Finolex Cables FY26: Strong electrical momentum, optical fiber capacity moves into the next phase

Finolex Cables ended FY26 with a clear headline: growth held up even in a volatile cost environment. Revenue from operations rose 19 percent year on year to INR 6,321 crore. EBITDA increased 14 percent to INR 868 crore, and profit after tax rose 14 percent to INR 623 crore. In Q4 FY26, revenue from operations came in at INR 1,951 crore, up 22 percent year on year and 22 percent quarter on quarter. EBITDA in the quarter was INR 236 crore and PAT was INR 161 crore.

Management attributed the late-quarter margin pressure to the shock from the Middle East, which pushed up costs across raw materials and coincided with rupee depreciation. While LME copper stayed low briefly, the company ended up with a higher cost of production. Even so, the quarter delivered the highest electrical segment revenue in the company’s history, supported by volume expansion across key categories.

Electrical cables drove the year, but channel behaviour changed

The electrical cable segment remained the company’s anchor. FY26 segment revenue rose to INR 5,490 crore from INR 4,499 crore in FY25. Segment EBIT increased to INR 563 crore from INR 476 crore. In Q4, electrical segment revenue was INR 1,696 to 1,697 crore, with segment EBIT at INR 179 crore.

Management described a year of sharp price pass-through. The company implemented close to 14 upward price changes during FY26, and the effective market price change was about 24 percent to 25 percent across many electrical SKUs. This pricing intensity mattered for demand behaviour. Project-linked demand remained stable, but retail stocking was impacted because dealers and distributors were cautious about holding high-value copper-linked inventory in a rapidly moving price environment. Management said the retail-to-project mix that used to be around 80:20 is now closer to two-thirds and one-third.

Within electrical, several product lines delivered strong volume growth. Management said auto was about 30 percent higher in volume terms, industrial flexibles were about 17 percent higher, and power was about 21 percent higher. Solar cables, introduced in Q4 of the previous year, were described as well accepted, with capacity nearing utilization and further capacity increase being planned. One weak spot was agricultural applications, where volumes declined 15 percent to 16 percent due to pre-seasonal and extended monsoon.

Communication cables: Q4 improved, but FY26 was held back by contracts and fiber cycles

Communication cable revenue was flat on a full-year basis, at INR 500 crore in FY26 versus INR 508 crore in FY25. The quarter, however, was stronger. Q4 revenue was INR 162 crore versus INR 123 crore in Q4 FY25. Segment EBIT saw a sharp step-up in Q4 to INR 9.77 crore from INR 1.62 crore in Q4 FY25.

Management explained that the margin improvement came from a set of orders outside the long-term contract that were taken at current prices. For the broader market, the company highlighted a transition away from traditional metal-based cables toward optical fiber solutions. It also noted that fiber prices were low through the first part of the year but hardened in the second half, driven by demand in the US and Europe around data center applications and supply disruptions linked to Russia, Ukraine, and the Middle East.

The key qualifier was contractual pricing. Management said domestic commitments are largely in long-term yearly contracts at fixed prices, limiting the speed at which higher fiber prices can flow into reported numbers. One major customer contract is valid until June, and management expects it to be renewed and renegotiated when the next tender comes.

Capacity, capex, and the supply chain reality

FY26 and FY27 are also about capacity moves. Management said it commissioned the optical fiber preform plant in March 2026. It expects the plant to take about 3 to 4 months to settle and stabilize, with benefits expected from end of Q2 or Q3. Once stabilized, management expects preform costs to be better than market by about 5 percent to 10 percent, depending on how quickly operations stabilize. The company also emphasized the flexibility this creates, allowing it to use preform internally for fiber and cable, or to sell preform depending on market conditions.

On draw capacity, management said current capacity is 4 million fiber kilometers, with utilization around 3.2 million. The expansion to 8 million is expected to complete by July or August, with 8 million capacity available from the beginning of Q3.

The biggest constraint is not demand, but inputs and logistics. Management repeatedly pointed to supply chain constraints, including imported items and the challenge of sourcing germanium. It said germanium inventory is sufficient for a few months, but availability remains a key risk across the industry.

Capex expectations for FY27 were laid out in clear buckets. Management expects total capex of around INR 300 crore, comprising around INR 200 crore for new capacity enhancements and around INR 100 crore to complete the remaining optic fiber expansion. FY26 capex was about INR 240 crore, including infusion into the Sumitomo joint venture. The company also said the FY27 capex includes doubling solar cable capacity.

Financial summary

Note: Segment quarterly revenue values are as presented in the investor deck and management commentary; some are rounded in the narrative.

EHV JV turnaround and FMEG underperformance

Another notable development in FY26 was the turnaround at the extra high-voltage JV with Sumitomo. Management said the JV turned profitable this year, generating profit of about INR 21 crore on revenue of about INR 450 crore. It started the year with an order book of about INR 380 crore. Management attributed improvement to better order mix between pure supply and turnkey projects, along with higher equipment utilization. It also indicated key machinery is over 80 percent utilized and further capacity enhancement is being planned to improve overall utilization toward 70 percent to 75 percent.

On the other hand, the company acknowledged underperformance in the FMEG portfolio. It said the fan category did not grow in volume terms, impacted by unseasonal rains and changes to BIS norms that triggered channel destocking. Management said it is relooking at the FMEG portfolio, strengthening teams, and continuing distribution expansion across geographies and products.

What to track from here

Finolex Cables exits FY26 with strong electrical momentum and a clearer set of building blocks for optical fiber. The next few quarters will be shaped by three practical variables.

First, how quickly the preform plant stabilizes and starts contributing to cost competitiveness. Management expects benefits to start showing from end of Q2 or Q3. Second, the ramp-up to 8 million fiber kilometer draw capacity by July or August and the company’s ability to secure critical inputs such as germanium without major disruption. And third, how pricing and contract resets play out in communication cables after June renewals.

FY26 showed that the company can deliver growth while navigating volatility. FY27 will test whether its expanded optical fiber footprint can translate into steadier communication segment growth, while electrical continues to scale through volume and targeted capacity additions.