Apar Industries (APR IN) – Management Meet Update – Structural strength intact amid near-term delays – HOLD
Published on 29 Dec 2025
We interacted with the management of Apar Industries (APR) to assess the domestic demand environment, the implications of US reciprocal tariffs, and the company’s overall business outlook. The management reiterated guidance of ~Rs30,000 EBITDA/mt and ~10% volume growth in conductors, alongside ~8% YoY growth in specialty oils in FY26. The impact of reciprocal tariffs is expected to be limited to order finalization timelines. The tariffs are unlikely to have a material financial impact. Domestically, demand continues to be driven by power T&D, renewables and railways, while exports are supported by the US, Asia, the Middle East and Africa. The cables business remains a key growth engine, with the management targeting ~Rs100bn in revenue, underpinned by capacity expansion and rising demand for specialty, power and low-duty cables. Q3FY26 is expected to remain muted due to elevated raw material prices and slower order finalizations, followed by a recovery in Q4FY26. The stock is trading at a P/E of 28.4x/24.8x on FY27/28E earnings. We maintain our ‘HOLD’ rating valuing the conductors/cables/specialty oils segment at a PE of 34x/34x/12x Sep’27E (same as earlier) arriving at SoTP-derived TP of Rs9,744 (same as earlier).
