APAR Industries targets 15% growth, FY26 capex plan

What APAR Industries is guiding for

APAR Industries has shared fresh operating targets across its conductors and cable businesses, alongside a detailed capital expenditure roadmap. The company is targeting conductor profitability of around ₹40,000 per metric tonne, supported by a 10% volume growth aspiration. It also reiterated a broader ambition to grow revenue by about 15% year-on-year in the coming years, while aiming for better margins.

Alongside these operating targets, management indicated it should be able to double profit over the next four years (in some comments, “four to five years”). The guidance is being positioned around premium products, new capacity, and a stronger export mix.

Conductor business: EBITDA per tonne and premium mix

Management described a “base profitability” in the range of ₹35,000 to ₹36,000 per metric tonne for conductors. It expects this to move into the “40s” as special projects and higher-margin products contribute more meaningfully.

These projects include HTLS (high temperature low sag) conductors and other specialised offerings such as twisted pair configurations designed for difficult wind conditions. The company’s commentary suggests that these higher-spec products can add incremental profitability over the base level.

In addition to profitability per tonne, APAR has indicated a 10% volume growth target for conductors. It has also separately referenced a conservative long-term view of EBITDA per metric tonne at around ₹28,000, reflecting a more cautious benchmark for medium-to-long-term planning.

Cable business: 25% annual growth target and US focus

In the cable business, APAR has publicly stated a target of about 25% year-on-year growth for the next five years. Management linked this outlook to capacity additions, and specifically called out the US market as a key driver.

The company said it did approximately ₹1,600 crore of revenue from the United States “last year” and has a target of about USD 0.5 billion of revenues from the US within the next three years. In the same discussion, it also referenced “about ₹2,200 crore in total” in relation to the US opportunity, indicating the scale of ambition being built into its export strategy.

Capex roadmap: ₹1,300 crore planned through FY26

APAR has outlined a capex plan of ₹1,300 crore planned for FY26 across divisions. Within this, ₹800 crore is earmarked for the cable division to expand capacity, with commissioning expected by June 2026. Conductor capacity expansion is indicated to be on track for completion by March 2026.

The company also noted that more than 50% of its planned capex is going into the cable side to create capacity, and that the overall capex is sufficient for more than two years of growth. It highlighted that the new cable facility is spread over 66 acres, allowing further modular expansion.

A separate capex commitment dated May 22, 2025, described an investment of ₹1,300 crore, including ₹800 crore for a new cable manufacturing facility, ₹300 crore to expand conductor capacity by around 10% to 25,000 metric tons per year, and ₹200 crore to build a storage terminal for transformers and specialty oils at JNPT. Funding was described as a balanced equity and debt mix of ₹650 crore each.

Recent performance snapshots and margins

APAR reported that EBITDA, after accounting for foreign exchange effects, rose 24% year-on-year to ₹499 crore, with an EBITDA margin of 8.7%. In the same set of data points, PAT was reported up 30% year-on-year to ₹252 crore.

Separately, the company also cited “highest ever” EBITDA of about ₹1,000 crore (up 25.5%) and PAT of ₹515 crore (up 29.9%).

For Q1 FY26, APAR posted revenue of ₹5,104 crore, up 27.3% year-on-year. Exports contributed 31.6% of sales. EBITDA rose 27% year-on-year to ₹501 crore (9.8% margin), and PAT grew 30% year-on-year to ₹263 crore.

Capacity and commissioning timeline through FY26

Management indicated that most capacity additions are expected to be operational by March 2026, with fresh capacity expected to come online from Q3 or Q4 of FY26. It also pointed to bulk payouts for new capacity materialising between November 2025 and January 2026.

The strategic focus includes reconductoring opportunities, premium product mix, and efforts to lobby for policy support in India. In cables, APAR has guided for medium-to-long-term EBITDA margins of 10% to 12%.

Key targets and guidance at a glance

Capex and capacity build-out

Market impact: what investors will track

The capex schedule and commissioning dates matter because they set the pace at which APAR can convert its growth guidance into delivered volumes, especially in cables where the company is targeting ~25% year-on-year growth. Investors are also likely to monitor whether conductor profitability sustains at the targeted ₹40,000 per metric tonne, given management’s own conservative long-term reference point of ~₹28,000 per metric tonne.

The company’s near-term operating margin indicators include EBITDA margins of 8.7% (post forex) and 9.8% in Q1 FY26, while cable margins are guided at 10% to 12% over the medium to long term. Export intensity is another key variable, with exports at 31.6% of Q1 FY26 sales, and a stated ambition to build the US business from about ₹1,600 crore of revenue to about USD 0.5 billion over three years.

Why this guidance matters: a grounded view

APAR’s update combines three distinct levers. First is product mix, with HTLS and other specialised conductor projects positioned as profitability enhancers over the base range of ₹35,000 to ₹36,000 per tonne. Second is capacity, with conductor expansion targeted by March 2026 and cable expansion by June 2026. Third is the export push, where the company is explicitly linking cable growth to demand in international markets, including the US.

The company has also been described as a major beneficiary of India’s power infrastructure push, with the last five years marked by strong growth in sales and profits. Separately, a view included in the material cited an anticipated revenue CAGR of 16.0% over FY25 to FY28, reaching about ₹29,030 crore in FY28.

Conclusion

APAR Industries is combining conductor profitability targets, an aggressive cable growth plan, and a ₹1,300 crore capex pipeline aimed at bringing new capacity online between Q3 or Q4 FY26 and June 2026. The next key checkpoints will be the commissioning milestones, delivery on the 10% conductor volume growth target, and the pace of cable growth, particularly in export markets such as the United States.