APAR Industries Q4 FY26: Record FY26 revenue, strong conductor and cable execution, and a bigger capex plan

APAR Industries closed FY26 with its highest ever consolidated revenue. Revenue from operations for FY26 came in at INR 22,902 crore, up 23.3 percent year-on-year. EBITDA post open period forex rose to INR 2,067 crore, up 23.0 percent, with EBITDA margin steady at 9.0 percent. Profit after tax increased to INR 977 crore, up 19.0 percent, with PAT margin at 4.3 percent.

In Q4 FY26, revenue from operations was INR 6,603 crore, up 26.7 percent versus Q4 FY25. EBITDA was INR 584 crore, up 19.3 percent, while PAT was INR 254 crore, up 1.4 percent. Management highlighted that Q4 included one-offs including additional impact from the new wage code on gratuity and leave encashment, mark-to-market impact on an ECB loan, and a provision for an old legal case. The company stated that excluding such non-operating impacts, PAT growth would have been higher.

FY26 performance: growth led by domestic strength and execution

Management attributed FY26 growth to sustained domestic demand, scaling up of the US business, and improved product mix. The company also called out strong sector tailwinds in power transmission, renewable energy additions, and the expanding data center ecosystem.

The consolidated performance was supported by the Conductor and Cable divisions, while the Specialty Oil and Lubricant division faced disruption in March due to Middle East supply chain issues and freight spikes.

Segment snapshot: Conductor crosses INR 10,000 crore; Cable gains share

The Conductor division delivered the largest contribution to FY26 revenue. Q4 Conductor revenue was INR 3,764 crore, up 29.9 percent year-on-year, driven by higher volumes, product mix improvement and higher realisations. Quarterly volumes were 64,957 MT, up 9.0 percent.

For FY26, Conductor revenue rose to INR 12,712 crore, up 32.7 percent, with volumes up 8.6 percent year-on-year. Management highlighted that the division crossed the INR 10,000 crore milestone during the year. Premium product mix increased to 49.3 percent in Q4 and 45.8 percent for FY26.

The Specialty Oil and Lubricant division reported Q4 revenue of INR 1,311 crore, up 4.8 percent, with EBITDA at INR 84 crore and margin at 6.4 percent. For FY26, revenue was INR 5,373 crore, up 5.6 percent, with EBITDA of INR 376 crore and margin stable at 7.0 percent. Management explained that March exports were hit by Middle East disruption and a sudden increase in freight, which also created uncertainty on pricing and availability.

The Cable division posted one of the strongest growth rates. Q4 revenue was INR 1,903 crore, up 35.0 percent, with EBITDA at INR 202 crore and margin at 10.6 percent. For FY26, revenue grew to INR 6,220 crore, up 25.8 percent, with EBITDA at INR 633 crore and margin at 10.2 percent. Management stated that the Cable division overtook the Oil division to become the second largest segment.

Note: The presentation provides FY26 division wise EBITDA to PAT, but does not provide a matching FY26 revenue figure for Others.

Management commentary: US traction, but near-term headwinds remain

A key discussion point on the call was the US market. Management said it is seeing strong traction in the US, led by data center opportunities. The company disclosed that it has supplied to three major US data center projects so far with cable value in the range of about USD 15 million. It also stated it is receiving more RFQs and is adding specific capacity to manufacture higher specification data center cables required in the US.

At the same time, management cautioned about short-term headwinds. It pointed to higher metal prices, higher premiums for aluminum and copper, higher freight and war premiums, and some deferral of deliveries as customers wait for costs to stabilise. The company also highlighted near-term pressure in specialty cables due to polymer shortages linked to war impacts in the Middle East, which can affect volumes and margins.

Capex ramp-up: FY27 plan of about INR 1,500 crore

The company indicated it plans to increase capex in FY27 to about INR 1,500 crore, after incurring capex of INR 740 crore in FY26. The CFO shared a division-wise split for the FY27 plan: around INR 400 crore for Conductors, around INR 200 crore for Oils, and around INR 850 crore for Cables.

Management linked the higher capex to ensuring capacity availability for future demand, given longer capex cycles and a multi-year opportunity runway in energy infrastructure.

On profitability, the CFO reiterated medium to long-term guidance for Conductor EBITDA per MT in the range of INR 35,000 to INR 36,000 plus tailwinds, while noting that the company does not give next-year guidance.

Takeaways

APAR Industries ended FY26 with record consolidated revenue and profit growth, supported by strong execution in Conductors and Cables and a higher premium product mix. The Oil business faced short-term export disruption and cost pressure from the Middle East conflict, while the Cable segment benefited from strong demand and improved scale.

Management’s key message was that near-term volatility in metals, freight and supply chains can slow ordering, but structural demand drivers in power transmission, renewables, data centers and grid modernisation remain intact. The planned FY27 capex step-up to about INR 1,500 crore signals an intent to frontload capacity for the next phase of growth.