Finolex Cables (FINCABLES) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 revenue reached Rs. 1,396 crore, up 13% year-over-year, with PAT also increasing 13% to Rs. 139 crore, despite margin pressures from copper price volatility and unseasonal rains.

• Electrical segment values rose 16-17%, led by power cables, while wires for agricultural applications were impacted by unseasonal rains.

• Communication cables saw depressed volumes and values due to delayed contracts and slow government program execution.

• EBITDA for Q1 FY26 was Rs. 185 crore, up 11% year-over-year but down 16% sequentially.

• Expansion of the Preform Facility is delayed, with commissioning now expected in Q4 FY26.

Financial highlights

• Standalone revenue from operations was Rs. 1,395.52 crore, with total income at Rs. 1,449.64 crore.

• Standalone net profit after tax was Rs. 138.82 crore, with a net margin of 9.9-10%.

• Standalone EBITDA was Rs. 184.8 crore, up from Rs. 166.7 crore year-over-year.

• Volume growth in wires was 16%, but EBIT in the segment rose only 1.5% due to higher project sales at discounted prices.

• Ad and promotional expenses increased to Rs. 20 crore from Rs. 11 crore year-over-year.

Outlook and guidance

• Growth in wires expected to pick up by Q3 FY26 as real estate projects near completion, with momentum likely to continue for 4-6 quarters.

• Management targets EBITDA margins around 12% in coming quarters, though current margins are below this due to product mix and market pressures.

• Preform Facility expansion delayed, now expected to be operational in Q4 FY26.

• Unseasonal rains and copper price volatility expected to continue impacting margins and product mix.