Finolex Cables Ltd

Key financials and governance

• Board approved unaudited standalone and consolidated results for quarter ended 30 June 2026.
• Standalone revenue from operations, 2,013.15 crore; standalone PAT 221.28 crore; standalone EPS 14.47.
• Consolidated revenue from operations, 2,013.15 crore; consolidated PAT 249.04 crore; consolidated EPS 16.28.
• Independent directors Vanessa Singh, Zubin Billimoria, Sriraman Raghuraman re-appointed for five-year terms, subject to shareholders' approval.
• Ratnakar Barve re-appointed as Whole-time Director for five years, subject to shareholders' approval.
• Nirnoy Sur appointed as Company Secretary, Compliance Officer and General Manager - Legal.
• Board meeting held on 11 August 2026; Deloitte Haskins & Sells LLP carried out limited review.
• Re-submission of machine-readable financial results for quarter ended 30 June 2026 due to formatting issue.
• Annexure A discloses governance information; disclosures prepared under Regulation 30 for listing compliance.
• Audit Committee reviewed the results prior to board approval.

Financial Performance

• Revenue from operations: INR 2,013 crores in Q1 FY27, up 44% YoY.
• PBT: INR 277 crores, up ~62% YoY.
• PAT: INR 221 crores, up ~59% YoY.
• PBT margin: 13.4%; PAT margin: 10.7% in Q1 FY27.
• Electrical cables revenue: INR 1,767 crores; +47% YoY.
• Communication cables: INR 176 crores; +62%; margins near 30%.
• Copper rod revenue: INR 8 crores; down from INR 403 crores.

Operating Update

• Exports for the quarter: ~INR 50 crores; optic fiber exports supported margins.
• Copper rod plant shut in quarter due to LPG restrictions.
• Preform production commenced; stability expected in a couple of months.
• Draw tower expansion: from 4 to 8 million in one go amid fiber shortage.
• JV performance: revenue ~INR 87 crores; profit ~INR 7 crores in current quarter.

Projects and Capex

• Capex for the year: INR 300 crores.
• Fiber capacity expansion: 8 million kilometers by September; ready by Q2.
• Cabling capacity expansion to 10 million; timing longer.
• Preform facility: 100 metric tons; intended captive use.
• Fiber-capacity utilization: one plant full; other plant ~75%.

Outlook and Guidance

• Margins to normalize from current elevated levels; long-term sustainability uncertain.
• Exports and data-center demand to drive near-term growth.
• FMEG target: INR 5 billion by FY28 remains.
• Germanium supply restricted; lead times long; sourcing strategies under way.
• BharatNet progress: no material update; winners waiting due to high prices.

Q&A Highlights

• Sustainability of margins: management cites exports and fiber mix; expect normalization.
• Export mix and contracts: long-term revenue share likely >50%; US/Europe focus.
• 8 million fiber capacity by Sep; 10 million cabling capacity later; ramp depends on demand.
• Cabling utilization: current plants nearing full; export-led demand may lift utilization.
• Germanium supply constraints; no multi-year contracts; daily follow-up with suppliers.
• FMEG weakness due to LPG/PVC shortages; target remains INR 5B by FY28.

Risks and Watchpoints

• Germanium availability restrictions; long lead times; no multi-year contracts.
• Raw-material price volatility; copper and energy costs; pass-through to customers uncertain.
• Data-center timing risk; hyperscaler infra build-out could accelerate or delay demand.
• Export mix volatility; currency movements impacting competitiveness.
• Capex execution risk; stabilization of preform facility and ramp-up.

Meeting Details

• Date and time: 13 August 2026, 4:00 p.m. IST.
• Type: Analyst/Investors Meet (group).
• Event/organiser: Finolex Cables Limited.

Participants

• Key company participants: Chairman & Whole-Time Director.

Purpose

• Purpose: Earnings discussion for the quarter ended 30 June 2026.

Additional Notes

• Recording: Audio/Video recording of the meet available on company website.

Business overview

• Core business: diversified electrical wires and cables across power, telecom, and consumer segments.
• Strategic pillars include Electrical Cables expansion, fiber expansion, FMEG, Solar/Auto cables.
• Backward integration: in-house compounds, copper rods, glass fiber; five facilities with capacity expansion.
• Key catalysts: Preform plant commissioned; fiber-draw capacity to 8 mn km by FY27.
• Pan-India distribution: 800+ distributors, 5k channel partners, 215k retailers.
• Net debt balance sheet position; robust liquidity with cash ₹163 Cr.
• Rating: Crisil AA+/Stable reaffirmed.

Operational highlights

• Q1 FY27 revenue ₹2,013 Cr; 44% YoY growth driven by volume and copper pass-through.
• EBITDA ₹248 Cr; margins 12.3%, up QoQ 22%.
• PAT ₹221 Cr; YoY up 59%.
• Electrical Cables: RM pass-through; strong Auto, Industrial, Agricultural, Solar volumes.
• Communication Cables: Optical fiber volumes higher; higher realizations; Lighting prices eroding.
• Fiber capacity expansion to 8 million km by end FY27; Phase 1 at site; Phase 2 by Mar 2026.
• Preform plant commissioned; reduces import duty and supply risk.
• E-beam technology: longer life cycles; targets high-rise, defense segments; certifications pursued.
• FMEG: focus on fans and water heaters; near-term launches planned.
• Solar & Auto Cables: solar major revenue vector; strong pipeline.

Financial performance

• Q1 FY27 revenue ₹2,013 Cr; gross profit ₹391 Cr; margin 19.4%.
• EBITDA ₹248 Cr; EBITDA margin 12.3%.
• PAT ₹221 Cr; PAT margin 11.0%.
• FY26 consolidated revenue ₹6,321 Cr; EBITDA ₹630 Cr; PAT ₹623 Cr; EPS ₹46.67.
• FY26 balance sheet: Total Equity ₹6,085.88 Cr; total assets ₹6,989.96 Cr.
• Borrowings ₹0.86 Cr; Cash ₹163.13 Cr; operating cash flow ₹49.08 Cr.

Capital structure & liquidity

• Borrowings are minimal; total around ₹0.86 Cr with cash ₹163 Cr.
• Net debt position effectively minimal; strong liquidity support.
• Credit rating reaffirmed: Crisil AA+/Stable.

Strategic priorities & outlook

• Pillar I: expand power cable exposure; volume growth supported by capacity utilization.
• Pillar II: Preform manufacturing; fiber draw capacity expansion to full 8 mn km by FY27.
• Pillar III: FMEG growth; new models across categories; near-term launches.
• Pillar IV: Channel & retail expansion; pan-India network deepening.
• Outlook: margin recovery aided by fiber price recovery and supply-demand dynamics in fiber markets.

Risks & mitigations

• Risks: RM price volatility, supply-chain disruptions, West Asia disturbances, Lighting price erosion.
• Mitigations: pass-through pricing, backward integration, diversified product mix and geography.

Governance & leadership

• Credit rating reaffirmed; no material governance changes disclosed.
• Strategic technology partnerships and multiple manufacturing locations support execution.

Appointment details

• Nirnoy Sur appointed Company Secretary, Compliance Officer and General Manager - Legal.
• Effective from 11 August 2026.
• Appointment by Board on recommendation of N&R Committee.
• ICSI member; LL.B; B.Com(Hons); 17+ years in secretarial and governance for listed firms.
• Not related to any directors, promoters, or KMP.
• Designated as Key Managerial Personnel with authority over corporate governance duties.

Vanessa Singh – Independent Director

• Re-appointment of Vanessa Singh as Independent Director for second five-year term.
• Effective 30 Sep 2026 to 29 Sep 2031; shareholder approval required.
• Profile: 38-year-old lawyer; MCPC mediator; family-law practitioner; not related to other directors.
• Not related to other directors.

Zubin Billimoria – Independent Director

• Re-appointment of Zubin Billimoria as Independent Director for second five-year term.
• Effective 30 Sep 2026 to 29 Sep 2031; shareholder approval required.
• Profile: 61-year-old CA; governance and finance expertise; director at People Home Finance Ltd.
• Not related to other directors.

Sriraman Raghuraman – Independent Director

• Re-appointment of Sriraman Raghuraman as Independent Director for second five-year term.
• Effective 30 Sep 2026 to 29 Sep 2031; shareholder approval required.
• Profile: 73-year-old director; CS, CWA; 41 years' leadership experience; consultant to Deepak Fertilizers.
• Not related to other directors.

Ratnakar Barve – Whole-time Director

• Re-appointment of Ratnakar Barve as Whole-time Director for second five-year term.
• Effective 30 Sep 2026 to 29 Sep 2031; shareholder approval required.
• Profile: 60-year-old engineer; 38 years in manufacturing; Plant Head; production, projects, R&D.
• Not related to other directors.

Financial results

• Unaudited standalone and consolidated results for quarter ended 30 June 2026 approved.
• Limited Review Report by Deloitte Haskins Sell LLP dated 11 August 2026 issued.

Governance and appointments

• Re-appointment of Vanessa Singh as Independent Director for second five-year term, subject to shareholders' approval.
• Re-appointment of Zubin Billimoria as Independent Director for second five-year term, subject to shareholders' approval.
• Re-appointment of Sriraman Raghuraman as Independent Director for second five-year term, subject to shareholders' approval.
• Re-appointment of Ratnakar Prakash Barve as Whole-Time Director for second five-year term, subject to shareholders' approval.
• Appointment of Nirnoy Sur as Company Secretary, Compliance Officer and GM-Legal; effective 11 August 2026.

Regulatory/compliance disclosures

• Deloitte Limited Review Report on unaudited standalone and consolidated results dated 11 August 2026.
• Annexure A disclosures under Regulation 30 enclosed.

Meeting Details

• Date and time: 13 August 2026, 4:00 PM IST; group call.
• Organiser: Finolex Cables Limited.

Participants

• CEO will represent management.

Purpose

• Discuss Q2 2026 quarterly results (quarter ended 30 June 2026) with analysts and investors.

Additional Notes

• Format: virtual group call.

Dematerialisation/rematerialisation reporting

• Details of dematerialised/rematerialised securities during the period have been furnished to all stock exchanges.

Authority order

• Additional Commissioner, Grade-II Appeal, Lucknow Sector-9, Uttar Pradesh issued the order.
• The matter concerns alleged duplicate e-way bill generation and invoice mismatch.

Financial impact

• Tax demand totals Rs. 1,29,698, including tax, interest, and penalty.
• The company stated the demand is not expected to materially affect operations.

Execution and terms

• The order was received on 12.06.2026.
• The company may appeal before the Appellate Authority.