Apar Industries (APR IN) – Q4FY26 Result Update – Strong T&D tailwinds anchor long term outlook – Downgrade to ‘HOLD’
Published on 29 May 2026
While supply chain disruptions arising from Middle East conflict and persistent Chinese competition in non-US markets remain key monitorables in the near term, we remain positive on the company’s long-term growth outlook driven by 1) robust T&D capex and renewable evacuation opportunities, 2) increasing mix of premium conductors such as AL-59 and HTLS in the domestic market, 3) healthy traction in elastomeric and specialty cables across renewables, railways, defence and data centers, and 4) leadership position in the transformer oils business supported by strong power infrastructure investments globally. The stock is currently trading at a PE of 52.9x/43.4x on the earning of FY27/28E. We downgrade our rating from ‘Accumulate’ to ‘HOLD’ given the rise in stock price. We value the Conductors/Cables/Specialty Oils segment at a PE of 40x/40x/15x Mar’28E (34x/34x/12x Sep’27E) arriving at a revised SoTP-derived TP of Rs13,309 (Rs9,629 earlier).
