Finolex Cables Limited Earnings Summary — Q4 FY2026
Finolex Cables Hits Record Quarterly Revenue Amid Margin Pressure
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 4 consecutive quarters.
- Revenue of ₹2,013 Cr is 44.3% higher year-on-year.
- Revenue has compounded at 17.5% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹249 Cr is 53.1% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 13.8% annualised across the period.
- Operating margin stands at 12.1% in Q1 FY2027.
- Operating margin expanded by 236 bps year-on-year.
- Over the last two years operating margin has expanded by 182 bps.
- PBT margin is 15.6%.
- Expense growth of 40.5% remained below revenue growth of 44.3%.
- Operating profit of ₹244 Cr is 79.0% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 78/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Accelerating | 2,013 | 1,951 | 1,599 | 1,376 | 1,396 | 1,595 | 1,182 | 1,312 | 1,230 | 1,401 |
| Expenses | Accelerating | 1,769 | 1,771 | 1,441 | 1,231 | 1,259 | 1,424 | 1,044 | 1,206 | 1,104 | 1,239 |
| Operating Profit | Accelerating | 244 | 180 | 158 | 145 | 136 | 171 | 138 | 106 | 127 | 162 |
| Operating Margin | Stable | 12.1% | 9.3% | 9.9% | 10.6% | 9.8% | 10.7% | 11.7% | 8.1% | 10.3% | 11.6% |
| Other Income | Volatile | 92 | 140 | 74 | 76 | 80 | 104 | 67 | 57 | 202 | 100 |
| Interest | Softening | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 1 |
| Depreciation | Accelerating | 22 | 17 | 15 | 14 | 14 | 12 | 12 | 12 | 11 | 12 |
| Profit Before Tax | Accelerating | 314 | 303 | 216 | 206 | 203 | 261 | 193 | 151 | 318 | 250 |
| Tax | Accelerating | 65 | 79 | 52 | 44 | 40 | 70 | 45 | 33 | 74 | 63 |
| Net Profit | Accelerating | 249 | 224 | 164 | 163 | 163 | 192 | 147 | 118 | 244 | 186 |
| Net Margin | Improving | 12.4% | 11.5% | 10.3% | 11.8% | 11.7% | 12.0% | 12.5% | 9.0% | 19.8% | 13.3% |
Key Takeaways
- Revenue reached a record quarterly high of ₹1,951 Cr, driven by strong volumes in electrical and communication cables.
- Operating margins compressed to 9%, continuing a downward trend from 11-12% levels due to commodity price volatility.
- Net profit saw a significant 36.6% sequential jump, heavily aided by a surge in Other Income to ₹140 Cr.
- The company maintains a pristine, almost debt-free balance sheet with reserves growing to ₹6,055 Cr.
- Raw material expense growth (₹1,771 Cr) outpaced revenue growth on a percentage basis, impacting profitability.
- Capital Work in Progress (CWIP) remains significant at ₹105 Cr, indicating ongoing capacity expansions.
Management Guidance
Management is focusing on scaling the FMEG business and expanding capacity in communication cables and OFC to leverage its 24.9% organized market share.
Sentiment Shift
Improving
While margins are under pressure, the significant acceleration in top-line growth and record quarterly net profit indicate strong business momentum.
Outlook
The outlook remains healthy due to the premiumization strategy and expansion of retailer touchpoints, although high reliance on non-operating income and raw material inflation are monitoring points.
From the Annual Report (Key Quotes)
“Finolex maintains superior liquidity and a pristine balance sheet.”
“Recent uptick in revenue growth suggests a reactivation of business momentum following a period of stagnation.”
“There is a clear vision for premiumization and expanding the retailer touchpoint reach.”
Official Quarterly Documents
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This summary is AI-generated from Finolex Cables Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.