FINCABLES - Finolex Cables

📊 NSE: FINCABLES 🏢 Cables - Power 📅 Last Updated: 12/13/2025 22:06

💰 Financial Performance

Revenue Growth by Segment

Revenue from Operations grew 6% to INR 5,324 Cr in FY25. For H1 FY26, revenue reached INR 2,771 Cr, a 9% YoY increase. The Wires and Cables segment grew 12% in H1 FY26, while the FMEG segment grew 13.7% to INR 256.1 Cr in FY24.

Geographic Revenue Split

Not disclosed by specific percentage, but the company operates a pan-India distribution network with 4,000 channel partners and 2,15,000 retailers.

Profitability Margins

PAT margins were maintained at healthy levels despite input cost volatility. FY24 PAT was INR 544.4 Cr on revenue of INR 5,318.9 Cr (10.2% margin). H1 FY26 PAT reached INR 326 Cr on INR 2,771 Cr revenue (11.76% margin).

EBITDA Margin

EBITDA margin for H1 FY26 was 10.2%, with EBITDA reaching INR 438 Cr, a 19% YoY increase. FY25 margins contracted to 9.92% due to copper and aluminum price volatility.

Capital Expenditure

INR 500 Cr capex is lined up for the FY24-26 period, including the commissioning of a new e-Beam facility and expansion of the Roorkee plant.

Credit Rating & Borrowing

CRISIL AA+/Stable for long-term and CRISIL A1+ for short-term debt. The company is debt-free with nil long-term borrowings and unutilized fund-based bank limits of INR 200 Cr.

⚙️ Operational Drivers

Raw Materials

Copper and Aluminum are the primary raw materials. Volatility in these commodities led to a margin contraction to 9.92% in FY25.

Import Sources

Not specifically disclosed, but managed through strategic pass-through mechanisms and backward integration.

Capacity Expansion

Current expansion includes the completed commissioning of the e-Beam facility and the expansion of the Roorkee plant to support electrical cable growth.

Raw Material Costs

Raw material costs are managed through strategic pass-through, hedging, and optimal inventory management to mitigate price volatility.

Manufacturing Efficiency

Manufacturing efficiency is supported by integrated operations and new technology like the e-Beam facility.

Logistics & Distribution

Distribution is handled through a network of 4,000 channel partners and 2,15,000 retailers to ensure pan-India reach.

📈 Strategic Growth

Expected Growth Rate

8-10%

Growth Strategy

Growth will be achieved through a target of INR 500 Cr revenue from the FMEG segment in 2-3 years, participation in BSNL Bharat Net tenders, and capacity expansion at the Roorkee and e-Beam facilities.

Products & Services

Electrical cables, communication cables, fans, switches, switchgears, lighting, water heaters, and smart home devices.

Brand Portfolio

Finolex

New Products/Services

Expansion into FMEG includes new smart home devices, fans, and water heaters, with FMEG expected to break even at INR 250-260 Cr in FY25.

Market Expansion

Targeting the FMEG sector and rural electrification, aiming for a 10% CAGR in the appliances segment.

Market Share & Ranking

Industry leader in wires and cables; organized sector market share is 72%, expected to reach 80% by FY27.

Strategic Alliances

Joint Venture with J-Power Systems (Japan) for high-voltage power cables.

🌍 External Factors

Industry Trends

The wires and cables industry is projected to grow at an 11.8% CAGR to reach INR 1,430 billion by FY29, driven by government infrastructure and renewable energy initiatives.

Competitive Landscape

Intense competition from established organized players and a significant unorganized sector (currently 28% of the market).

Competitive Moat

Durable advantages include a strong brand reputation, integrated operations, and a massive distribution network of 2.15 lakh retailers, which are difficult for competitors to replicate.

Macro Economic Sensitivity

Highly sensitive to GDP growth, infrastructure spending, and urbanization. Real estate moderation led to flat growth in building wires in Q2 FY26.

Consumer Behavior

Rising disposable incomes and brand formalization are driving a shift toward organized players in the FMEG and cable segments.

Geopolitical Risks

Global macroeconomic headwinds and commodity price fluctuations are primary external risks.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to quality standards and pollution norms; the company must also comply with SEBI listing regulations for corporate governance.

Environmental Compliance

Not disclosed in specific INR values, though the company reports on CSR activities in health and education.

Taxation Policy Impact

Effective tax rate is approximately 23.7% based on FY24 PAT of INR 544.4 Cr and PBT of INR 713.6 Cr.

Legal Contingencies

There is an ongoing dispute between members of the Chhabria family (Deepak vs. Prakash Chhabria) over management control, which is currently sub judice.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainties are the outcome of the family management dispute and the volatility of copper and aluminum prices, which can impact margins by over 2%.