Any current/future new fundraising through debt or equity?

APAR Industries plans to fund Rs. 1,300 crores CAPEX over the next 12 to 15 months. The funding strategy involves a 1:1 equity-debt mix. Specifically, Rs. 650 crores will come from equity and Rs. 650 crores from long-term debt. This approach was discussed and approved at the Board level. The company recently completed an equity raise in November 2023 to strengthen the balance sheet. The debt portion will be long-term to support CAPEX requirements. No other immediate fundraising details were disclosed in the transcript.

Any current/future capex/capital investment/strategic investment?

APAR Industries is investing Rs. 1,300 crores of CAPEX over the next 12 to 15 months, in addition to Rs. 500 crores invested in FY '25. Breakdown: Rs. 800 crores in cable division, Rs. 300 crores in conductor division, and Rs. 200 crores in oil division. Cable division CAPEX includes a greenfield site expansion aimed to double capacity and enable revenues up to Rs. 10,000 crores. Conductor division capacity to increase by about 10% (~25,000 tons), focusing on premium products. Oil division CAPEX focused on building new storage facilities at JNPT port and UAE (Hamriyah) to increase storage capa

Future growth expectations in sales/revenue/volumes?

**Conductor Division:** Expected volume growth of about 10%. Capacity to increase by ~10% (~25,000 tons), including premium products. **Cable Division:** Top-line value growth guidance of 25% for FY '26; capacity expected to quadruple up to 220 kV voltage level after expansion. Revenue potential up to Rs. 10,000 crores after full commissioning. Medium-term target of Rs. 10,000 crores revenue in cables. **Oil Division:** Volume growth of 6% to 8%, with no major capacity constraints except adding a third shift on the auto-industrial side. Storage capacity is expanding to enhance supply chain

Future growth expectations in earnings/operating earnings/profits/EPS?

**FY '26 Outlook:** - Oil division: Volume growth of 6%-8%, EBITDA of Rs. 5,000 to Rs. 6,000 per KL. - Conductor division: Volume growth of 10%, EBITDA per metric ton Rs. 30,000+ with tailwinds. - Cable division: Value growth of 25%, EBITDA margin of 10%-12%. **CAPEX and Capacity Expansion:** - Rs. 1,300 crores CAPEX planned over 12-15 months (Rs. 200 cr oil, Rs. 300 cr conductor, Rs. 800 cr cable). - Cable capacity to generate Rs. 10,000 crores revenue post full commissioning. - Conductor capacity increasing by ~10% (~25,000 tons). - Wind cable capacity to double. **Profitabil

Current/ Expected Orderbook/ Pending Orders?

Pending order book has deliveries that may extend beyond FY '26, with about 20% of orders scheduled for post-FY '26 deliveries (Page 23). The company consistently receives new orders every quarter, which are executed within that quarter. The medium-term EBITDA guidance of Rs. 30,000 per ton (+ tailwinds) is based on expected premium product mix and order execution (Page 23). Order book includes a significant portion of premium products contributing to the EBITDA guidance. No exact current orderbook value is mentioned on these pages, but there's confidence in steady order inflow and execution a

Apar Industries LtdQ1 FY26Electrical Equipment

Apar Industries Ltd Q1 FY26 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹16,683P/E: 52.2Market Cap: ₹63.0K CrSector: Electrical Equipment

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→**Conductor Division:** Expected volume growth of about 10%. Capacity to increase by ~10% (~25,000 tons), including premium products.
→**Cable Division:** Top-line value growth guidance of 25% for FY '26; capacity expected to quadruple up to 220 kV voltage level after expansion. Revenue potential up to Rs. 10,000 crores after full commissioning. Medium-term target of Rs. 10,000 crores revenue in cables.
→**Oil Division:** Volume growth of 6% to 8%, with no major capacity constraints except adding a third shift on the auto-industrial side. Storage capacity is expanding to enhance supply chain efficiency.
→**CAPEX:** Rs. 1,300 crores planned over next 12-15 months (Rs. 800 crores for cables, Rs. 300 crores for conductors, Rs. 200 crores for oil division).
→**Medium-term Outlook:** Bullish on all three businesses with product premiumization and expansion poised to drive growth. Some revenue from EHV cables likely from FY '27 onwards.

Margin guidance

Category 3

→**FY '26 Outlook:**
→ - Oil division: Volume growth of 6%-8%, EBITDA of Rs. 5,000 to Rs. 6,000 per KL.
→ - Conductor division: Volume growth of 10%, EBITDA per metric ton Rs. 30,000+ with tailwinds.
→ - Cable division: Value growth of 25%, EBITDA margin of 10%-12%.
→**CAPEX and Capacity Expansion:**
→ - Rs. 1,300 crores CAPEX planned over 12-15 months (Rs. 200 cr oil, Rs. 300 cr conductor, Rs. 800 cr cable).
→ - Cable capacity to generate Rs. 10,000 crores revenue post full commissioning.
→ - Conductor capacity increasing by ~10% (~25,000 tons).
→ - Wind cable capacity to double.
→**Profitability and Margins:**
→ - Medium-term view optimistic with expected EBITDA growth and premiumization.
→ - EBITDA per ton expected to improve on a 12-month basis despite some quarterly fluctuations.
→**Overall Business Growth:**
→ - All three businesses poised for growth.
→ - Rs. 5,000 crore+ annual revenue benchmarks targeted post-CAPEX.
→ - Growth supported by strong demand in domestic and US markets with cautious outlook on tariff impacts.

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Fundraise plans

Yes

→APAR Industries plans to fund Rs. 1,300 crores CAPEX over the next 12 to 15 months.
→The funding strategy involves a 1:1 equity-debt mix.
→Specifically, Rs. 650 crores will come from equity and Rs. 650 crores from long-term debt.
→This approach was discussed and approved at the Board level.
→The company recently completed an equity raise in November 2023 to strengthen the balance sheet.
→The debt portion will be long-term to support CAPEX requirements.
→No other immediate fundraising details were disclosed in the transcript.

Order book

→Pending order book has deliveries that may extend beyond FY '26, with about 20% of orders scheduled for post-FY '26 deliveries (Page 23).
→The company consistently receives new orders every quarter, which are executed within that quarter.
→The medium-term EBITDA guidance of Rs. 30,000 per ton (+ tailwinds) is based on expected premium product mix and order execution (Page 23).
→Order book includes a significant portion of premium products contributing to the EBITDA guidance.
→No exact current orderbook value is mentioned on these pages, but there's confidence in steady order inflow and execution across all segments.

Capex plans

Yes

→APAR Industries is investing Rs. 1,300 crores of CAPEX over the next 12 to 15 months, in addition to Rs. 500 crores invested in FY '25.
→Breakdown: Rs. 800 crores in cable division, Rs. 300 crores in conductor division, and Rs. 200 crores in oil division.
→Cable division CAPEX includes a greenfield site expansion aimed to double capacity and enable revenues up to Rs. 10,000 crores.
→Conductor division capacity to increase by about 10% (~25,000 tons), focusing on premium products.
→Oil division CAPEX focused on building new storage facilities at JNPT port and UAE (Hamriyah) to increase storage capacity from 24 to 30-35 million liters and improve supply chain productivity.
→Funding plan: Rs. 650 crores from equity and Rs. 650 crores from long-term debt.
→Also considering strategic manufacturing expansion in the United States to address tariff and market demands.

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