APAR Industries (APARINDS) Q3 25/26 earnings summary

Executive summary

• Consolidated Q3 FY26 revenue reached ₹5,480 crore, up 16.2% year-on-year, driven by strong domestic growth and premium product mix, while exports declined due to U.S. tariffs.

• Nine-month FY26 consolidated revenue hit ₹16,299 crore, up 21.9% year-on-year, with PAT at ₹723 crore, up 26.6%, and EBITDA at ₹1,483 crore, up 23.8%.

• Domestic revenue grew 30% in Q3, while export revenue fell 11.2% due to U.S. tariffs, though U.S. revenue rebounded over nine months.

• Exceptional loss of ₹25 crore recognized in Q3 due to new labour code provisions for gratuity and compensated absences.

• Board approved unaudited financial results for Q3 and 9M FY26 and appointed Mr. Pitamber Shivnani as Independent Director, pending shareholder approval.

Financial highlights

• Q3 EBITDA margin at 8.8%; PAT margin at 3.8%, 10 bps higher year-on-year; 9M EBITDA margin at 9.1%.

• FY25 revenue reached ₹18,581 crore, a 15% increase over FY24; PAT for FY25 was ₹821 crore.

• Debt/equity ratio at 0.10 and net fixed asset turnover at 10.13x in 9M FY26; ROE at 20.0%; EPS at ₹44 (not annualized).

• Conductor division Q3 revenue up 25.1% YoY; premium product mix at 44.2% vs. 37.4% last year.

• Oil business Q3 revenue grew 18.4%; transformer oil volume up 10.6%, automotive oil up 14.6%.

Outlook and guidance

• Management maintains guidance for sustainable EBITDA per metric ton and expects a rebound in U.S. exports in Q4, with INR 500 crore in new cable orders.

• Strong order book in conductors and cables, with new order inflow of ₹8,052 crore in 9M FY26.

• Double-digit volume growth targeted for conductor business in FY27 as supply chain issues resolve.

• Continued investment in R&D, capacity expansion, and digitalization to capture growth in renewables, infrastructure, and telecom.

• Cable business expected to maintain 20%+ CAGR and 10% EBITDA margin, with some margin sacrifice in U.S. market for strategic reasons.