Finolex Cables Limited has informed the Exchange about Transcript
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Finolex Cables reported Q1 FY26 revenue of just under INR 1,400 crore, up about 13% year-on-year, with PAT also rising ~13% and gross margins stable at ~20%. Electrical segment volumes grew ~16%, with power cables contributing more than wires, while agricultural wires suffered from unseasonal rains starting mid-May. Communication cables remained soft due to delayed contract closures, and the lighting/FMEG segment saw price erosion. Despite strong volume growth, electrical segment EBIT rose only 1.5% because the sales mix shifted toward lower-margin project orders (now ~40% of wires vs ~20-25% earlier). Management targets a ~12% segment margin, expects to get there in a couple of quarters, and sees wire demand improving for 4-6 quarters as real estate projects complete. Total company capex for FY26 is pegged at ~INR 300 crore, including ~INR 325-350 crore for the fiber/preform business and INR 60-80 crore for electrical cables, with current cable capacity capable of reaching INR 6,500 crore in revenue.
Margins are under short-term pressure from a richer mix of discounted project sales, but management is guiding to a 12% segment margin recovery within two quarters as wire demand picks up on real estate completions and BharatNet Phase 3 orders flow in from year-end. Shareholders should watch the margin trajectory, ad-spend normalisation (promotional costs doubled YoY to ~INR 20 crore), and execution on the INR 500 crore optical fibre/preform capex as key catalysts.