This article first appeared on GuruFocus .
Release Date: May 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Finolex Cables Ltd ( BOM:500144 ) reported a 22% increase in revenue year-on-year and quarter-on-quarter for Q4, with a full-year revenue growth of 19%.
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The electrical sector achieved its highest revenue at $1,697 million for the quarter, marking a 22% increase year-on-year.
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The company saw strong performance in certain product lines, such as auto batteries, flexible industrial cables, and power cables, with high double-digit growth.
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Solar cables, introduced last year, have been well-received, nearing full capacity utilization, prompting plans for capacity expansion.
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The JV with Sumitomo turned profitable, generating a profit of 21 crores on a revenue of 450 crores, with a promising order book of 380 crores for the next year.
Negative Points
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Margins were under pressure due to increased raw material costs and rupee depreciation, particularly towards the end of Q4.
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The building wire segment experienced marginal volume growth due to resistance from the market against constant copper price increases.
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Agricultural applications saw a decline in volumes by about 15-16% due to pre-seasonal and continued monsoon impacts.
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The communication segment faced supply chain challenges, with fiber prices increasing due to high demand and limited raw material availability.
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The FMEG segment, particularly fans, underperformed due to unseasonal rains and changes in BIS norms affecting inventory levels.
Q & A Highlights
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Q: Can you provide insights on the growth prospects for the communication cable segment, especially considering the current demand and supply challenges? A: The communication cable segment is experiencing high demand, particularly from data centers and military applications. However, supply chain challenges, including restrictions on raw materials for military use, limit opportunities. While predicting exact growth is difficult due to market volatility, we expect margins to improve beyond the current 6% as supply chain issues are resolved. (Respondent: Deputy CEO and CFO)
Q: What steps have been taken to improve the performance of the EHV joint venture, and what is the outlook for this business? A: The EHV joint venture has focused on higher voltage grades and a mix of supply and turnkey projects, improving cash turnaround times and capacity utilization. The market for EHV cables is expected to grow significantly, and we plan to enhance capacity to meet this demand. (Respondent: Deputy CEO and CFO)
Q: Why has the housing wires segment not grown as expected despite a strong real estate cycle? A: The housing wires segment has been impacted by copper price volatility, leading to cautious trade stocking. While project sales remain stable, retail sales have been affected as distributors are hesitant to invest in inventory amid price fluctuations. (Respondent: Deputy CEO and CFO)
Q: How will the new preform capacity impact the communication cables business, and when will we see the benefits? A: The preform capacity will provide flexibility to either sell preforms or convert them into fiber and cables, depending on market conditions. Benefits from the preform capacity are expected to materialize by the end of Q2 or early Q3, with improved revenue potential in the second half of the year. (Respondent: Deputy CEO and CFO)
Q: What is the current status of the export business, and what are the future plans? A: The export team has been revamped, leading to an increase in export revenue from 30 crores to 52 crores. We aim to increase the export revenue share to 2-3% over the next two years, leveraging the new team's capabilities. (Respondent: Deputy CEO and CFO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
