APAR Industries Delivers Record Quarterly Performance as Q1 FY27 PAT Jumps 77.7%; Strengthens US Cable Market Presence with Data Centre Supply Approvals

APAR Industries Delivers Record Quarterly Performance as Q1 FY27 PAT Jumps 77.7%; Strengthens US Cable Market Presence with Data Centre Supply Approvals

The Electrical post

APAR Industries Limited reported its highest-ever quarterly revenue and profit in the first quarter of FY 2026–27, supported by strong performance across its conductors, oil and cables businesses. Consolidated revenue increased 29.1% year-on-year to INR 6,591 crore, while EBITDA after open-period foreign exchange adjustments rose 62.7% to INR 814 crore. Profit after tax (PAT) surged 77.7% to INR 467 crore, reflecting improved realisations and higher unit profitability across all three divisions.

Addressing the company's Q1 FY27 earnings conference call, Kushal Desai, Chairman and Managing Director of APAR Industries Limited, said the company began the financial year on a strong note despite significant external challenges, including geopolitical tensions involving the US and Iran, export-market logistics disruptions and manpower shortages during May. He attributed the performance to effective risk management, disciplined execution and the team's ability to navigate a volatile operating environment.

The EBITDA margin improved to 12.4% from 9.8% in the corresponding quarter last year, while the PAT margin increased to 7.1%, an improvement of approximately 200 basis points. Domestic revenue grew 36.8%, while export revenue increased 12.4%. Exports accounted for 27.5% of consolidated revenue, compared with 31.6% a year earlier.

The conductors division recorded revenue growth of 19.9% to INR 3,338 crore. However, quarterly sales volume declined 6.7% year-on-year, primarily because of a sharp increase in aluminium prices, which affected delivery schedules for existing orders. According to Desai, some customers without hedged metal delayed manufacturing clearances while waiting for prices to stabilise before securing aluminium.

He described the delays as temporary, noting that the orders had already been placed and that customers faced contractual delivery deadlines and stringent penalties for project delays. Domestic revenue in the conductors division increased 19.3%, while export revenue rose 22.2%. Exports contributed 20.5% of divisional revenue, marginally higher than a year earlier.

The premium conductor segment strengthened its contribution, accounting for 50.3% of divisional revenue compared with 43.7% in the corresponding quarter last year. Desai explained that manufacturing delays were concentrated largely in conventional conductors for domestic transmission projects, including Tariff-Based Competitive Bidding (TBCB) projects, while premium products continued to be executed.

During the quarter, APAR achieved its highest-ever quarterly reconductoring installations. The company also received approval from one of the largest US utilities for its 144-count Optical Ground Wire (OPGW), an important development for its presence in the US market, where demand for higher fibre counts is increasing with growing data transmission requirements.

The conductors division's pending order book stood at approximately INR 10,190 crore, with exports accounting for 56.8%. New orders received during the quarter totalled INR 5,245 crore, of which exports contributed 65.8%. These included orders worth more than INR 2,800 crore from two major overseas electric utility companies, one in the US and the other in Europe, with deliveries scheduled over the next few years.

The oil division delivered revenue growth of 34.7% to INR 1,701 crore. However, quarterly volume declined 13.7% year-on-year to 129,085 kilolitres, primarily because of operational constraints at the company's UAE facility. The closure of Hamriyah Port amid the regional crisis restricted the facility to local deliveries from available inventory.

Volumes in India declined by only 4.4%, which Desai described as a creditable performance given the initial disruption to shipping movements during April. Domestic transformer oil volumes fell 6.2%, while global transformer oil volumes declined approximately 8%. In contrast, automotive oil volumes grew 6.6% and industrial lubricant volumes increased 12.1%.

The company navigated the volatile market by executing pending orders at the beginning of the financial year and maximising the realisable value of its available inventory. Sharp movements in crude oil and gas oil prices during the quarter, which rose significantly at the beginning before falling towards the end, also affected the division's financial performance.

In accordance with applicable accounting standards, APAR provided approximately INR 94 crore for the oil division during the quarter. Even after accounting for this provision, EBITDA per kilolitre increased substantially to INR 25,482 from INR 7,004 a year earlier. Overall divisional EBITDA rose 214% year-on-year to INR 329 crore and was approximately 290% higher than in the preceding quarter.

The cables division also recorded strong growth, with revenue increasing 29.5% year-on-year to INR 1,838 crore. Domestic revenue rose 59.9%, while export revenue declined 13.7%. Exports accounted for 27.6% of divisional revenue, and revenue from the US market increased 2.5% year-on-year.

Desai highlighted the growing opportunities in the US cable market, particularly in supplying products for data centre infrastructure. APAR has received approvals for cables supplied to data centres operated by Meta, Microsoft and Google through major electrical contractors. The company has begun receiving orders and participating in requests for quotations (RFQs) for copper cables across low-voltage and medium-voltage categories.

These products include polyvinyl chloride (PVC), cross-linked polyethylene (XLPE) and rubber-insulated cables. Desai noted that APAR's cable exports to the US had largely consisted of aluminium cables in the past, making the approvals for copper cables an important step in broadening its market participation.

The company's pending cable orders stood at INR 1,925 crore, compared with INR 1,653 crore a year earlier, largely covering requirements for the coming quarter. EBITDA after open-period foreign exchange adjustments increased 36.7% to INR 194 crore, while the EBITDA margin improved by 60 basis points year-on-year to 10.6%.

Desai concluded that APAR Industries had delivered a strong quarterly performance despite geopolitical uncertainty, logistical disruptions and commodity price volatility. With all three divisions recording higher profitability, the company achieved its highest-ever quarterly revenue and profit in its history, reflecting its execution capabilities and its ability to manage challenging market conditions.
 

Published at : Oct 21, 2026 11:38 AM (IST)

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