Finolex Industries sees profit surge on efficiency despite monsoon's volume dip

Finolex Industries reported a marginal 6% dip in Q2 FY'26 volumes to 65,336 metric tons, and a 2% decrease for H1 FY'26 to 157,645 metric tons, attributed to heavy monsoon. Despite this, total income from operations increased by 4% to INR859 crores in Q2 FY'26. The company achieved a remarkable EBITDA improvement to INR130 crores in Q2 FY'26, up from INR11 crores in the same quarter last year, and PAT surged to INR119 crores from INR51 crores. H1 FY'26 EBITDA also grew by 3% to INR224 crores.

The improved performance was primarily driven by a focus on margin and operational efficiency, with gross margin reaching 42% in Q2 FY'26 compared to 30% in the previous year's corresponding quarter. The non-agri segment saw a 7% volume growth, increasing its share to 44% from 30% quarter-on-quarter, which positively impacted realizations. The company aims to maintain a full-year EBITDA margin of 10% to 12% and anticipates mid-single-digit volume growth for the full year.

Finolex Industries currently boasts a strong balance sheet with a net cash surplus of around INR2,360 crores as of September 30, 2025. The company's total pipe and fitting capacity stands at 520,000 tons, with a current capacity utilization of around 70% for the first six months. They plan to invest INR100 crores to INR200 crores yearly in new capacity additions to support market growth.