Apar Industries FY26: Scale Hits ₹22,902 Cr, Multiples Refuse to Budge

General information and entertainment, not investment advice. The author is not a SEBI-registered adviser or research analyst. No recommendation, no promised returns. Markets carry risk including loss of capital. Figures may not be current. Consult a registered adviser before acting.

1 — At a Glance

FY26 revenue crossed ₹22,902 crore—a 23% jump from ₹18,581 crore in FY25, hitting an all-time high. Yet the stock trades at 55× earnings, a multiple that sits squarely above its 5-year average of 27× and well above the median peer at 28×.

The three divisions wrote a mixed story: Conductors (48% of revenue) surged 33% with premium products now 46% of the mix. Cables (25% of revenue) accelerated 26%, riding U.S. data center tailwinds. Oils (26% of revenue) limped 6% due to Middle East supply disruptions in March.

Profitability disappointed relative to scale. PAT grew 19% to ₹977 crore, but margins compressed. Q4 reported a 3.8% margin, down from 4.8% last year—partly hidden by a ₹31 crore stack of one-offs that management flagged (wage code gratuity provisions, FX MTM loss, legal provision). Strip those out and PAT would have grown 27%.

Net cash sits at ₹(224) crore after adjusting gross borrowings of ₹956 crore against ₹731 crore cash. The company carries no pledged promoter shares. A ₹1,500 crore capex plan for FY27 signals ambition; utilization across divisions remains in the 65–95% band.

The tension: A record business grappling with metal volatility, geopolitical logistics stress, and a market unwilling to compress its valuation.

2 — Introduction

Apar, founded in 1958 by Dharmsinh D. Desai, has spent six decades as India’s electrical-infrastructure workhorse. Its three core segments—conductors for power transmission, transformer oils for electrical systems, and telecom/power cables—serve railways, renewable energy, defence, nuclear power, and a reshuffling U.S. data center market.

The concall in May 2026 revealed management’s candor about near-term friction. Metal prices remain “significantly higher”; freight carries “war premiums” from Middle East disruptions; customers are postponing deliveries where possible. Yet the company just inked a ₹156.9 crore railways Kavach contract (telecom EPC, 1,563 RKM) and a ₹5 crore annual arrangement to operate 6,100 km of OPGW (Optical Ground Wire) fibre in Karnataka for 15 years.

The promoters, Kushal N. Desai (Chairman & MD) and Chaitanya N. Desai (MD)—grandsons of the founder—own 57.8%, unchanged. DIIs hold 24.2%, up from 18% three years ago. No pledges. Credit rating moved from A+ to AA- in September 2024.

3 — Business Model: WTF Do They Even Do?

Conductors (49% FY26, ₹12,712 crore): World’s largest manufacturer. The company makes everything from conventional aluminum rods to High Efficiency and High Temperature Low Sag specialty conductors. In FY26, it crossed the ₹10,000 crore milestone for the first time. Domestic revenue surged 38%, exports crawled 15% due to U.S. tariffs and Chinese competition. Premium products—those higher-spec engineering solutions—now represent 46% of conductor revenue, up from 41% in FY25. Volume grew 9% to 2.42 lakh MT. The division installed 1,949 circuit-km in FY26 (a record), feeding Mumbai grids and data-center backhauling.

Specialty Oils & Lubricants (26% FY26, ₹5,373 crore): India’s largest transformer oil maker (60% domestic market share); world’s third-largest. The company bottles 500+ grades across transformer oils, white oils, petroleum jelly, and industrial lubricants under POWEROIL and an ENI partnership brand. Volume grew 9% to 6.32 lakh KL; however, March disruptions (Red Sea strains, key refineries cutting production) crimped exports to 39.8% mix. Domestic transformer oil, stripped of disruptions, was tracking >15% growth before the war choked March volumes.

Cables & Wires (25% FY26, ₹6,220 crore): India’s largest exporter of specialty cables; sixth-largest in the organized market (8% share). The company makes railway locomotive cables, naval submarine harnesses, solar/wind hybrid harnesses, telecom fiber, and standard LV/MV XLPE wires. U.S. revenue exploded 47% in FY26, driven by hyperscaler data center demand. Management has articulated a $10–12 million cable BOM per mid-sized U.S. data center (plus another $15–18 million in low-voltage work)—vastly larger than India’s ₹2–6 crore per facility. Vande Bharat trains carry APAR conductors; Bullet trains use APAR-developed cables.

Geography: Domestic now 67% (9M FY25 view); exports 33%. The company operates in 140 countries from 10 factories (eight in India, two in the UAE). It announced a wholly-owned Brazil subsidiary and won approval for a Saudi Arabia subsidiary in FY25.

The business model is order-driven, currency-sensitive, and metal-price-elastic. Aluminum and copper spot-price swings hit margins. Customers pre-fund large orders via LC (Letter of Credit), which the company finances. It’s a scale game played with thin wire.

4 — Financials Overview

Figures are consolidated, in ₹ crore.

Latest Period: FY26 (Full Year ended March 31, 2026) – Annual Results

Quarterly Deep Dive: Q4 FY26 (Jan–Mar 2026)

Q4 delivered ₹6,603 crore in revenue, a 26.7% YoY jump, with domestic sales accelerating 33.6% and exports up 13.3%. Domestic now accounts for 72.4% of Q4 revenue. Operating margin compressed 50 bps to 8.8% due to higher metal costs and subdued U.S. demand. PAT came in at ₹254 crore on a 3.8% margin. Stripped of ₹31 crore in one-offs—gratuity/leave provisions (₹8 cr), MTM loss on ECB (rupee depreciation), and old legal case provision—PAT would have been ₹285 crore, a 14% YoY increase.

Segment-wise (FY26):

Conductors drove the growth story: ₹12,712 crore (+33%), with EBITDA per MT hitting ₹43,012 (vs ₹36,683 in FY25)—a 17% beat. Domestic conductors led the surge; premium product mix jumped to 46%. Order inflow was ₹11,450 crore; pending book stands at ₹7,671 crore (38.9% exports). Management’s medium-term guidance: EBITDA/MT of ₹35,000–36,000 “plus