Finolex Industries Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Finolex Industries 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 Industries reported Q4 FY26 revenue of Rs 1,314 crore, up 12% year-on-year, with EBITDA nearly doubling to Rs 332 crore from Rs 171 crore a year earlier. Management attributed part of the margin gain to inventory benefits from rising PVC prices amid Middle East-related supply disruption, while volumes were broadly flat as agri demand softened on price volatility. For the full year, revenue was flat at Rs 4,113 crore while EBITDA rose 43% to Rs 679 crore, and management said it expects full-year EBITDA margin to moderate to a sub-15% range going forward.
Numbers mentioned
Revenue: INR1,314 crores (Q4 FY26)
p. 3
“the revenue for the quarter 4 stood at INR1,314 crores as compared to the quarter 4 of FY25 of INR1,172 crores”
Udipt Agarwal, page 3 of the filed PDF · View the filing
EBITDA: INR332 crores (Q4 FY26)
p. 3
“EBITDA, we had a significant improvement. It nearly doubled to INR332 crores from INR171 crores in the previous year quarter.”
Udipt Agarwal, page 3 of the filed PDF · View the filing
Profit before tax: INR334 crores (Q4 FY26)
p. 3
“Profit before tax rose 65% to INR334 crores from INR203 crores in quarter 4 of FY25”
Udipt Agarwal, page 3 of the filed PDF · View the filing
Volume: 101,772 tons (Q4 FY26)
p. 3
“this quarter, our volume was 101,772 tons versus 102,253 tons of the quarter 4 FY25”
Udipt Agarwal, page 3 of the filed PDF · View the filing
Revenue: INR4,113 crores (FY26)
p. 3
“We had a flat revenue of INR4,113 crores against FY25 of INR4,142 crores”
Udipt Agarwal, page 3 of the filed PDF · View the filing
EBITDA: INR679 crores (FY26)
p. 3
“our EBITDA was up 43% to INR679 crores”
Udipt Agarwal, page 3 of the filed PDF · View the filing
EBIT: INR572 crores (FY26)
p. 3
“Our EBIT grew 55% to INR572 crores during the course of the year”
Udipt Agarwal, page 3 of the filed PDF · View the filing
Sales volume: 332,736 metric tons (FY26)
p. 3
“The sales volumes for the full year stood at 332,736 metric tons against 347,982 metric tons in the previous year”
Udipt Agarwal, page 3 of the filed PDF · View the filing
Net free cash: INR2,563 crores (FY26)
p. 3
“We continue to have a very strong balance sheet with a net free cash of about INR2,563 crores.”
Udipt Agarwal, page 3 of the filed PDF · View the filing
Inventory gain: INR35 crores to INR40 crores (Q4 FY26)
p. 4
“It ranges amount roughly around -- on an average, INR35 crores to INR40 crores around.”
Chandan Verma, page 4 of the filed PDF · View the filing
Agri share of volume: 63% (FY26)
p. 6
“if we look at FY26, we are at about 63%”
Udipt Agarwal, page 6 of the filed PDF · View the filing
CPVC share of volume: 7% to 8% (Q4 FY26)
p. 7
“CPVC share on the overall portfolio, it comes out to be roughly around 7% to 8% during the current quarter”
Chandan Verma, page 7 of the filed PDF · View the filing
Fitting share of volume: 11% (FY26)
p. 8
“On a yearly basis, overall year basis, full year, the fitting share on overall volume is 11% and last year, it was 10%.”
Chandan Verma, page 8 of the filed PDF · View the filing
PVC/EDC spread: $521 (Q4 FY26)
p. 11
“So Q4 PVC/EDC spread was $521.”
Chandan Verma, page 11 of the filed PDF · View the filing
PVC/VCM spread: $108 (Current)
p. 11
“PVC/VCM spread is currently $108. Currently, it is $108.”
Chandan Verma, page 11 of the filed PDF · View the filing
Capacity utilization: 67% (FY26)
p. 16
“So currently, FY26, we have the utilization 67%.”
Chandan Verma, page 16 of the filed PDF · View the filing
Total capacity: 5,20,000 tons (Current)
p. 9
“So Shravan, our total capacity at this moment is 5,20,000.”
Udipt Agarwal, page 9 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.
EBITDA margin — sub-15% level · FY27
stated conditionally by Chandan Verma
p. 14
“So we don't want to give any rosy picture at this moment because of the geopolitical scenario, the future is always see uncertainty. So that's why we are giving a conservative margin and let's try to deliver at a higher margin towards the year-end.”
Chandan Verma, page 14 of the filed PDF · View the filing
Volume growth — higher single digit to lower double digit · FY27
stated as an aspiration by Udipt Agarwal
p. 9
“definitely, we are seeing targeting a growth number of roughly around higher single digit to double -- lower double digit”
Udipt Agarwal, page 9 of the filed PDF · View the filing
Capex — INR100 crores to INR200 crores
stated firmly by Chandan Verma
p. 9
“we -- every year, we are going to incur the capex of roughly around INR100-odd crores every year”
Chandan Verma, page 9 of the filed PDF · View the filing
Agri to non-agri revenue split — 50-50 · next 4 to 5 years
stated as an aspiration by Udipt Agarwal
p. 6
“I would say more like ideal case for us would be more like 50-50 over the next 4 to 5 years.”
Udipt Agarwal, page 6 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 the inventory gain was roughly Rs 35-40 crore due to PVC price increases during March-April.
Answered by Chandan Verma
Asked by Sneha: What was the quantum of inventory gain this quarter?
p. 4
“It ranges amount roughly around -- on an average, INR35 crores to INR40 crores around.”
Chandan Verma, page 4 of the filed PDF · View the filing
Management said agri volume declined because farmers anticipated price softening, offset by non-agri growth, keeping overall volume flat.
Answered by Chandan Verma
Asked by Sneha: Why was volume growth flattish despite restocking trends seen at other plastic producers?
p. 4
“the dragging has mainly happened on account of agri volume not getting picked up because the farmers were quite -- they were also anticipating that the prices -- because of prices volatility, they have -- they were anticipating that there will be softening in the prices”
Chandan Verma, page 4 of the filed PDF · View the filing
Management said they target maintaining EBITDA margin at a sub-15% level on a full-year basis.
Answered by Chandan Verma
Asked by Shravan Shah: What EBITDA margin level is sustainable going forward given the strong Q4 print?
p. 8
“Double digit -- so you can say sub-15 number.”
Chandan Verma, page 8 of the filed PDF · View the filing
Management said the Board has not yet decided on utilization of the accumulated cash balance despite declaring dividends.
Answered by Chandan Verma
Asked by Shravan Shah: When will the Board decide on returning accumulated cash to shareholders?
p. 9
“still the decision regarding the remaining cash is yet to come. So we'll have to see. That time will tell.”
Chandan Verma, page 9 of the filed PDF · View the filing
Management said capacity is not a constraint given ongoing capex and debottlenecking plans.
Answered by Udipt Agarwal
Asked by Praveen Sahay: Is capacity a constraint on volume growth given high utilization rates?
p. 10
“No. So capacity is not a constraint for the growth.”
Udipt Agarwal, page 10 of the filed PDF · View the filing
Management said the guidance reflects near-term uncertainty rather than a change in long-term margin range, which it said has historically been 15-17%.
Answered by Udipt Agarwal
Asked by Anu Parakh: Why is management guiding a conservative sub-15% EBITDA margin for FY27 given a historical average of 17.5%?
p. 15
“we have been around that range, 15% to 17% over time”
Udipt Agarwal, page 15 of the filed PDF · View the filing
Management acknowledged some impact from the lower VCM/PVC delta but noted the spread has fluctuated over the quarter.
Answered by Chandan Verma
Asked by Vipulkumar: Will the lower VCM spread this quarter pressure profitability given half the capacity is VCM-based?
p. 13
“Yes. To some extent, you are correct. But yes, the delta is currently, you are seeing the impact of current pricing.”
Chandan Verma, page 13 of the filed PDF · View the filing
Management said the Middle East has been a large VCM supplier and there has been an impact, but said the VCM line is anyway shut during monsoon months and supply chains are being diversified to Far East and Northeast Asia.
Answered by Udipt Agarwal
Asked by Anu Parakh: What proportion of VCM is sourced from the Middle East and will PVC resin production be impacted in FY27 if the geopolitical situation persists?
p. 14
“Yes, Middle East has been the large supplier to India for VCM. So that has been -- there has been an impact.”
Udipt Agarwal, page 14 of the filed PDF · View the filing
Risks flagged
Supply uncertainty and cost inflation from Middle East conflict affecting the polymer value chain
p. 4
“So this is near-term positive for integrated producers like us, but the supply uncertainty and cost inflation remains a risk, but which we continue to monitor very, very closely.”
Udipt Agarwal, page 4 of the filed PDF · View the filing
Agri demand dependent on monsoon timing and could be delayed
p. 6
“We already know that monsoons are kind of getting delayed this year, which was supposed to happen like nowadays, these days in Kerala, but got extended by another week or 10 days.”
Udipt Agarwal, page 6 of the filed PDF · View the filing
Volatility in VCM/PVC spreads impacting margins
p. 13
“we are trying to -- we are -- our discussion is already on to have the proper VCM at the optimum prices”
Chandan Verma, page 13 of the filed PDF · View the filing
Lower monsoon forecast could reduce agri demand
p. 12
“there is a forecast of lower monsoon also that you have just said”
Udipt Agarwal, page 12 of the filed PDF · View the filing
Holding higher inventory carries risk if PVC prices correct
p. 10
“we will be holding higher inventories and that is going to be a dent on the future period”
Udipt Agarwal, page 10 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.