Finolex Cables profit rises, but margin slips for a second straight quarter
Revenue grew 22.36% year on year, yet expenses rose faster at 24.36%; other income accounted for 46.16% of pre-tax profit.
Filed 15 Jul 2026, 10:02 IST · Finolex Cables Ltd (FINCABLES)
Key takeaways
- Consolidated net profit rose 17.07% year on year, but operating margin narrowed 1.46 percentage points to 9.25%.
- Other income contributed 46.16% of profit before tax, making the 16.03% rise in pre-tax profit less representative of operating performance.
- The stock fell 3.48% on the results day and 10.17% after five sessions, versus a 2.49% median absolute move after its previous eight results.
Price around the results
Volume-led growth did not translate into operating leverage
Finolex Cables reported consolidated revenue growth of 22.36% year on year, while operating profit increased only 5.63%. Management said Q4 performance was driven by volume expansion across key product categories in its Wires & Cables segment. The operating margin was 6.41 percentage points below the 15.66% median for 71 Industrials peers that had reported the quarter.
Costs outpaced sales and other income lifted pre-tax profit
Expenses grew 24.36% year on year against 22.36% revenue growth, narrowing operating margin by 1.46 percentage points; sequentially, the margin fell another 0.61 percentage points as expenses grew 22.87% versus 22.05% revenue growth. Other income rose 35.25% year on year and represented 46.16% of profit before tax, so the 16.03% pre-tax profit increase had a substantial non-operating contribution. The tax rate fell 0.66 percentage points year on year, providing a modest additional lift to net profit.
Margin has declined from the Q2FY26 peak
Operating margin rose to 10.55% in Q2FY26 before easing to 9.86% in Q3FY26 and 9.25% in Q4FY26, marking two consecutive quarterly declines. Net profit still grew 36.82% sequentially, helped by an 88.58% increase in other income and a 1.82-percentage-point rise in the tax rate that partly offset that benefit.
Management points to efficiencies and market expansion
Management said it remains focused on sustaining momentum through operational efficiencies and market expansion. The company attributed the quarter's performance to volume expansion across key Wires & Cables product categories. These comments point to the stated business priorities, while the quarter's margin data shows that cost growth remains the immediate operating issue.
The market reaction was weaker than its recent pattern
The stock declined 3.48% on the results day and was down 10.17% after five sessions, underperforming the market by 7.91% over that five-session period. Its previous eight results produced three rises and five falls, with a median absolute move of 2.49%, making the initial decline and five-session move larger than its usual reaction.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,951 cr | ₹1,599 cr | +22.05% | +22.36% |
| Other income | ₹140 cr | ₹74 cr | +88.58% | +35.25% |
| Expenses | ₹1,771 cr | ₹1,441 cr | +22.87% | +24.36% |
| Operating profit | ₹180 cr | ₹158 cr | +14.53% | +5.63% |
| Operating margin (%) | 9.25% | 9.86% | — | — |
| Interest | ₹0 cr | ₹0 cr | -2.22% | -12.00% |
| Depreciation | ₹17 cr | ₹15 cr | +11.28% | +34.22% |
| Profit before tax | ₹303 cr | ₹216 cr | +40.20% | +16.03% |
| Tax | ₹79 cr | ₹52 cr | +50.78% | +13.19% |
| Net profit | ₹224 cr | ₹164 cr | +36.82% | +17.07% |
| EPS (₹) | ₹14.67 | ₹10.73 | +36.72% | +17.08% |
Operating margin of 9.25% compares with a Industrials sector median of 15.66% across 71 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -3.48% | -1.98% |
| Next session | -15.93% | — |
| 5 sessions | -10.17% | -7.91% |
| 15 sessions | -1.10% | — |
| 30 sessions | -10.10% | — |
Volume on the results session was 1.19× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Q4 performance was driven by healthy volume expansion across key product categories in the Wires & Cables segment.
Guidance & outlook
- The company remains focused on sustaining momentum through operational efficiencies and market expansion.
What to watch
- Whether consolidated operating margin holds above 9.25% after two consecutive quarterly declines.
- Whether expenses continue to grow faster than revenue, after the 24.36% versus 22.36% year-on-year gap.
- Whether other income remains near its 46.16% share of profit before tax.