Finolex Industries Q4 FY26: Margins expand as realizations improve, cash stays strong

The investor presentation reported Q4 FY26 revenue of INR1,314 crore versus INR1,172 crore in Q4 FY25, and FY26 revenue of INR4,113 crore versus INR4,142 crore in FY25 (standalone basis).

EBITDA in Q4 FY26 was INR332 crore versus INR171 crore in Q4 FY25, with EBITDA margin improving from 15 percent to 25 percent. FY26 EBITDA was INR679 crore versus INR476 crore in FY25, and EBITDA margin improved from 11 percent to 17 percent.

Q4 FY26 volumes were 101,772 MT versus 102,253 MT in Q4 FY25 (flat). FY26 volumes were 332,736 MT versus 347,982 MT in FY25 (down 4 percent).

Management stated inventory gain during the quarter was roughly INR35 crore to INR40 crore due to higher prices in March and April.

Management indicated a full year EBITDA margin target at sub 15 percent (mid to lower double digits). Annual capex guidance was roughly INR100 crore to INR200 crore, largely maintenance and debottlenecking.

Management stated CPVC is around 7 to 8 percent of overall volume in the current quarter. Fittings are about 9 percent of volume in Q4 and about 11 percent for FY26, with pipes to fittings ratio around 90:10.

Management stated agri share reduced from about 67 percent in FY25 to about 63 percent in FY26 and said an ideal mix would be 50:50 between agri and non agri over the next 4 to 5 years.