APAR INDUSTRIES FUNDAMENTAL RESEARCH REPORT

Apar Industries (NSE: APARINDS, BSE: 532259), Mumbai, runs three businesses: power conductors (India’s largest maker,including premium HTLS reconductoring and copper conductors), specialty oils (transformer oils - the only supplier of HVDCtransformer oil to Hitachi Energy, GE and Siemens - plus lubricants) and cables (power, solar, railway, defence and US data-centre cables). FY26 revenue was Rs 22,902 Cr and PAT Rs 977 Cr. It is CARE AA/Stable (upgraded from AA- on 9-Sep-2026). Event 1 - a record quarter, but half of it was oil. Q1 FY27 revenue rose 29% to Rs 6,591 Cr and PAT 78% to a record Rs 467 Cr .But the oil division earned Rs 25,482 per KL against a FY26 average of ~Rs 5,943, as low-cost inventory was sold into risingprices; oil was Rs 214 Cr (46%) of Q1 PAT . Management called it inventory-led and CARE says it is “not expected to sustain”. Atnormal oil margins, Q1 PAT would have been roughly Rs 280 Cr (our estimate), about +6% YoY. Conductor volume fell 6.7% ascustomers deferred conventional orders; cables grew 29.5% at a 10.6% margin. Event 2 - Rs 2,500 Cr QIP.