Finolex Cables expands margin as revenue growth outpaces costs
Consolidated revenue rose +12.73% QoQ, but the higher tax rate limited net-profit growth to +9.59% despite a 1.58-percentage-point margin improvement.
Filed 07 Nov 2026, 13:50 IST · after market close · Finolex Cables Ltd (FINCABLES)
Key takeaways
- Consolidated revenue grew 64.95% year on year as expenses grew 59.11%, lifting operating margin by 3.16 percentage points.
- Net profit rose 67.81% year on year, but other income contributed 19.25% of profit before tax and the tax rate increased 2.35 percentage points.
- Operating margin improved to 13.71%, 2.20 percentage points above the 11.51% median for 198 Industrials peers that reported the quarter.
Price around the results
Revenue growth translated into sharper operating leverage
Finolex Cables reported consolidated revenue growth of 64.95% year on year in Q2FY27, while expenses grew 59.11%. The slower expense growth lifted operating profit by 114.47% and widened operating margin by 3.16 percentage points. Sequentially, revenue increased 12.73% and operating profit rose 27.46%, with costs growing 10.69%.
Margin gains outweighed higher tax and funding costs
The quarter's margin expansion came as revenue grew faster than expenses, rather than from a reduction in absolute costs. The tax rate rose 2.35 percentage points year on year and 2.68 percentage points sequentially, while interest expense increased 38.64% year on year. Other income accounted for 19.25% of profit before tax, so a meaningful part of reported profit came outside operations.
Operating margin has risen for three consecutive quarters
Operating margin improved from 9.25% in Q4FY26 to 12.13% in Q1FY27 and 13.71% in Q2FY27. The latest margin was 2.20 percentage points above the 11.51% median among 198 Industrials peers that had reported the same quarter. This marks a clear reversal from the margin decline seen across the first three quarters of FY26.
Results came after market close; prior reactions were mixed
The results were filed after market close, so the market response is not yet part of this read. Across the last eight results, the stock rose after three announcements and fell after five, with a median absolute move of 3.48%, indicating that post-results moves have more often been negative than positive.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,269 cr | ₹2,013 cr | +12.73% | +64.95% |
| Other income | ₹69 cr | ₹92 cr | -25.59% | -9.13% |
| Expenses | ₹1,958 cr | ₹1,769 cr | +10.69% | +59.11% |
| Operating profit | ₹311 cr | ₹244 cr | +27.46% | +114.47% |
| Operating margin (%) | 13.71% | 12.13% | — | — |
| Interest | ₹1 cr | ₹0 cr | +35.56% | +38.64% |
| Depreciation | ₹23 cr | ₹22 cr | +4.96% | +61.18% |
| Profit before tax | ₹357 cr | ₹314 cr | +13.42% | +72.96% |
| Tax | ₹84 cr | ₹65 cr | +27.99% | +92.22% |
| Net profit | ₹273 cr | ₹249 cr | +9.59% | +67.81% |
| EPS (₹) | ₹17.85 | ₹16.28 | +9.64% | +67.92% |
Operating margin of 13.71% compares with a Industrials sector median of 11.51% across 198 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 13.71% after the recent rise from 12.13%.
- Whether revenue growth remains ahead of expense growth, after the Q2FY27 gap of 64.95% versus 59.11%.
- Whether other income remains below 19.25% of profit before tax and the tax rate moves from 23.48%.