Finolex Industries reported a 12% year-on-year growth in revenue for Q4 FY26, which stood at INR1,314 crores compared to INR1,172 crores in Q4 FY25. The company delivered a strong profitability performance, with EBITDA nearly doubling to INR332 crores from INR171 crores in the previous year. Consequently, the operating profit margin (OPM) expanded significantly to 25% from 14.6% year-on-year. Profit before tax rose 65% to INR334 crores, while profit after tax increased to INR306 crores from INR144 crores in the corresponding period of the previous year.

Full Year Performance

For the full financial year 2025-26, Finolex Industries reported a flat revenue of INR4,113 crores against INR4,142 crores in FY25. The lower sales volumes during the year were offset by better realizations. EBITDA for the year increased 43% to INR679 crores, and EBIT grew 55% to INR572 crores. The sales volumes for the full year stood at 332,736 metric tons, a decline from 347,982 metric tons in the previous year. The company maintains a strong balance sheet with a net free cash of approximately INR2,563 crores.

Operational Metrics and Segment Mix

During Q4 FY26, volumes remained broadly flat at 101,772 tons compared to 102,253 tons in Q4 FY25. The agriculture segment accounted for approximately 63% of the mix in FY26, down from 67% in FY25, indicating a gradual shift towards non-agriculture segments. Management targets a more balanced 50-50 split between agri and non-agri segments over the next 4 to 5 years. The fittings share in total volume increased to 11% in FY26 from 10% in the previous year.

Outlook and Strategy

Management attributed the margin expansion to a combination of improved procurement strategies, better realizations due to geopolitical factors impacting polymer prices, and inventory gains estimated between INR35 crores and INR40 crores during the quarter. While the current EBITDA margins are elevated, the company guided for a sustainable range of sub-15% on a full-year basis, citing market volatility. Regarding capital allocation, the company continues to incur maintenance capex of roughly INR100 crores annually and is exploring options to utilize its significant cash reserves, having declared a dividend of INR2.75 per share for the current year.

Finolex Industries reported a net profit of ₹580.34 crore for the financial year ended March 31, 2026 (FY26), a decrease from ₹777.86 crore in the previous year. The decline is attributed to the absence of exceptional items, as the prior year included a net gain of ₹416.99 crore from the transfer of rights on leasehold land in Chinchwad, Pune. Revenue from operations for FY26 stood at ₹4,113.43 crore, marginally lower than the ₹4,141.97 crore recorded in FY25. The company's Board of Directors approved the audited standalone and consolidated financial results during a meeting held on May 26, 2026. The audited financial results were published in the Financial Express - All India edition and Loksatta - Pune edition on May 28, 2026, in compliance with Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

For the quarter ended March 31, 2026 (Q4FY26), the company recorded a net profit of ₹254.22 crore, a significant increase from ₹150.26 crore in the same period last year. This growth was driven by a 95.88% surge in EBITDA to ₹333.00 crore, which expanded the EBITDA margin to 25.34% from 14.62% in Q4FY25. Revenue for the quarter rose to ₹1,313.88 crore from ₹1,171.81 crore in the prior year. In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the audio recording of the conference call to discuss Q4FY26 financial results has been uploaded to the company's website.

Financial Performance

The Board recommended a total dividend of ₹2.75 per equity share of ₹2 each for FY26. This comprises a final dividend of ₹2 (100%) and a special dividend of ₹0.75 (37.50%). The payout is subject to tax deduction and shareholder approval at the ensuing Annual General Meeting. Additionally, the Board re-appointed M/s. S. R. Bhargave & Co as Cost Auditors and M/s. M M Nissim & Co LLP as Internal Auditors for FY26-27.

Operational Metrics

Effective April 1, 2025, Finolex Industries re-aligned its internal reporting structures to operate as a single integrated business focused on the manufacture and sale of Pipes and Fittings, in accordance with Ind AS 108. Sales volumes for FY26 stood at 332,736 metric tonnes (MT), a decline of 4% from 347,982 MT in FY25. The statutory auditors, Walker Chandiok & Co LLP, issued an unmodified opinion on the standalone and consolidated financial results.