Finolex Cables shares touched a 52-week high of ₹1,224.50 after reporting a 53% profit jump in Q1 FY27. While revenue grew, the company faced significant challenges in its copper rod business due to fuel supply disruptions linked to the Middle East conflict. Investors are tracking whether these supply constraints persist and if demand momentum continues.
Finolex Cables shares rose to a 52-week high of ₹1,224.50 following the announcement of the company’s financial results for the first quarter of fiscal year 2027. The firm reported a strong performance with a consolidated net profit of ₹249.04 crore, marking a 53.14% increase compared to the same period last year. Revenue from operations also saw robust growth, rising 44.26% to ₹2,013.15 crore for the quarter.
This growth was driven by healthy demand across the company's electrical and communication cables segments. Brokerage firm Jefferies reacted to the earnings by maintaining a buy rating and increasing its price target on the stock to ₹1,410 from ₹1,200. Analysts pointed to the strong sales performance as a primary driver for the positive outlook.
Despite the revenue and profit growth, the company faced a material operational issue during the quarter. Its copper rod manufacturing plant remained non-operational throughout the period. According to company disclosures, this disruption was caused by a lack of fuel, specifically LPG and PNG, which was attributed to the ongoing conflict in the Middle East. This shutdown in a key part of the production chain is a factor investors are monitoring, as it could affect overall production capacity and operating costs if fuel supply issues remain unresolved.
Looking ahead, the company faces exposure to commodity price volatility, particularly in copper, which is a major raw material cost. While the cable business has shown strong demand, the company's financial performance in upcoming quarters will likely depend on its ability to manage these input costs and navigate geopolitical risks affecting fuel supplies. Investors will be tracking management commentary regarding the restoration of the copper rod plant and how the company plans to sustain margin growth in the face of these sector-wide supply chain sensitivities.