Finolex Industries Ltd

Financial Performance

• Q1 FY27 volume: 68,000 metric tons.
• Revenue declined 27% YoY in Q1 FY27.
• EBITDA: INR 107 crores.
• PBT: INR 148 crores.
• PAT: INR 107 crores.
• Cash in hand: INR 2,636 crores.
• Realization per kg up ~15% QoQ.
• PVC price per kg declined through Q1: INR 96 → 92 → 82.
• Installed capacity: 520; last year volume: 333.
• Capex outlay around INR 125–200 crores; remains intact.
• Q1 EBITDA margin around 12%; full-year guidance remains sub-15%.
• Channel inventory near normal; some room to move.

Segment and Mix Update

• Agri share of volume: 69%.
• CPVC share: around 7%.
• Non-Agri share: around 25%.
• Fittings share on total volume: 11%.
• Fittings within agri: 5% of agri volume.

Capacity and Capex

• Installed capacity headroom to grow: 10%–12%.
• Last year volume: 333 (units unspecified).
• Debottlenecking ongoing; replacing older extruder with higher-capacity ones.
• Capex plan: INR 125–200 crores range; intact.

Outlook and Guidance

• PVC price floor set due to MIP; expect better Q2 realizations.
• July observed volume uptick; overall year guidance remains uncertain due to volatility.
• BBased on Q1, margin guidance remains sub-15% for FY27.

Q&A Highlights

• July was the best month among the four in the year so far.
• JJM 2.0 corpus around INR 67,000 crores; not higher than JJM 1.0.
• VCM availability remains limited; Ratnagiri monsoon pause affects production.
• CPVC extrusion capacity adequate; no major CPVC capacity expansion planned.
• Channel inventory near normal; some room to normalize further.
• Agri share improved gradually versus historical mix; focus on underrepresented areas.

Meeting Details

• Date and venue: August 13, 2026, Sofitel Mumbai (BKC); physical, one-on-one and group meeting.
• Event: Equirus Annual India Conference 2026.
• Interaction type: One-on-One and Group.
• Company participants: officials of Finolex Industries Ltd.
• Purpose: investor interaction based on publicly available information; no UPSI.

Meeting Details

• Event: Q1FY27 investor/analyst conference call.
• Date/time: not disclosed in the filing.
• Type/Mode: group conference call, virtual/teleconference.
• Organizer: Finolex Industries Limited.
• Key participant: Company Secretary & Compliance Officer.
• Purpose: discuss Q1FY27 financial results.
• Recording: audio recording uploaded on the investor section of the website.

Business Overview

• Core business is PVC pipes and fittings with Pan-India distribution and ongoing brand marketing initiatives.

Key Operational Highlights

• Volume declined 27% year-on-year to 67,699 MT; revenue fell 15% to ₹884 Cr.
• EBITDA rose to ₹109 Cr with a 12% margin in Q1 FY27, up from ₹94 Cr.
• PBT improved to ₹148 Cr; liquidity remains strong with net free cash around ₹2,636 Cr.

Financial Performance

• Revenue (standalone) ₹884 Cr in Q1 FY27, down from ₹1,043 Cr in Q1 FY26.
• Revenue decline driven by weak demand and PVC price volatility.
• EBITDA margin rose to 12% in Q1 FY27 from 9%.

Capital Structure & Liquidity

• Liquidity robust with net free cash around ₹2,636 Cr; no debt actions disclosed.

Strategic Priorities & Outlook

• Marketing campaigns and demand-generation initiatives ongoing to bolster volumes amid PVC volatility.

Risks & Mitigation

• Primary risk: weak demand and PVC price volatility affecting volumes.

Governance & Leadership

• No governance changes disclosed in this update.

Key updates

• Board approved standalone and consolidated unaudited Q1-2026 results; subject to limited review.
• Limited Review Report on results issued by Walker Chandiok & Co LLP.
• 45th AGM scheduled Sept 22, 2026 via VC/OAVM; dispatch details pending.
• Welfare Trust: Nil revenue; net profit after tax ₹5.55 cr; total comprehensive income ₹5.55 cr.
• Holding Company's PAT ₹0.18 cr and OCI ₹0.22 cr from two associates.
• Associates' interim results not reviewed by Finolex auditors.
• Results will be uploaded on the company's website.
• AGM notice and annual report details to be informed in due course.
• Information uploaded on website as per Regulation 46 of Listing Regulations.

Dematerialisation/rematerialisation status

• Registrar and transfer agent confirmed that dematerialisation/rematerialisation details were furnished to all stock exchanges.

Meeting Details

• Board meeting scheduled for Tuesday, 26 May 2026.

Key Agenda Items

• Approve audited standalone and consolidated financial results for quarter and year ended 31 March 2026.
• Consider recommending dividend for financial year 2025-26.

Other Notes

• Trading window opens 48 hours after declaration of the financial results.