Finolex Industries (FINPIPE) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 saw a 27% decline in sales volume to 67,699 MT, driven by weak demand and significant volatility in polymer prices, especially PVC, impacting volumes during a typically strong pre-monsoon quarter.

• Revenue dropped 15% year-over-year to ₹884 crore, primarily due to lower sales volume, but the decline was moderated by a 15% increase in realization per kg.

• Despite lower revenue, EBITDA improved to ₹109 crore (12% margin) from ₹94 crore (9% margin) in Q1 FY26, with EBITDA margin improving from 9% to 12%.

• PBT stood at ₹148 crore and PAT at ₹107 crore for the quarter.

• Liquidity remains robust with net free cash of approximately ₹2,636 crore.

Financial highlights

• Sales volume declined 27% year-over-year to 67,699 MT in Q1 FY27.

• Revenue was ₹883.58 crore in Q1 FY27, down from ₹1,043.15 crore year-over-year.

• EBITDA was ₹109 crore in Q1 FY27, up from ₹94 crore in Q1 FY26.

• Standalone net profit for Q1 FY27 was ₹107.41 crore, compared to ₹96.93 crore year-over-year.

• Free cash (net) stands at ~₹2,636 crore, indicating strong liquidity.

Outlook and guidance

• Management expects improved realizations and volume pickup in Q2, supported by regulatory interventions and normalized inventories.

• Full-year volume and margin guidance remains unchanged from Q4, with anticipated EBITDA margin below 15%.

• Too early to provide full-year volume guidance due to ongoing volatility in the PVC industry.

• Demand weakness and PVC price volatility are expected to continue impacting volumes and revenue.

• The 45th Annual General Meeting is scheduled for September 22, 2026, with further details on dividend and annual report to be provided.