Summary
Finolex Cables Limited - Q3 FY26 Earnings Call Summary Thursday, February 12, 2026, 5:00 PM IST
Event Participants
Executives 1 Mahesh Viswanathan (Deputy CEO & CFO)
Analysts 3 Shreya Wazir, Srinivasan, Vidit Trivedi
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue | ₹1,600 crores | +35% QoQ and +17% for 9M FY26; driven by both price corrections and volume growth. |
| EBITDA | Not disclosed (Absolute) | +12% QoQ and +17% for 9M FY26; improved in correlation with revenue expansion. |
| PAT | Not disclosed (Absolute) | +10% QoQ and +18% for 9M FY26; reflected higher operational throughput. |
| Wires & Cables Volume | 25% - 26% Growth | Growth led by Auto Cables (+42%), Electric Wires (+28%), and Industrial (+28%). |
| EBIT Margin (Cables) | ~11.5% | Dipped slightly in Q3; management targets a sustainable range of 11%–12%. |
| Capex | ₹146 crores | YTD 9M spend against annual projections; ₹36 crores spent in Q3 alone. |
| Cash Flow from Ops | ₹220 crores | Significant improvement for 9M from ₹75 crores YoY; Q3 contributed ₹78 crores. |
| Inventory Days | 61 days | Improved from 69 days; management aims to maintain a ~2-month cycle across raw materials/WIP/FG. |
Geographic & Segment Commentary
- Electrical Cables: Volume growth was robust across sub-segments, with Electric Wires up 28% and Power Cables up 22%. Agricultural applications underperformed due to off-seasonality and pricing issues.
- Communication Cables: OFC volumes rose by approximately 33%. While fiber prices were depressed at ~$3 in Q3, they have recently hardened to ~$5 due to global demand pull from data centers and defense.
- Specialized Segments: Auto Cables saw the highest growth at 42%. Solar Cables reached 80%–85% capacity utilization following the buildup of capacity in the previous fiscal year.
Company-Specific & Strategic Commentary
- Backward Integration: The preform factory is currently under production trials with commissioning expected by March 2026. This move reduces import dependence on glass preforms, where Sterlite is currently the only other domestic manufacturer.
- Capacity Expansion: Fiber draw capacity is doubling from 4 million to 8 million kilometers by Q1 FY27. Equipment for Phase 1 (up to 6 million km) is already at the site for installation.
- New Technologies: The recently commissioned E-Beam plant is seeking clearances and certifications to open multiple new application areas for high-performance cables.
- Pricing Strategy: Management implemented five price hikes in Q3 (totaling ~12% correction) and two more in January/February 2026 to pass through volatile copper costs.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| OFC Revenue | ₹600 – ₹700 crores | Full-year target for communication cables once the 8 million km capacity is fully operational. |
| OFC EBIT Margins | 8% – 9% | Long-term target as utilization improves, up from current lows of ~2.5%. |
| Asset Capitalization | ~₹220 – ₹230 crores | Expected to move from CWIP to Fixed Assets in Q4 FY26 upon commissioning of the preform factory. |
Risks & Constraints
| Risk | Context |
|---|---|
| Commodity Volatility | Copper prices are highly unstable (“yoyo”), fluctuating between $12,800 and $14,000 recently. This requires frequent price corrections and lean procurement strategies. |
| Competitive Intensity | Entry of large players (Birla Group in 2027 and potential Adani entry) into the wire space is expected to exert pressure on margins and market share. |
| Segment Mix Pressure | Higher growth in industrial and automobile cables (lower margin) relative to construction wires can depress overall blended margins. |
Q&A Highlights
Telecom & OFC Strategy
- Question: What is the impact of global fiber price hardening and the status of BharatNet? (Vidit Trivedi)
- Answer: Fiber prices have moved from $3 to $5 due to global shortages. FCL did not secure a direct position in BharatNet Phase 3 but is receiving inquiries from successful bidders (Mahesh Viswanathan).
Margins & Competition
- Question: Why have EBIT margins dropped from historical 15-16% levels to current levels? (Veenit)
- Answer: The shift to a distribution model required surrendering 2-3% margin to channel partners. Sustainable levels are now 11-12% given intensified competition (Mahesh Viswanathan).
Inventory & Working Capital
- Question: How were inventory days reduced and is further improvement likely? (Vidit Trivedi)
- Answer: Improvements came from squeezing raw materials and improving plant efficiency. 60 days is the baseline due to a high number of SKUs in auto and flexible cables (Mahesh Viswanathan).
Future Growth Areas
- Question: Where will future cash flows be reinvested? (Srinivasan)
- Answer: Once capacities hit 70-75% (currently happening in Solar/Auto), FCL plans for new capacity which takes 18 months to execute. E-Beam applications are the next major focus (Mahesh Viswanathan).
Key Takeaway
Finolex Cables Limited delivered a strong Q3 FY26 with a 35% sequential revenue jump, supported by a 25% volume growth in its core Wires & Cables segment. The quarter was characterized by successful price pass-throughs totaling 12% to combat volatile copper costs and a significant rebound in operating cash flow to ₹220 crores for the nine-month period. Strategically, the company is nearing the completion of its ₹300 crore backward integration project for fiber preforms and doubling its fiber draw capacity to 8 million km by Q1 FY27 to capitalize on the hardening global fiber prices and domestic data center demand. While competition from large conglomerates like Birla and Adani looms, management remains focused on a sustainable EBIT margin of 11%–12% through brand strength and channel motivation. The company appears well-positioned to transition from a cable manufacturer to an integrated telecom infrastructure player as its new capacities go live in the coming months.
Want more insights like this?
Subscribe to get deep dives delivered to your inbox.
More Earnings Summaries
Explore more Q3 FY26 earnings call analyses: