Finolex Cables Ltd

AGM details

• 58th AGM held on 28 September 2026.
• Remote e-voting from 24 September 2026 9:00 AM to 27 September 2026 5:00 PM.

Scrutinizer report

• Consolidated Scrutinizer’s Report annexed for the AGM.
• Report accessible on the company website under Voting Results.

AGM Details

• 58th AGM held on Monday, 28 September 2026.

Key Resolutions

• Reappointment of Nikhil Naik by rotation, Board recommends.
• Reappointment of independent directors for a second five-year term.
• Reappointment of Wholetime Director for further five years.

Dividend

• Dividend proposed by Board: ₹9 per equity share.

Director Changes

• Nikhil Naik retires by rotation, offered for reappointment.
• Independent directors Zubin Billimoria, Sriraman Raghuraman, Vanessa Singh to be reappointed.
• 5-year term of Wholetime Director ends; Board recommends 5-year reappointment.

AGM Details

• AGM conducted on 28 September 2026 via Video Conferencing/OAVM.
• Meeting started 12:00 p.m. and concluded 12:52 p.m.
• Remote e-voting from 24 Sep 2026, 9:00 a.m. to 27 Sep 2026, 5:00 p.m.

Resolutions Presented

• Ordinary Resolution 1: Adopt the Audited standalone and Consolidated Financial Statements for FY2026.
• Ordinary Resolution 2: Declare dividend on equity shares for FY2026.
• Ordinary Resolution 3: Re-appoint Mr. Nikhil Naik by rotation.
• Special Resolution 4: Ratify remuneration payable to Cost Auditors for FY2026-27.
• Special Resolution 5: Re-appoint Vanessa Singh as Independent Director for second five-year term.
• Special Resolution 6: Re-appoint Zubin Billimoria as Independent Director for second five-year term.
• Special Resolution 7: Re-appoint Sriraman Raghuraman as Independent Director for second five-year term.
• Special Resolution 8: Re-appoint Ratnakar Barve as Whole-Time Director.

Voting Status

• E-voting results to be reconciled and announced within 2 working days.

Finolex Cables Limited trading window closed from 28 September 2026 until 48 hours after the declaration of unaudited financial results (standalone and consolidated) for the quarter ending 30 September 2026

Dividend details

• Dividend proposed: 450% (Rs 9 per equity share) for FY 2025-26.
• Record date for entitlement: Friday, 4 September 2026.
• Payment to be made on or before 27 October 2026.
• Dividend is subject to approval by Members at the AGM.
• Tax deduction at source will apply as applicable.

Dividend proposal

• Board recommended dividend of Rs 9.00 per equity share (450%) for FY2025-26.
• Dividend subject to shareholders' approval at the 58th AGM on 28 Sep 2026.

Payout timing and record date

• Dividend to be paid on or before 27 Oct 2026.
• Record date fixed as 4 Sep 2026.

TDS framework

• TDS under section 393(1); rates depend on PAN and residential status.
• 0% TDS for resident individuals if dividend <= Rs 10,000 with Form 121.
• Non-resident TDS at 20% plus surcharge and health cess; DTAA may apply.

Shareholder data submission

• Submit/update PAN, residential status, and category with KFin by 4 Sep 2026.
• Submit Annexure A documents via KFin by 4 Sep 2026; no post-deadline submissions.

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.