Apar Industries’ profit jumps 77.72% YoY, but margin slips sequentially
Revenue growth outpaced expenses year on year, while lower volumes and mix pressure pulled operating margin down from Q1FY27’s 11.49%.
Filed 29 Oct 2026, 13:44 IST · Apar Industries Ltd (APARINDS)
Key takeaways
- Consolidated net profit rose 77.72% YoY as revenue grew faster than expenses, lifting operating margin by 2.34 percentage points.
- Sequentially, expenses grew 6.46% against 5.16% revenue growth, narrowing operating margin by 1.09 percentage points.
- The conductor division received Rs 4,775 cr of new orders, while its pending order book reached Rs 12,025 cr.
Price around the results
YoY profit growth loses some sequential momentum
Apar Industries’ consolidated revenue grew 21.27% YoY, while expenses rose 18.19%, helping operating profit increase 56.38% and net profit 77.72%. Sequentially, revenue rose 5.16% but expenses increased 6.46%, resulting in a 4.85% decline in operating profit and a 4.31% decline in net profit.
Lower volumes and weaker mix weigh on Q2 margin
The faster sequential rise in costs reduced operating margin by 1.09 percentage points, although the margin was still 2.34 percentage points higher YoY. Management said conductor volumes were affected by sales clearances and lower demand linked to higher metal prices and freight rates; conductor volumes fell 9.2% YoY to 57,137 MT, while premium mix declined to 39.4% from 45.3%. The presentation also said oil-division volumes fell 20.0% YoY to 128,590 KL, while cable exports and US revenue declined 45.2% and 53.8%, respectively.
Other income and tax also supported reported profit
Other income contributed 10.29% of profit before tax, making it a material part of reported earnings. The tax rate fell 1.04 percentage points YoY, which added to the net-profit growth, while interest expense increased 28.13%.
Orders provide a counterpoint to current volume pressure
Management said the conductor division won Rs 4,775 cr of new orders in Q2FY27, up 123.1% YoY. It also reported a pending order book of Rs 12,025 cr, up 67.2% versus H1FY26.
Margin remains below the Industrials peer median
Operating margin moved from 7.51% in Q4FY26 to 11.49% in Q1FY27 and 10.40% in Q2FY27, so the Q1 spike has partly reversed rather than extending into a third consecutive increase. The Q2 margin was 1.68 percentage points below the 12.08% median for 61 Industrials companies that had reported the quarter.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹6,931 cr | ₹6,591 cr | +5.16% | +21.27% |
| Other income | ₹61 cr | ₹34 cr | +81.16% | +124.20% |
| Expenses | ₹6,210 cr | ₹5,833 cr | +6.46% | +18.19% |
| Operating profit | ₹721 cr | ₹758 cr | -4.85% | +56.38% |
| Operating margin (%) | 10.40% | 11.49% | — | — |
| Interest | ₹138 cr | ₹123 cr | +12.24% | +28.13% |
| Depreciation | ₹47 cr | ₹46 cr | +3.13% | +18.20% |
| Profit before tax | ₹597 cr | ₹623 cr | -4.14% | +75.27% |
| Tax | ₹150 cr | ₹155 cr | -3.64% | +68.31% |
| Net profit | ₹447 cr | ₹467 cr | -4.31% | +77.72% |
| EPS (₹) | ₹110.10 | ₹116.37 | -5.39% | +75.71% |
Operating margin of 10.40% compares with a Industrials sector median of 12.08% across 61 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -0.95% | -1.45% |
Volume on the results session was 1.40× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The oil division reported Q2 FY27 volume of 128,590 KL, down 20.0% year over year.
- The conductor division's premium product mix was 39.4% in Q2 FY27 versus 45.3% in Q2 FY26.
New orders
- The conductor division received new orders worth ₹4,775 crores during Q2 FY27, up 123.1% year over year.
- The conductor division's pending order book was ₹12,025 crores, up 67.2% versus H1 FY26.
Problems & risks
- Conductor volumes fell because of sales clearances and lower demand caused by higher metal prices and freight rates.
- Cable exports declined 45.2% year over year and 29.8% sequentially in Q2 FY27.
- Cable division US revenue declined 53.8% year over year and 42.4% sequentially in Q2 FY27.
- Conductor volumes declined 9.2% year over year to 57,137 MT in Q2 FY27.
What to watch
- Whether operating margin moves back above 10.40% after the 1.09-percentage-point sequential decline.
- Whether conductor volumes recover from 57,137 MT and premium mix improves from 39.4%.
- Whether cable exports improve from the 45.2% YoY decline while the Rs 12,025 cr pending order book converts into sales.