Finolex Cables (FINCABLES) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 saw strong revenue and profitability growth, with revenue rising 44% year-over-year to ₹2,013 Cr, driven by robust performance in electrical and communication cables, higher copper prices, and significant volume-led growth in automotive, battery, flexible, solar, and agricultural cables.

• Export revenues surged, reaching INR 50 crores, nearly matching the previous year's total, with notable contributions from optic fiber and power cables to the U.S. and Europe.

• Communication cables delivered exceptional results, benefiting from high demand from data centers, AI-driven applications, and favorable inventory costs.

• EBITDA increased 90% YoY and 22% sequentially, reflecting strong operating leverage.

• Board approved re-appointments of key directors and a new Company Secretary, strengthening governance.

Financial highlights

• Revenue from operations for Q1 FY27 was ₹2,013.2 Cr, up 44% year-over-year from ₹1,395.5 Cr.

• Profit before tax rose to ₹277.4 Cr, up 62% YoY, and profit after tax increased 59% to ₹221.3 Cr year-over-year.

• Consolidated profit after tax was ₹249.04 Cr, up from ₹162.62 Cr in the prior year quarter.

• EBITDA margin reached 14.2%, up from 9.4% in Q1 last year.

• Earnings per share (consolidated, basic) for the quarter was ₹16.28, up from ₹10.63 in Q1 FY26.

Outlook and guidance

• Management expects communication cable margins to normalize as older, lower-cost inventory is depleted, but double-digit margins are anticipated to continue.

• Demand from data centers and AI is expected to drive continued growth, with domestic and export opportunities expanding.

• Expansion of the Fiber Draw Facility is on track, with full capacity (4 million fiber kilometers) expected by Q3 FY27.

• FMEG segment remains a focus, with a target of INR 5 billion revenue by FY2028 and new product launches planned within 6 months.

• Channel and retail network expansion targeting 2,50,000 retailers.