APAR Industries: Navigating Global Headwinds with Domestic Resilience in Q3 FY26

APAR Industries Limited, a prominent player in the power and infrastructure sector, has reported a resilient performance for the third quarter and nine months ended December 31, 2025 (Q3 FY26 and 9M FY26). The company's consolidated revenue from operations for Q3 FY26 stood at INR 5,480 crore, marking a 16.2% year-on-year increase. This growth was primarily propelled by robust domestic business performance and a favorable product mix across its key verticals. For the nine-month period, the consolidated revenue reached an all-time high of INR 16,299 crore, up 22% year-on-year, underscoring a strong underlying demand in its core markets.

Profitability also saw a healthy uptick, with consolidated EBITDA for Q3 FY26 growing by 20.4% year-on-year to INR 483 crore, achieving an EBITDA margin of 8.8%. Despite an exceptional loss of INR 25 crore due to a provision for past service cost related to a new labor code, the Profit After Tax (PAT) for Q3 FY26 increased by 19.4% to INR 209 crore. The 9-month PAT also reached an all-time high of INR 723 crore, reflecting a 26.6% growth. This strong financial showing highlights APAR's ability to maintain profitability amidst a challenging global trade environment.

Segmental Performance: A Closer Look

The company's performance was characterized by varying dynamics across its three main business segments:

Conductor Division: This segment reported a revenue of INR 3,063 crore in Q3 FY26, a 25.1% increase year-on-year. The growth was driven by a favorable product mix and an increase in commodity prices. However, volume de-grew by 5.9% due to increased competition from non-US geographies and delays in transformer deliveries caused by a lack of bushing supply. The premium product mix remained healthy at 44.2%, significantly contributing to a higher EBITDA per metric ton of INR 44,195. The division's 9-month revenue stood at INR 8,948 crore, up 34%, with an EBITDA of INR 748 crore.

Specialty Oil and Lubricant Division: This division's revenue from operations grew by 18.4% to INR 1,458 crore in Q3 FY26, with a volume growth of 21%. Transformer oil volume increased by 10.6%, while automotive oil and industrial lubricants saw growth of 14.6% and 15.7%, respectively. Exports contributed 42% to the division's revenue. For the 9-month period, revenues reached INR 4,062 crore, with a volume growth of 12.3%.

Cable Division: The Cable division's revenue for Q3 FY26 was INR 1,362 crore, a 7.6% increase. Domestic business showed strong performance, growing by 34.6%. However, overall exports de-grew by 44.3%, primarily due to a 65% decline in US revenues, impacted by tariffs and the Section 232 announcement. The company received approximately INR 500 crore in new order inflows in Q3, a significant portion of which is expected to be billed in Q4. The 9-month revenue for the Cable business grew 22.1% to INR 4,316 crore, with an EBITDA of INR 431 crore.

Financial Summary Table (All values in INR Crore)

*Adjusted for post open period forex before unallocable corporate expenditure net of income

Strategic Initiatives and Market Outlook

APAR Industries is proactively addressing market challenges and capitalizing on growth opportunities. The company has a robust capex plan of INR 1,400 crore, with INR 500 crore already completed by Q3 FY26. This investment is aimed at expanding capacity, particularly for premium products, and ensuring all new facilities are operational by mid-FY27. This forward-looking approach positions APAR to meet the anticipated increase in demand.

A significant development is the company's foray into the Kavach project, securing a INR 153 crore package for railway safety. This turnkey project, involving fiber optic and cable installations, signals a new growth vertical. Furthermore, APAR is actively diversifying its export markets to mitigate the impact of US tariffs, focusing on Latin America, Europe, Australia, and African countries. While this may involve some margin adjustments in the short term, the strategy is to maintain market access and long-term growth.

India's renewable energy sector continues to be a major demand driver, with record capacity additions in 2025. APAR, being a key supplier to windmill manufacturers and solar installations, stands to benefit significantly. The company also sees strong demand from data centers, railways, and defense sectors, which require specialized power and telecom cables.

Management's Vision and Future Outlook

Management remains optimistic about delivering on its guidance for the year, anticipating higher revenue from US exports in Q4 FY26. The fundamental demand drivers for APAR's products remain intact, and the company is on track with its capex plan to ensure improved utilization of new equipment. APAR Industries is recognized as a leader in carrying current products across conductors, cables, and transformer oil, a business segment expected to grow steadily in the coming years.

Despite the challenges posed by geopolitical tensions, commodity price volatility, and specific market tariffs, APAR's strategic focus on domestic growth, premiumization, and market diversification underscores its commitment to sustained performance. The company's proactive approach to capacity expansion and entry into new strategic projects like Kavach reflects a confident outlook on future demand and its ability to capture emerging opportunities.