Finolex Industries reported a slight volume decrease of 6% in Q2 FY’26, alongside a 2% dip for H1 FY’26, primarily due to prolonged monsoons. Despite this, Q2 revenue grew by 4% to INR 859 crores, with EBITDA significantly increasing to INR 130 crores and PAT reaching INR 119 crores. Focus remains on growing the non-agri segment. The company holds a strong balance sheet with a net cash surplus of approximately INR 2,360 crores as of September 30, 2025.
Financial Performance
Finolex Industries experienced a marginal decrease in volume during Q2 FY’26, with a 6% drop to 65,336 metric tons compared to 69,341 metric tons in the corresponding quarter of the previous year. For H1 FY’26, the volume was down by approximately 2% at 157,645 metric tons. However, total income from operations for Q2 FY’26 improved by approximately 4% to INR 859 crores. EBITDA saw a significant increase, reaching INR 130 crores, and PAT rose to INR 119 crores.
Segment Performance
While the agri segment faced setbacks due to prolonged monsoons, the non-agri segment experienced a volume growth of around 7% during Q2 FY’26. The company continues to focus on expanding its presence in the non-agri sector. CPVC segment contributed to 8% of the total volume. CPVC is growing at double digits.
Outlook and Strategy
Finolex anticipates a mid-single-digit growth for the full fiscal year, with a continued focus on both agri and non-agri segments to manage business seasonality. The company expects demand in the agri segment to rebound in the third and fourth quarters. Long-term objective of reaching 50:50 agri-non-agri split remains.
Capacity and Capex
The company’s total capacity for pipes and fittings stands at 5,20,000 tons. Finolex intends to invest between INR 100 crores and INR 200 crores annually to support market growth through capacity expansion.
EBITDA Margin
The company aims to maintain an EBITDA margin between 10% and 12% for the full year, despite anticipating some margin cooling in the coming quarters due to an increasing agri mix.
Source: BSE
