Finolex Industries submitted its Business Responsibility and Sustainability Report (BRSR) for FY26 on August 28, 2026. The filing details environmental, social, and governance metrics, including a rise in renewable energy consumption to 11.6% of total electricity usage.

The report covers the period from April 1, 2025, to March 31, 2026, and forms part of the company's 45th Annual Report. TUV SUD South Asia Private Limited provided reasonable assurance for the core attributes of the disclosure.

Environmental Performance

The company reported that renewable energy accounted for 11.6% of its total electricity consumption in FY26. This integration helped avoid over 39,000 metric tonnes of CO2 equivalent emissions. Additionally, biomass conservation initiatives cumulatively sequestered more than 22,000 metric tonnes of CO2e. Renewable Energy Certificates (RECs) procured under the Renewable Purchase Obligation mechanism reduced market-based Scope 2 emissions by approximately 15,000 metric tonnes of CO2e.

Water stewardship remained a strategic priority. The company recycled over 305,000 kilolitres of treated effluent within its facilities. It also harvested more than 2.37 million kilolitres of rainwater through direct and indirect recharge mechanisms. Total water withdrawal increased to 33,55,587 kilolitres from 32,03,286.28 kilolitres in the previous year.

Total energy consumption stood at 38,43,869.28 gigajoules, down from 40,00,396.13 gigajoules in FY25. Energy intensity per rupee of turnover adjusted for Purchasing Power Parity fell to 188.76 from 201.12.

Waste Management and Emissions

Total waste generated rose to 18,876.25 metric tonnes from 17,567.37 metric tonnes in FY25. Of this, 18,610.84 metric tonnes were recycled, and 197.67 metric tonnes were reused. Only 57.48 metric tonnes were disposed of through incineration or landfilling.

Scope 1 greenhouse gas emissions decreased to 3,44,107 metric tonnes of CO2 equivalent from 3,53,473.99 metric tonnes. Scope 2 emissions fell to 52,987 metric tonnes of CO2 equivalent from 54,106.07 metric tonnes.

Social and Governance Metrics

The company employed 1,132 permanent employees and 3,170 workers as of the end of FY26. Female representation among permanent employees was 3.71%, while it stood at 4.10% among workers. The turnover rate for permanent employees was 23.33%, compared to 22.02% in FY25.

Safety metrics showed zero employee and contractor fatalities across all manufacturing locations. The Lost Time Injury Frequency Rate (LTIFR) for workers was not disclosed for FY26, whereas it was 0.19 per one million-person hours worked in FY25.

Customer complaints totalled 1,113 during the year, all of which were resolved. Shareholder complaints numbered 52, with one pending resolution at the close of the year. No complaints were received regarding sexual harassment, discrimination, child labour, or forced labour.

What the Numbers Show

The divergence between rising waste generation and near-total recovery rates highlights operational efficiency in circularity. While total waste increased by 7.4% to 18,876.25 metric tonnes, the company recovered 99.1% of this volume through recycling and reuse. This suggests that production scaling did not compromise waste management protocols, as disposal volumes dropped significantly from 106.28 metric tonnes in FY25 to 57.48 metric tonnes in FY26.

Finolex Industries reported a standalone net profit of ₹107.41 crore for the quarter ended June 30, 2026, marking a 10.8% year-on-year increase from ₹96.93 crore in Q1FY25. The growth was primarily driven by significant operating leverage, with EBITDA margins expanding to 12.06% from 8.96% in the corresponding period last year, even as revenue from operations contracted by 14.5% to ₹883.58 crore. This margin improvement underscores the company’s ability to manage costs effectively amidst lower sales volumes, delivering stronger bottom-line results for shareholders.

The Board of Directors approved the unaudited financial results at its meeting on August 6, 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 M/s. Walker Chandiook & Co LLP, the statutory auditors of the company. Additionally, the board issued notice for the 45th Annual General Meeting, scheduled for September 22, 2026, to be held via Video Conferencing or Other Audio Visual Means.

Financial Performance Overview

Standalone revenue from operations stood at ₹883.58 crore in Q1FY26, down from ₹1,043.15 crore in Q1FY25 but up 33.6% sequentially from ₹656.36 crore in Q4FY25. Total income reached ₹958.91 crore, supported by other income of ₹75.33 crore, compared to ₹64.68 crore in the prior year quarter. Operating expenses totaled ₹811.35 crore, comprising cost of materials consumed at ₹427.58 crore and employee benefits at ₹55.12 crore. Profit before tax was ₹147.56 crore, yielding a PAT of ₹107.41 crore after a total tax expense of ₹40.15 crore.

Consolidated results mirrored standalone operations closely, with revenue identical at ₹883.58 crore. Consolidated profit before tax rose to ₹147.80 crore, aided by a share of profit from associates of ₹0.24 crore. The effective tax rate benefited from a deferred tax credit of ₹7.29 crore, reducing total tax expense to ₹33.28 crore. Consolidated PAT reached ₹114.52 crore, up from ₹98.16 crore in Q1FY25. Earnings per share (basic) were ₹1.74 for standalone and ₹1.85 for consolidated entities.

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

EBITDA and Margin Performance

A key highlight of the quarter was the marked improvement in operating profitability. EBITDA for Q1FY26 stood at ₹1.06B, compared to ₹1.04B in Q1FY25, with the EBITDA margin expanding to 12.06% from 8.96% in the year-ago period. This margin expansion reflects improved cost efficiency despite a year-on-year decline in revenue, underscoring better operating leverage and expense management during the quarter.

What the Numbers Show

The divergence between standalone and consolidated net profit growth highlights the impact of tax structuring and associate performance. While standalone operations delivered a solid 10.8% profit increase on flat revenue, the consolidated bottom line grew faster at 16.8%, primarily due to a ₹7.29 crore deferred tax credit that lowered the effective tax burden. Additionally, the share of profit from associates—Finolex Plasson Industries Private Limited and Pawas Port Limited—contributed ₹0.24 crore, up from ₹4.81 crore in Q1FY25, indicating a normalization after a high base. The significant rise in other comprehensive income, driven by ₹747.07 crore in fair value gains on equity instruments, boosted total comprehensive income to ₹861.59 crore, though this is non-operational in nature.