Apar Industries , a leading player in the power transmission and distribution sector, has reported a robust performance for the second quarter of fiscal year 2026 (Q2FY26), with significant growth across its business segments. However, the company faces short-term challenges due to recent global market dynamics.

Financial Highlights

Apar Industries achieved consolidated revenue of Rs 5,715.00 crores in Q2FY26, marking a 23.1% year-on-year growth. The company's performance was driven by volume growth across all three divisions - conductors, cables, and specialty oils.

Key financial metrics for Q2FY26:

Exports played a significant role in the company's growth, surging 43% year-on-year and contributing 34.7% to the consolidated revenue, up from 29.8% in the previous year.

Half-Yearly Performance

For the first half of FY26, Apar Industries crossed a significant milestone:

• Consolidated revenue reached Rs 10,820.00 crores, up 25% year-on-year
• EBITDA stood at Rs 1,000.00 crores, a 25.5% increase from H1FY25
• EBITDA margin maintained at 9.2%

Segment-wise Performance

Conductor Division

• Revenue growth: 34.9% year-on-year
• Volume growth: 16.2%
• Exports grew by 74.6%, contributing 24.2% to the division's revenue
• Premium product mix contribution increased to 45.4% from 42.2% in Q2FY25

Cable Division

• Revenue growth: 25.1% year-on-year, reaching Rs 1,535.00 crores
• EBITDA growth: 32% year-on-year, reaching Rs 157.00 crores
• EBITDA margin improved to 10.2%, up 50 basis points

Oil Division

• Revenue remained flat due to lower crude prices
• Volume growth: 8.2%
• Domestic transformer oil business posted 13.6% revenue growth

Market Dynamics and Challenges

Despite the strong performance, Apar Industries faces some near-term challenges:

1. Metal Price Volatility: Recent spikes in aluminum (reaching $2,900.00 per ton) and copper (exceeding $11,200.00 per metric ton) prices have led to order delays from customers.

2. US Tariff Situation: The company is navigating through recent changes in US tariffs, including the Section 232 duty on aluminum, copper, and steel products.

3. Q3 Outlook: Management expects pressure on Q3 performance due to these factors but remains optimistic about Q4 recovery.

Strategic Initiatives and Outlook

Apar Industries is taking proactive steps to address these challenges:

1. Capacity Expansion: The company is proceeding with its planned capex, including a Rs 800.00 crore investment in the cable division, reflecting confidence in long-term demand.

2. Market Diversification: Efforts are underway to expand into new geographic markets, particularly for premium products.

3. Focus on Renewable Energy: The company is well-positioned to benefit from the growing renewable energy sector, particularly in solar and wind energy projects.

Kushal Desai, Chairman and Managing Director of Apar Industries, commented on the results, stating, "While we face some short-term headwinds, particularly in Q3, our fundamental growth drivers remain strong. We are optimistic about our long-term prospects, especially given the continued investments in renewable energy and grid modernization globally."

As Apar Industries navigates through these short-term challenges, its strong order book of Rs 7,168.00 crores in the conductor division and Rs 1,836.00 crores in the cable division provides a solid foundation for future growth. The company's strategic focus on premium products and expanding its global footprint is expected to drive sustainable growth in the coming quarters.

Apar Industries , a leading player in the electrical and power transmission sector, has delivered impressive quarterly results, showcasing strong financial performance despite ongoing tariff uncertainties in the market. The company is now focusing on export-led expansion with an emphasis on renewable-grade conductors and high-margin cables.

Financial Highlights

Apar Industries demonstrated robust growth in its second quarter results for the fiscal year 2026. The company's revenue surged to ₹5,721.00 crore, marking a significant 23.03% increase from ₹4,650.00 crore in the same quarter of the previous year. This substantial top-line growth reflects the company's strong market position and effective business strategies.

Profitability and Operational Efficiency

The company's bottom line showed even more impressive growth, with consolidated net profit rising to ₹250.00 crore, up 28.87% from ₹194.00 crore in the corresponding quarter last year. This growth in profitability outpaced the revenue growth, indicating improved operational efficiency and cost management.

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew to ₹461.00 crore from ₹360.00 crore, representing a 28.06% increase. The EBITDA margin also improved, rising to 8.06% from 7.70% in the previous year, showcasing the company's ability to enhance its operational profitability.

Strategic Focus on Export-Led Growth

Apar Industries is pursuing a strategy focused on export-led expansion, with a particular emphasis on renewable-grade conductors and high-margin cables. This strategic shift aligns with global trends towards sustainable energy solutions and positions the company to capitalize on growing international demand for advanced electrical infrastructure.

Global Partnerships and Growth Strategy

As part of its growth strategy, Apar Industries is actively pursuing global OEM partnerships. These collaborations are expected to play a crucial role in the company's efforts to maintain double-digit growth and stable profit margins. By partnering with international original equipment manufacturers, Apar Industries aims to expand its market reach and enhance its product offerings.

Management Commentary

The Managing Director of Apar Industries acknowledged the current tariff uncertainty in the market. Despite these challenges, the company has indicated plans to make tactical decisions to maintain its market presence. This strategic approach demonstrates the management's proactive stance in navigating market uncertainties while focusing on sustainable growth.

Market Outlook and Future Prospects

While the company has shown strong performance, the management's mention of tariff uncertainty suggests potential challenges in the near future. However, Apar Industries' focus on export-led growth, particularly in renewable-grade conductors and high-margin cables, positions it well to navigate these uncertainties.

The company's ability to significantly improve its profitability and operational metrics in the face of market uncertainties is a positive sign. It indicates the resilience of Apar Industries' business model and its capacity to capitalize on opportunities in the electrical and power transmission sector.

As Apar Industries continues to navigate the evolving market landscape, its focus on tactical decision-making, maintaining market presence, and pursuing global partnerships could be key factors in sustaining its growth momentum in the coming quarters.

Investors should keep a close eye on how the company manages the tariff uncertainties and their impact on future financial performance, as well as the progress of its export-led expansion strategy. The robust Q2 results provide a strong foundation, but the company's adaptability to market changes and success in international markets will be crucial for its long-term success.