APAR Industries Q2 FY27 results: net profit up 77.7% to ₹447.32 crore, revenue up 21.3%

How did APAR Industries perform in Q2 FY27?

APAR Industries reported consolidated revenue from operations of ₹6,931 crore for Q2 FY27, the July–September 2026 quarter, against ₹5,715 crore in Q2 FY26 and ₹6,591 crore in Q1 FY27. Total income was ₹6,992.51 crore, up 21.8% from ₹5,742.85 crore a year earlier and 5.6% from ₹6,624.71 crore in the previous quarter.

EBITDA was ₹720.79 crore, with a margin of 10.4%. A year earlier, EBITDA was ₹460.91 crore at an 8.1% margin, a rise of ₹259.88 crore or 56.4% and 2.3 percentage points. Against Q1 FY27, EBITDA was lower by ₹36.78 crore or 4.9%, with the margin 1.1 percentage points lower at 11.5%.

Profit before tax was ₹596.72 crore, against ₹340.56 crore in Q2 FY26 and ₹622.34 crore in Q1 FY27. After tax of ₹149.51 crore, net profit was ₹447.32 crore, up ₹195.62 crore or 77.7% from ₹251.70 crore a year earlier but down ₹20.13 crore or 4.3% from ₹467.45 crore. Basic EPS was ₹110.10, against ₹62.66 in Q2 FY26. On a standalone basis, revenue was ₹6,837.72 crore and profit after tax was ₹435.19 crore.

What changed in APAR Industries' costs and profit?

Total expenses for the quarter were ₹6,395.79 crore, up ₹993.50 crore or 18.4% from ₹5,402.29 crore in Q2 FY26, and ₹393.42 crore or 6.6% above Q1 FY27's ₹6,002.37 crore. Cost of materials was ₹5,759.12 crore, up ₹1,389 crore or 31.8% year on year, while employee cost was ₹138.51 crore, up ₹38.86 crore or 39.0%.

Finance costs were ₹138.25 crore, up ₹30.35 crore or 28.1% from ₹107.90 crore, and depreciation was ₹47.14 crore, up ₹7.26 crore or 18.2%. Other expenses were ₹685.29 crore, up ₹1.38 crore or 0.2% from ₹683.91 crore and ₹44.33 crore or 6.9% from Q1 FY27's ₹640.96 crore.

Other income was ₹61.32 crore, up ₹33.89 crore or 123.6% from ₹27.43 crore in Q2 FY26 and ₹27.67 crore or 82.2% from ₹33.65 crore in Q1 FY27. There was no exceptional item in the quarter. Tax was ₹149.51 crore, up ₹60.68 crore or 68.3% from ₹88.83 crore a year earlier and ₹5.64 crore or 3.6% below Q1 FY27's ₹155.15 crore.

How did the first half of FY27 go?

For H1 FY27, consolidated revenue was ₹13,522.25 crore against ₹10,819.58 crore in H1 FY26, a rise of ₹2,702.67 crore or 25.0%. Total income was ₹13,617.21 crore, up ₹2,745.41 crore or 25.3%, from ₹10,871.80 crore.

Profit before tax for the first half was ₹1,219.08 crore against ₹693.07 crore, up ₹526.01 crore or 75.9%. Profit after tax was ₹914.80 crore, up ₹400.19 crore or 77.8% from ₹514.61 crore, and basic EPS was ₹225.16 against ₹128.11, a rise of ₹97.05 or 75.8%.

What do the balance sheet and cash flow show?

Total assets rose to ₹16,288.66 crore at 30 September 2026 from ₹13,711.29 crore at 31 March 2026. Total equity was ₹8,520.23 crore against ₹5,393.38 crore, borrowings were ₹888.35 crore against ₹840.51 crore, and cash was ₹1,171.49 crore against ₹668.72 crore.

Inventories stood at ₹5,055.38 crore, up from ₹4,152.79 crore, while trade receivables were ₹5,244.74 crore against ₹5,334.09 crore. Trade payables were ₹5,655 crore, lower than ₹6,855.89 crore at the previous balance sheet date.

In H1 FY27, operating cash flow was negative ₹862.63 crore, against positive ₹168.84 crore in H1 FY26. Investing cash flow was negative ₹733.89 crore compared with negative ₹206.38 crore, while financing cash flow was positive ₹2,099.02 crore against negative ₹341.26 crore. Capital expenditure was ₹505.74 crore, up from ₹406.83 crore.

How has APAR Industries done over the last 8 quarters?

Revenue rose in each of the last eight quarters on a year-on-year basis, while profit rose year on year in each of the last seven quarters. Revenue in Q2 FY27 was ₹6,931 crore, the highest of the periods shown, against a low of ₹4,716.42 crore in Q3 FY25.

Profit after tax was ₹447.32 crore in Q2 FY27, below the ₹467.45 crore recorded in Q1 FY27 and above the ₹174.91 crore low of Q3 FY25. The EBITDA margin was 10.4%, down from 11.5% in Q1 FY27 and above the 7.5% recorded in Q4 FY26.

Which businesses drove the quarter?

Conductor revenue was ₹3,753.46 crore with EBIT of ₹271.16 crore and an EBIT margin of 7.2%. The filing did not give a year-ago comparison for this segment.

Transformer and speciality oils recorded revenue of ₹1,816.06 crore, up 35.3% from ₹1,342.22 crore, with EBIT of ₹299.62 crore against ₹92.63 crore and an EBIT margin of 16.5%.

Power and telecom cables reported revenue of ₹1,874.64 crore, up 22.1% from ₹1,534.95 crore, and EBIT of ₹202.65 crore against ₹150.82 crore, with an EBIT margin of 10.8%. The Others segment had revenue of ₹68.93 crore, up 106.2% from ₹33.43 crore, and EBIT of ₹4.41 crore against ₹3.25 crore.

What else did the company announce?

The board approved the un-audited standalone and consolidated financial results for the second quarter and half year ended 30 September 2026, together with the limited review report of the statutory auditors and a press release. It also allotted 2,720 equity shares against the exercise of ESARs granted to eligible employees under the APAR Industries Employee Stock Appreciation Rights Plan 2024.

Kaushal J. Sampat was re-appointed as an independent, non-executive director for a second term of five consecutive years, on the recommendation of the Nomination and Remuneration Committee and subject to shareholder approval. The board also approved further investment in Petroleum Specialties Pte Ltd, Singapore, a wholly owned subsidiary, for an amount not exceeding USD 100 million.

A corporate presentation filed the same day set out a plan to front-load FY27 capex of ₹1,500 crore to accelerate growth, including fast-tracking cable capacity expansion and debottlenecking conductor and lubricant operations. No dividend was part of the board meeting outcome.

What did APAR Industries' management say?

Cable orders reached INR3,000 crore, including roughly INR1,000 crore linked to data centres. Management maintained FY27 cable value-growth guidance of 25% and said the cable EBITDA-margin aspiration is 11-12%, also framed in the call as a 10-12% range with stable metal prices. Oil and lubricants growth guidance remained 5-7%, though management said the business had already grown by more than 7%.

Management kept conductor EBITDA-per-metric-ton guidance at approximately INR40,000 for FY27 and planned domestic capex of approximately INR1,500 crore over 12-15 months, with INR500 crore spent and an annual run-rate of INR300-400 crore possible after that phase. Chairman and Managing Director Kushal Desai said: "At this stage, we are confident of our performance during FY27."

On risks, management pointed to delayed TBCB manufacturing clearances and awards, metal inflation raising working-capital needs and customer credit strain, freight and container availability, and Chinese export competition. Desai said the company had changed its operating philosophy to focus on higher-margin orders with customers who buy consistently, ensuring quality and uninterrupted supply.

How did APAR Industries shares react?

The stock was up 4.9% five minutes after the filing appeared, 6.9% after 15 minutes and 4.2% after 30 minutes. On the reaction day, it closed 2.9% above the previous close of ₹15,389.00, against a median move of 0.2% for the Other Electrical Equipment industry and 0.9% for the Nifty Midcap 150.

By the next day's close the stock was up 2.0% from its pre-results close, while the industry median was down 2.1% and the Nifty Midcap 150 was down 0.1%. That left the stock ahead of the industry by 4.1 percentage points over the two sessions.

Earlier results days were mixed. The shares moved 3.0% on 24 July 2026, 3.8% on 29 October 2025 and 11.7% on 29 July 2025, but fell 3.4% on 28 May 2026 and 19.9% on 28 January 2025.

How did other Other Electrical Equipment companies do?

Eighteen Other Electrical Equipment companies have filed for this quarter, with a median revenue growth of 44.5%. Of the peers compared, 3 grew slower than the company and 15 grew faster. Ten of the 16 peers compared for profit reported higher profit.