Synopsis: A power equipment and specialty oils manufacturer opened FY27 with a sharp jump in profit, helped by a richer product mix and record new orders from overseas utilities. A large pending order book now gives the company strong revenue visibility for the next few years.
The company’s June quarter numbers stood out for how broad they were. Growth wasn’t limited to one division or one geography. All three of its core businesses grew, margins expanded, and the order book got noticeably bigger, giving the company a good head start into the new financial year.
With a market capitalization of around ₹55,239 crore, shares of Apar Industries Limited were trading near ₹14,000 apiece, within a 52-week range of ₹6,800 to ₹17,157, and a P/E of approximately 46x.
A Broad-Based Start to FY27
Consolidated revenue for the quarter rose 29.1% YoY to ₹6,591 crore. EBITDA grew even faster, up 62.7% YoY to ₹814 crore, pushing the EBITDA margin up to 12.4% from 9.8% a year earlier. Net profit came in at ₹467 crore, up 77.7% YoY, with the profit margin improving to 7.1% from 5.2%. Compared to the previous quarter, profit was also up a sharp 84.2%.
The growth wasn’t driven by one segment alone. The Conductor business, the company’s largest, posted 19.9% YoY revenue growth to ₹3,338 crore even though volumes actually fell 6.7%, because the company sold more of its higher-value, premium products. That premium mix rose to 50.3% of conductor sales from 43.7% a year ago, and it pushed EBITDA per tonne up 22.3%.
The Oil division had the standout quarter, with EBITDA more than tripling, up 214.2% YoY to ₹329 crore, even as volumes dipped due to a temporary disruption at its UAE facility. The Cable business also grew well, with revenue up 29.5% YoY and EBITDA up 36.7% YoY.
Where the Order Book Strength Is Coming From
The most notable part of the update was on the order side. The Conductor division’s pending order book stood at ₹10,190 crore, with exports making up 56.8% of it. During the quarter alone, the company won ₹5,245 crore in new orders, and exports accounted for nearly 65.8.
A large chunk of this came from two overseas electric utility companies, which together placed orders worth more than ₹2,800 crore, to be delivered over the next four years. These aren’t one-off wins. They reflect a broader trend of utilities around the world spending heavily to expand and upgrade their power transmission networks, a trend the company expects to keep feeding its order pipeline.
Segment Mix and Other Details
Domestic revenue grew faster than exports this quarter, up 36.9% YoY, while exports rose 12.4% YoY and now make up 27.5% of total revenue, down slightly from last year as the domestic market outpaced international sales. The US market was a bit of a mixed bag. Overall US revenue declined 11.1% YoY, largely pulled down by a 34.0% YoY drop in Conductor division US revenue. However, the Cable division’s US revenue managed a slight gain of 2.5% YoY, with new order inflows from the US beginning to pick up again
On a full-year basis, FY26 revenue had grown 23.3% YoY to ₹22,902 crore, with profit up 18.9% YoY to ₹977 crore, so the pace of growth in the June quarter marks a step-up from that trend.
What Comes Next
With a large order book already in hand and export demand from global utilities continuing to build, the company enters FY27 with more visibility into future revenue than it’s had in a while. The premium product shift in the Conductor business also suggests margins could hold up even if volumes stay uneven from one quarter to the next.
That said, the drop in US revenue across divisions and softer volumes in a couple of segments are reminders that growth hasn’t been perfectly smooth everywhere. Still, with profit up sharply, margins expanding, and a record order book to work through, this is a quarter that gives the company a lot to build on for the rest of the year.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
