Finolex Industries (FINPIPE) Q1 25/26 earnings summary

Executive summary

• Pipes & Fittings volume grew 2% year-over-year to 92,129 MT in Q1 FY26 despite weak demand and early monsoon impact.

• Total income from operations declined 9% year-over-year to INR 1,043 crore due to lower sales realizations and PVC price volatility.

• EBITDA dropped to INR 94 crore from INR 207 crore year-over-year, with PAT at INR 97 crore versus INR 505 crore last year, which included an exceptional gain.

• Major board and management changes underway, including new MD and Director-Technical appointments, with current MD to remain as advisor.

• Liquidity remains robust with net cash surplus of INR 2,533 crore as of June 30, 2025.

Financial highlights

• Revenue from operations for Q1 FY26 was INR 1,043.15 crore, down from INR 1,140.49 crore year-over-year.

• EBITDA margin for the quarter was 9%, down from 18% in the previous year.

• PAT for Q1 FY26 at INR 96.93 crore, down from INR 150.26 crore in Q1 FY25.

• Exceptional gain of INR 416.99 crore in Q1 FY25 not repeated in Q1 FY26.

• Material cost increased to INR 702.84 crore in Q1 FY26 from INR 668.58 crore in Q1 FY25.

Outlook and guidance

• High single-digit volume growth achieved in July; expectation to cross double-digit growth for the year.

• Double-digit industry growth anticipated; company targets 10%+ growth over the next five years.

• Double-digit EBITDA margin expected if PVC prices stabilize.

• CapEx guidance for FY26 is INR 150 crore, with annual CapEx of INR 200–300 crore expected in coming years.

• Management expresses confidence in future demand, supported by a wide product basket and strong distributor network.