Apar Industries reported a strong Q2 FY27 with a 77.8% surge in net profit to INR 447 crore, driven by a strategic product mix shift. Despite volume dips in conductors and oils, the company hit an all-time high order book of INR 12,025 crore. Growth is being anchored by heavy demand in power infrastructure and data center projects, with management expecting execution to accelerate in H2.
Apar Industries Q2 Profit Rises 78% on Strong Margin Expansion
Revenue grew 21.3% to INR 6,931 crore, with net profit climbing to INR 447 crore.
Reader Takeaway: Strong margin gains and record order book visibility drive performance despite temporary volume pressures in key segments.
What just happened
Apar Industries delivered a robust performance for Q2 FY27, marked by significant profitability growth despite mixed volume trends. The company reported a 21.3% increase in revenue to INR 6,931 crore. EBITDA margins improved substantially to 11.4%, up from 8.7% in the previous year. This margin expansion highlights the company's successful pivot toward higher-margin products and better operational efficiency, even as volumes in the conductor and oil divisions dipped due to project timing and strategic selection.
Why this matters
The record order book of INR 12,025 crore offers strong revenue visibility for the coming quarters. Specifically, the company is capitalizing on the growing data center ecosystem, securing major orders linked to industry giants like Google and AWS. These wins are reshaping the revenue profile of the cable division, moving it toward higher-value infrastructure projects.
Risks to watch
Investors should monitor the INR 800 crore worth of products currently in transit, which delayed revenue recognition from Q2 to Q3. Furthermore, the volatility in raw materials—specifically copper, aluminum, and base oil—remains a persistent factor. While management insists the current volume dip in segments is temporary, continued monitoring of execution timelines is essential to confirm that demand is converting into actual billing.
What to track next
The primary focus for H2 will be the conversion of the massive order backlog into revenue and the completion of the INR 1,500 crore domestic capex plan. The recent INR 2,500 crore QIP and subsequent credit rating upgrade to 'AA' provide the financial flexibility needed to execute these ambitious plans while lowering borrowing costs.