Finolex Cables Ltd. witnessed a significant surge in its stock value on Tuesday, with shares jumping 15.70% to reach a new 52-week high of Rs 1,225. This impressive performance came on the heels of the company's strong financial results for the first quarter of fiscal year 2027 (Q1 FY27).
Robust Financial Performance Drives Growth
The Pune-based electrical and communication cable manufacturer reported a consolidated net profit attributable to owners of Rs 249.04 crore for Q1 FY27. This marks a substantial 53.14% increase compared to Rs 162.62 crore recorded in the corresponding quarter of the previous fiscal year (Q1 FY26).
Revenue from operations also saw a healthy rise, climbing 44.26% year-on-year to Rs 2,013.15 crore in Q1 FY27, up from Rs 1,395.52 crore in Q1 FY26.
Segment Contributions and Operational Challenges
Finolex Cables highlighted strong volume growth across its key segments. Electrical wire volumes increased by 7% during the quarter, largely driven by demand from agricultural, industrial, and solar applications. The communication cables segment also performed well, with optic fibre cable volumes experiencing a significant year-over-year increase. Higher realisations within this segment further bolstered profit margins.
Despite the overall positive performance, the company faced operational hurdles. Its copper rod plant remained un-operational during the quarter due to a severe scarcity of fuel, specifically LPG and PNG, attributed to the ongoing conflict in the Middle East. This limited fuel availability also impacted volumes in some of its newer product categories. Additionally, Finolex Cables noted that copper prices remained elevated throughout the quarter, prompting the company to implement selling price increases in May to mitigate the impact.
Expansion Plans on Track
Looking ahead, Finolex Cables confirmed that its expansion plans for the fibre draw facility are progressing as scheduled. The company anticipates that the new plant, which will add 4 million fibre kilometres of capacity, will be fully operational by the third quarter of the current fiscal year (Q3 FY27).
Finolex Cables is a leading Indian manufacturer known for its diverse product portfolio, including electrical and communication cables used in various sectors such as automobiles, lighting, telecommunications, and industrial applications. The company also offers a range of electrical consumer products like switches, LED lamps, fans, low-voltage MCBs, water heaters, and electric irons.