Apar Industries Limited (NSE: APARINDS) Q3 2026 Earnings Call dated Jan. 29, 2026
Corporate Participants:
Kushal Desai — Chairman and Managing Director
Analysts:
Ambesh Tiwari — Analyst
Presentation:
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Ladies and gentlemen, please stay connected. The call will begin shortly. Thank you. Foreign. Ladies and gentlemen. Good day and welcome to the Apar Industries Limited Q3FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ambesh Tiwari from Essential Technologies. Thank you. And over to you sir.
Ambesh Tiwari — Analyst
Good afternoon everyone. I welcome you all to the Q3 FY26 earnings call of Apar Industries to discuss the business performance and outlook we have from the management side. Mr. Kushal Desai, Chairman and Managing Director. Mr. Chaitanya Desai, Managing Director and the CFO Mr. Ramesh Iyer. I would now pass on to Mr. Kushal Desai for the opening remarks. Thank you. And over to you sir.
Kushal Desai — Chairman and Managing Director
Yeah. Thank you. Amnesh. Good afternoon everyone and welcome to the Abhar Industries Q3 earnings call. I would like to start by giving a quick overview of our performance and then follow it up with a short industry update post that I would like to get into the specific segmental performance of the three major businesses and then finally throw open the floor to questions. Our Consolidated revenue in Q3 came in at 5,480 crores representing a 16.2% year on year increase. This was particularly characterized by a resilient domestic business performance and a favorable product mix across all business verticals.
The export business was affected due to the UF tariff situation. If you look at the domestic revenues, it grew by 30% in Q3 FY26 versus the previous year and 26.9%. If you look at it in the nine month period exports for the quarter were down 11.2% contributing towards 25.6% of the company’s overall revenue compared with about 33.5% a year ago. The US business performance remained quite subdued in Q3. This was related obviously with tariff related impacts and especially with the announcement that took place during the quarter of what is called section 232 where almost 400 product categories were added under section 232.
This covered pretty much most of the cable and conductor products and resulted in an order booking which was very low in Q2 and the subsequent impact of that has happened in Q3. However, in Q3 the order booking has been better and I will cover that under each of the individual segments. If you look at EBITDA, the EBITDA is up 20.4% year on year to 483 crores. The EBITDA margin stands at 8.8%. Due to the enactment of this new labor Code, we have had to recognize a provision towards past service cost of gratuity and had to increase the provision amounting to approximately 25 crores based on the best possible estimates and this has been accounted for under an exceptional loss profit after tax post.
This exceptional loss came in at 209 crores which is 19.4% higher than the same quarter of the previous year. The profit after tax margin is at 3.8% which is about 10 basis points higher than in the same period previous year. Now comparing the nine month figures, the consolidated revenue has come in at 16,299 crores which is up 22% year on year. The export revenue has grown by 12% and this was on the back of strong export revenue that sa. 6.6%. The top line as well as the bottom line are both all time highs for a nine month period.
In terms of some general industry highlights, India has achieved its highest ever annual renewable energy capacity addition in the calendar year 2025 which is nearly 38 gigawatts of solar and 6.3 gigawatts of wind capacity. Compared to current year 2024, the solar installations have increased by about 55% and the wind capacity additions have increased by almost 85%, underscoring a sharp escalation in the country’s clean energy deployment and also the amount of hybrid installations coming in which is a combination of wind and Solar. As of December 2025, India’s total installed renewable energy capacity has approximately reached 258 gigawatts.
Solar energy continues to be the dominant contributor, accounting for about 53% of the total renewable energy mix. Wind power follows with 21% share and large hydro is at 20%. Bio and small hydro put together form the balance of approximately 6%. If you look at Additionally, India’s power sector achieved a historic milestone in energy generation, transmission and distribution as well in 2025 with a maximum power demand of 242 gigawatts during the year and it has reduced the national energy shortage to almost nil on the transmission and substation addition. There is a growth momentum in this regard.
According to the latest statistics released by CA, a total of 60,260 megawatts of new substation capacity was added during the April to November time frame which reflects approximately a 55% increase compared to the corresponding period of the previous year. However, this achievement is only 75% of the planned additions in the period. With regard to transmission lines specifically, the pace of additions still remains well off the plan. It has improved compared to the first half where 5077 circuit kilometers have been added in the April to December time frame and as a consequence it is approximately 15% lower than what it was in the same period previous year.
Now this figure up to 30 September was about 27%, so clearly there is some catch up to be made and the expectation is that in the fourth quarter onwards there will be a certain amount of catch up taking place. Coming to the specific segmental performances of our businesses, I would first like to start with the largest business division which is the conductor division. In Q3 FY26 revenues were higher by 25.1% on the back of a good product mix there was also an increase in commodity prices which provided a tailwind. Volume actually degrew by about 5.9% which was largely on account of some of the delayed clearances and innovating from right of way as well as delays in transformer deliveries that are coming out of a lack of supply of bushings which is resulting in some of the substation work getting delayed and in turn the transmission line work getting delayed.
However, we have been working towards adding several new customers and approvals from utilities overseas. The domestic revenue grew by 37% versus Q3 of FY25. The export revenue for the conducted revision degrew by about 11%. The export mix is about 18% compared to 25% in the previous year. The premium product mix remains healthy at 44.2% and this has grown compared to 37.4% in the previous period. If you look at EBITDA Post Open forex it has grown to 251 crores. For the conductor division the EBITDA Post Forex per metric ton stands at 44,195 as opposed to 29,593 per metric tonight.
In the same period previous year our order book is reasonably strong at 7396 crores of which exports is contributing approximately 32%. The total new orders received in the nine month period is at about 8052 crores. Coming to the nine month performance the nine month revenue stood at 8948 crores which is up 34% versus last year. Physical volume grew 8.4%, the export mix came in at 21%, the EBITDA post forex was up 31.2% to 748 crores and the weighted average EBITDA margin is at 42311 rupees per metric ton which is significantly higher than the 34949 per metric ton in the nine month previous year period.
Coming to our oil business, the revenues from operations grew 18.4% with a volume growth of 21%. The transformer oil volume was up by about 10.6% and some of the other areas also contributed well. The Automotive oil grew 14.6%, the industrial lubricant part of the business grew 15.7%. Overall exports contributed 42% to the division’s revenue as compared to 43.8% a year ago. EBIDTA per KL came in at 5331 per again Rs 6,364 a year ago. Foreign exchange depreciation did affect the profitability for this quarter. On a nine month period you are looking at revenue growth a volume growth of 12.3% versus a revenue growth of 5.9%.
The revenue growth was a little bit lower because the price of base oil was lower in the first six months of the year. Overall revenues came in at 4,062 crores. The domestic transformer oil business grew by 13.4% in this nine month period. In the same period automotive oil is up 8.9%, industrial lubricants is up 16.8% and the export mix stood at 41% in the nine month period. Coming to the cable division, the revenue in Q3FY26 was up by only 7.6% to reach 1,362 crores. However, the domestic business had a strong performance and it grew by 34.6%.
Overall exports D grew by 44.3% which was basically because the US revenues were down 65% in the third quarter over the previous year. As I mentioned in the opening remarks as well as in the last earnings call, we had practically no new order booking. That happened in Q2 which resulted in a relatively lower execution in Q3. However, having said that, we have received approximately 500 crores of new order inflow in Q3, a large portion of which will get billed in Q4. So we expect the export business to have a comeback and the US a large portion of this is actually US business.
The export mix came in at 17.6% versus 34% in the three month period. The EBITDA post forex came in at 8.7% to reach 132 crores and the EBITDA margin is at 9.7% due to a favorable product mix as well as there were some gains on the cable side with respect to foreign exchange as the receivables from previous periods were collected. The pending order book is at approximately 1700 crores in the nine month period. The.
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