2 hrs ago
APAR Industries’ Power Stock Surge Tests Growth and Valuation
APAR Industries makes conductors, cables and specialty oils.
Its share price has risen dramatically over the past five years.
The company reported its highest-ever quarterly sales and profit in Q1 FY27.
Its conductor business is selling more advanced products that earn more money per tonne.
Its cable business also received approval to pursue some US data-centre supply opportunities.
However, the oil business had an unusually profitable quarter because of changing oil prices and older inventory costs.
That benefit may not continue every quarter.
Investors must therefore decide whether the company’s long-term growth justifies its high share price.
APAR Industries’ stock returned 2,678% over five years and 3,063% over ten years.
Q1 FY27 revenue rose 29.1% year over year to Rs 6,591 crore, while PAT increased 77.7% to Rs 467 crore.
Premium conductors reached 50.3% of conductor revenue, supporting higher EBITDA per tonne despite a 6.7% volume decline.
The oil division produced an unusually strong 19.3% EBITDA margin, partly benefiting from inventory purchased at historical costs during an oil-price surge.
Approvals from Meta, Microsoft and Google could open US data-centre cable opportunities, but the stock trades at a substantial valuation premium.
- Who
- APAR Industries, a manufacturer of conductors, specialty oils and cables.
- What
- The company reported record Q1 FY27 results while its stock continued a multiyear rally.
- Where
- APAR operates across domestic and export markets, including India, the United States, Europe and the UAE.
- When
- The results discussed are for Q1 FY27; the stock’s cited 52-week high was reached on August 12, 2026.
- Why
- Growth has been supported by premium conductor products, transmission and grid demand, cable expansion and an exceptional oil-margin benefit.
Growth Case
Risk Case
Record earnings
Growth Case
Q1 FY27 delivered the company’s highest quarterly sales and profit, with revenue, EBITDA and PAT all showing strong year-over-year growth.
Risk Case
The oil division’s 19.3% EBITDA margin was far above its preceding 6%–8% range, so consolidated earnings may moderate if that benefit reverses.
Conductor outlook
Growth Case
Premium products reached 50.3% of conductor revenue, EBITDA per tonne improved 22.3%, and the division has a Rs 10,190 crore order book.
Risk Case
Conductor volumes fell 6.7% because some customers delayed manufacturing clearances, while high aluminium prices could postpone execution further.
US cable opportunity
Growth Case
Approvals from Meta, Microsoft and Google allow APAR to pursue copper-cable requests for US data-centre projects.
Risk Case
The approvals are early-stage, no volume guidance was provided, and US conductor exports face tariff-related challenges.
Key facts
- Five-year stock return
- 2,678%
- Q1 FY27 revenue
- Rs 6,591 crore, up 29.1% year over year
- Q1 FY27 PAT
- Rs 467 crore, up 77.7% year over year
- Conductor order book
- Rs 10,190 crore, with 56.8% from exports
- Premium conductor revenue share
- 50.3% in Q1 FY27, compared with 43.7% a year earlier
- Cable order book
- Rs 1,925 crore, compared with Rs 1,653 crore a year earlier
- Reported valuation
- P/E of 61.5x and EV/EBITDA of 33x at Rs 17,701
Quotes
APAR Industries management
Company management commenting on APAR’s Q1 FY27 results
“We’ve been supplying data centres in India, but we discovered these are totally two different sets of products and you had to build your credentials from scratch in the US. Today we have approvals from all three.”
financialexpress.com
“This incidentally is the highest quarterly sales as well as profit number that we have achieved in the history of the company.”
financialexpress.com
Sources
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