Finolex Cables Limited reported a 19% increase in revenue from operations to ₹6,321 crore for FY26, outperforming the estimated 15-16% growth of the organised wire industry. The company also declared a dividend of ₹9 per equity share, representing 450% of the face value.

The performance was driven by strong volume growth in the Electrical business and a turnaround in the Communication Cables segment. Despite margin pressures in Q4 due to higher raw material costs and currency volatility, EBITDA grew 14% to ₹868 crore, while Profit After Tax (PAT) increased 14% to ₹623 crore. The Board recommended a dividend of ₹9 per share, reaffirming its commitment to shareholder returns.

Financial performance overview

The Chairman's speech highlighted that FY26 was a year of opportunity amidst uncertainty, with India's GDP growth estimated at 7.6%. The company maintained a leading position in the organised wire industry, supported by a network of approximately 5,000 channel partners and over 2,15,000 retailers.

Q4 recorded the highest-ever quarterly revenue of ₹1,951 crore, up 22% both year-on-year and sequentially. The moderation in profitability relative to revenue growth was attributed to higher raw material costs in the closing weeks of the year. Additionally, the company built inventory by approximately ₹300 crore to secure raw material availability, which impacted short-term operating cash flows but strengthened production continuity.

Segment performance

The Electrical Business remained the primary growth driver, recording segment revenue growth of 22% to ₹5,490 crore and EBIT up 18% to ₹563 crore. This was led by broad-based growth across power cables (21% volume growth), industrial flexible cables (17%), and auto cables (nearly 30%).

The Communication Cables Business saw a significant turnaround in the second half of the year. While full-year revenue remained broadly stable, Q4 revenue grew 32% year-on-year, and segment EBIT grew 70% for the full year as global fibre demand improved.

Strategic initiatives and future outlook

Finolex Cables invested approximately ₹240 crore in capital expenditure during FY26, including an investment in the Sumitomo joint venture, with plans for a further ₹200 crore in FY27. All investments are funded through internal accruals, supported by a cash-surplus, near-zero debt balance sheet.

Key strategic developments include:

• Optical Fibre Preform: Commissioned Phase 1 of the optical fibre preform facility, taking capacity to approximately 100 tonnes (4 million km of fibre). Phase 2 is being accelerated with an investment of ₹100 crore, which will double capacity to nearly 8 million km.
• Solar Cables: Operating close to full capacity utilisation, with an order placed for a second E-beam solar line to double capacity.
• JV Turnaround: Finolex J-Power Systems turned profitable for the first time, delivering revenue of approximately ₹450 crore and a profit of around ₹21 crore.
• Capacity Expansion: Substantially completed land acquisition in Gujarat for the next phase of capacity expansion.

What the numbers show

The divergence between revenue growth (19%) and EBITDA growth (14%) highlights the impact of raw material inflation and strategic inventory building. The deliberate decision to increase inventory by ₹300 crore served as a buffer against supply chain disruptions, prioritising operational resilience over immediate cash flow efficiency. Meanwhile, the 70% jump in Communication Cables EBIT indicates a strong recovery in that segment, suggesting it may contribute more significantly to margins in FY27 as global fibre demand stabilizes.

AGM proceedings and resolutions

The 58th Annual General Meeting was held on September 28, 2026, via Video Conferencing. Shareholders adopted the audited standalone and consolidated financial statements for FY26 and approved the dividend declaration. The meeting also covered the reappointment of directors, including Nikhil Naik retiring by rotation, and the reappointment of Independent Directors Vanessa Singh, Zubin Billimoria, and Sriraman Raghuraman. Ratnakar Barve was reappointed as Whole-Time Director for a further period of five years.

Finolex Cables submitted its Business Responsibility and Sustainability Report (BRSR) for FY26 on September 5, 2026. The filing covers standalone operations and highlights environmental performance, including a significant reduction in direct greenhouse gas emissions. The report also details workforce metrics, safety records, and governance practices across its manufacturing facilities.

Environmental Performance

The company reported a sharp decline in direct carbon emissions alongside stable energy intensity metrics. Total energy consumption fell to 3,50,562 Giga Joules in FY26 from 3,85,549 Giga Joules in the prior year. This reduction was driven primarily by lower fuel consumption, which dropped to 39,936 Giga Joules from 87,952 Giga Joules, while electricity consumption from non-renewable sources rose slightly to 2,87,591 Giga Joules.

Water withdrawal remained flat at 2,85,141 kilolitres, with groundwater usage rising marginally to 72,521 KL. However, total waste generated more than doubled to 4,976.90 metric tonnes from 2,277.18 metric tonnes. Despite the higher waste volume, recovery operations improved significantly, with 83.82 metric tonnes recycled or reused compared to just 1.8 metric tonnes in FY25.

What the Numbers Show

The divergence between waste generation and recovery efforts suggests a shift in reporting granularity or operational scale rather than purely negative environmental impact. While total waste reported surged by nearly 119%, the company increased its recycling and reuse volume by over 4,500%, indicating enhanced waste management processes or better tracking of non-hazardous waste streams that were previously unreported or disposed of differently.

Social and Governance Metrics

The report discloses workforce composition and safety outcomes. As of March 31, 2026, the company employed 931 permanent employees and 2,600 workers. Female representation among employees stood at 6%, while it remained at 0.54% for workers. The Lost Time Injury Frequency Rate (LTIFR) for employees was 1.06 per million person-hours, up from zero in the prior year, while the rate for workers was 2.48.

Governance disclosures noted that the Board oversees sustainability matters through the Corporate Social Responsibility and Risk Management Committees. The company obtained reasonable assurance for the report from Mehta Chokshi & Shah LLP. No penalties or fines were recorded during the fiscal year.