Finolex Cables Plans INR 300 Crore Capex for FY27, Fast-Tracks Fibre Capacity Expansion; Q1 FY27 Revenue Surges 44% to INR 2,013 Crore

Finolex Cables Plans INR 300 Crore Capex for FY27, Fast-Tracks Fibre Capacity Expansion; Q1 FY27 Revenue Surges 44% to INR 2,013 Crore

Finolex Cables reported 44% revenue growth to INR 2,013 crore in Q1 FY27, while profit after tax rose 59% to INR 221 crore. Strong demand for automotive, solar, agricultural and communication cables supported performance. The company is accelerating fibre capacity expansion to address global supply shortages, with FY27 capex planned at INR 300 crore.

The Electrical Post

Finolex Cables Limited reported a strong start to FY2026–27, with revenue from operations rising 44% year on year to INR 2,013 crore in the first quarter, compared with INR 1,396 crore in the corresponding period last year. Profit before tax (PBT) increased 62% to INR 277 crore, while profit after tax (PAT) grew 59% to INR 221 crore, reflecting improved profitability and healthy demand across key product categories.

Founded in 1958 by legendary visionaries, Pralhad P Chhabria and Kishan P Chhabria - the early start saw Finolex donning the role of a copper cable manufacturer with the founders demonstrating foresight by diversifying into the production of PVC insulated electrical cables for the automobile industry. With this strategic expansion, the company maintained an unwavering commitment to broadening its product portfolio in India’s electricals market.

Speaking during the company’s Q1 FY27 earnings conference call, Mahesh Viswanathan, Chief Executive Officer of Finolex Cables, said several product lines recorded strong volume-led growth during the quarter. Automotive cables, battery cables, flexible wires, solar cables and cables used in agricultural applications delivered high double-digit growth, while building wires remained broadly stable, with low single-digit volume growth.

The performance came against a challenging operating environment marked by continued commodity price fluctuations and supply-chain disruptions. Since March, the company has faced constraints related to fuel and polyvinyl chloride (PVC) availability, alongside higher input costs. Viswanathan said Finolex Cables had managed these challenges, albeit at a higher cost, and had largely passed the increased costs on to end consumers.

Channel inventory, particularly in building wires, declined during the quarter as distributors reduced stock levels. This destocking contributed to the relatively modest volume growth in the category. The company expects demand across its product portfolio to remain an important driver of performance as it focuses on profitable growth.

Exports emerged as a strong contributor during the quarter, reaching approximately INR 50 crore—almost equivalent to the total export value recorded during the entire previous financial year. The development highlights the growing contribution of international markets to the company’s business.

Communication cables also delivered a strong performance, with revenue increasing to INR 176 crore from INR 109 crore in the year-ago quarter, representing growth of approximately 62%. Margins approached 30%, supported partly by higher selling realisations on fibre-related products manufactured using raw materials procured at earlier, lower prices.

Viswanathan cautioned that the improvement in communication cable margins was influenced by prevailing market conditions and should not be considered sustainable at the current level. As existing raw-material inventory is consumed and higher-cost material enters production, margins are expected to normalize in the coming quarters, although the company expects them to remain in double digits. Management said it would continue to monitor the segment’s profitability as the financial year progresses.

Finolex Cables is also advancing its fibre manufacturing expansion amid a global shortage of optical fibre. The company has commenced preform production and is working towards stabilizing operations, with management expecting progress over the next couple of months. The company has also decided to accelerate its draw-tower expansion, moving directly from a capacity of four million to eight million rather than following its earlier phased plan of expanding first to six million and subsequently to eight million.

The decision reflects the company’s assessment that global fibre supply constraints are likely to persist for some time. Despite the revised expansion approach, the company’s capital expenditure plan for FY27 remains approximately INR 300 crore.

The company also reported continued progress at its joint venture, which recorded revenue of approximately INR 87 crore and profit of around INR 7 crore during the quarter. The joint venture had reported a profit of INR 24 crore in the previous financial year.

Financially, the company’s PBT margin improved to 13.4% in Q1 FY27 from 11.8% in the corresponding quarter of FY26. PAT margin increased to 10.7% from 9.6%, reflecting stronger profitability despite the pressure of rising input costs.

Electrical cables remained the company’s largest business segment, with revenue increasing approximately 47% to INR 1,767 crore from INR 1,206 crore in the year-ago quarter. The segment benefited from a favourable product mix, particularly the strong performance of automotive, solar and agricultural cables.

Copper rod operations, however, were significantly affected by continued restrictions on LPG availability, which resulted in the rod plant remaining shut during the quarter. Revenue from copper rods stood at INR 8 crore, compared with INR 403 crore in the corresponding quarter of the previous year.

Looking ahead, Finolex Cables said its priorities for the remainder of FY27 would be profitable growth across key businesses, capitalizing on opportunities in communication cables and maintaining financial discipline. The company’s focus on expanding fibre capacity, strengthening its product portfolio and managing cost pressures is expected to remain central to its growth strategy.
 

Published at : Oct 16, 2026 03:52 PM (IST)

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