Financial Performance Overview
Finolex Cables Limited reported strong financial results for FY 2025-26 with revenue from operations growing 19% to ₹6,321.01 crores from ₹5,318.89 crores in the previous year. Profit After Tax increased 14% to ₹622.87 crores, while Profit Before Tax reached ₹806.93 crores (13% growth). The company achieved its highest-ever quarterly revenue in Q4 FY26 at ₹1,951 crores, representing 22% year-on-year growth.
Dividend Declaration and Capital Structure
The Board recommended a final dividend of 450% amounting to ₹9 per equity share of face value ₹2 each, totaling ₹137.70 crores payout subject to shareholder approval at the 58th Annual General Meeting. The record date was set for 4th September 2026 with payment scheduled on or before 27th October 2026.
Segment-wise Performance Breakdown
Electrical Cables Business: Revenue grew 22% to ₹5,490.2 crores with EBIT of ₹562.9 crores (18.3% growth), driven by strong performance in power cables (21% volume growth), industrial flexible cables (17% growth), and auto cables (nearly 30% growth).
Communication Cables Business: Revenue declined 1.5% to ₹500.3 crores but EBIT grew 70% to ₹13.9 crores, with Q4 showing strong recovery with 32% YoY growth. Optic Fibre Cable volumes grew 34% in Q3.
Other Segments: Copper Rods contributed ₹68.9 crores revenue while FMEG Products generated ₹261.5 crores revenue (2.12% growth).
Strategic Investments and Expansion
Total capital expenditure for FY26 was ₹240 crores with ₹320.4 crores capitalized. Key projects included commissioning Phase 1 of optic fibre preform facility (100 tonnes capacity, equivalent to 4 million km fibre) and ordering a second E-beam solar line to double solar cable capacity. The company plans ₹200 crores investment for FY27, including Phase 2 expansion of the preform facility to reach 8 million km fibre capacity.
Joint venture Finolex J-Power Systems Limited (49% stake) reported its first profitable year with revenue of ₹450 crores, profit of ₹21 crores, and order book of ₹380 crores.
Operational and Working Capital Metrics
The company maintained excellent working capital management with receivable days of 21, payable days of 20, and inventory days of 73. Total assets stood at ₹5,652.11 crores with cash and cash equivalents of ₹163.13 crores. Export revenue grew significantly to ₹55.0 crores from ₹30.7 crores previous year, serving 14 international markets.
Regulatory Compliance and Governance
The annual report was prepared in compliance with SEBI (LODR) Regulations, 2015 and Companies Act, 2013. The company maintained full environmental compliance with no penalties or enforcement actions. Statutory auditors Deloitte Haskins & Sells LLP provided an unmodified opinion on both standalone and consolidated financial statements.
Key governance highlights included 6 Board meetings, 8 Audit Committee meetings, and appointment of Mr. Siddhesh Mandke as Compliance Officer. The Board composition includes 3 Independent, 2 Whole-time, and 1 Non-Independent Non-Executive Director.
Significant Provisions and Contingencies
The company recorded ₹6.01 crore provision for past service cost impact due to implementation of new Labour Codes effective from November 21, 2025. Contingent liabilities totaled ₹178.66 crore across various disputes including excise (₹23.88 crore), GST (₹36.53 crore), sales tax (₹66.17 crore), and income tax (₹51.14 crore).
Corporate guarantees of ₹185.65 crore were provided to bankers of Finolex J-Power Systems Limited. MSME dues amounted to ₹48.40 crore with principal of ₹45.57 crore and interest of ₹2.83 crore.
ESG and CSR Initiatives
CSR expenditure was ₹9.52 crores against obligation of ₹11.42 crores (2% of average net profit), focusing on healthcare (30% of expenditure), education, rural development, and social welfare. Environmental performance showed total waste generated of 4,977 metric tonnes with 84 tonnes recovered through recycling/reuse operations.
Energy efficiency initiatives included solar power generation, rainwater harvesting systems, and fuel-efficient unit replacements across manufacturing facilities.
Shareholding and Corporate Calendar
Promoters held 35.86% (54,841,170 shares) with institutional investors at 23.94% and Indian public at 19.54%. The 58th Annual General Meeting is scheduled for 28th September 2026 via video conferencing, featuring re-appointments of key directors including Mr. Ratnakar Barve as Whole-time Director and several Independent Directors for second terms.