APAR Industries Q3 Results: Profit Soars 19% on Strong Domestic Demand

Introduction

APAR Industries Limited has reported a strong financial performance for the third quarter ending December 31, 2025, driven by significant growth in its domestic operations. The company's consolidated net profit saw a substantial increase, and revenue grew despite challenges in the export market. Following the announcement, the company's shares reacted positively on the stock exchange, reflecting investor confidence in its operational resilience and strategic focus.

Q3 Financial Performance in Detail

In Q3 FY26, APAR Industries posted a consolidated net profit of ₹209 crore, marking a 19.4% year-on-year (YoY) increase from ₹175 crore in the same period last year. Total revenue from operations grew by 16.2% YoY to ₹5,480 crore. The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed 32% to ₹444.3 crore, with the operating margin expanding to 8.1% from 7.2% a year earlier. This improvement reflects better cost management and a favorable product mix.

Nine-Month Performance Overview

The positive trend extends to the nine-month period ending December 31, 2025. For the first three quarters of FY26, APAR's revenue increased by 21.9% YoY to ₹16,299 crores. The profit after tax (PAT) for the same period soared by 26.6% YoY, underscoring sustained profitability throughout the fiscal year. The consolidated EBITDA margin for the nine-month period stood strong at 9.1%.

Domestic Strength Offsets Export Weakness

A key theme of the quarter was the divergence between domestic and international business. The domestic market was the primary growth engine, with revenues surging by 30% YoY in Q3. This robust performance highlights resilient demand within India. In contrast, exports faced headwinds, declining by 11.2% YoY. The contribution of exports to total revenue fell to 25.6% from 33.5% in the corresponding quarter of the previous year. The US market, in particular, experienced a sharp 51% contraction during the quarter.

Segmental Revenue Breakdown

All major business segments contributed to the top-line growth, showcasing broad-based strength in operations.

• Conductors: The conductor segment was a standout performer, with Q3 revenue growing by 25.1% YoY to reach ₹3,063 crores.
• Speciality Oils: This segment also showed healthy growth, with revenue increasing by 18.4% YoY, supported by a significant volume growth of 20.8%.
• Cable Solutions: The cable solutions business reported a 7.6% YoY increase in revenue for the quarter, reaching ₹1,362 crores.

Key Financial Metrics

Operational Highlights and Order Book

The company's operational efficiency improved, as seen in the expanded EBITDA margins. An exceptional item of ₹25 crore was recognized as a provision related to past service costs arising from the enactment of new labour codes. A significant indicator of future revenue visibility is the company's robust pending order book, which stands at ₹7,396 crores, providing a strong foundation for the upcoming quarters.

Leadership Perspective

Mr. Kushal N Desai, Chairman & MD of APAR Industries, commented on the results, stating that the company delivered a healthy performance on both top and bottom lines. He acknowledged the challenges in the US market but highlighted the successful strategy of pivoting towards strong domestic opportunities. The management remains optimistic about potential trade resolutions with the US that could revive export growth in the future.

Corporate Governance Update

In a strategic move to strengthen its board, APAR Industries announced the appointment of Mr. Pitamber Shivnani as an Independent Director, effective January 29, 2026, subject to shareholder approval. Mr. Shivnani brings extensive experience from the transmission and distribution sector, which is expected to benefit the company's strategic direction and governance.

Market Reaction and Share Price

The market responded favorably to the strong earnings report. Shares of APAR Industries were trading nearly 4% higher at ₹7,707 on the NSE in afternoon trade on the day of the announcement. This positive movement reflects investor confidence in the company's performance and its ability to navigate a complex global environment.

Conclusion

APAR Industries' Q3 FY26 results demonstrate its resilience and ability to leverage strong domestic demand to counter external market pressures. The significant growth in profit and revenue, coupled with margin expansion and a healthy order book, positions the company well for continued growth. While the export market, particularly the US, remains a key area to watch, the company's domestic focus has proven to be a successful and profitable strategy for the current fiscal year.