Finolex Cables Q2 Surge: Profit Skyrockets 37.8%, But Stock Price Dives! What's Next?

Finolex Cables Ltd. announced impressive financial results for the September quarter. The company's net profit surged by 37.8% to ₹162.6 crore, a significant increase from ₹118 crore in the same quarter last year. Revenue also showed a healthy growth of 5%, reaching ₹1,375.8 crore compared to ₹1,311.7 crore previously. A key indicator of operational efficiency, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), jumped by 37% to ₹145 crore. Consequently, profit margins expanded considerably from 8.1% in the year-ago period to 10.5%, indicating better profitability per unit of sale. **Impact**: Despite these strong fundamental figures, Finolex Cables' stock price dipped by 2.50% to ₹773.70 after the earnings release. This reaction might stem from various market factors, including investor expectations, broader market sentiment, or a 'sell-on-news' event, especially given the stock's year-to-date decline of 34% in 2025. Investors will be closely monitoring future performance for a sustained upward trend. **Difficult Terms**: * **EBITDA**: Earnings Before Interest, Taxes, Depreciation, and Amortization. This metric shows a company's core operating profitability before accounting for debt, taxes, and non-cash expenses like depreciation. * **Margins**: Profit margins, such as the net profit margin or EBITDA margin, measure how much profit a company makes for every rupee of revenue. An expansion in margins signifies that the company is becoming more efficient or has stronger pricing power. Rating: 7/10