Finolex Industries Limited – Financial Results for FY 2025‑26

Announcement Date: 26 May 2026

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Introduction

Finolex Industries Limited (CIN L40108PN1981PLC024153) has released its audited standalone and consolidated financial statements for the quarter and the full fiscal year ended 31 March 2026. The filing includes the income statement, balance sheet, and cash‑flow statement for both reporting bases.

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1. Key Financial Highlights

1.1 Standalone Results (Quarter & Year)

Metric	Q1 FY 2026 (Mar 31)	FY 2026 (Mar 31)
Revenue from operations	₹ 1,313.88 cr	₹ 4,113.43 cr
Total income	₹ 1,350.32 cr	₹ 4,326.64 cr
Profit before tax	₹ 334.50 cr	₹ 764.74 cr
Profit for the period	₹ 254.22 cr	₹ 580.34 cr
Earnings per share (EPS) – basic & diluted	₹ 4.11	₹ 9.39
Total comprehensive income	₹ 305.86 cr	₹ 321.58 cr
Total assets	₹ 7,407.70 cr	—
Total equity	₹ 6,077.36 cr	—
Cash & cash equivalents (end‑year)	₹ 31.40 cr	—

Compared with FY 2025, standalone revenue grew modestly (≈ 0.6 % YoY) while profit before tax fell from ₹ 1,004.69 cr to ₹ 764.74 cr, reflecting higher expenses and a lower exceptional item.

1.2 Consolidated Results (Quarter & Year)

Metric	Q1 FY 2026 (Mar 31)	FY 2026 (Mar 31)
Revenue from operations	₹ 1,313.88 cr	₹ 4,113.43 cr
Total income	₹ 1,350.32 cr	₹ 4,324.79 cr
Profit before tax	₹ 351.01 cr	₹ 805.04 cr
Profit for the period	₹ 261.25 cr	₹ 599.05 cr
Earnings per share (EPS) – basic & diluted	₹ 4.23	₹ 2.66
Total comprehensive income	₹ 312.95 cr	₹ 340.43 cr
Total assets	₹ 7,595.57 cr	—
Total equity	₹ 6,214.71 cr	—
Cash & cash equivalents (end‑year)	₹ 31.40 cr	—

Consolidated profit before tax declined from ₹ 1,043.24 cr (FY 2025) to ₹ 805.04 cr, mainly due to lower operating profit and the absence of an exceptional gain recorded in the prior year.

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2. Balance Sheet Snapshot

2.1 Standalone Position (31 Mar 2026)

Category	Amount (₹ Cr)
Non‑current assets	3,439.13
Current assets	3,968.57
Total assets	7,407.70
Equity	6,077.36
Non‑current liabilities	210.72
Current liabilities	1,119.62
Total liabilities	1,330.34
Cash & cash equivalents	31.40

Key changes:

• Inventories rose to ₹ 1,025.96 cr (+31 %).
• Borrowings increased sharply to ₹ 437.32 cr from ₹ 221.08 cr a year earlier.
• Lease liabilities fell to ₹ 1.97 cr (non‑current) and ₹ 6.35 cr (current).

2.2 Consolidated Position (31 Mar 2026)

Category	Amount (₹ Cr)
Non‑current assets	3,627.00
Current assets	3,968.57
Total assets	7,595.57
Equity	6,214.71
Non‑current liabilities	261.24
Current liabilities	1,119.62
Total liabilities	1,380.86
Cash & cash equivalents	31.40

Key observations:

• Investments in associates grew to ₹ 195.42 cr.
• Deferred tax liabilities reduced to ₹ 212.12 cr.
• Government grants (non‑current) decreased to ₹ 28.36 cr.

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3. Cash‑Flow Overview

3.1 Operating Activities

• Net cash generated: ₹ 191.75 cr (FY 2026) vs. ₹ 382.68 cr (FY 2025).
• Main drivers: profit before tax, depreciation (₹ 106.75 cr), and finance cost recovery (₹ 20.58 cr).
• Working‑capital outflow of ₹ 382.63 cr, mainly due to higher inventory build‑up and lower trade payables.

3.2 Investing Activities

• Net cash used: ₹ (155.65) cr, reflecting:
  • Purchase of investments (₹ 202.55 cr).
  • Capital expenditure on plant & equipment (₹ 64.98 cr).
  • Proceeds from asset disposals (₹ 6.27 cr).

3.3 Financing Activities

• Net cash used: ₹ (49.09) cr.
• Highlights:
  • Short‑term borrowings net inflow of ₹ 200.71 cr.
  • Dividend paid of ₹ 222.59 cr.
  • Lease‑related payments of ₹ 8.34 cr.

3.4 Cash Position

• Ending cash & cash equivalents: ₹ 31.40 cr, down from ₹ 44.39 cr at the start of FY 2026.

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4. Notable Points & Management Considerations

• Revenue Growth: Standalone and consolidated revenues remained broadly flat YoY, indicating a challenging market environment.
• Profitability Pressure: Both profit before tax and net profit declined YoY, driven by higher material costs, increased expenses, and the absence of the prior‑year exceptional gain.
• Liquidity: Cash balances fell modestly; however, the company maintained a strong equity base (≈ 82 % of total financing).
• Leverage: Borrowings more than doubled year‑on‑year, raising the debt‑to‑equity ratio; investors should monitor debt servicing capacity.
• Dividend Policy: A dividend of ₹ 222.59 cr was paid, reflecting continued commitment to shareholder returns despite lower earnings.

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5. Bottom Line for Investors

Finolex Industries posted stable top‑line performance but declining profitability in FY 2025‑26, with earnings per share falling to ₹ 4.11 (standalone) and ₹ 4.23 (consolidated) on a quarterly basis. The balance sheet remains robust, supported by a sizable equity cushion, yet the rise in borrowings and weaker cash generation warrant close observation.

Investors should watch for:

• Future revenue trends in the PVC and related segments.
• Cost‑containment measures to improve margins.
• Debt management and any refinancing activity.
• Management commentary on the outlook for FY 2026‑27, especially regarding capital expenditure and working‑capital efficiency.

All figures are taken directly from the company’s audited standalone and consolidated financial statements for the quarter and year ended 31 March 2026.