Finolex Cables Q1 Results: EBITDA Margin Expands to 12.30%, Net Profit Up 59% YoY
Finolex Cables posted strong Q1 results with EBITDA climbing to ₹2.4B from ₹1.3B YoY and EBITDA margin expanding to 12.30% from 7.52%. Standalone net profit rose 59% YoY to ₹221.28 crore, consolidated PAT grew 53% to ₹249.04 crore, and revenue from operations jumped 44% to ₹2,013.15 crore, driven by electrical and communication cable segments, while the copper rods division remained shut due to fuel supply constraints.
*this image is generated using AI for illustrative purposes only.
Finolex Cables Limited reported a robust start to its fiscal year 2027, with standalone net profit after tax (PAT) rising 59% year-on-year to ₹221.28 crore for the quarter ended June 30, 2026. Consolidated PAT increased 53% to ₹249.04 crore over the same period. The financial performance was underpinned by a 44% jump in revenue from operations to ₹2,013.15 crore, reflecting strong demand across core segments despite operational headwinds in specific areas. EBITDA for the quarter stood at ₹2.4B versus ₹1.3B in the year-ago period, with EBITDA margin expanding significantly to 12.30% from 7.52% YoY, underscoring meaningful improvement in operating efficiency.
The Board of Directors approved the unaudited standalone and consolidated financial results on August 11, 2026, pursuant to 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. Additionally, the Board appointed Mr. Nirnoy Sur as Company Secretary, Compliance Officer, and General Manager - Legal, effective August 11, 2026, in compliance with Regulation 6 of the SEBI Listing Regulations.
Key Financial Highlights
The following table summarizes the key financial metrics for the quarter:
| Metric: | Q1FY27 | Q1FY26 | Change (YoY) |
|---|---|---|---|
| Revenue (Standalone) | ₹20B | ₹14B | Higher |
| EBITDA | ₹2.4B | ₹1.3B | Higher |
| EBITDA Margin | 12.30% | 7.52% | +478 bps |
| Standalone Net Profit | ₹2.2B | ₹1.4B | +59% |
| Revenue from Operations (₹ Cr) | 2,013.15 | 1,395.52 | +44% |
| Profit Before Tax – Standalone (₹ Cr) | 277.37 | 170.76 | +62% |
| Net Profit After Tax – Standalone (₹ Cr) | 221.28 | 138.82 | +59% |
| Profit Before Tax – Consolidated (₹ Cr) | 314.46 | 202.55 | +55% |
| Net Profit After Tax – Consolidated (₹ Cr) | 249.04 | 162.62 | +53% |
| EPS – Standalone (₹) | 14.47 | 9.08 | +59% |
| EPS – Consolidated (₹) | 16.28 | 10.63 | +53% |
Segment Performance and Operational Drivers
The revenue growth was primarily driven by the electrical cables segment, which saw a 7% increase in volumes, particularly in agricultural, industrial, and solar applications. Electrical cables contributed ₹1,767.45 crore to total revenue, up from ₹1,205.71 crore in the corresponding quarter of FY26. The communication cables segment also performed strongly, with optic fiber cable volumes significantly higher than the previous year, leading to improved margins. This segment contributed ₹176.47 crore to revenue.
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.
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.
What the Numbers Show
The sharp expansion in EBITDA margin to 12.30% from 7.52% YoY highlights the 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. The company's expansion plans for its Fiber Draw Facility remain on track, with full capacity expected by Q3FY27.
Historical Stock Returns for Finolex Cables
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +14.16% | +21.02% | +14.54% | +46.07% | +42.79% | +144.65% |
How will the ongoing geopolitical tensions in the Middle East impact Finolex Cables' copper rod production timeline and overall FY27 revenue projections?
What specific strategies is management implementing to sustain the 12.30% EBITDA margin amidst rising raw material costs and potential inflationary pressures?
How will the full capacity utilization of the Fiber Draw Facility by Q3FY27 influence the company's market share in the high-growth optical fiber segment?
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