We spoke with Apar Industries’ management to get a clear picture of their growth plans and the market environment they operate in.
Management Guidance
The company expects EBITDA of about Rs30,000 per metric tonne and aims for roughly 10% volume growth in its conductor business. Specialty oils are projected to grow around 8% year‑on‑year in FY26.
Demand Outlook
- Domestic drivers: Power transmission & distribution, renewable‑energy projects, and railways are keeping demand strong.
- Export markets: The United States, Asian countries, the Middle East and Africa continue to buy Apar’s products.
- Cable business focus: The firm is targeting about Rs100 billion in revenue, backed by capacity expansion and higher demand for specialty, power and low‑duty cables.
Financial Outlook
Q3 FY26 may stay muted because raw‑material prices are high and some orders are delayed. A recovery is expected in Q4 FY26. The stock currently trades at a P/E of 28.4× for FY27 and 24.8× for FY28.
Analysts maintain a “Hold” rating, valuing the conductors, cables and specialty oils segment at a PE of 34× for FY27, leading to a target price of about Rs9,744 per share.
Key Takeaway
Even with US reciprocal tariffs, Apar Industries expects limited financial impact. The company’s growth is driven by expanding domestic power infrastructure, renewable projects, and a steady export pipeline.
Remember, this is perspective, not a prediction. Do your own research before making any investment decisions.