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    Finolex Cables

    FINCABLES
    Capital Goods·12 Feb 2026
    Management Summary

    Finolex Cables delivered a strong Q3 FY26, driven by significant revenue and volume growth across its Wires and Cables segments. The company is actively expanding its OFC capacity and backward integrating into preform manufacturing to capitalize on favorable market dynamics and data center opportunities. While margins faced some pressure this quarter due to product mix and increasing competition, management is focused on operational efficiencies and strategic investments to achieve sustainable long-term growth and margin improvement.

    Highlights

    5

    • Q3 FY26 Revenue at ₹1,600 crores, marking a 35% QoQ increase.

    • Wires and Cables segment saw robust volume growth of 25-26%, with Auto cables up 42% and Electric Wires up 28%.

    • OFC volumes grew by almost a third, supported by hardening fiber prices globally from $3 to $5.

    • Cash flow from operations improved significantly to ₹78 crores in Q3 FY26, compared to ₹9 crores in the prior year period.

    • Preform factory is under production trials and expected to be commissioned within FY26, enhancing backward integration.

    Concerns

    3

    • Agricultural Applications segment experienced lower performance due to off-season and pricing issues.

    • Cables division EBIT margins dipped to approximately 2.5% in Q3 FY26 from 11.5% in the previous quarter, partly due to product mix.

    • Intensifying competition from new entrants like Birla and Adani is anticipated to put pressure on margins in the future.

    Key financials

    Metrics

    9

    Periods

    2

    Q3 FY26

    5
    • Revenue
      ₹1,600 Cr
      QoQ+35%
    • EBITDA Growth
      —
      QoQ+12%
    • PAT Growth
      —
      QoQ+10%
    • Cash Flow from Operations
      ₹78 Cr
    • Cables Division EBIT Margin
      2.5%

    9M FY26

    4
    • Revenue
      ₹4,370 Cr
      YoY+17%
    • EBITDA Growth
      —
      YoY+17%
    • PAT Growth
      —
      YoY+18%
    • Cash Flow from Operations
      ₹220 Cr

    Segment breakdown

    Wires and Cables
    25% Volume Growth (Q3 FY26)
    Electric Wires
    28.0% Volume Growth (Q3 FY26)
    Auto Cables
    42% Volume Growth (Q3 FY26)
    Industrial Cables
    28.0% Volume Growth (Q3 FY26)
    Power Cables
    22% Volume Growth (Q3 FY26)
    Communication Cable (OFC)
    33% Volume Growth (Q3 FY26)
    Solar Cables
    80% Capacity Utilization
    List

    Order Book

    medium confidence

    Composition

    OFC(product)

    Pipeline

    other

    BharatNet inquiries from participants who have secured positions

    "OFC volumes were up by almost a third, with global fiber prices hardening. The company is hopeful for adequate business from BharatNet projects over the next two years, despite not having a direct position on tenders. The company's market share in OFC in India is about 11-12%."

    Source:
    Prepared remarks

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    ₹36 crores

    Liquidity

    Liquidity disclosed

    Cash flow from operations was about INR 78 crores for the three months, against INR 9 crores in the corresponding period last year and INR 220 crores for the nine months against INR 75 crores in the corresponding period of last year.

    Guidance & targets

    5
    CategoryTargetPriority
    Capacity
    Preform factory commissioning
    Commissioned
    		High
    Capacity
    Fiber draw capacity
    8 million kilometers
    		High
    Revenue
    OFC revenue from additional capacity
    INR 600 crores to INR 700 crores
    		Medium
    Margin
    OFC sustainable EBIT margins
    11% and 12%
    		Medium
    Investments
    New investment planning for construction wire
    Start planning
    		High

    Preform factory commissioning

    Next quarter (Q4 FY26)
    CurrentUnder production trials
    TargetCommissioned

    Why it matters

    Successful commissioning will enhance backward integration and support OFC expansion.

    Currently, the preform factory is under production trials, and we expect to commission it within this fiscal.

    How to verify

    guidance_and_targets[metric='Preform factory commissioning']

    Risks & concerns

    4
    RiskSeverity

    Commodity price volatility (Copper)

    Copper prices are experiencing 'yoyo' movements, making predictions difficult, though the company aims to pass through costs. — Management acknowledged

    medium

    Intensifying competition in wire and cable segment

    New entrants like Birla and Adani are expected to increase competition, particularly in the wire space, which will intensify market pressure. — Both acknowledged

    high

    Margin pressure due to product mix and competition

    Cables division EBIT margins dipped to ~2.5% this quarter, partly due to a higher share of lower-margin automobile and industrial products, and expected competition. — Management acknowledged

    medium

    Dependency on government programs for OFC funding

    Bulk of OFC funding comes from government programs, which can lead to time lags between announcement, tendering, and execution. — Management acknowledged

    medium

    Q&A highlights

    8

    “It's very difficult to predict where it will reach and how long it will stay there. Even in the last couple of weeks, you have seen movements which have taken it up to 14,000, then it's back to 12,800 and then again back to 13,200. It is a bit of a yoyo at this point in time. Difficult to predict how the swings are likely to be. Last quarter, we took 5, with an overall correction of about 12% in the selling prices. This quarter, between January and today, we have already done two changes.”

    Highlights the volatile raw material environment and the company's strategy to manage it through price corrections.

    asked by Vidit Trivedi

    2 min read5 chapters

    Detailed Narrative

    01

    Robust Q3 FY26 Performance Driven by Volume Growth

    Finolex Cables reported a strong Q3 FY26 with revenue reaching ₹1,600 crores, marking a 35% quarter-on-quarter increase. The nine-month revenue stood at ₹4,370 crores, up 17% year-on-year. This growth was largely volume-driven, with Wires and Cables volumes increasing by 25-26%. Specific segments like Auto cables saw a 42% volume increase, Electric Wires 28%, Industrial 28%, and Power Cables 22%.

    02

    Strategic Expansion and Backward Integration in OFC

    The company is aggressively expanding its Optical Fiber Cable (OFC) capabilities. OFC volumes were up by almost a third, benefiting from hardening global fiber prices, which have risen from under $3 to $5 per month. The preform factory is currently undergoing production trials and is expected to be commissioned within FY26. Furthermore, fiber draw capacity is being expanded from 4 million to 8 million kilometers, with the target completion by Q1 FY27, aiming to generate ₹600-700 crores in annual revenue from this additional capacity.

    03

    Margin Dynamics and Competitive Landscape

    Cables division EBIT margins dipped to approximately 2.5% in Q3 FY26 from 11.5% in the prior quarter. This was attributed to a change in product mix, with a higher share of lower-margin automobile and industrial products. Management acknowledges intensifying competition from new entrants like Birla and Adani, which will put pressure on margins. However, the company aims for sustainable EBIT margins of 11-12% by focusing on channel motivation and emphasizing product quality and life cycle costs.

    04

    Capital Expenditure and Future Investment Plans

    Capital expenditure for Q3 FY26 was ₹36 crores, bringing the nine-month total to ₹146 crores. A significant portion of the capital work in progress, approximately ₹220-230 crores out of ₹307 crores, is allocated to the preform project, expected to be capitalized next month. As capacity utilization for construction wire climbs beyond 70%, the company plans to initiate new investments, with a planning-to-execution timeline of about a year and a half.

    05

    Improved Cash Flow and Working Capital Management

    Cash flow from operations saw a substantial improvement, reaching ₹78 crores in Q3 FY26 compared to ₹9 crores in the corresponding period last year. For the nine-month period, it stood at ₹220 crores versus ₹75 crores last year. The company also reported an improvement in inventory days, reducing from 69 to 61 days, by actively managing raw material, work-in-process, and finished goods, aiming for a reasonable two-month cycle across the supply chain.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.