Home / Business and Economy / APAR's Record Quarter: Oil Surge Masks Core Strength
APAR's Record Quarter: Oil Surge Masks Core Strength
10 Sep
Summary
- APAR achieved its highest quarterly sales and profit in Q1 FY27.
- Conductor division shows premium product mix driving higher profitability.
- US data center approvals offer new growth avenue for cable division.
APAR Industries achieved record-breaking sales and profit in Q1 FY27, marking its best quarter historically. The company's three principal businesses—conductors, specialty oils, and cables—contributed significantly to these results, though the oil division's temporary inventory cost advantage was a primary driver of the consolidated EBITDA surge.
The conductor division, APAR's long-term investment thesis, saw revenue grow 19.9% year-on-year. Crucially, a shift towards premium products like HTLS conductors increased EBITDA per tonne, indicating structural benefits from product mix rather than solely volume. The division maintains a strong order book of Rs 10,190 crore.
The cable division secured vital approvals in Q1 FY27 to supply US data centers for tech giants like Meta, Microsoft, and Google. This opens a significant new growth avenue, particularly for copper cables in low- and medium-voltage applications, complementing its existing order book of Rs 1,925 crore.
Despite the exceptional Q1 performance, particularly from the oil segment, a normalized run rate for this division is anticipated. The conductor and cable divisions' structural drivers, including premiumization and market access, provide a foundation for sustained growth. Investors are now focused on the sustainability of conductor profitability and the conversion of cable division approvals into substantial volumes.
