Apar Industries Ltd Q4 FY26 Earnings Call: Conductor Crosses Rs 10,000 Cr, Guides 25% Cable Volume Growth

Apar Industries Ltd held its Q4 FY26 earnings call on May 28, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Record revenue across divisions; PAT impacted by one-time provisions

• FY26 revenue of Rs.22,902 Cr— all-time high, up 23.3% YoY, reflecting a 5-year CAGR of ~29%.
• Q4 FY26 revenue of Rs.6,625 Cr— up 26.7% YoY, with domestic growth of 33.6% and export growth of 13.3%.
• FY26 EBITDA of Rs.2,067 Cr— margin of 9.0%; Q4 FY26 EBITDA stood at Rs.584 Cr (+19.3% YoY).
• FY26 PAT of Rs.977 Cr— margin of 4.3%; Q4 FY26 reported PAT margin of 3.8%excluded Rs.31 Cr of one-time provisions (adjusted PAT would be Rs.285 Cr).
• Q4 FY26 US revenues rose 28.8% YoY and 250% sequentially— management noted US tariff uncertainty has "settled down" after a difficult FY 2025-2026.

Conductor crosses Rs.10,000 Cr; Cable surges 35%; Oil held back by Middle East disruption

• Conductor division: FY26 revenue of Rs.12,712 Cr— crossed Rs.10,000 Cr milestone for the first time, with EBITDA per MT of Rs.43,012. Q4 FY26 revenue was Rs.3,764 Cr (+29.9% YoY, volume +9%).
• Premium conductor products comprised 49.3% of Q4 FY26 revenue— full-year FY26 premium mix was 45.8%; current order book stands at "a little over 50%" premium mix, signalling continued mix improvement.
• Conductor order book as of 31 March 2026: Rs.7,671 Cr— management guided for volume growth of 10% YoY in FY 2026-2027.
• Cable division: Q4 FY26 revenue of Rs.1,903 Cr— up 35% YoY, with EBITDA of Rs.202 Cr (margin 10.6%). Full-year FY26 revenue was Rs.6,220 Cr (+25.8% YoY).
• US cable revenue rose 52.2% in Q4 FY26— management expects "significant growth" in US cable sales in FY 2026-2027 and further in FY 2027-2028,though near-term headwinds from high freight costs and product cost persist.
• Oil division: Q4 FY26 revenue growth slowed to 5.6%— domestic transformer oil volume +8.5%, automotive oil +19.5%, industrial lubricants +6.1%.Exports were affected by Middle East supply chain disruption; EBITDA per KL was Rs.5,656 (annual: Rs.5,943).
• Cable B2B channel crossed Rs.500 Cr in FY26— management guided for cable volume growth of 25% YoY in FY 2026-2027.

Rs.1,500 Cr capex planned for FY27; front-loaded cable capacity targets Rs.10,000 Cr revenue goal

• FY 2026-2027 CAPEX of Rs.1,500 Cr— allocated as Conductor Rs.400 Cr, Oils Rs.200 Cr, and Cables Rs.850 Cr (vs. Rs.740 Cr incurred in FY 2025-2026).
• Cable capex front-loaded by ~Rs.400 Cr vs. original plan— total two-year spend (FY26 + FY27) of Rs.1,250 Cr, supporting a "Rs.10,000 crores revenue target over a five-year horizon" (~25% CAGR).
• Current capacity utilisation: Conductor 90-95%, Cables 85-90%— Oils at 65-70% and Lubricants at 85-90% (small can/bucket filling). Management noted the equipment order-to-installation cycle has "lengthened significantly" vs. 2-3 years ago.
• Cable capex targets medium-voltage XLPE and rubber cables— serving data centers, utilities, wind, solar, railways, and defence, with high fungibility across these segments.
• Additional CAPEX committed for US data center cables— having supplied $15 million in cables to three major US data center projects, Apar is now bidding on more RFQs.

US data centers, HVDC awards, and premium conductor exports anchor the medium-term runway

• US data center opportunity estimated at ~$25-30 million per medium facility— for medium/low voltage cables, vs. ~Rs.2 Cr for a 50 MW facility in India. Management cited this as a key growth driver for FY 2026-2027 and beyond.
• HVDC projects awarded to Hitachi Energy, GE, and Siemens— management noted material awards have not commenced and expect related conductor and oil business to flow through FY 2026-2027 and FY 2027-2028.
• CTC conductor exports to Middle East have commenced— after receiving approvals; Apar is now pursuing European and US approvals for FY 2026-2027 and FY 2027-2028.The US imposes a tariff on Indian CTC, but limited domestic US CTC manufacturing makes the market attractive.
• Government's National Electricity Plan targets "~6.5 lakh circuit km by 2032"— management cited this as a structural tailwind for conductor and cable demand, alongside India adding 50+ GW of non-fossil fuel capacity in FY26 (solar: 54 GW).
• Industry expects data center capacity to "scale to 5 GW by 2030"— management referenced this as a long-term demand driver for cables and conductors in India.

Section 232 tariffs rationalised to 25%; domestic building-wire competition intensifies

• US Section 232 tariffs now a flat 25% on conductors and cables— replacing the prior 20% penalty on Indian imports and reducing uncertainty. India remains in discussions with the US government for potential further reductions.
• At the current 25% tariff, management expects "significant growth" in the US market in FY 2026-2027— over FY 2025-2026, noting the US imports 90% of its aluminum, making aluminum-based exports less impacted.
• Domestic competition in building wires from Ultratech/Aditya Birla Group and Adani Group— management expects possible EBITDA margin erosion of ~1% from this pressure,though specialty cables are seen as insulated.
• Entry barriers for ACCC (carbon-core) conductors remain high— a private player is close to PGCIL approval, but the cost premium of 3x vs. ACSR, past-performance tender requirements, and the stakes of de-bottlenecking projects limit easy large-scale adoption.
• Middle East sourcing saw disruptions in early FY 2026-2027— S-Oil and Formosa faced raw material stranding in April; Yanbu substituted ~7 million barrels by May.Transformer oil shipments to Saudi Arabia and Kuwait were halted in March and April, resuming in May with increased freight costs.

Near-term headwinds from geopolitics and metal prices; long-term energy-infrastructure tailwinds intact

• Near-term uncertainty flagged from the Middle East war, high metal prices, elevated freight costs, and Chinese competition— causing some postponement in customer ordering decisions globally.
• Conductor EBITDA margin guidance maintained at Rs.35,000–Rs.36,000 per MT— for the medium-to-long term (excl. tailwinds), with management expecting margins to remain elevated due to premium products, reconductoring, and rising copper mix.
• Domestic project delays in HVDC and transmission lines— due to metal price inflation and election-related manpower shortages,but execution intensity is expected to pick up in H2 FY 2026-2027, similar to last year's pattern.
• Management remains "bullish on the fundamental strength of energy infrastructure"— over the next three to five years, citing structurally strong tailwinds from T&D growth, data centres, EV, reconductoring, and HVDC investments.
• CAPEX programs have been increased and pre-poned— in response to the positive long-term outlook, with management citing strong budgets and allocations from utilities and data center companies supporting a positive medium-term view from FY 2026-2027 onward.