The agency has affirmed the company's short-term rating at 'CARE A1+'.

CARE Ratings stated that the rating upgrade factors in APAR’s strengthening of business profile, reflected in sustained growth in scale of operations and improving profitability across its conductors, cables and speciality oils businesses. The company reported healthy growth in operating income, which increased by 23.2% to Rs 22,902 crore in FY26 and by 29.1% year-on-year to Rs 6,591 crore in Q1 FY27.

Profit before interest, lease rentals, depreciation and taxation (PBILDT) increased by 21.1% to Rs 1,922 crore in FY26, while operating margins improved to 11.50% in Q1 FY27 from 8.86% in Q1FY26, supported by increasing contribution from premium products and healthy performance across business segments.

APAR’s established market position, diversified product portfolio and healthy order book, comprising conductor orders of Rs 10,190 crore and cable orders of Rs 1,925 crore as on 30 June 2026, provide strong revenue visibility in the medium term.

The rating upgrade also factors in significant strengthening of the company’s capital structure following the successful completion of the Rs 2,500-crore qualified institutions placement (QIP) in August 2026. Resultant increase in net worth is expected to support APAR’s working-capital requirements and reduce its reliance on letter of credit (LC) acceptances and other short-term borrowings.

Ratings continue to derive strength from APAR’s leadership position in conductors and speciality oils, diversified product and geographical presence, promoters’ extensive industry experience, strong liquidity position and comfortable debt protection metrics.

These rating strengths are tempered by APAR’s working-capital-intensive operations and historically high reliance on LC acceptances, although deployment of the QIP proceeds is expected to partly reduce such dependence.

Ratings also remain constrained by the sizeable capex programme and exposure to volatility in raw-material prices, foreign-exchange rates and freight costs, apart from competition, export tariffs and project-execution risks.

The ability to maintain working-capital discipline and healthy leverage while executing capex programme remains a key rating monitorable.

APAR operates in three principal business segments: transformer and speciality oils, conductors, and power and telecom cables. The company has a leading market position in India and a global presence, with exports to over 140 countries. As on 31 March 2026, APAR had installed capacities of 9,34,600 KL for transformer and speciality oils, 5,55,262 MT for conductors and 9,50,656 km for cables.

The company's consolidated net profit surged 77.80% to Rs 467.45 crore on a 29.16% increase in revenue to Rs 6,566.62 crore in Q1 FY27 as compared with Q1 FY26.

The scrip shed 0.50% to currently trade at Rs 17354.20 on the BSE.