Finolex Cables Q3 Results: Revenue Surges 35% to Rs. 1,599 Crore

Introduction

Finolex Cables Limited announced a robust financial performance for the third quarter ending December 31, 2025. In a board meeting held on February 10, 2026, the company revealed a significant 35% year-on-year growth in standalone revenue, underscoring strong operational momentum despite challenges from rising metal prices. The results also reflect a one-time provision related to the implementation of new labour codes.

Standalone Financial Performance for Q3 FY26

The company's standalone results for the quarter demonstrated substantial growth compared to the same period in the previous fiscal year. Total income increased to Rs. 1,639.99 crore from Rs. 1,226.85 crore in Q3 FY25. Revenue from operations was a key driver, reaching Rs. 1,598.62 crore, a 35% increase year-on-year.

Profit After Tax (PAT) for the quarter stood at Rs. 135.97 crore, marking a 10% improvement over the Rs. 123.94 crore reported in the corresponding quarter of the previous year. This growth in profitability led to an increase in Earnings Per Share (EPS), which rose to Rs. 8.89 from Rs. 8.10.

Nine-Month Financial Highlights

Finolex Cables maintained its growth trajectory over the nine-month period ending December 31, 2025. Revenue from operations for this period reached Rs. 4,369.93 crore, a 17% increase from Rs. 3,724.31 crore recorded in the same period last year. The company's PAT for the nine months improved by 18%, rising to Rs. 461.68 crore from Rs. 392.54 crore.

Key Financial Metrics (Standalone)

Operational and Segmental Review

The company's volume growth was a significant contributor to its strong quarterly performance. The Electrical Wires segment reported a substantial 28% increase in volume. Within the Communication Cables division, while volumes for metal-based products were lower, Optic Fiber Cable volumes surged by 34%.

To counteract the impact of rising raw material costs, particularly metals, management implemented five price adjustments during the quarter. These actions resulted in an overall price increase of approximately 12%, helping to protect margins and support revenue growth.

Impact of New Labour Regulations

In compliance with the new unified Labour Codes effective from November 2025, Finolex Cables reassessed its liability for future employee gratuity payments. This resulted in an additional provision of Rs. 6.01 crore, which was recognized as a past service cost in the third quarter. This provision has been factored into the reported Profit After Tax.

Consolidated Performance and Associates

The consolidated results also showed positive trends. Consolidated Revenue from Operations for the quarter was Rs. 1,598.62 crore. The consolidated PAT stood at Rs. 164.03 crore, translating to a Basic and Diluted EPS of Rs. 10.73. These figures include the company's share of profit after tax from its associate, Finolex Industries Limited, and its joint venture, Finolex J-Power Systems Limited.

Future Outlook and Capacity Expansion

Finolex Cables is actively pursuing major capacity expansions to meet future demand. The first phase of its Preform Facility, with a capacity of 100 metric tons, is currently undergoing production trials. The company expects this facility to be commissioned by March 2026. Additionally, the first phase of the expansion of its Fiber Draw capacity, adding 2 million fiber kilometers (FKM), is proceeding on schedule. These expansions are critical for strengthening the company's position in the high-growth optic fiber cable market.

Conclusion

Finolex Cables delivered a strong performance in the third quarter of FY26, driven by significant revenue growth from both increased volumes and strategic price hikes. While profitability was slightly impacted by a one-time provision, the company's core operations remain robust. With key capacity expansions nearing completion, Finolex Cables is well-positioned to capitalize on growth opportunities in both the electrical and communication cable segments.