Finolex Industries (FINPIPE) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 saw a 6% decline in volumes due to prolonged heavy monsoon, but operational efficiency and improved realizations led to a 4% year-over-year revenue growth to ₹859 crore and a significant jump in profitability metrics.

• Non-agri segment volumes grew 7% year-over-year, while agri segment volumes declined, shifting the agri/non-agri mix to 56/44 from 61/39 last year.

• CPVC segment contributed 8% of volumes in Q2, growing at a double-digit rate.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, with a limited review by statutory auditors.

• Results reflect a single integrated business focused on pipes and fittings after internal reporting realignment.

Financial highlights

• Q2 FY26 revenue rose 4% year-over-year to ₹859 crore, despite a 6% volume drop; Q2 sales volume was 65,336 MT.

• Q2 EBITDA surged to ₹130 crore from ₹11 crore last year; PAT increased to ₹119.2 crore from ₹51.4 crore.

• H1 FY26 revenue was ₹1,902 crore, down 3% year-over-year; H1 EBITDA at ₹224 crore, nearly flat versus ₹217 crore in H1 FY25.

• H1 PAT was ₹216 crore, down from ₹557 crore last year, which included ₹417 crore in exceptional gains.

• Net cash surplus stood at ₹2,360 crore as of September 30, 2025.

Outlook and guidance

• Full-year volume growth now expected at mid-single digits, revised from earlier double-digit guidance.

• EBITDA margin guidance for FY26 is 10%-12%, with Q2 margin at 15% and full-year margin expected to cool as agri share rises.

• CPVC segment expected to continue double-digit growth.

• Capacity utilization expected to rise to 74%-75% in FY26 and FY27 from 70% in H1.

• Liquidity remains strong with free cash (net) of ~₹2,359 crore as of Q2 FY26.