FINPIPENSEQ4 FY26May 27, 2026

Finolex Industries Limited

8,039words
140turns
10analyst exchanges
3executives
Management on call
Udipt Agarwal
MANAGING DIRECTOR – FINOLEX INDUSTRIES LIMITED
Chandan Verma
CHIEF FINANCIAL OFFICER – FINOLEX INDUSTRIES LIMITED
Arun Baid
ICICI SECURITIES LIMITED
Key numbers — 40 extracted
12%
owever, the actual results may differ. Coming back to our quarter 4 of FY26 performance. We had a 12% growth on year-on-year on the revenue and the revenue for the quarter 4 stood at INR1,314 crores
INR1,314 crore
. We had a 12% growth on year-on-year on the revenue and the revenue for the quarter 4 stood at INR1,314 crores as compared to the quarter 4 of FY25 of INR1,172 crores. EBITDA, we had a significant improvemen
INR1,172 crore
nd the revenue for the quarter 4 stood at INR1,314 crores as compared to the quarter 4 of FY25 of INR1,172 crores. EBITDA, we had a significant improvement. It nearly doubled to INR332 crores from INR171 crores
INR332 crore
rter 4 of FY25 of INR1,172 crores. EBITDA, we had a significant improvement. It nearly doubled to INR332 crores from INR171 crores in the previous year quarter. And as a result, there is a margin improvemen
INR171 crore
NR1,172 crores. EBITDA, we had a significant improvement. It nearly doubled to INR332 crores from INR171 crores in the previous year quarter. And as a result, there is a margin improvement of 25%. Profit be
25%
m INR171 crores in the previous year quarter. And as a result, there is a margin improvement of 25%. Profit before tax rose 65% to INR334 crores from INR203 crores in quarter 4 of FY25. And corresp
65%
ous year quarter. And as a result, there is a margin improvement of 25%. Profit before tax rose 65% to INR334 crores from INR203 crores in quarter 4 of FY25. And correspondingly, this EBIT jump als
INR334 crore
ear quarter. And as a result, there is a margin improvement of 25%. Profit before tax rose 65% to INR334 crores from INR203 crores in quarter 4 of FY25. And correspondingly, this EBIT jump also from INR144 cr
INR203 crore
a result, there is a margin improvement of 25%. Profit before tax rose 65% to INR334 crores from INR203 crores in quarter 4 of FY25. And correspondingly, this EBIT jump also from INR144 crores of Q4 FY25 to
INR144 crore
4 crores from INR203 crores in quarter 4 of FY25. And correspondingly, this EBIT jump also from INR144 crores of Q4 FY25 to INR306 crores of Q4 FY26. During the course of the quarter, the volume were broadl
INR306 crore
s in quarter 4 of FY25. And correspondingly, this EBIT jump also from INR144 crores of Q4 FY25 to INR306 crores of Q4 FY26. During the course of the quarter, the volume were broadly flat for us. And this quar
INR4,113 crore
s of the quarter 4 FY25. Moving on to the full year '25-'26 performance. We had a flat revenue of INR4,113 crores against FY25 of INR4,142 crores. The lower volumes which we had during the course of the year we
Guidance — 20 items
Arun Baid
opening
“On behalf of ICICI Securities, I welcome you all to the Q4 FY26 Post Results ConCall of Finolex Industries.”
Udipt Agarwal
opening
“Coming back to our quarter 4 of FY26 performance.”
Udipt Agarwal
opening
“We had a 12% growth on year-on-year on the revenue and the revenue for the quarter 4 stood at INR1,314 crores as compared to the quarter 4 of FY25 of INR1,172 crores.”
Udipt Agarwal
opening
“Profit before tax rose 65% to INR334 crores from INR203 crores in quarter 4 of FY25.”
Udipt Agarwal
opening
“And correspondingly, this EBIT jump also from INR144 crores of Q4 FY25 to INR306 crores of Q4 FY26.”
Udipt Agarwal
opening
“And this quarter, our volume was 101,772 tons versus 102,253 tons of the quarter 4 FY25.”
Udipt Agarwal
opening
“We had a flat revenue of INR4,113 crores against FY25 of INR4,142 crores.”
Chandan Verma
qa
“So overall, the volume has remained flat, but the dragging has mainly happened on account of agri volume not getting picked up because the farmers were quite -- they were also anticipating that the prices -- because of prices volatility, they have -- they were anticipating that there will be softening in the prices.”
Sneha
qa
“Any guidance that you would like to give?”
Chandan Verma
qa
“Overall, the kind of margin that we have -- you have seen during the current quarter is obviously certain at the higher side, but going to be -- going forward, it is going to moderate to some extent.”
Risks & concerns — 13 flagged
So this is near-term positive for integrated producers like us, but the supply uncertainty and cost inflation remains a risk, but which we continue to monitor very, very closely.
— Udipt Agarwal
It's very difficult to pinpoint what is -- how the margin came on for a particular initiative.
— Udipt Agarwal
That's what I'm saying sub-15 number with anywhere, it's very difficult to pinpoint at the so dynamic environment.
— Udipt Agarwal
So you have seen in March, there is a decline in market has gone for a lower trajectory.
— Chandan Verma
So keeping that risk in mind, we have optimal level.
— Udipt Agarwal
While I just want to understand if we file the ADD again, do they keep -- do they understand the impact which has happened in the March that might decline the ADD purpose because at that point of time, the prices were at a high prices compared to the historical average.
— Pujan Shah
So this quarter, there would be a substantial pressure on profitability.
— Vipulkumar
But yes, the delta is currently, you are seeing the impact of current pricing.
— Chandan Verma
Yes, sir, but we have clocked 17% in FY26, which was a difficult year.
— Anu Parakh
And sir, the last question would be, what is the reason that all other listed plastic pipe companies are looking forward to geographically expand the manufacturing footprint and expand the product portfolio, but we are pursuing a different strategy and delivering weak volume growth compared to them.
— Anu Parakh
And with the increased better transport infrastructure available in the country, the distance are becoming shorter and shorter or I should say, the impact of the distance is becoming less and less.
— Udipt Agarwal
Like even if you move another capacity at some other location, it will be difficult to cater all the product and SKU on the single location, number one.
— Udipt Agarwal
I think currently -- and particularly, the volume decline in the agri you have seen, basically, you see agri has always a homogeneous growth trajectory.
— Udipt Agarwal
Q&A — 10 exchanges
Q
Just a couple of questions from my end. Firstly, what could be the quantum of the inventory gain in this particular quarter?
Udipt Agarwal
Chandan, do you want to take that? Sneha, so we have -- as like the other PVC pipe producers, we have also the inventory gain during the quarter -- during the month of April, March when the prices have gone high. It ranges amount roughly around -- on an average, INR35 crores to INR40 crores around. Understood. My second question was related to your volume growth. What we were also hearing from the other plastic producers was there was a good amount of restocking, which took place because of which, of course, the volume was much higher. And of course, we are seeing consolidation. We saw good gr
Q
I was just wondering in terms of the demand, how is it on the ground level? I understand that the Q4 was not so great because of the rapid price hike. But in terms of, let's say, consolidation in the market, especially in the agri space, how has it been in terms of competition and other things?
Udipt Agarwal
Sorry, I could not completely understand your question. Can you come again? Yes, am I audible right now? Yes. I was trying to -- I was asking, sir, in terms of competition overall in the agri space right now, how has it been? And how is the customer demand sentiment besides the Q4 rapid price spike, like is there any consolidation? And how is the overall market competition versus because some of our players are getting a little more aggressive on track. So just wondering what's happening on the ground. No. The story is different for everybody because the ratio or the dependence on the agri mar
Q
Congrats on a good set of numbers. I have a couple of questions. Just, sir, can you share the agri you have shared the 63%. So for fourth quarter, it comes around 62%. What was the CPVC share in the volume and fitting share for fourth quarter and possible for fourth quarter of last year and maybe the full year FY25, '26, if you can share both CPVC share and the fitting share?
Udipt Agarwal
Thanks, Shravan, for the question. And I think Chandan has the numbers handy with him. So CPVC share on the overall portfolio, it comes out to be roughly around 7% to 8% during the current quarter. And last year, it was roughly around 6% to 7%. So it hovers around roughly around 6% to 7% and currently 7% to 8%. And on a year basis, year-on-year basis, this is the same. 7% to 8% range on overall volume. Okay. And fitting share, sir? So fitting share in total business is roughly around 90:10 is the ratio that we maintain. Sorry, sir, I didn't get. 12% is the fitting... 90 to 10%. So 90% is the p
Q
Praveen Sahay from PL Capital. My question is related to the capacity. So capacity of 520,000 what you had said. And if there is no expansion, is there a constant capacity has become a constant for a volume growth? Because if I look at last quarter and the utilization rate were very high of some 78%, 80% of the utilization. So is that a constraint for a growth for you right now?
Udipt Agarwal
No. So capacity is not a constraint for the growth. As Mr. Chandan Verma mentioned in the response to one of the earlier questions is that there is a constant capex planning of INR125 crores to INR100 crores to INR200 crores, which we have been always saying. So this year also, we would be also spending a substantial amount into the capacity augmentation. As you mentioned, the changing the lines from a lower capacity to the higher capacity. That also leads to the capacity expansion, I mean, having additional capacity available for production. So certainly, capacity availability is not a constr
Q
Sir, my question pertains to the -- so first of all, I just want to get a sense on the government regulation side…
Udipt Agarwal
Sorry to interrupt you, but your voice is not very clear. Can you come closer to the mouth piece, mic, please. Am I clear now, sir? Better, better. Okay. Sir, my question pertains to the government regulation. So as an industry PVC, we have been struggling for 1.5 years and considering the demand scenario and we also -- industry has also filed the ADD, but it didn't implement it. While I just want to understand if we file the ADD again, do they keep -- do they understand the impact which has happened in the March that might decline the ADD purpose because at that point of time, the prices were
Q
So you said this VCM delta was $170 in last quarter. And right now, it is $108. Have I understood it correctly?
Chandan Verma
Yes. So half of your capacity is VCM based. So this quarter, there would be a substantial pressure on profitability. Is that understanding correct? Yes. To some extent, you are correct. But yes, the delta is currently, you are seeing the impact of current pricing. But yes, we are trying to -- we are -- our discussion is already on to have the proper VCM at the optimum prices. So that we are also trying to have the inventory. No, no. But whatever you are getting at a market price, but if the spread is lower, naturally, your profitability will be affected. And half of your capacity is VCM based?
Q
Am I audible?
Udipt Agarwal
Yes, we can hear you. Can you bit come closer to the mic, please? Am I audible now? Yes, it's better now. So I just -- so first question is what proportion of VCM quantity sourced from Middle East region and whether our PVC resin production is likely to get impacted in FY27 in case the geopolitical issue persists for the next, say, 3 to 6 months? Yes, Middle East has been the large supplier to India for VCM. So that has been -- there has been an impact. At the same time, coming to the next part of your question, will we see an impact for the full year? As you might already know that during the
Q
Sir, what is the utilization -- capital utilization for FY25 and FY26?
Chandan Verma
So currently, FY26, we have the utilization 67%. And last year, though, since our -- we have added a few capacity this year, Q1 of the current year. So last year, we had a higher utilization of 71%. Sorry, sir? So last year, we have ended with our capacity of 4,92,000. So based on that, our utilization was 71%. Current year, we have the capacity of 5,20,000. So based on that, our utilization is 67%.
Q
Sir, broadly, if I have to look at the price difference and maybe ultimately the margin difference between the agri, non-agri for us, how one can look at...
Udipt Agarwal
Shravan, so this number definitely margin, there is a gap in the agri and non-agri realization and margin growth, but we do not disclose in the public. Okay. No, the point is -- I'm not asking a specific number, what's the price difference or the margin difference, but the range would be decently higher, let's say, on the margin front. Definitely, we have to see -- non-agri has a higher margin than the agri. That's what I can comment maximum here. Yes. No. So the point is that given the significant -- even the previous participant was also trying because for last many, many times, we are not a
Q
Thank you all who participated in our call. I must say that the questions which were asked by you are very, very pertinent. And I must say they are very well researched also. And we'll continue to put in our best efforts as a company to meet the expectations of the shareholders and the investors. I hope to see you next time for our quarter 1 FY27 conference call. Thank you. Thank you for your continued interest in Finolex Industries.
Chandan Verma
Thank you so much for -- to all the participants and showing your continuous interest and belief in the strength that Finolex is having. We are delighted to see your questions and insight that you bring in the investors call, and we will keep to -- your expectation to the extent it is possible. Thank you so much to all of you.
Speaking time
Udipt Agarwal
39
Chandan Verma
27
Shravan Shah
15
Moderator
12
Praneeth
10
Vipulkumar
10
Sneha
7
Anu Parakh
7
Praveen Sahay
6
Pujan Shah
4
Opening remarks
Arun Baid
Thank you, Julius. Good afternoon, ladies and gentlemen. On behalf of ICICI Securities, I welcome you all to the Q4 FY26 Post Results ConCall of Finolex Industries. From the management side, we have Mr. Udipt Agarwal, Managing Director; and Mr. Chandan Verma, CFO. Now I hand over the call to Mr. Udipt for his opening remarks, post which we'll open the floor for Q&A. Over to you, Udipt.
Udipt Agarwal
Thank you. Thanks, Arun, and good afternoon, ladies and gentlemen. Welcome to Finolex Industries Earnings Call for Quarter 4 and for the Full Financial Year 25-26. We are very pleased to have you here today with us. Just a reminder to everyone that during the course of this call, there might be certain forward-looking statements based on our current view. However, the actual results may differ. Coming back to our quarter 4 of FY26 performance. We had a 12% growth on year-on-year on the revenue and the revenue for the quarter 4 stood at INR1,314 crores as compared to the quarter 4 of FY25 of INR1,172 crores. EBITDA, we had a significant improvement. It nearly doubled to INR332 crores from INR171 crores in the previous year quarter. And as a result, there is a margin improvement of 25%. Profit before tax rose 65% to INR334 crores from INR203 crores in quarter 4 of FY25. And correspondingly, this EBIT jump also from INR144 crores of Q4 FY25 to INR306 crores of Q4 FY26. During the course o
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