Finolex Cables LimitedCapital Goods & EngineeringFINCABLES
Q1 FY27 concall · earnings callFinolex Cables Limited
Finolex Cables reported strong revenue and profit growth driven by robust demand in communication cables, particularly for data centers and exports, alongside solid performance in key electrical cable segments.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Revenue | ₹2,013 Cr | 44% | |
| Profit Before Tax | ₹277 Cr | 62% | |
| Profit After Tax | ₹221 Cr | 59% | |
| Electrical Cables Revenue | ₹1,767 Cr | 47% | |
| Communication Cables Revenue | ₹176 Cr | 62% |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹1,182.11 Cr-3.2% YoY-9.9% QoQ | ₹147.25 Cr-2.5% YoY+24.9% QoQ | ₹9.63-2.4% YoY+24.9% QoQ |
| Q2 FY25 | ₹1,311.72 Cr+10.5% YoY+6.6% QoQ | ₹117.89 Cr-23.5% YoY-51.7% QoQ | ₹7.71-23.5% YoY-51.7% QoQ |
| Q1 FY25 | ₹1,230.48 Cr+2.2% YoY-12.2% QoQ | ₹243.92 Cr+52% YoY+31.1% QoQ | ₹15.95+52% YoY+31.1% QoQ |
| Q4 FY24 | ₹1,401.02 Cr+14.4% YoY+14.7% QoQ | ₹186.10 Cr+6.3% YoY+23.3% QoQ | ₹12.17+6.4% YoY+23.3% QoQ |
| Q3 FY24 | ₹1,221.68 Cr— YoY+2.9% QoQ | ₹150.98 Cr— YoY-2.1% QoQ | ₹9.87— YoY-2.1% QoQ |
TL;DR
- Revenue grew 44% YoY to INR 2,013 crores, with PBT up 62% and PAT up 59%.
- Communication cables revenue surged 62% to INR 176 crores with margins near 30%, supported by high fiber prices and export opportunities.
- Electrical cables grew 47% on strong volumes in automotive, solar, and agricultural cables.
- Exports were a standout at ~INR 50 crores, with communication cable exports of INR 30-40 crores.
- Management cautions that the high communication cable margins are not sustainable and will normalize as old, cheaper raw material inventory is consumed.
Said on the call
“There has been an explosion of demand from data centers and usage which is riding on AI, which has resulted in a huge demand for fiber cables and this is a global phenomenon.”
From the Q&A
| Topic | What management said |
|---|---|
| Sustainability of Margins | Management said electrical cable margins (~10.5%) are sustainable, but the ~30% communication cable margins are not, as they benefited from selling inventory bought at lower prices; margins will normalize to low-double digits as new, higher-cost raw material is used. |
| Communication Cable Outlook | Volumes grew about 30%, driven by global demand from data centers and AI; exports contributed INR 30-40 crores. The company expects strong demand to continue for at least two years, driven by telecom 5G rollouts and hyperscaler investments in India. |
| Fiber Price Trends | Standard fiber (G.652.D) prices rose from USD 5-6 per km in Dec 2025 to USD 17-18, now settling at USD 11-13 per km. Premium fibers have sold for up to USD 50 per km. |
| Capacity Expansion | The company decided to accelerate the fiber draw capacity expansion from 4 million to 8 million km in one go (by September 2026) due to global fiber shortage. Cabling capacity will also expand from 8 million to 10 million km at a later date. |
| FMEG Segment Weakness | Revenue was impacted by fuel (LPG) shortages affecting fan production and PVC availability/price issues affecting conduit pipes. The INR 5 billion revenue target by FY28 is still considered achievable. |
| Raw Material Challenges | Germanium tetrachloride, a key raw material for preform, faces long lead times and restricted availability, requiring daily follow-up; the company has enough supply for the calendar year. |
| Export Strategy | The company is more aggressive on exports with a dedicated team, having exported power cables, optic fiber cables, and traditional products to the U.S. and Europe; they aim to build long-term relationships but note export deals involve longer negotiations. |
Guidance
- Overall capex for the year will be approximately INR 300 crores.
- Communication cable margins, currently near 30%, are expected to normalize to low-double digits as old raw material inventory is consumed.
- Fiber draw capacity will increase from 4 million to 8 million km by September 2026.
- The preform plant (100 metric tons) has commenced production and is on the way to stabilization in the next couple of months.
- The company will evaluate expanding preform capacity (Phase 2) based on market conditions.
Source
Summary written from the transcript filed by Finolex Cables Limited for the call held on 13 Aug 2026; published 18 Aug 2026, 19:58 IST.
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