Finolex Cables has recommended a final dividend of ₹9 per equity share for the financial year ended March 31, 2026 (FY26). The payout is subject to shareholder approval at the upcoming annual general meeting.

The board of directors approved the recommendation during its meeting held on May 28, 2026. Each equity share has a face value of ₹2.

Key Dates and Eligibility

Shareholders holding equity shares on the record date will be eligible for the dividend. The company has specified the following timeline for the distribution:

Eligibility extends to shareholders holding shares in electronic form via National Securities Depository Ltd or Central Depository Services (India) Ltd, as well as those holding physical shares registered with KFin Technologies Limited.

Tax Deduction at Source Guidelines

The dividend is taxable in the hands of shareholders under the Income Tax Act, 1961. Finolex Cables will deduct tax at source based on shareholder status and submitted documentation.

Resident individual shareholders receiving an aggregate dividend up to ₹10,000 during the tax year are exempt from TDS. Those submitting a valid declaration in Form 121 may also qualify for nil deduction. Shareholders who have not linked their PAN with Aadhaar or failed to submit valid PAN details will face a higher TDS rate of 20%.

Non-resident shareholders are subject to TDS at 20%, plus applicable surcharge and health and education cess. However, they may claim benefits under Double Tax Avoidance Agreements by submitting required declarations before the deadline.

Compliance Requirements

All shareholders must ensure their Permanent Account Number, residential status, and category are updated with KFin Technologies Limited. Documents supporting nil or lower TDS claims must be uploaded by September 4, 2026. No communications regarding tax determination will be accepted after this date.

The company will email soft copies of TDS certificates to shareholders after the dividend payment. Tax credits can also be viewed in Form 168 on the Indian Income Tax Department’s e-filing portal.

Finolex Cables Limited reported a standalone net profit after tax (PAT) of ₹221.28 crore for the quarter ended June 30, 2026, marking a 59% year-on-year increase from ₹138.82 crore in Q1FY26. Consolidated PAT rose 53% to ₹249.04 crore, supported by a 44% jump in revenue from operations to ₹2,013.15 crore. The robust performance was primarily driven by strong demand in the electrical cables segment, which saw volume-led growth in agricultural, industrial, solar, and automotive applications. Additionally, the company successfully passed on higher raw material costs to customers, aiding margin expansion.

The Board of Directors approved the unaudited standalone and consolidated financial results on August 11, 2026, in compliance with Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subjected to a limited review by statutory auditors Deloitte Haskins & Sells LLP. An investor presentation for the quarter was subsequently released on August 13, 2026, detailing segment-wise performance and strategic growth pillars.

Key Financial Highlights

The following table summarizes the key financial metrics for the quarter:

Segment Performance and Operational Drivers

Revenue growth was anchored by the electrical cables segment, which contributed ₹1,767.45 crore to total revenue, up from ₹1,205.71 crore in the corresponding quarter of FY26. This represents a 47% year-on-year growth for the segment. Volume growth was significant across auto, industrial, agriculture, and solar applications. The company noted that increases in raw material prices were passed on to customers during the period. Building wire volumes remained stable with low single-digit growth due to channel destocking.

The communication cables segment also performed strongly, with optic fiber cable volumes significantly higher than the previous year, leading to improved margins due to higher realizations. This segment contributed ₹176.47 crore to revenue, up from ₹109 crore in Q1FY26. The EBIT for this segment surged to ₹52.52 crore from ₹1.3 crore in the prior year. Management noted that margins were boosted by selling older inventory sourced at lower costs against current higher market prices, but cautioned that these levels are not sustainable long-term as new raw material costs rise.

However, the copper rods segment faced operational challenges due to limited availability of fuel (LPG/PNG) stemming from geopolitical tensions in the Middle East. Consequently, the copper rod plant was not operated during the quarter, resulting in minimal revenue contribution of ₹8.01 crore compared to ₹403.42 crore in Q1FY26. Management noted that selling prices were increased in May to offset elevated copper prices.

Strategic Growth Pillars and Capex Update

During the earnings call held on August 13, 2026, management provided updates on strategic initiatives:

• Communication Cables Expansion: The company accelerated its capacity expansion plans. Originally planned in phases (4 million to 6 million, then to 8 million km), the company decided to expand directly from 4 million to 8 million km in one go due to global fiber shortages. This expanded draw tower capacity is expected to be operational by September 2026. Cabling capacity is also being expanded from 8 million to 10 million km, though this will take longer than the draw tower expansion.
• Backward Integration: The preform manufacturing plant has commenced production. The current 100 metric ton facility is sufficient for approximately 4 million km of fiber. Management stated that 100% of the preform output will be used captively for drawing fiber. A Phase 2 expansion for preforms will be evaluated based on market conditions.
• Exports: Exports were a significant contributor, with approximately ₹50 crore in total exports for the quarter. Communication cable exports alone accounted for ₹35-40 crore, primarily to the US and Europe. Management highlighted a revamped export team focused on building long-term relationships beyond ad-hoc opportunities.
• FMEG (Fast-Moving Electrical Goods): The segment faced headwinds due to LPG unavailability affecting fan manufacturing and PVC supply issues for conduit pipes. Despite this, management reaffirmed its target of reaching ₹5 billion in FMEG revenues by FY28.

Governance and Corporate Actions

Beyond financial results, the Board approved several key governance changes subject to shareholder approval. The re-appointment of four directors was recommended by the Nomination & Remuneration Committee:

• Mrs. Vanessa Singh as an Independent Director for a second term of five years.
• Mr. Zubin Billimoria as an Independent Director for a second term of five years.
• Mr. Sriraman Raghuraman as an Independent Director for a second term of five years, in terms of Regulation 17(1A) of the SEBI Listing Regulations.
• Mr. Ratnakar Barve as Whole-time Director for a second term of five years.

All re-appointments are effective from September 30, 2026, to September 29, 2031. None of the directors are related to other board members or debarred by SEBI. Additionally, the Board appointed Mr. Nirnoy Sur as Company Secretary, Compliance Officer, and General Manager - Legal, effective August 11, 2026. Mr. Sachin Naik joined as CFO effective June 1, 2026.

What the Numbers Show

The sharp expansion in standalone EBITDA margin to 12.30% from 7.52% YoY highlights significant improvement in operating leverage driven by the electrical and communication cable segments. The divergence between these high-growth segments and the copper rods business underscores the impact of external supply chain disruptions on Finolex's diversified portfolio. While the core cable business delivered double-digit volume and value growth, the complete shutdown of the copper rod plant underscores vulnerability to fuel supply shocks. Overall profitability remained resilient, with consolidated profit before tax rising 55% YoY, indicating that margin expansion in high-demand cable categories more than compensated for the loss of revenue from the copper rods division.

Working capital metrics indicate a slight increase in inventory days to 73 days in Q1FY27 from 60 days in Q1FY26, while receivable days remained stable at 18 days. This suggests efficient collection practices despite higher inventory levels, likely linked to production ramp-ups in high-demand segments. Management clarified that the high communication cable margins (approx. 30%) were partly due to selling older, lower-cost inventory at current higher market prices, warning that margins will normalize as this inventory is depleted.