Apar Industries operates three primary divisions: conductors, specialty oils, and cables, serving global transmission, distribution, and specialty equipment markets. The company functions as a specialized converter, turning commodity metals and base oils into mission-critical power transmission components. In the domestic market, it holds a niche dominance as the sole supplier of HVDC transformer oil to Hitachi, GE, and Siemens, and manufactures the largest variety of cables by an Indian producer. Its economic quality is evidenced by sustained converter economics; the conductor division generated EBITDA of INR43,012 per ton in FY26, up from INR36,683 a year ago, while the cable division maintained EBITDA margins around 10.2%. These margins, hovering at the 10-12% range for cables and translating to robust per-ton profitability for conductors, indicate a good but cyclical manufacturing business where specialized product mix drives profitability rather than scale alone.
The economics of this business persist through multi-year qualification cycles and high switching costs. Data center cable approvals in the U.S. required building credentials from scratch, including complex manufacturing infrastructure and quality system assessments distinct from Indian standards, allowing Apar to recently secure approvals to supply Meta, Microsoft, and Google. In conductors, the company has completed over 175 reconductoring projects in difficult terrains, creating an expertise barrier for high-temperature low-sag (HTLS) products that increase power throughput by 150-200%. While new domestic entrants like UltraTech and Adani are targeting building wires, they do not affect Apar's high-value specialty segment. The U.S. conductor market shows structural constraints where 70% of utility demand is local, but Apar operates profitably in the 30% import market because U.S. domestic producers also pay the same 50% Section 232 duty on imported aluminum, neutralizing the tariff disadvantage. The inflection over the next 18-24 months is driven by a step-up in capacity and a shift toward premium mix. By mid-FY27, the company will complete an INR1,500 crore capex program for FY27, up from INR740 crores in FY26, which will increase cable revenue capacity from INR5,000 crores to INR10,000 crores. This capacity is explicitly being pulled forward to target the U.S. data center market, where a medium-sized facility requires $10-12 million in medium-voltage cables. Supported by a conductor order book of INR10,190 crores as of July 2026 and a cable pending order book of INR1,925 crores, the business 18-24 months out will feature double-digit volume growth in conductors as domestic transmission execution catches up, and a cable division aiming for INR10,000 crores in revenue at a 20% CAGR. Conductor EBITDA margins are guided to remain elevated at INR35,000-36,000 per ton, driven by a premium product mix that already reached 50.3% of revenues in July 2026. Management's walk-talk shows a trajectory of upgrading targets despite near-term execution slips. In November 2025, total capex was targeted at INR1,300 crores with cable commissioning by June 2026; by June 2026, capex was raised to INR1,500 crores for FY27 to meet future demand. Earlier promises of 10% annual volume growth for conductors and 25% value growth for cables through FY26 faced headwinds in Q3, when conductor volumes de-grew 5.9% due to right-of-way delays and cable export revenue fell 44% as U.S. orders dried up. However, management recovered by securing INR500 crores of new U.S. cable orders in Q3, and by July 2026, consolidated EBITDA grew 62.7% to INR814 crores with margins expanding to 12.4%. The balance sheet is managing working capital at 45 to 50 days, with debtor and inventory days improved despite commodity price shocks, funding growth without raising equity. Earnings visibility is anchored by the INR10,190 crore conductor order book and the ramping of newly commissioned cable capacity. For the earnings path to hold, domestic transmission right-of-way issues must continue to clear, allowing the 6.5 lakh circuit km network expansion by 2032 to convert into volume growth. The single most important watchpoint is the U.S. tariff and trade structure, specifically the Section 232 duties and potential additional 10% duties under Section 301 for India. While Apar has managed 50% aluminum tariffs by having customers absorb the duty, a further escalation or a failure to normalize trade logistics would directly threaten the high-margin U.S. data center cable ramp-up and the INR2,800 crores in new overseas utility conductor orders, compressing the premium mix that currently drives per-ton profitability.
companyname: APAR Industries Limited ticker: APARINDS sector: Electrical Equipment – Conductors, Cables, Speciality Oils, Lubricants, Polymers APAR Industries Limited manufactures the physical components that move electricity - overhead conductors for transmission lines, cables for distribution and specialised applications, and the transformer oils that cool and insulate the equipment stepping voltage up and down. Founded in 1968, the company operates 11 plants in India (Gujarat, Maharashtra, O...
Read the full report →capex, margin expansion, geographic expansion, order book surge
FY27 conductor EBITDA margin guided at INR35,000-36,000/ton driven by premium product mix and capacity expansion
Guidance upgradedmixed
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