Finolex Cables Q1 FY27 Earnings Call — Analysis (NSE: FINCABLES)
Finolex Cables Q1FY27 revenue rose 44% YoY to ₹2,013 Cr and PAT rose 59% YoY to ₹221 Cr, powered by strong communication-cable/optical-fibre performance and broad volume-led electrical-cables growth.
Result quality: stable — Results context unavailable. Management sentiment: neutral.
The take
Q1FY27 Revenue from operations ₹2,013 Cr ( +44% YoY ) .
Results
Q1FY27 revenue from operations was ₹2,013 Cr, up 44% YoY, PBT was ₹277 Cr, up 62% YoY, and PAT was ₹221 Cr, up 59% YoY; communication cables surged 62% YoY with margins near 30%, while copper rod fell to ₹8 Cr after the plant stayed shut on LPG restrictions.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue from operations | ₹2,013 Cr | +44% | yoy · Q1FY27 · vs ₹1,396 Cr in Q1FY26 |
| Profit before tax | ₹277 Cr | +62% | yoy · Q1FY27 · vs ₹171 Cr in Q1FY26 |
| Profit after tax | ₹221 Cr | +59% | yoy · Q1FY27 · vs ₹139 Cr in Q1FY26 |
| PBT margin | 13.4% | +from 11.8% | yoy · Q1FY27 · Q1FY26 PBT margin 11.8% |
| PAT margin | 10.7% | +from 9.6% | yoy · Q1FY27 · Q1FY26 PAT margin 9.6% |
| Electrical cables revenue | ₹1,767 Cr | +47% | yoy · Q1FY27 · vs ₹1,206 Cr in Q1FY26 |
| Communication cables revenue | ₹176 Cr | +62% | yoy · Q1FY27 · vs ₹109 Cr in Q1FY26 |
| Communication cables margin | ~30% | point_in_time · Q1FY27 · Quarterly segment margin; management refused to annualise | |
| Copper rod revenue | ₹8 Cr | −down from ₹403 Cr | yoy · Q1FY27 · Q1FY26 copper rod revenue ₹403 Cr |
| Exports | ₹50 Cr | +nearly all of last year's export value | yoy · Q1FY27 · Almost entire FY26 export value achieved in one quarter |
| JV revenue | ₹87 Cr | point_in_time · Q1FY27 · JV profit ₹7 Cr in current quarter |
Guidance
Optical fibre draw capacity is being expanded directly from 4 million km to 8 million km by end-Q2FY27 with FY27 capex held at about ₹300 Cr, while communication-cable margins are expected to normalise from ~30% to low double digits by FY27-end.
What management committed to
- [Finolex Cables] will complete the optical fibre draw capacity expansion from 4 million km to 8 million km by end of Q2FY27. — 8 million km, Q2FY27
Key themes
Optical fibre expansion and export momentum
Operational commentary
- Optical fibre draw capacity expansion accelerated: management decided to move directly from 4 million km to 8 million km in one go by end-Q2FY27, rather than phased 4-to-6-to-8, citing global fibre shortage.
- Communication-cable demand is being driven by AI/data-centre fibre demand; management sees a global phenomenon and expects similar demand explosion in India as hyperscalers expand.
- Communication-cable margins near 30% in Q1FY27 were boosted by lower-cost opening inventory; management expects normalisation to low double digits as old inventory is consumed.
- Exports were about ₹50 Cr in Q1FY27, almost the entire last-year value; exports included optic fibre, optic fibre cables, power cables and traditional submersible cables to the US and Europe.
- Electrical cables saw high double-digit volume-led growth in automotive cables, battery cables, flexible wires, solar and agricultural applications; building wire grew low single digits on channel destocking.
- Copper rod segment was severely constrained: LPG unavailability kept the rod plant shut for the quarter, with revenue at only ₹8 Cr.
- FMEG was weak due to commercial LPG shortages affecting fan supplies and PVC availability/pricing affecting conduit pipes; FY28 ₹5bn revenue target retained.
- Backward integration progressing: preform production has commenced and is expected to stabilise over the next couple of months.
- Germanium tetrachloride remains a restricted, hand-to-mouth input; management says enough is available to cover the rest of calendar year 2026, with more on the way.
- Management confirmed data-centre cable capability development and R&D/capex are underway, but declined to detail customer engagements or exact product pipeline.
Analyst Q&A
Q. How should investors think about sustainable margins, how much of Q1 expansion is one-off, and what is the export margin profile?
Domestic electrical cable margins around 10.5% should be sustainable; communication cable margins will stay high double digits until lower-cost inventory is consumed, then normalise to low double digits by year-end; export optic fibre opportunities may not recur every quarter.
Q. Where are global fibre prices now and where are they heading?
G.652.D fibre was USD 5-6 per km in December, climbed to USD 17-18, and is now settling around USD 12-13; premium fibres have sold up to USD 50. Management said it cannot predict future direction.
Q. What is the optical fibre expansion timeline and how much preform will be captive?
Draw capacity will move from 4 million km to 8 million km by September; preform is intended to be 100% captive for making cables, not selling preform; management declined to give a margin uplift estimate until input prices stabilise.
Q. What is Finolex's capability in high-fibre-count data-centre cables and what are the R&D/capex plans?
Management said some products are in development and did not comment on specifics; it claimed capability to supply designs up to thousands of fibres in the not-too-distant future and confirmed R&D and capex on both fronts.
Q. Is the FY28 FMEG revenue target of INR 5 billion still realistic and what is holding the segment back?
Commercial LPG shortages hit fan manufacturers and PVC availability/pricing hit conduit pipes; the FY28 target remains and management is confident of achieving it.
Q. Can management quantify communication-cable order book and expected utilisation over the next 1-2 years?
No order book number was given; 5G rollouts and hyperscaler data centres should keep demand robust for about two years; India fibre consumption could rise from 25 million km to 50-60 million km.
Q. Are the Q1 fibre/cable exports sustainable and how are long-term export relationships being built?
Exports are not just one-off trades; management has a revamped export-focused team pursuing systematic, long-term relationships across multiple geographies.
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