Finolex Cables Q2 FY27 Results Analysis: Revenue Jumps 65%, Margins Expand 322 bps (FINCABLES)
Finolex Cables Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 2,269.33 Cr (+64.95% YoY) and PAT growth of +53.21% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 07, 2026 |
|---|---|
| Revenue (Q2) | Rs. 2,269.33 Cr (+64.95% YoY) |
| PAT (Q2) | Rs. 286.34 Cr (+53.21% YoY) |
| EBITDA margin | 13.63% (+322 bps YoY) |
| EPS (Q2) | Rs. 18.72 (+53.19% YoY) |
Quarter Snapshot
Revenue grew 64.95% YoY to Rs.2,269.33 Cr with ex-OI EBITDA margin up ~322 bps YoY to 13.63%, and communication cables revenue more than doubled at a 29.98% margin. The electrical margin beat management's ~10.5% guidance, though the fiber-draw capacity timeline slipped to FY27 and H1 operating cash flow turned negative at −Rs.106.05 Cr on a Rs.460.04 Cr inventory build at record copper prices. The key H2 watch-items are the guided communication margin give-back to 8–9% by Q3 FY27 and copper-driven working capital.
Key Investment Insights
Key Positives
- Revenue grew 64.95% YoY to Rs.2,269.33 Cr; H1 revenue grew 54.53% YoY
- Standalone PAT grew 53.21% YoY to Rs.286.34 Cr; +149.99% against a dividend-adjusted base (Q2 FY26 PAT ex-dividend Rs.114.54 Cr)
- Ex-OI EBITDA margin expanded ~322 bps YoY to 13.63% and 131 bps QoQ
- Communication cables revenue grew 115.92% YoY to Rs.229.70 Cr with 29.98% EBIT margin; H1 communication revenue Rs.406.17 Cr tracks ~Rs.812 Cr annualized vs the >Rs.750 Cr full-year target
- Electrical cables margin of 11.09% exceeded management's guided ~10.5% sustainable level
- Copper rods segment restarted: revenue recovered to Rs.63.36 Cr from Rs.8.01 Cr in Q1 and segment result turned marginally positive at Rs.0.02 Cr
- Company is effectively debt-free (Rs.0.86 Cr debt) against current investments of Rs.1,814.65 Cr; net worth Rs.5,482.76 Cr, +7.53% vs Mar-26
- H1 capex of Rs.92.56 Cr is on track against the FY27 Rs.300 Cr target
Risk Factors
- Fiber-draw capacity timeline pushed: the 8 mn km by Sep-2026 milestone slipped, with the new 4 mn fiber-km plant now expected to commence in FY27
- Communication cables margin of 29.98% has not begun normalizing toward the guided 8–9% by Q3 FY27; the give-back is still ahead
- H1 operating cash flow was negative at −Rs.106.05 Cr (vs +Rs.142.08 Cr YoY) and FCF was −Rs.198.61 Cr on a Rs.460.04 Cr inventory build at record copper prices
- Effective tax rate rose to 23.57% from 21.65% YoY, a drag on PAT growth
- Copper rods revenue at Rs.63.36 Cr remains ~13% of the year-ago Rs.485.06 Cr run-rate despite the partial restart
- Other income fell 19.25% YoY; standalone other income of Rs.88.67 Cr equals ~31% of PAT, though no exceptional items were declared
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.