Finolex Cables Reports Robust Q2 FY26 Results with 28% Jump in Net Profit
Finolex Cables Limited (FCL) reported impressive Q2 FY26 results. Revenue increased by 4.89% to ₹1,375.80 crore, while net profit surged 27.93% to ₹186.90 crore. Power cables segment showed robust 40% volume growth, while electrical wires remained flat and communication cables were subdued. EBIT margin improved to 10.9%. Half-year performance saw 9% revenue growth and 21% profit increase. The company's new Preform Facility is expected to complete production trials by year-end.
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Finolex Cables Limited (FCL), India's leading manufacturer of electrical and communication cables, has reported strong financial results for the second quarter of fiscal year 2025-26, demonstrating resilience in a dynamic market environment.
Financial Highlights
For the quarter ended September 30, 2025, Finolex Cables posted impressive growth in its key financial metrics:
| Particulars (in ₹ crore) | Q2 FY26 | Q2 FY25 | YoY Change |
|---|---|---|---|
| Revenue from Operations | 1,375.80 | 1,311.70 | +4.89% |
| Profit Before Tax | 238.50 | 188.20 | +26.73% |
| Net Profit | 186.90 | 146.10 | +27.93% |
The company's revenue from operations grew by 4.89% year-over-year to ₹1,375.80 crore, up from ₹1,311.70 crore in the same quarter last year. More notably, Finolex Cables saw a substantial 27.93% increase in net profit, which rose to ₹186.90 crore from ₹146.10 crore in the corresponding period of the previous year.
Segment Performance
Finolex Cables reported mixed performance across its various product segments:
- Electrical Wires: Volume remained flat compared to the same quarter last year.
- Power Cables: Showed robust growth with volumes increasing by approximately 40%.
- Communication Cables: Volumes were subdued across all products in this segment.
The company noted that growth in new product categories contributed to the overall turnover from the communication cables segment.
Operational Efficiency
The company's focus on operational efficiency was evident in its improved EBIT (Earnings Before Interest and Taxes) margin, which rose to 10.9% for the quarter. This improvement came despite fluctuations in metal prices during the period. FCL management implemented appropriate pricing actions in September, emphasizing margin stability and quick pass-through of metal price volatility.
Half-Year Performance
For the first half of FY2025-26, Finolex Cables continued its growth trajectory:
- Revenue increased by 9% to ₹2,771.30 crore, up from ₹2,542.20 crore in H1 FY25.
- Profit after tax improved by 21% to ₹325.70 crore, compared to ₹268.60 crore in the same period last year.
Future Outlook
Finolex Cables is on track with its expansion plans. The company announced that production trials at its new Preform Facility are expected to be completed by the end of the calendar year, with commissioning to follow shortly after. This new facility may enhance FCL's production capabilities and potentially contribute to future growth.
Conclusion
Finolex Cables' robust Q2 results demonstrate its ability to navigate market challenges and capitalize on growth opportunities in the electrical and communication cable sector. As India continues to invest in infrastructure and connectivity, FCL appears well-positioned to benefit from these trends in the coming quarters.
Historical Stock Returns for Finolex Cables
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.18% | +2.78% | +0.28% | -15.19% | -30.73% | +185.04% |
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