Finolex Cables Ltd (FINCABLES) Q1 FY27 Results Analysis: PAT Jumps 59%, Communication Margin Surges

Finolex Cables Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 2,013.15 Cr (+44.26% YoY) and PAT growth of +59.40% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Revenue grew 44% YoY, PAT 59% YoY. Communication segment margin jumped to 29.76% from 1.19% YoY, driven by preform plant. Electrical cables grew 46.6% with stable margins despite copper surge. Copper rod plant idled due to fuel shortage.

Key Investment Insights

Key Positives

• Revenue grew 44.26% YoY to Rs.2,013.15 Cr.
• PAT grew 59.40% YoY to Rs.221.28 Cr.
• EBITDA margin expanded 162 bps YoY to 14.87% (company definition); operating EBITDA margin expanded 294 bps YoY to 12.31% (excl OI).
• Communication cables segment margin jumped to 29.76% from 1.19% YoY, driven by preform plant.
• Electrical cables revenue grew 46.59% YoY with segment margin stable at 10.30% despite copper price surge.
• Raw material cost ratio improved 42 bps YoY despite higher copper prices.

Risk Factors

• Copper rod plant idled due to fuel shortage from Middle East conflict, resulting in revenue decline of 98% to Rs.8.01 Cr and segment loss of Rs.3.41 Cr.
• Inventory build of Rs.238.76 Cr (negative changes in inventories) may indicate retail demand lagging or deliberate stockpiling.
• Depreciation rose 57.26% YoY to Rs.21.56 Cr due to new preform plant and fiber draw capex, compressing future margins.