Apar Industries (APR IN) – Q1FY27 Result Update – Strong Q1, Premium mix powers margin outperformance – Upgrade to ‘ACCUMULATE’
Published on 25 Jul 2026
The Cables business reported healthy growth, supported by robust domestic demand, while recent approvals from Meta, Microsoft and Google are expected to strengthen APAR's presence in the US data centre cable market. Meanwhile, the Specialty Oil business delivered an exceptional quarter despite temporary disruptions at its UAE facility, with margin expansion driven by inventory procured at lower historical costs being realized at elevated market prices following the sharp rise in crude and gas oil prices during the Middle East conflict. With an improving premium product mix, healthy export order inflows, expanding global customer approvals and ongoing capacity expansion, management remains confident of sustaining healthy growth over the medium term. The stock is currently trading at a PE of 38.5x/34.4x on the earning of FY27/28E. We upgrade our rating from ‘Hold’ to ‘Accumulate while valuing the Conductors/Cables/Specialty Oils segment at a PE of 40x/40x/16x Mar’28E (40x/40x/16x Mar’28E) arriving at a revised SoTP-derived TP of Rs14,720 (Rs13,309 earlier).
