Finolex Cables reported a strong FY26 with revenue rising 19% to Rs 6,321 crore and profit increasing 14% to Rs 623 crore. The growth was led by a 22% surge in the electrical business. The company also declared a dividend of Rs 9 per share and achieved profitability in its Finolex J-Power Systems joint venture. Management remains focused on data center and renewable energy demand.
Finolex Cables FY26 Results: Revenue Up 19% to Rs 6,321 Crore
Finolex Cables reported a FY26 revenue of Rs 6,321 crore and a PAT of Rs 623 crore.
Reader Takeaway: Robust electrical segment growth drives revenue, while higher raw material costs and intentional inventory buildup impact margins.
What just happened
Finolex Cables has announced its annual financial performance for FY26, highlighting a 19% growth in revenue from Rs 5,319 crore in the previous year to Rs 6,321 crore. Profit After Tax (PAT) grew by 14% to reach Rs 623 crore. The company’s Board has recommended a dividend of Rs 9 per equity share, representing a 450% payout on the face value of Rs 2.
Why this matters
The company’s core Electrical business remains the primary growth engine, recording a 22% revenue increase to Rs 5,490 crore. This was supported by double-digit volume growth in power cables, industrial flexible cables, and auto cables. Additionally, the company’s joint venture, Finolex J-Power Systems, marked a significant milestone by turning profitable for the first time with approximately Rs 21 crore in profit.
Strategic Initiatives
Finolex is prioritizing internal accruals to fund its expansion. The company invested Rs 240 crore in capital expenditure during FY26 and plans to allocate another Rs 200 crore in FY27. Key projects include the commissioning of the Phase 1 optical fibre preform facility and the acceleration of Phase 2, which aims to double fibre capacity. The company also placed an order for a second E-beam solar line to capture growing demand in the solar sector.
Risks to watch
Profitability faced slight moderation compared to revenue growth in the final weeks of the fiscal year, largely due to rising raw material costs. Furthermore, the company deliberately increased inventory levels by Rs 300 crore to ensure production continuity, which has constrained short-term cash flows.
What to track next
Investors should monitor the scaling of the optical fibre preform facility and the ongoing penetration of FMEG (Fast Moving Electrical Goods) products. Growth will continue to be influenced by macro factors like the Revamped Distribution Sector Scheme (RDSS), BharatNet initiatives, and the ongoing global data center build-out.