India · Delayed Price · Currency is INR Finolex Cables Earnings Call Transcripts
Fiscal Year 2026
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Q4 and FY26 saw strong revenue and profit growth, with electrical and communication segments performing well despite margin pressures from higher raw material costs. Capacity expansions and new product lines are expected to drive further growth, though supply chain and geopolitical risks remain.
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Q3 saw 35% revenue growth quarter-on-quarter and strong volume gains across key cable segments, with robust cash flow and improved margins. Capacity expansions in fiber and preform are on track, while rising competition and commodity volatility remain key risks.
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Revenue and EBITDA grew modestly, with strong industrial cable and solar application volumes offset by weak agricultural and communication cable segments. Working capital days increased due to lower payables and higher inventory, while CapEx focused on fiber and preform plants.
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Q1 FY26 sales and PAT grew 13% year-over-year, with stable gross margins but segment mix shifted toward lower-margin project sales. Communication cables and FMEG growth lagged, while CapEx focused on fiber and e-beam facilities. Margins are expected to recover as real estate projects complete.
Fiscal Year 2025
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Quarterly profit before tax hit a record INR 208 crore, with strong sequential growth and a positive outlook for both wire and optic fiber segments. Margin pressures from commodity volatility are easing, and new product launches and capacity expansions are set to drive future growth.
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Revenue grew 10% year-over-year to INR 1,312 crores, but margins fell due to copper price volatility and inventory liquidation. Management expects margin recovery and stable demand ahead, with major CapEx projects nearing completion and FMEG business on track for strong growth.
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Q1 FY25 saw modest 2% revenue growth year-over-year but a 12% sequential decline, with net profit at INR 122 crore and margins pressured by copper price volatility and a 10% price cut in June. CapEx of INR 500 crore is underway, targeting fiber and E-beam capacity, while large government tenders and FMEG growth offer future upside.