Finolex Industries Limited conducted its Q3FY26 earnings conference call on February 02, 2026, presenting a mixed performance with notable profitability improvements despite volume challenges. The company's results reflect the impact of seasonal factors and raw material price dynamics on the PVC pipes and fittings industry.

Quarterly Performance Overview

The third quarter of FY26 showed contrasting trends between volume performance and profitability metrics. While operational volumes faced headwinds, the company's margin profile improved significantly due to favorable raw material cost dynamics and operational efficiencies.

Managing Director Udipt Agarwal attributed the volume decline primarily to monsoon season impacts, while highlighting that operating performance showed notable improvement supported by softening raw material prices and ongoing operational efficiency initiatives.

Nine-Month Performance Analysis

For the nine months ended December 2025, the company demonstrated resilience with improved profitability metrics across key parameters. The period reflected similar trends to the quarterly performance, with volume pressures offset by margin expansion.

*Excluding exceptional gain of ₹407 crores in FY25

Product Mix and Market Dynamics

The company's product portfolio showed strategic shifts during the quarter, with management highlighting improved performance in specific segments:

• Agricultural vs Non-Agricultural: 62% agricultural, 38% non-agricultural segment mix
• CPVC Share: 8% of total volume, showing continued growth trajectory
• Fittings Segment: 12% of total volume
• PVC/EDC Spread: Averaged $156 during Q3FY26

The higher share of non-agricultural segment contributed to better realization and pricing stability during the quarter, according to management commentary.

Raw Material Price Environment

CFO Chandan Verma explained the company's cost advantage through backward integration, with approximately 65-70% of raw material requirements met through in-house PVC resin manufacturing. This integration provided cost benefits during the quarter as PVC prices reached historically low levels of around $600 per metric ton.

Management noted that PVC prices had begun recovering toward the end of December 2025, with current levels in the $650-660 range, representing an 8-9% improvement from the quarter's lows.

Financial Position and Outlook

The company maintains a robust balance sheet with net cash surplus of ₹2,430 crores as of December 31, 2025. Management indicated expectations for flattish to slight volume growth for the full financial year, with traditional Q4 demand pickup anticipated.

For capacity expansion, the company continues its regular capex program of ₹100-200 crores annually to support growth requirements. Management emphasized maintaining market share while focusing on profitable growth strategies going forward.

Finolex Industries Limited has uploaded the audio recording of its Q3FY26 financial results conference call on the company website, following the completion of its earnings discussion with investors and analysts.

Conference Call Audio Availability

The company has made the audio recording of the conference call available on its official website under the investor section. This follows the earlier intimation dated January 27, 2026, regarding the conference call to discuss Q3FY26 financial results. The audio upload was completed on February 2, 2026, ensuring stakeholders have continued access to the earnings discussion.

Regulatory Compliance

The audio recording upload has been communicated to both major stock exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The notification was sent to the National Stock Exchange of India Limited (Symbol: FINPIPE) and BSE Limited (Scrip Code: 500940).

Q3FY26 Financial Performance Context

The conference call discussed the company's Q3FY26 financial results, which showed mixed performance with revenue declining but profitability improving significantly. The detailed financial highlights from the quarter include:

Digital Accessibility Initiative

By making the conference call audio available on the company website, Finolex Industries continues its commitment to transparency and stakeholder engagement. The audio recording provides investors and analysts with the opportunity to review management commentary and strategic insights shared during the earnings discussion.

The company maintains its corporate office at IndiQube 'The Kode' in Pune and continues to ensure comprehensive disclosure of material information through multiple digital channels, reinforcing its commitment to regulatory compliance and investor relations.