Apar Industries (APR IN) – Q3FY26 Result Update – Domestic strength; US revival on cards – BUY
Published on 29 Jan 2026
Apar Industries (APR) reported 16.2% YoY revenue growth while EBITDA margin expanded by 56bps YoY to 8.1%. A higher premium product mix and the ongoing industry-wide transition from ACSR to AL-59 continued to support strong EBITDA/MT in the conductors segment. The cables business, however, was impacted by weaker exports and lower contribution from the US amid tariff-related uncertainties. Notwithstanding near-term headwinds, management expects the cables segment to deliver 20%+ growth with margins of 9.5-10% in FY26, supported by ~Rs5.0bn of export order bookings during the quarter, which are slated for execution in Q4FY26. While the US market remains muted, the EU-India FTA is expected to open up incremental opportunities across the European market. Meanwhile, domestic businesses continue to witness healthy demand from renewables, data centres, railways and defence. The stock is currently trading at a PE of 26.1x/22.3x on the earning of FY27/28E. We upgrade our rating from ‘Hold’ to ‘Buy’ given the recent correction, sustained higher share of premium conductors and possible revival in US sales. We value the Conductors/Cables/Specialty Oils segment at a PE of 34x/34x/12x Sep’27E (same as earlier) arriving at a revised SoTP-derived TP of Rs9,629 (Rs9,431 earlier). Upgrade to ‘Buy’.
