Finolex Cables sees modest growth in Q2 amidst market challenges

Finolex Cables Limited reported a modest revenue growth of 5% for Q2 FY '26 and 9% for the half-year, with EBITDA increasing by 26% and 19% respectively. PAT levels rose by 35% for the quarter and 21% for the half-year. Wires and cables revenue was up 8% for the quarter and 12% for the half-year, despite headwinds in agricultural applications due to prolonged monsoon and flat growth in building wires amidst real estate moderation. The company spent INR 75 crores on CAPEX in Q2 and INR 100 crores for the half-year, with the preform plant ready for production trials and the fiber draw plant expected by March 2026.

Communication cable segment volumes were muted due to protracted contract negotiations and low fiber prices, impacting margins which are currently in the lower single digits. The company anticipates margins to return to 8-10% once the preform plant and additional fiber draw stabilize. Finolex Cables confirmed it will continue in-house manufacturing for the FMEG segment, pending volume increase, with new product variants in switches and switchgears expected in upcoming quarters. The company also aims to achieve INR 500 crores in FMEG revenue by 2028.