APAR Industries: Navigating Growth Amidst Global Shifts in H1 FY26

APAR Industries Limited has reported a robust financial performance for the first half of fiscal year 2026, demonstrating resilience and strategic foresight in a dynamic global market. The company achieved a historic high in consolidated revenue from operations, reaching ₹10,820 crore, marking a significant 25% year-on-year growth. This impressive top-line expansion was complemented by a strong increase in EBITDA, which crossed the ₹1,000 crore mark for H1 FY26, up 25.5% compared to the previous year, maintaining a healthy margin of 9.2%. Profit after tax also saw a substantial rise, climbing 29.9% to ₹515 crore.

The growth was broad-based across all key divisions. The conductor segment led the charge, contributing ₹5,885 crore to H1 revenue, while the cable division posted ₹2,954 crore. The Specialty Oils & Lubricants segment added ₹2,604 crore. A notable highlight was the company's strong export performance, which constituted 34.7% of the consolidated revenue in Q2 FY26, showcasing APAR's expanding global footprint and competitive edge. The US market, in particular, saw significant revenue growth for both cables and conductors in the first half.

Strategic Initiatives and Market Dynamics

APAR Industries is not merely riding market waves; it is actively shaping its future through strategic investments and proactive risk management. The company has outlined a ballpark Capex of ₹1,300 crore for FY26 across its divisions, with a significant portion dedicated to expanding its cable manufacturing capacity. This investment is expected to boost the cable division's revenue-generating potential from ₹5,000 crore to ₹10,000 crore, with the bulk of commissioning anticipated by June 2026. This forward-looking approach ensures APAR is well-positioned to capitalize on the increasing demand from sectors like renewable energy and data centers.

Management has transparently addressed challenges such as the sudden spike in global metal prices and the fluidity of the US tariff situation. The company's strategy of running a completely hedged book for metal prices effectively mitigates speculative risks and allows for the passing on of price variations to customers, thereby safeguarding gross margins. While these factors led to a temporary slowdown in order inflows during Q2, particularly from the US, management anticipates a recovery in Q4 FY26 as market conditions stabilize.

Outlook and Future Growth Drivers

The fundamental growth drivers for APAR Industries remain robust. India's renewable energy sector continues its strong momentum, with record capacity additions, particularly in solar and wind. The government's ambitious ₹6.4 trillion transmission plan to evacuate hydroelectric capacity from the Brahmaputra basin presents a substantial opportunity. Furthermore, the increasing demand for reconductoring projects in India, driven by the proliferation of data centers and other energy-intensive assets, is a key growth area where APAR's expertise in HTLS conductors is crucial.

Despite short-term pressures from metal prices and tariff uncertainties, the company's diversified revenue streams, proactive risk management, and strategic capacity expansions underscore its commitment to sustained growth. APAR Industries is poised to leverage its strong market position and innovative solutions to empower the global energy transition, reinforcing investor confidence in its long-term trajectory.