Finolex Industries Q2 FY27 results: net profit down 6.9% to ₹115.02 crore, revenue up 27.4%

How did Finolex Industries perform in Q2 FY27?

Finolex Industries reported consolidated revenue of ₹1,094 crore for Q2 FY27, up 27.4% from ₹858.74 crore in Q2 FY26 and 23.8% from ₹883.58 crore in Q1 FY27. EBITDA rose 16.7% sequentially to ₹124.35 crore but fell 4.5% from ₹130.17 crore a year earlier. The EBITDA margin was 11.4%, compared with 15.2% in Q2 FY26 and 12.1% in Q1 FY27.

Consolidated profit before tax was ₹148.11 crore, down 5.2% from ₹156.18 crore in Q2 FY26 but up 0.4% from ₹147.56 crore in Q1 FY27. Net profit was ₹115.02 crore, down 6.9% from ₹123.56 crore year on year and up 0.4% from ₹114.52 crore sequentially. Basic EPS was ₹1.86, against ₹2.00 in Q2 FY26 and ₹1.85 in Q1 FY27. On a standalone basis, revenue was ₹1,093.96 crore and profit after tax was ₹122.38 crore.

What changed in Finolex Industries' costs and profit?

Total expenses rose 31.7% to ₹1,001 crore from ₹760.31 crore in Q2 FY26, exceeding the increase in revenue. Cost of materials consumed was ₹689.15 crore, up ₹30.07 crore or 4.6%; employee cost fell ₹4.84 crore to ₹47.17 crore; finance costs fell ₹0.96 crore to ₹3.34 crore; depreciation rose ₹0.79 crore to ₹28.23 crore; and other expenses rose ₹0.51 crore to ₹184.84 crore. There was no exceptional item.

Other income fell ₹2.42 crore to ₹55.33 crore from ₹57.75 crore, while tax expense fell ₹7.48 crore to ₹35.06 crore from ₹42.54 crore. EBITDA fell ₹5.82 crore to ₹124.35 crore and its margin declined 3.8 percentage points to 11.4%. Profit before tax fell ₹8.07 crore to ₹148.11 crore, and net profit fell ₹8.54 crore to ₹115.02 crore. The investor presentation attributed weaker EBITDA to higher material costs offsetting the benefits of volume growth.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue rose 4.0% to ₹1,977.54 crore from ₹1,901.89 crore in H1 FY26. Total income increased 4.1% to ₹2,108.2 crore, while profit before tax rose 4.7% to ₹295.67 crore. Net profit increased 3.5% to ₹229.54 crore from ₹221.71 crore, and basic EPS rose to ₹3.71 from ₹3.59.

The investor presentation said H1 revenue growth was supported by improved realisations and healthy volume growth in Q2, despite lower overall volumes. It reported H1 sales volumes of 151,106 MT, down from 157,465 MT in H1 FY26, while Q2 volume increased 28% to 83,407 MT from 65,336 MT a year earlier.

What do the balance sheet and cash flow show?

As of 30 September 2026, total assets were ₹8,886.97 crore, compared with ₹7,595.57 crore at 31 March 2026. Total equity increased to ₹7,554.14 crore from ₹6,214.71 crore, while borrowings fell to ₹137.02 crore from ₹437.32 crore. Cash and cash equivalents were ₹5.37 crore, compared with ₹31.4 crore at the previous balance-sheet date. Inventories declined to ₹879.93 crore from ₹1,025.96 crore.

Trade receivables fell to ₹323.44 crore from ₹362.31 crore, and trade payables declined to ₹334.59 crore from ₹366.43 crore. H1 FY27 operating cash flow was ₹149.66 crore, compared with ₹11.64 crore in H1 FY26. Investing cash flow was ₹309.27 crore against ₹407.38 crore, while financing cash flow was ₹484.96 crore of outflow compared with ₹440.65 crore of outflow. Capital expenditure was ₹36.61 crore, compared with ₹25.42 crore of outflow in the year-ago period.

How has Finolex Industries done over the last 8 quarters?

Revenue reached its highest level in the reported series at ₹1,313.88 crore in Q4 FY26 before falling to ₹883.58 crore in Q1 FY27 and recovering to ₹1,093.96 crore in Q2 FY27. The lowest revenue was ₹858.74 crore in Q2 FY26. Profit after tax also peaked at ₹261.25 crore in Q4 FY26, while Q2 FY27 profit was ₹115.02 crore against the series low of ₹94.02 crore in Q3 FY25.

The EBITDA margin peaked at 25.3% in Q4 FY26 and fell to 11.4% in Q2 FY27 from 12.1% in Q1 FY27. The quarterly series therefore shows revenue and profit recovering from Q1 FY27, while margin has moved lower from its Q4 FY26 peak.

What else did the company announce?

On 30 October 2026, Finolex Industries’ board approved and took on record the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, along with the limited review report issued by Walker Chandiok & Co LLP. The board meeting ran from 7:00 p.m. to 9:15 p.m. IST.

The company also filed an investor presentation for the same results on 30 October 2026. It highlighted revenue growth of 27% in Q2, Q2 volumes of 83,407 MT, and H1 revenue of ₹1,978 crore. The same-day filings did not announce a dividend, fund raise or appointment. A separate filing on 26 October 2026 had scheduled the results meeting for 30 October 2026 and said the trading window would open 48 hours after the results declaration.

What did Finolex Industries' management say?

Management maintained its FY27 average EBITDA-margin commitment at roughly ₹14–15 per kg, saying the percentage outcome depends on resin prices and costs. It planned FY27 capex of ₹150 crore, mainly for debottlenecking and routine maintenance. Management said Q3 raw-material requirements were covered and that purchases should be around existing inventory or last-consignment costs, slightly higher than spot. No formal FY27 volume target was given, although October volume was slightly positive year on year.

Management did not expect major PVC-price erosion in Q3 FY27 while the minimum import price remained effective into January and domestic supply was somewhat constrained. It identified West Asia disruption, El Niño, monsoon weakness, farmer cash-flow pressure, PVC prices after the minimum import price lapses, and the lag between selling-price resets and inventory consumption as risks into H2 FY27. CFO Chandan Verma said: “So basically, it's a time lag where it happens, as you know, price gets impacted immediately, realization gets impacted immediately, but there is a lag in the raw material price.”

Managing Director Udit Raval said: “We remain, amidst of all this situation, we remain cautiously optimistic, and our endeavor will remain focused on our maintaining sustainable margin together with the volume growth over time.” The investor presentation reported net free cash flow of ₹2,584 crore, while management said no timeline was given for deploying the cash balance. A Systematics Group representative asked whether the company would set a deadline within one year for a growth opportunity or a special reward to shareholders.

How did Finolex Industries shares react?

The filing appeared after market hours. From the price when the results were published, the stock fell 3.0% after 5 minutes, 1.7% after 15 minutes and 1.7% after 30 minutes. On the reaction day, it closed 2.4% above the previous close. By the next day’s close, the stock was up 0.4% from its pre-results close; no five-day move was available.

The industry’s median reaction-day move was 0.6%, and Finolex Industries exceeded it by 1.7 percentage points. The Nifty Microcap 250 rose 1.4% on the reaction day. By the next day’s close, the industry median had risen 1.4%, and Finolex Industries was 1.1 percentage points below that median.

Earlier results-day reactions were mixed. Finolex Industries fell 4.1% on 6 August 2026, rose 7.5% on 26 May 2026, fell 1.1% on 31 January 2026 and rose 1.4% on 7 November 2025. Earlier moves also included declines of 1.6% on 2 August 2025 and 4.8% on 24 October 2024.

How did other Plastic Products - Industrial companies do?

Sixteen other Plastic Products - Industrial companies had filed for the quarter by 4 November 2026. Their median revenue growth was 16.1%. Nine peers grew slower than Finolex Industries and seven grew faster than the company’s 27.4% revenue growth.

Twelve of the 20 peers compared for profit reported higher profit. Finolex Industries’ revenue growth of 27.4% was below the peers’ median growth rate of 16.1% only on the given comparison fields, with seven peers growing faster and nine growing slower.