Finolex Cables profit jumps 68 prcnt in Q2

Finolex Cables Limited (NSE: FINCABLES) reported a strong Q2 FY27 performance, with consolidated revenue from operations increasing 64.9% YoY to ₹2,269 crore. Net profit surged 67.8% to ₹273 crore, compared with ₹163 crore in the corresponding quarter last year. Key Highlights • Revenue increased 64.9% YoY to ₹2,269 crore. • EBITDA stood at approximately ₹311 crore, more than doubling from ₹145 crore. • EBITDA margin expanded to 13.7% from 10.5% a year earlier. • Profit before tax increased 73% to ₹357 crore. • Net profit grew 67.8% to ₹273 crore. • Revenue increased 12.7% sequentially compared with Q1 FY27. • The electrical segment recorded growth across automobile, agricultural, industrial and solar applications. • Optical fibre cable volumes increased significantly year on year. • The company expects its fibre draw facility, with a capacity of 4 million fibre kilometres, to reach full capacity during FY27. My View The improvement in EBITDA margin from 10.5% to 13.7% is particularly encouraging. Growth across electrical applications and optical fibre cables also highlights the company's exposure to multiple infrastructure and industrial demand drivers. However, the sharp increase in revenue should be evaluated alongside copper prices, product mix and volume growth. Higher commodity prices can increase reported sales without necessarily translating into equivalent volume expansion. What I'm Watching Next I will monitor electrical cable demand, optical fibre volumes, EBITDA margins and the commissioning of the expanded fibre draw facility. The key question is whether Finolex can sustain its profitability as it scales manufacturing capacity. Stance: Positive on earnings growth, margin expansion and diversified demand, but cautious about commodity-price movements and the sustainability of growth. Disclosure: I do not have any holding or position in the stock mentioned above. FINCABLES