This article first appeared on GuruFocus .
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Volume (Q2 FY26):Decreased by 6% to 65,336 metric tonnes from 69,341 metric tonnes year-over-year.
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Total Income from Operations (Q2 FY26):Increased by 4% to INR 859 crores from INR 828 crores year-over-year.
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EBITDA (Q2 FY26):Improved to INR 130 crores from INR 11 crores year-over-year.
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PAT (Q2 FY26):Increased to INR 119 crores from INR 51 crores year-over-year.
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Volume (H1 FY26):Decreased by 2% to 157,645 metric tonnes from 159,961 metric tonnes year-over-year.
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Total Income from Operations (H1 FY26):Decreased to INR 1,902 crores from INR 1,969 crores year-over-year.
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EBITDA (H1 FY26):Improved by 3% to INR 224 crores from INR 217 crores year-over-year.
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PAT (H1 FY26):INR 216 crores compared to INR 557 crores, with the previous year including exceptional gains of INR 417 crores.
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Net Cash Surplus (as of September 30, '25):INR 2,360 crores.
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Release Date: November 10, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Finolex Industries Ltd ( BOM:500940 ) reported a significant improvement in EBITDA margin, increasing to INR130 crores from INR11 crores in the same quarter last year.
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The company achieved a PAT of INR119 crores, up from INR51 crores in the same quarter last year.
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Non-agri segment volume grew by 7%, indicating successful diversification efforts.
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The company maintains a strong balance sheet with a net cash surplus of around INR2,360 crores as of September 30, 2025.
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CPVC segment is growing at a double-digit rate, reflecting strong demand and strategic focus.
Negative Points
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Overall volume decreased by 6% in Q2 FY26 due to prolonged heavy monsoon affecting the agri segment.
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Total income from operations slightly decreased to INR1,902 crores for H1 FY26 compared to INR1,969 crores last year.
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The company faces challenges in maintaining a 50-50 agri and non-agri sales mix due to seasonal demand fluctuations.
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Capacity utilization for the first half of the year was around 70%, indicating potential underutilization.
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The company anticipates maintaining an EBITDA margin of 10% to 12% for the full year, suggesting potential margin pressure in upcoming quarters.
Q & A Highlights
Q: Can you explain the significant improvement in EBITDA and EBITDA margin this quarter, and how inventory changes have impacted this? A: Chandan Verma, CFO: The gross margin for the current quarter stood at 42%, up from 30% in the previous year. The improvement is not directly due to inventory gains or losses but rather our focus on operational efficiency and margin improvement. We aim to maintain the EBITDA margin at this level going forward.
Q: How has the realization increased significantly on a quarter-on-quarter basis, and what is the outlook for agri and non-agri segments? A: Chandan Verma, CFO: The realization increase is due to a shift in the sales mix towards the non-agri segment, which grew by 7% while the agri segment declined due to prolonged monsoons. The current ratio of agri to non-agri is 56:44, and we aim to maintain a balanced mix to manage seasonality.
Q: What is the outlook for volume growth in the second half of the year and beyond? A: Udipt Agarwal, Managing Director: We are now looking at mid-single-digit growth for the year, with expectations of double-digit growth from FY27 onwards, supported by infrastructure and real estate developments.
Q: What are the current challenges in procuring VCM, and how are you addressing them? A: Udipt Agarwal, Managing Director: There are structural issues in the global VCM market, but we are managing these through long-term contracts to ensure a continued supply for our operations.
Q: Can you provide details on the company's capacity and utilization rates? A: Chandan Verma, CFO: Our current capacity for pipes and fittings is 520,000 metric tonnes, with a utilization rate of around 70% for the first half of the year. We expect this to increase to 74-75% in the coming years.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
