%, though improved QoQ from 7.34%.