Finolex Industries (FINPIPE) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 saw a 6% decline in volumes due to prolonged monsoon, but improved realizations and operational efficiency led to a 4% YoY revenue growth to ₹859 crore and a significant jump in profitability metrics.

• H1 FY26 revenue declined 3% YoY to ₹1,902 crore, with EBITDA stable at ₹224 crore and PAT impacted by the absence of last year's exceptional gain.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, with a limited review by statutory auditors.

• Results reflect a single integrated business focused on pipes and fittings after internal reporting realignment.

Financial highlights

• Q2 FY26 sales volume: 65,336 MT, down 6% YoY; total income: ₹859 crore, up 4% YoY; EBITDA: ₹130 crore (vs ₹11 crore YoY); PAT: ₹119.2 crore (vs ₹51.4 crore YoY).

• H1 FY26 volume: 157,645 MT, down 2% YoY; total income: ₹1,902 crore, down from ₹1,969 crore YoY; EBITDA: ₹224 crore (up 3% YoY); PAT: ₹216 crore (vs ₹557 crore YoY, prior year included ₹417 crore exceptional gain).

• Standalone net profit for Q2 FY26 was ₹119.20 crore, consolidated net profit at ₹123.56 crore.

• Earnings per share (EPS) for Q2 FY26 stood at ₹1.93 (standalone) and ₹2.00 (consolidated).

• Net cash surplus as of 30 Sep 2025: ₹2,360 crore.

Outlook and guidance

• Full-year volume growth now expected at mid-single digits, revised from earlier double-digit outlook.

• EBITDA margin guidance for FY26 is 10–12%, with Q2 at 15% and full-year expected to moderate as agri share rises.

• CPVC segment expected to continue double-digit growth.

• Capacity utilization expected to rise to 74–75% in FY26–27.

• Liquidity remains strong with free cash (net) of ~₹2,359 crore as of Q2 FY26.