Apar Industries (APR IN) – Q2FY26 Result Update – Healthy Q2; tariffs to cause near term headwinds – HOLD
Published on 30 Oct 2025
Apar Industries (APR) reported 23.1% YoY revenue growth while EBITDA margin expanded by 39bps YoY to 8.1%. The conductors division continues to perform well, driven by higher volumes, improved realizations, and a favorable mix, with domestic demand expected to strengthen in H2FY26. The cables segment is also poised for strong growth, supported by demand from wind additions and ongoing capacity expansion, which remains on track for commissioning by Q1FY27. Internationally, traction from the US remained robust during the quarter led by demand from data centers, transmission, and wind energy. After a brief lull, Apar has seen order inflow resumption from the US, albeit at lower margins. While slower order booking amid tariff uncertainty and higher metal prices may impact Q3FY26 performance, the company expects a strong rebound in Q4FY26 providing confidence to reaffirm its guidance of ~10% volume growth, baseline EBITDA of Rs30,000/MT in conductors and ~25% YoY growth in the cables business. We roll forward to Sep’27E and maintain our ‘Hold’ rating valuing Conductors/Cables/Specialty Oils segment at a PE of 34x/34x/12x Sep’27E (35x/35x/12x Mar’27E earlier) arriving at a revised SoTP-derived TP of Rs9,744 (Rs9,540 earlier).
