APARINDS - Apar Inds.

📊 NSE: APARINDS 🏢 Electric Equipment 📅 Last Updated: 12/13/2025 18:23

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 15.0% YoY to INR 18,581.21 Cr in FY25. In H1 FY26, revenue reached INR 10,820 Cr, up 25.0% YoY. Segment-wise, Conductors grew 39.0% to INR 5,885 Cr in H1 FY26, while Specialty Oil and Lubricants (TSO) revenue remained flat at INR 2,604 Cr despite an 8.1% volume growth. Cables revenue increased by 18% in FY24 led by elastomeric products.

Geographic Revenue Split

Domestic revenue for the conductor division grew 41.4% in H1 FY26. Exports for conductors grew 74.6% in Q2 FY26, contributing 24.2% to the segment's revenue for the quarter and 22.3% for H1 FY26, up from 18.7% in Q2 FY25.

Profitability Margins

Consolidated PAT for FY25 was INR 821.30 Cr, a slight decrease of 0.5% YoY. PAT margin stood at 4.4% in FY25 compared to 5.1% in FY24. ROE declined from 27.0% in FY24 to 19.6% in FY25.

EBITDA Margin

Consolidated EBITDA margin was 9.0% in FY25, down 1.1% from 10.1% in FY24. For H1 FY26, the TSO segment EBITDA margin improved to 7.6% from 6.8% YoY, while the Conductor segment EBITDA margin was 8.5% compared to 9.2% in H1 FY25.

Capital Expenditure

Capital work-in-progress (CWIP) significantly increased to INR 366.41 Cr as of H1 FY26 from INR 127.79 Cr in FY25, indicating substantial ongoing investment in capacity expansion.

Credit Rating & Borrowing

CARE Ratings maintains a 'Stable' outlook. The Total Outside Liabilities to Tangible Net Worth (TOL/TNW) improved to 1.48x as of March 31, 2024, from 2.67x, following a INR 1,000 Cr QIP issue. Finance costs were INR 408.91 Cr in FY25, up 5.8% YoY.

⚙️ Operational Drivers

Raw Materials

Key raw materials include Aluminum, Copper, and Base Oils. Raw material costs reached INR 8,504 Cr in H1 FY26, representing 78.6% of total income.

Import Sources

The company operates through subsidiaries in the UAE (Sharjah), Singapore, USA (Delaware), and Saudi Arabia, which facilitate global sourcing and distribution of specialty oils and cables.

Key Suppliers

Not explicitly disclosed in available documents; however, the company maintains strong operational linkages across its consolidated entities.

Capacity Expansion

Current expansion is evidenced by a 186% increase in CWIP to INR 366.41 Cr. TSO volumes reached 3,10,148 KL and Conductor volumes reached 1,20,069 MT in H1 FY26.

Raw Material Costs

Raw material costs were INR 8,504 Cr in H1 FY26, up 23.5% YoY from INR 6,889 Cr, tracking the 25% growth in revenue.

Manufacturing Efficiency

Net Fixed Asset Turnover Ratio was 11.1 in FY25, compared to 12.3 in FY24, reflecting the lead time for new capital investments to generate revenue.

Logistics & Distribution

Distribution is impacted by freight volatility; the company leverages its global footprint in the UAE and Singapore to optimize international logistics.

📈 Strategic Growth

Expected Growth Rate

25%

Growth Strategy

Growth is driven by 'premiumization' of the product profile, particularly in high-efficiency conductors and elastomeric cables. The company is targeting high-growth sectors including renewable energy, defense, railways, and metros, while expanding its global export footprint which saw 74.6% growth in the conductor segment in Q2 FY26.

Products & Services

High-efficiency conductors, transformer oils, specialty lubricants, elastomeric cables, and fiber optic cables.

Brand Portfolio

APAR

New Products/Services

New product launches include specialized elastomeric products for the renewable energy and defense sectors, contributing to an 18% revenue increase in the cable segment.

Market Expansion

Targeting global markets with a focus on premium products; exports now contribute over 22% of conductor revenue.

Market Share & Ranking

Global leadership position in Conductors and Transformer & Specialty Oils (TSO) segments.

Strategic Alliances

Strategic international subsidiaries include Petroleum Specialities FZE (UAE), Petroleum Specialities Pte. Ltd. (Singapore), and CEMA Wires & Cables LLC (USA).

🌍 External Factors

Industry Trends

The industry is transitioning toward renewable energy and grid modernization. APAR is positioning itself as a premium supplier of high-efficiency transmission solutions to capture this shift.

Competitive Landscape

Faces increasing competition in the domestic cable and conductor markets, tempered by its leadership in premium, high-margin segments.

Competitive Moat

Moat is built on cost leadership in TSO and technical expertise in high-efficiency conductors, which are sustainable due to high entry barriers and long-standing client relationships with major utilities.

Macro Economic Sensitivity

Highly sensitive to power sector capital expenditure and government infrastructure spending, particularly in the renewable energy and defense sectors.

Consumer Behavior

Shift toward energy-efficient products and sustainable infrastructure is driving demand for APAR's specialized cable and conductor offerings.

Geopolitical Risks

Exposure to global trade barriers and freight volatility due to a high volume of exports and international subsidiaries.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by environmental norms for oil processing and manufacturing standards for power transmission equipment; no material departures from accounting standards reported.

Environmental Compliance

CSR expenditure of INR 14.64 Cr in FY25; the company maintains systems for compliance with environmental and labor laws.

Taxation Policy Impact

Effective tax rate of 25.7% in FY25, with tax expenses of INR 284.34 Cr on a consolidated PBT of INR 1,105.76 Cr.

Legal Contingencies

No instances of fraud were reported by auditors under Section 143(12) of the Act during FY25; no specific pending litigation values were disclosed in the provided documents.