Finolex Cables Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Finolex Cables Ltd filed with BSE on 18 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Finolex Cables reported Q1 FY27 revenue of Rs 2,013 crores, up approximately 44% year-on-year, with PAT rising approximately 59% to Rs 221 crores. Management attributed the growth to strong volumes across automotive, battery, flexible wires, solar and agricultural cable segments, alongside a sharp margin improvement in communication cables driven by lower-cost fiber inventory. The company also disclosed a decision to expand optic fiber draw capacity directly from 4 million to 8 million kilometers in one step rather than in phases, citing a global fiber shortage.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Revenue from operations: INR 2,013 crores (Q1 FY27)
p. 4
“Our revenue from operations for Q1 of FY27 stood at INR 2,013 crores, as compared to INR 1,396 crores in the corresponding quarter of last year.”
Sachin Naik, page 4 of the filed PDF · View the filing
Profit before tax: INR 277 crores (Q1 FY27)
p. 4
“Profit before tax stood at INR 277 crores as against INR 171 crores in Q1 of last year, registering a growth of approximately 62%.”
Sachin Naik, page 4 of the filed PDF · View the filing
Profit after tax: INR 221 crores (Q1 FY27)
p. 4
“And profit after tax stood at INR 221 crores compared to INR 139 crores in the corresponding quarter of last year, reflecting growth of approximately 59%.”
Sachin Naik, page 4 of the filed PDF · View the filing
PAT margin: 10.7% (Q1 FY27)
p. 5
“while the PAT margin has improved from 9.6% to 10.7% during the quarter”
Sachin Naik, page 5 of the filed PDF · View the filing
Electrical Cables segment revenue: INR 1,767 crores (Q1 FY27)
p. 5
“we've reported a revenue of INR 1,767 crores compared to INR 1,206 crores in the corresponding quarter of last year”
Sachin Naik, page 5 of the filed PDF · View the filing
Communication Cables segment revenue: INR 176 crores (Q1 FY27)
p. 5
“Communication Cables delivered a particularly strong performance during the quarter with a revenue increase from INR 109 crores to INR 176 crores, which is a growth of approximately 62% with margins close to 30%.”
Sachin Naik, page 5 of the filed PDF · View the filing
Copper Rod segment revenue: INR 8 crores (Q1 FY27)
p. 5
“Copper Rod reported a revenue of only INR 8 crores during the quarter, as compared to INR 403 crores in the corresponding quarter last year.”
Sachin Naik, page 5 of the filed PDF · View the filing
Exports: about INR 50 crores (Q1 FY27)
p. 4
“Our exports for the quarter was about INR 50 crores, almost the entire value that we did last year.”
Mahesh Viswanathan, page 4 of the filed PDF · View the filing
JV revenue and profit: revenue about INR 87 crores, profit about INR 7 crores (Q1 FY27)
p. 4
“They generated a revenue of about INR 87 crores with a profit of about INR 7 crores.”
Mahesh Viswanathan, page 4 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Capex for the year — approximately INR 300 crores · FY27
stated firmly by Mahesh Viswanathan
p. 4
“Overall capex for the year will still be what I mentioned in the May call, approximately INR 300 crores for the year.”
Mahesh Viswanathan, page 4 of the filed PDF · View the filing
Optic fiber draw capacity expansion — 8 million kilometers · by September
stated firmly by Mahesh Viswanathan
p. 15
“We are going up to 8 million, and it will happen by September.”
Mahesh Viswanathan, page 15 of the filed PDF · View the filing
Cabling capacity expansion — 10 million
stated firmly by Mahesh Viswanathan
p. 15
“Yes. We will go up to 10 million.”
Mahesh Viswanathan, page 15 of the filed PDF · View the filing
Communication cables margin — double-digit, likely low-double digit · end of the year
stated conditionally by Mahesh Viswanathan
p. 6
“I still believe that at the end of the year provided the demand situation remains similar to what it is today, I still believe that you should have a double-digit margin number, it'll probably be in the low-double digit numbers.”
Mahesh Viswanathan, page 6 of the filed PDF · View the filing
FMEG revenue — INR 5 billion · FY28
stated as an aspiration by Mahesh Viswanathan
p. 13
“But the target of INR 5 billion by 2028 still remains and we are sure that we can get over there.”
Mahesh Viswanathan, page 13 of the filed PDF · View the filing
Fiber capacity utilization — full utilization · Q4
stated conditionally by Mahesh Viswanathan
p. 18
“If demand is as robust as it is today, then yes, that would be our effort to exit at full utilization but we will have to see how demand keeps up there.”
Mahesh Viswanathan, page 18 of the filed PDF · View the filing
Preform capacity expansion (Phase 2)
stated conditionally by Mahesh Viswanathan
p. 10
“we will study the situation and then as required decide on whether we should spend for the expansion now or at a little later date”
Mahesh Viswanathan, page 10 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said export margins from optic fiber opportunities were not likely to recur every quarter, while domestic electrical cable margins around 10.5% should be sustainable.
Answered by Mahesh Viswanathan
Asked by Vidit Trivedi: How sustainable are the Q1 EBITDA margins and how much came from operating leverage versus one-off factors, particularly in exports?
p. 6
“On the other side, on the domestic front, the margins at electrical cable side should be sustainable. We are at about 10.5% I think, and those should be sustainable.”
Mahesh Viswanathan, page 6 of the filed PDF · View the filing
Management described a range of standard fiber pricing that had spiked and was now settling, but declined to predict future direction.
Answered by Mahesh Viswanathan
Asked by Sonali: What are current global fiber prices and outlook?
p. 7
“I think currently is settling at about between USD 12 and USD 13 per kilometer that's where it is today.”
Mahesh Viswanathan, page 7 of the filed PDF · View the filing
Management said current elevated margins reflect a demand-supply imbalance that may not sustain, cautioning against assuming a fixed incremental margin benefit.
Answered by Mahesh Viswanathan
Asked by Sonali: Would preform backward integration add about 100 bps to margins once fully functional?
p. 8
“And so to say that I will get 100 bps over and above what I'm doing today, I think is stretching things a little too much.”
Mahesh Viswanathan, page 8 of the filed PDF · View the filing
Management estimated revenue potential if selling only fiber at full 8 million km capacity.
Answered by Mahesh Viswanathan
Asked by Achal Lohade: What would peak revenue be from the fiber/preform capacity at current prices?
p. 9
“I think similar question was asked last time around as well. We will have a draw capacity of 8 million kilometers, so at 8 million kilometers and assuming an average price of USD 11 per kilometer of fiber, then you're looking at about USD 88 million of revenue if I only sell fiber.”
Mahesh Viswanathan, page 9 of the filed PDF · View the filing
Management explained the margin benefit came from selling old, lower-cost inventory at current market prices, which would normalize once inventory is consumed.
Answered by Mahesh Viswanathan
Asked by Balasubramanian: Are the high communication cable margins due to spot contracts with higher realizations?
p. 11
“To the extent that I have an opening inventory, I am benefited. And therefore, my margins are where they are at this point in time.”
Mahesh Viswanathan, page 11 of the filed PDF · View the filing
Management confirmed repricing occurred at the end of June and said the 30% margin level is not sustainable long-term and should normalize to a more reasonable level.
Answered by Mahesh Viswanathan
Asked by Tushar Dhonde: Has the repricing of long-term communication cable contracts already occurred, and what will happen to the 30% margin going forward?
p. 19
“I think 30 is not a number that is sustainable in the long period. That's what I meant, so it should come down to something more reasonable.”
Mahesh Viswanathan, page 19 of the filed PDF · View the filing
Risks flagged
Restricted availability of germanium tetrachloride, a key preform raw material, with long lead times
p. 14
“Germanium tetrachloride is required for manufacturing preform. Yes, there are some issues in terms of easy availability of that item, it is a restricted item.”
Mahesh Viswanathan, page 14 of the filed PDF · View the filing
Copper rod plant shutdown due to LPG availability restrictions
p. 5
“Copper rods were impacted by a continued restriction on the LPG availability, resulting in the rod plant being shut during the quarter.”
Sachin Naik, page 5 of the filed PDF · View the filing
Fuel/LPG shortages disrupting FMEG fan manufacturing supply
p. 12
“Commercial LPG was just not available, and therefore a lot of the device manufacturers, especially fans, they were not able to supply the kind of quantities that were required.”
Mahesh Viswanathan, page 12 of the filed PDF · View the filing
Volatile input costs including helium due to Middle East disturbances
p. 8
“It had gone up to INR 5,000 per cubic meter when the disturbances started in the Middle East.”
Mahesh Viswanathan, page 8 of the filed PDF · View the filing
Communication cable margins expected to decline as low-cost inventory is depleted
p. 6
“But as that stock gets depleted, you will see a correction in the margins.”
Mahesh Viswanathan, page 6 of the filed PDF · View the filing
Uncertainty in predicting fiber price trajectory
p. 7
“I'm not able to predict where they will head from now on, but I can tell you where they are today.”
Mahesh Viswanathan, page 7 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.