Apar Ind hits 52-week high; ICICI Sec initiates 'Buy' on trifecta drivers

ICICI Securities cited a "trifecta" of structural drivers-rising electricity demand, transmission expansion, and renewables-that is boosting demand for conductors, cables, and transform

Apar Industries shares hit a 52-week high on BSE at ₹11,078.9 per share, rising 2.3 per cent in trade. At 9:50 AM, Apar Industries’ share price was trading 1.38 per cent higher at ₹10,940 per share. The stock has been on an upward trajectory for the second consecutive session, rising over 4 per cent. In the past one year, the stock has rallied over 85 per cent, compared to the Sensex’s rise of 10.2 per cent. 

 

ICICI Securities has initiated coverage on Apar Industries with a ‘Buy’ rating and a target price of ₹12,750, valuing Apar at 35x FY28E earnings per share (EPS). The brokerage cited a “trifecta” of structural drivers—rising electricity demand, transmission expansion, and renewables—that is boosting demand for conductors, cables, and transformer oil, in a report dated February 26, 2026.

 

The brokerage expects Apar’s earnings to compound at about 21 per cent compound annual growth rate (CAGR) over FY25–FY28E, supported by its leadership positions across categories and a sharper focus on higher-margin product segments.

Shift to premium conductors lifts margins

The brokerage noted that Apar enjoys a dominant share – pegged at 30 per cent – in India’s conductor market. The report noted that the company has moved away from the highly competitive conventional conductor segment to focus on premium conductors and exports—areas that offer better profitability.

 

Demand for premium conductors is expected to remain strong, driven by reconductoring requirements, conductors used in high-voltage transformers, and a broader shift towards high-efficiency conductors for transmission upgrades. Premium products’ share in Apar’s conductor revenues rose from 20 per cent in FY18 to 41 per cent in FY25, aiding a sharp expansion in profitability; the report said Earnings before interest, tax, depreciation and amortisation (Ebitda) per tonne has increased five-fold over the past five years.  READ | RMIL deal, policy support keep Gravita India in Mirae Asset's bullish lens

Cables business aligned to renewables, exports

In cables, Apar has reoriented its portfolio towards niche segments and export markets. It is positioned as a leader in renewable generation cables, with an estimated 70 per cent share in wind cables and 25 per cent share in solar cables. The company also has the largest share in cable exports at around 11 per cent in FY25, the report said.

 

Apar is also expanding its retail portfolio and building distribution to scale the retail segment, while stepping up investments in cable capacity expansion.

Transformer oil adds steady cash flows

Apar’s transformer oil business, described as a key cash-flow generator, has approvals for use across transformer types in India and globally. The company is the largest transformer oil manufacturer in India and the third-largest worldwide, the report said. Rising transformer capacity is expected to support demand, with inter-state transformer capacity projected to double, providing a long runway for growth.  READ | Emkay Global raises Karur Vysya Bank target on strong RoA, loan growth

Near-term export softness; tariff risks seen easing

While exports—especially to the US—have shown some weakness recently, ICICI Securities noted that US tariff-related headwinds are largely behind, and expects Apar to be well placed to capture the next leg of demand as transmission and renewables spending accelerates.

 

The brokerage also highlighted the company’s execution track record, noting that Apar’s earnings have grown sixfold over the last four years, positioning it to benefit from the ongoing power infrastructure upcycle.

 

Disclaimer: Views and recommendations are those of the brokerage/analyst and are not endorsements. Readers should exercise discretion.