Promises
2 promises
Promise Tracker
0 delivered, 0 close, 2 missed.
View Promises →
Finolex Cables Limited — Q4 FY26
Finolex Industries reported a strong Q4 FY26 with revenue of ₹1,314 crore (+12% YoY) and EBITDA nearly doubling to ₹332 crore (+94% YoY), driven by inventory gains of ₹35-40 crore and backward integration benefits.
bullish
medium
✓ Verified against BSE filing
2-Minute Summary
✦ AI-Generated from Full Transcript
Finolex Industries reported a strong Q4 FY26 with revenue of ₹1,314 crore (+12% YoY) and EBITDA nearly doubling to ₹332 crore (+94% YoY), driven by inventory gains of ₹35-40 crore and backward integration benefits. EBITDA margin expanded to 25.3% (+1060 bps YoY). PAT surged to ₹306 crore (+112% YoY). Volume was flat at 1,01,770 tons as agri demand remained subdued due to price volatility, partially offset by non-agri growth. Management guided for FY27 EBITDA margins in the sub-15% range (lower double-digit) and volume growth of high single to low double digits, contingent on monsoon and geopolitical stability. Key risk: VCM-PVC spread compression (currently $108 vs Q4 avg $179) could pressure margins in H1 FY27.
फिनोलेक्स इंडस्ट्रीज ने वित्त वर्ष 2026 की चौथी तिमाही में मजबूत प्रदर्शन किया। कंपनी की कमाई ₹1,314 करोड़ रही, जो पिछले साल से 12% ज्यादा है। मुनाफा लगभग दोगुना होकर ₹332 करोड़ हो गया। इसकी वजह ₹35-40 करोड़ का स्टॉक लाभ और खुद के कच्चे माल का फायदा है। मुनाफा मार्जिन 25.3% तक पहुंच गया। कुल मुनाफा ₹306 करोड़ रहा, जो 112% ज्यादा है। बिक्री की मात्रा 1,01,770 टन पर स्थिर रही, क्योंकि किसानों की मांग कमजोर थी। अगले साल कंपनी को 15% से कम मार्जिन और 5-10% बिक्री बढ़ोतरी की उम्मीद है, लेकिन यह मानसून और भू-राजनीति पर निर्भर करेगा। मुख्य जोखिम: कच्चे माल की कीमतों में कमी से मुनाफा दब सकता है।
Promises0 met · 2 missedRisks4 trackedTranscriptfull text
Research workspace
Focused Modules
Risks
4 risks
Risk Intelligence
VCM-PVC spread compression
View Risks →
Transcript
Full text
Call Transcript
Full transcript text is available on this route.
Read Transcript →Quarter Snapshot
Sales Volume (Q4)
1,01,770 tons
-0.5% YoY
Flat volume due to subdued agri demand; non-agri volume increased but offset by agri decline.
Agri Share of Volume (FY26)
63%
-4pp YoY
Gradual shift from agri to non-agri; target is 50/50 over 4-5 years.
PVC-EDC Spread (Q4 avg)
$521
+$42 QoQ
Spread improved sequentially, supporting integrated margins.
Capacity Utilization (FY26)
57%
-14pp YoY
Lower utilization due to capacity addition to 5,20,000 tons; headroom for growth.
What Changed vs Last Quarter
NEW
FY27 EBITDA margin target: sub-15% (lower double-digit)
Management guided for EBITDA margins in the lower double-digit range (sub-15%) for FY27, citing geopolitical uncertainty and margin normalization from Q4 peaks.
NEW
FY27 volume growth target: high single to low double digit
Targeting volume growth of high single-digit to low double-digit for the full year FY27, driven by agri recovery and non-agri expansion.
UPDATED
Annual capex of ~₹100-200 crore for maintenance and debottlenecking
Planned capex of around ₹100-200 crore annually for maintenance, replacement of extruders with higher capacity, and debottlenecking.
DROPPED
FY26 volume flattish to slight growth
Full-year volume expected to be flat to slightly up versus FY25, with Q4 typically stronger.
DROPPED
Maintain EBITDA margin around 12%
Management aims to sustain full-year EBITDA margin near 12%, supported by cost efficiencies and product mix.
NEW RISK
VCM-PVC spread compression
Current VCM-PVC spread at $108 vs Q4 average of $179, which could pressure margins for the VCM-based capacity (50% of total).
NEW RISK
Geopolitical disruption in Middle East supply
Middle East conflict may disrupt PVC/VCM supply; management acknowledged risk but noted monsoon shutdown and supply chain diversification efforts.
NEW RISK
Subdued agri demand due to price volatility and monsoon uncertainty
Agri demand remained weak in Q4 and April; monsoon delay and high PVC prices could further impact volumes.
NEW RISK
Slow progress in non-agri diversification
Analysts questioned the pace of shift to non-agri; management targets 50/50 over 4-5 years but current agri share is still 63%.
RISK GONE
PVC price volatility and Chinese dumping
Potential surge in Chinese exports before April duty changes could pressure PVC prices and margins.
RISK GONE
Inventory valuation impact on margins
Analysts questioned the sustainability of margin improvement given high inventory change of ₹168 crore; management attributed it to volume and price dynamics.
RISK GONE
Cash deployment uncertainty
Despite large cash surplus, management gave no concrete plan for dividends, buybacks, or major capex, leading to investor frustration.
Fast read
Guidance and risk preview
Management guided for EBITDA margins in the lower double-digit range (sub-15%) for FY27, citing geopolitical uncertainty and margin normalization f...
Current VCM-PVC spread at $108 vs Q4 average of $179, which could pressure margins for the VCM-based capacity (50% of total).
View Risks →