Finolex Industries Limited revenue rises, pre-tax profit slips

Finolex Industries Limited reported standalone revenue from operations of Rs 1,093.30 crore for the quarter ended September 30, 2026, up from Rs 858.74 crore a year earlier, but profit before tax fell to Rs 152.15 crore from Rs 158.03 crore. Total expenses increased by Rs 240.87 crore, exceeding the Rs 234.56 crore increase in revenue.

How did FIL perform in the September 2026 quarter?

FIL increased standalone revenue from operations by Rs 234.56 crore year on year in the quarter ended September 30, 2026, while profit before tax declined by Rs 5.88 crore. Revenue was Rs 1,093.30 crore, compared with Rs 858.74 crore in the quarter ended September 30, 2025, while profit before tax was Rs 152.15 crore against Rs 158.03 crore. The Board approved the unaudited results on October 30, 2026.

The quarterly numbers show that higher sales did not translate into higher pre-tax profit. Total expenses rose to Rs 1,001.18 crore from Rs 760.31 crore, an increase of Rs 240.87 crore. Other income was Rs 59.97 crore, compared with Rs 59.60 crore in the corresponding quarter of the previous year, taking total income to Rs 1,153.27 crore from Rs 918.34 crore.

FIL's September-quarter revenue and profit before tax both improved sequentially from the quarter ended June 30, 2026. Revenue from operations rose from Rs 883.58 crore, while profit before tax increased from Rs 147.55 crore. The Rs 4.60 crore sequential rise in pre-tax profit contrasts with its Rs 5.88 crore year-on-year decline.

Why did FIL's pre-tax profit fall despite higher revenue?

FIL's pre-tax profit fell because total expenses increased by Rs 240.87 crore year on year, compared with a Rs 234.56 crore increase in revenue from operations. Cost of materials consumed rose to Rs 689.15 crore from Rs 653.08 crore. Employee benefits expense increased to Rs 62.17 crore from Rs 52.01 crore, while depreciation and amortisation rose to Rs 28.23 crore from Rs 27.40 crore.

The largest movement among the reported expense lines was in inventories of finished goods, stock-in-trade and work in progress. This line was an expense of Rs 30.15 crore in the September 2026 quarter, compared with a Rs 171.85 crore reduction in expense in the September 2025 quarter. The Rs 202.00 crore movement between the two periods coincided with the lower profit before tax despite revenue growth.

Some cost lines moved lower or remained contained. Other expenses declined to Rs 180.84 crore from Rs 184.33 crore, and finance costs decreased to Rs 3.34 crore from Rs 4.30 crore. Purchases of stock-in-trade, however, increased to Rs 18.30 crore from Rs 5.00 crore, while the reported total expense figure reached Rs 1,001.18 crore.

What do FIL's half-year results show?

FIL reported higher standalone revenue and pre-tax profit for the half year ended September 30, 2026. Revenue from operations was Rs 1,977.58 crore, compared with Rs 1,901.89 crore in the half year ended September 30, 2025. Profit before tax increased to Rs 300.31 crore from Rs 284.18 crore over the same six-month periods.

The half-year result differs from the year-on-year comparison for the September quarter alone. Revenue from operations increased by Rs 75.69 crore across the six months, while profit before tax rose by Rs 16.13 crore. Total expenses were Rs 1,812.53 crore, compared with Rs 1,741.99 crore a year earlier, and other income rose to Rs 135.30 crore from Rs 124.28 crore.

FIL reported basic earnings per equity share of Rs 3.72 for the half year, against Rs 3.30 a year earlier. The filing states that these per-share figures are not annualised. Paid-up equity share capital was unchanged at Rs 123.67 crore, with each equity share carrying a face value of Rs 2.

How did FIL's balance sheet change by September 2026?

FIL's total assets increased to Rs 8,702.01 crore at September 30, 2026 from Rs 7,407.70 crore at March 31, 2026, while total equity rose to Rs 7,416.97 crore from Rs 6,077.36 crore. Other equity was Rs 7,292.30 crore at September 30, compared with Rs 5,953.69 crore at the March year-end.

Non-current investments increased to Rs 3,712.03 crore from Rs 2,348.81 crore, while current investments declined to Rs 2,254.98 crore from Rs 2,432.75 crore. Inventories fell to Rs 879.93 crore from Rs 1,025.96 crore. Property, plant and equipment stood at Rs 990.33 crore, down from Rs 1,006.16 crore.

Total liabilities declined by Rs 45.23 crore to Rs 1,285.08 crore at September 30, 2026. Current borrowings increased to Rs 137.02 crore from Rs 37.32 crore, while trade payables to creditors other than micro and small enterprises fell to Rs 309.30 crore from Rs 342.48 crore. Deferred tax liabilities rose to Rs 365.10 crore from Rs 161.60 crore.

What do FIL's cash flow and reporting disclosures say?

FIL generated Rs 149.66 crore of net cash from operating activities in the half year ended September 30, 2026, compared with Rs 116.30 crore in the corresponding period a year earlier. The 2026 figure followed profit before tax of Rs 300.31 crore, depreciation and amortisation of Rs 55.70 crore, and income tax paid of Rs 64.93 crore. Cash used in working-capital changes was Rs 15.68 crore.

Cash and cash equivalents were Rs 5.37 crore at September 30, 2026, down from Rs 31.40 crore at the beginning of the half year. The cash-flow statement recorded a net decrease of Rs 26.03 crore. Purchases of property, plant and equipment, including capital work in progress and capital advances, were Rs 36.61 crore during the six-month period.

The September 2026 standalone results are unaudited and were subject to a limited review by Walker Chandiok & Co LLP. The auditor said nothing had come to its attention to indicate that the statement failed to make required disclosures or contained a material misstatement. FIL reported one operating segment, the manufacturing and sale of pipes and fittings, and therefore did not provide separate segment disclosures under Indian Accounting Standard 108.

Conclusion

FIL delivered a higher September-quarter revenue figure of Rs 1,093.30 crore but a lower pre-tax profit of Rs 152.15 crore. The main comparison is the Rs 234.56 crore increase in revenue from operations against the Rs 240.87 crore increase in total expenses, including the shift in inventory movement from a Rs 171.85 crore reduction in expense to a Rs 30.15 crore expense.

The filing gives no numerical outlook, operating target or expansion plan. The next results disclosure will show whether the sequential rise from Rs 147.55 crore in June-quarter pre-tax profit continues alongside movements in materials costs, inventories of Rs 879.93 crore, current borrowings of Rs 137.02 crore and cash equivalents of Rs 5.37 crore.