Finolex Cables Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Finolex Cables Ltd filed with BSE on 03 Jun 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 Q4 FY26 revenue growth of about 22% year-on-year and quarter-on-quarter, with full-year revenue up around 19%, while EBITDA and PAT growth were slower due to higher raw material and copper costs following disruptions in the Middle East. The electrical segment posted its highest-ever quarterly revenue of INR 1,697 crores, while the communications segment saw quarterly revenue up about 30% year-on-year as fiber prices hardened due to global supply constraints. Management also discussed the commissioning of a new preform plant, ongoing capex plans, and a turnaround in the extra high-voltage joint venture with Sumitomo, which became profitable this year.
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: up about 22% (Q4 FY26)
p. 3
“Revenue for Quarter-4 was up by about 22%, both year-on-year and quarter-on-quarter.”
Mahesh Viswanathan, page 3 of the filed PDF · View the filing
Revenue: up about 19% (FY26)
p. 3
“For the full year, revenue was up about 19%.”
Mahesh Viswanathan, page 3 of the filed PDF · View the filing
EBITDA: 7% improvement Y-o-Y, 22% Q-o-Q (Q4 FY26)
p. 3
“EBITDA for Quarter-4, there was a 7% improvement year-on-year and 22% quarter-on-quarter.”
Mahesh Viswanathan, page 3 of the filed PDF · View the filing
EBITDA: about 14% better than last year (FY26)
p. 3
“For the full year was about 14% better than last year.”
Mahesh Viswanathan, page 3 of the filed PDF · View the filing
PAT: approximately 6% better Y-o-Y, 19% better Q-o-Q (Q4 FY26)
p. 3
“PAT for the quarter was approximately 6% better Y-o-Y and 19% better quarter-on-quarter.”
Mahesh Viswanathan, page 3 of the filed PDF · View the filing
PAT: about 14% better than last year (FY26)
p. 3
“PAT for the full year was about 14% better than last year.”
Mahesh Viswanathan, page 3 of the filed PDF · View the filing
Electrical segment revenue: INR 1,697 crores (Q4 FY26)
p. 3
“If I go into the individual segments for electrical sector, revenue was at INR 1,697 crores in the quarter was the highest that we've achieved, and it was about 22% higher Y-o-Y and 21% higher quarter-on-quarter.”
Mahesh Viswanathan, page 3 of the filed PDF · View the filing
Electrical segment EBIT: 18% better than last year (FY26)
p. 3
“For the full year, EBIT was about 18% better than last year.”
Mahesh Viswanathan, page 3 of the filed PDF · View the filing
Auto batteries volume growth: about 30% higher (FY26)
p. 4
“Auto was about 30% higher.”
Mahesh Viswanathan, page 4 of the filed PDF · View the filing
Flexibles volume growth: about 17% higher (FY26)
p. 4
“Flexibles were about 17% higher, and power was about 21% higher.”
Mahesh Viswanathan, page 4 of the filed PDF · View the filing
Agricultural applications volume: down about 15%-16% (FY26)
p. 4
“It was down by about 15%-16%.”
Mahesh Viswanathan, page 4 of the filed PDF · View the filing
Price changes in electrical: 14 price changes, ~24-25% effective increase (FY26)
p. 4
“We had, during the year, close to 14 price changes, all upwards.”
Mahesh Viswanathan, page 4 of the filed PDF · View the filing
Communications revenue growth: up about 30% Y-o-Y and Q-o-Q (Q4 FY26)
p. 4
“We were up by about 30% Y-o-Y as well as quarter-on-quarter.”
Mahesh Viswanathan, page 4 of the filed PDF · View the filing
Capex: INR 240 crores (FY26)
p. 5
“Overall, we have spent about INR 240 crores last year, including infusion into the JV with Sumitomo.”
Mahesh Viswanathan, page 5 of the filed PDF · View the filing
Planned capex: INR 200 crores plus INR 100 crores (FY27)
p. 5
“In the current year, that is 26-27, we expect to further spend another INR 200 crores on capacity expansion plans and complete the optic fiber preform-related capex, which is remaining, that will be another INR 100 crores, so that will be total spend in the current year.”
Mahesh Viswanathan, page 5 of the filed PDF · View the filing
Cash flow from operations: INR 50 crores lower than last year (FY26)
p. 5
“The cash flow from operations was about INR 50 crores lower than last year.”
Mahesh Viswanathan, page 5 of the filed PDF · View the filing
Inventory increase: up about INR 300-odd crores (FY26)
p. 5
“If you looked at our balance sheet numbers, the inventory is up by about INR 300-odd crores, so part of that investment has gone in there.”
Mahesh Viswanathan, page 5 of the filed PDF · View the filing
EHV JV revenue: INR 450 crores (FY26)
p. 5
“On a revenue of about INR 450 crores, we generated a profit of about INR 21 crores and the outlook is decent.”
Mahesh Viswanathan, page 5 of the filed PDF · View the filing
EHV JV order book: INR 380 crores (FY26)
p. 5
“We started the year with an order book of about INR 380 crores and so I think we have turned around the one corner.”
Mahesh Viswanathan, page 5 of the filed PDF · View the filing
Communication cable EBIT margin: about 6% (FY26)
p. 6
“This year, we ended the year with about, I think EBIT numbers was about 6%.”
Mahesh Viswanathan, page 6 of the filed PDF · View the filing
EHV JV machinery utilization: more than 80%
p. 7
“At this point in time, the most key machinery there is occupied more than 80%.”
Mahesh Viswanathan, page 7 of the filed PDF · View the filing
EHV market size: $0.5 billion to $750 million currently
p. 7
“Currently, I think the size is about $0.5 billion to $750 million.”
Mahesh Viswanathan, page 7 of the filed PDF · View the filing
Electrical cables capacity utilization: mid-60s (end of March)
p. 10
“Basis, the capacity that was available, let's say end of March, utilization would be around the mid-60s, there is some ability to grow further.”
Mahesh Viswanathan, page 10 of the filed PDF · View the filing
Retail to project mix: two-thirds, one-third
p. 11
“I think in the past our retail to project ratio would have been, 80/20. Now, probably it's around two-thirds, one-third.”
Mahesh Viswanathan, page 11 of the filed PDF · View the filing
OFC draw capacity: 4 million kilometers
p. 11
“The draw capacity that we have currently is 4 million kilometers.”
Mahesh Viswanathan, page 11 of the filed PDF · View the filing
OFC utilization: 3.2 out of 4 million kilometers
p. 11
“It'll be about 3.2 out of the 4.”
Mahesh Viswanathan, page 11 of the filed PDF · View the filing
Conduits utilization: close to 85%
p. 12
“Conduits has done very well, we are now operating at close to 85%, I think.”
Mahesh Viswanathan, page 12 of the filed PDF · View the filing
Export revenue: INR 52 crores (FY26)
p. 13
“Earlier '24- '25 export performance was, just around INR 30 crores which went up to INR 52 crores this year.”
Mahesh Viswanathan, page 13 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.
Communication Cable EBIT margin — FY27
stated conditionally by Mahesh Viswanathan
p. 11
“Yes, subject to no supply chain constraints being there. There are supply chain issues at this point in time.”
Mahesh Viswanathan, page 11 of the filed PDF · View the filing
Fiber draw capacity — 8 million kilometers · end of Q2 FY27
stated firmly by Mahesh Viswanathan
p. 11
“That should cross 8 by hopefully by end of second quarter, that means 8 million capacity will be available from beginning third quarter, so 4 million is what is available for us to operate in this point time.”
Mahesh Viswanathan, page 11 of the filed PDF · View the filing
Export revenue share — 2% to 3% · next 2 years
stated as an aspiration by Mahesh Viswanathan
p. 13
“I see it climbing to about 2% to 3% over the next 2 years.”
Mahesh Viswanathan, page 13 of the filed PDF · View the filing
Solar cable capacity — double the capacity
stated firmly by Mahesh Viswanathan
p. 13
“The current capex that I announced includes doubling the solar capacity so we are cognizant of the potential there, and we are going to double the line there and that would be helpful for us, not just on the fiber side, but also on the power cable side, both for ourselves as well as for the JV.”
Mahesh Viswanathan, page 13 of the filed PDF · View the filing
Preform-related capex completion — INR 100 crores remaining · July/August
stated firmly by Mahesh Viswanathan
p. 5
“The second part of that program, which was the fiber draw capacity expansion that should get completed by, July.”
Mahesh Viswanathan, page 5 of the filed PDF · View the filing
Communication cable revenue — beyond INR 750 crores
stated conditionally by Mahesh Viswanathan
p. 9
“But yes, given the price levels that are existing today, it can be beyond INR 750 crores.”
Mahesh Viswanathan, page 9 of the filed PDF · View the filing
Capex — INR 300 crores total · FY27
stated firmly by Mahesh Viswanathan
p. 15
“totally INR 300 crores, out of which INR 200 crores is completely new, which is for capacity enhancements.”
Mahesh Viswanathan, page 15 of the filed PDF · View the filing
Operating expenses as % of sales — FY27
stated as an aspiration by Mahesh Viswanathan
p. 15
“I think on an annual basis, it should be similar. In between quarters, you might see differences.”
Mahesh Viswanathan, page 15 of the filed PDF · View the filing
OFC order book
stated as an aspiration by Mahesh Viswanathan
p. 16
“I'm quite comfortable with saying that it should be better than last year.”
Mahesh Viswanathan, page 16 of the filed PDF · View the filing
Preform-linked cost benefit — 5% to 10% better than market
stated conditionally by Mahesh Viswanathan
p. 14
“That's what I'm saying, depending on how quickly we are able to stabilize the operations, I think we should be better than market by anywhere between 5% and 10% because the preform seller is also making some money.”
Mahesh Viswanathan, page 14 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 it is difficult to predict due to Middle East uncertainty and raw material supply restrictions, but expects margins to improve beyond the current year's level.
Answered by Mahesh Viswanathan
Asked by Manoj Gori: What is the outlook for Communication Cable segment growth and margins into FY27?
p. 6
“At this point in time, I'm not able to really commit to a number or even predict a number but I think it should improve beyond what we have seen this year.”
Mahesh Viswanathan, page 6 of the filed PDF · View the filing
Management pointed to improved capacity utilization, a favorable order mix, and a growing addressable market.
Answered by Mahesh Viswanathan
Asked by Manoj Gori: How is the EHV JV with Sumitomo expected to scale over the next few years?
p. 7
“Eventually in 3 to 4 years, that size could go up to $4 billion to $5 billion so that's the kind of market expansion that we are seeing, or we are likely to see.”
Mahesh Viswanathan, page 7 of the filed PDF · View the filing
Management attributed weak retail demand to distributor caution around copper price volatility, while project sales remained stable.
Answered by Mahesh Viswanathan
Asked by Veenit: Why hasn't the housing wires segment grown despite a strong real estate cycle?
p. 7
“The retail part of stock and sell, which is, I think, a concern. For a distributor, a dealer to invest for amounts of money and hope that the price holds.”
Mahesh Viswanathan, page 7 of the filed PDF · View the filing
Management said some non-contracted orders at current prices boosted margins, and broader benefits should appear around Q2.
Answered by Mahesh Viswanathan
Asked by Pathanjali Srinivasan: Why did Communication Cables margins improve this quarter, and will fiber price gains flow through given fixed contracts?
p. 8
“We should benefit except that the timeframe is probably around second quarter.”
Mahesh Viswanathan, page 8 of the filed PDF · View the filing
Management said utilization is in the mid-60s with headroom to 80-85% before major investment is needed.
Answered by Mahesh Viswanathan
Asked by Nikhil Purohit: What is the maximum revenue potential and utilization for the electrical cables segment?
p. 11
“Revenue potential can be at about 80%-85% if somebody is operating, they are doing a good job because this is not a single machine, one process.”
Mahesh Viswanathan, page 11 of the filed PDF · View the filing
Management said fans were impacted by unseasonal rains and BIS norm changes causing destocking, while conduits performed well.
Answered by Mahesh Viswanathan
Asked by Nikhil Purohit: What growth did FMEG's PVC conduits and fans see in FY26?
p. 12
“Fan actually did not grow in volume terms. Conduits has done very well, we are now operating at close to 85%, I think.”
Mahesh Viswanathan, page 12 of the filed PDF · View the filing
Management confirmed it is a supply chain challenge but said current inventory can sustain operations for a few months.
Answered by Mahesh Viswanathan
Asked by Akshat Mehta: How easy is it to source germanium for the preform plant?
p. 12
“That is the challenge. That is, I kept referring to supply chain difficulty that is the challenge. Fortunately, we do not require massive amounts, but it is a challenge that we need to overcome.”
Mahesh Viswanathan, page 12 of the filed PDF · View the filing
Management clarified the total capex figure but declined to give formal guidance given ongoing geopolitical volatility.
Answered by Mahesh Viswanathan
Asked by Miraj Shah: Can management clarify the capex figures and provide revenue/margin guidance?
p. 15
“I actually do not give out any guidance, especially in a situation like today, where you do not know whether the war is ending tomorrow because you keep hearing that today is ending, no but it's not ending.”
Mahesh Viswanathan, page 15 of the filed PDF · View the filing
Management said the shortage affects the broader industry, including anyone producing or drawing preform.
Answered by Mahesh Viswanathan
Asked by Prateek Shrivastava: Is the germanium and glass supply problem specific to Finolex or industry-wide?
p. 16
“It is faced by many people in the industry. Anybody that is producing preform would face it.”
Mahesh Viswanathan, page 16 of the filed PDF · View the filing
Risks flagged
Middle East disturbances led to raw material cost increases and rupee depreciation, pressuring margins
p. 3
“towards the end of Quarter-4, we had the shock from the Middle East, which resulted in cost increases across the board, while the LME copper did stay low for a couple of weeks, the rupee depreciation as well as cost hikes in most other raw materials meant that at the end, we were left with the higher cost of production than before and therefore, margins were slightly under pressure.”
Mahesh Viswanathan, page 3 of the filed PDF · View the filing
Agricultural cable volumes declined due to monsoon conditions
p. 4
“The pre-seasonal monsoon plus continued monsoon both impacted the volumes.”
Mahesh Viswanathan, page 4 of the filed PDF · View the filing
Fiber and germanium raw material availability constrained by global demand from data centers and military applications
p. 4
“Currently, raw material availability is a constraint for everybody. Most capacities in China and Japan are blocked completely.”
Mahesh Viswanathan, page 4 of the filed PDF · View the filing
Export restrictions on raw materials linked to defense-use concerns
p. 6
“Also, because of the exposure to defense applications, some governments have put in MROs on export of certain raw materials.”
Mahesh Viswanathan, page 6 of the filed PDF · View the filing
Retail distributors reluctant to hold inventory amid volatile copper prices
p. 7
“That is a risk that less people are willing to take at this point in time.”
Mahesh Viswanathan, page 7 of the filed PDF · View the filing
Fan business affected by unseasonal rains and regulatory changes causing destocking
p. 12
“Fan has been a difficult product line this year because in the initial part of the year, you had unseasonal rains, and towards the second half of the year, there were changes to the BIS norms, which meant that people were destocking any inventory that they had and they wouldn't want to take fresh inventories, that has been an issue.”
Mahesh Viswanathan, page 12 of the filed PDF · View the filing
FMEG segment underperformance requiring portfolio and distribution rework
p. 12
“Our performance has been under par there. That is something that we realize and appreciate.”
Mahesh Viswanathan, page 12 of the filed PDF · View the filing
Uncertainty from ongoing geopolitical conflict impacting supply chain and demand predictability
p. 16
“But it's been 3 months since that act started and no 2 days are different. You go back and forth, back and forth, back and forth.”
Mahesh Viswanathan, page 16 of the filed PDF · View the filing
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