Apar Industries Ltd Q2 FY26 Earnings Analysis

- Conductor volume growth guidance remains at around 10% annually. (Page 27) - Cable segment is expected to grow at approximately 25% in value terms. (Page 23) - Specialty oil lubricant segment is growing at 8%, which is about 2.5-3 times the overall market growth of 2%-3%. (Page 34) - Domestic transformer oil business is growing faster than the Sharjah plant operations in oil business. (Page 34) - Solar cables business is substantially growing though margins may be under some pressure due to higher volumes. (Page 28) - Power cable side and flexible elastomeric segments are also showing growth, with wind sector demand picking up substantially. (Page 30) - The company expects growth opportunities as tariff situations settle, especially for exports to the US. (Page 22, 30) - The overall specialty oil segment sees consistent volume growth hitting all-time highs. (Page 34) Overall, steady growth is anticipated across conductor, cables, specialty oils, and renewable energy segments.

- APAR Industries expects around 10% volume growth annually in the conductor segment. - Cable segment is guided for about 25% value growth. - EBITDA per ton for conductors is maintained at 30,000+ levels, with potential upside from tailwinds. - The oil business is growing steadily, with the transformer oil segment expanding; this is a good cash flow business though growth is muted relative to cables. - Solar cable business is growing substantially with some pressure on margins due to volume scale. - Capacity expansion in conductor division ongoing, with additional capacity expected from Q3 to early Q4 FY'26. - Export opportunities, especially in the US market post-tariff resolution, present growth potential. - Overall, the company expects steady growth with improved margins conditional on tariff and competitive landscape clarity.

- APAR is executing a Rs. 1,300 crore capex plan, with around Rs. 300-400 crores allocated to expanding conductor product capacities. - Equipment installation for this expansion has started, with a significant portion coming online in Q3 and early Q4 FY'26. - The company is also focused on increasing capacity for solar DC cables (used for stringing solar panels) to leverage growing solar module manufacturing. - There is ongoing investment in storage consolidation at JNPT, moving from rented tanks to owned facilities, improving export competitiveness and storage quality. - APAR is quietly evaluating possibilities in the US market but awaiting more clarity before committing to new strategic investments. - Overall, capex is directed towards expanding conductor and cable production, improving storage infrastructure, and supporting solar segment growth.

The transcript on page 37 and surrounding pages does not explicitly mention any current or future plans for fundraising through debt or equity by APAR Industries. Key points related to investments and capacity expansions include: - Rs. 1,300 crores CAPEX underway, including Rs. 300-400 crores for expanding conductor capacity, with equipment installation expected in Q3 and early Q4. - No mention of raising equity or debt specifically to fund this CAPEX. - The discussion focuses largely on operational growth, tariff impacts, and market demand. - Management is awaiting clarity on US tariffs before making significant decisions, including potential local manufacturing in the US. - No direct references to upcoming fundraising rounds through debt or equity in the current earnings call. Hence, no explicit indication of new fundraising via debt or equity.

- APAR's conductor segment is experiencing strong order inflows, hitting a 5-quarter high. - The company is running at full capacity for most conductor products. - Expansion CAPEX of Rs. 1,300 crores includes Rs. 300-400 crores for increasing conductor capacity. - New equipment installations are happening, with significant capacity coming online in Q3 and early Q4 FY'26. - Cable segment is guiding for 25% value growth despite uncertainties. - Tariff risks for new orders are borne by clients, not APAR. - Export orders in cables and conductors are influenced by US tariff situations, with ongoing adjustments. - Domestic demand for premium cable segments remains strong, supported by sectors like wind, solar, and railways. - Overall, APAR maintains confidence in order inflows and capacity utilization, with flexibility to adapt product mix as required.