Finolex Cables Ltd Q1 FY26 – From Wires to Wahiyat Market Crash?
1. At a Glance
Finolex Cables, the “para” (neighbourhood) uncle of India’s cable market, commands a 25% organized wires share and has 50,000 SKUs. It’s debt-free, cash-rich, backward-integrated, and even has Bollywood’s Kartik Aaryan and Kiara Advani smiling from posters. Yet, the stock is down 40% in a year, making shareholders feel like they invested in an extension cord that got unplugged.
2. Introduction
For over 50 years, Finolex Cables has been wiring up India—literally. From homes to highways, its copper runs everywhere. But investors don’t live on copper; they live on returns. And here’s where the comedy starts.
Despite industry leadership, the market treats Finolex like the “middle child” of the wires & cables family. Polycab has run away with the inheritance (₹1.1 lakh Cr market cap), KEI is the nerd topping exams (₹39k Cr), while Finolex, at ₹13k Cr, is the well-behaved cousin who doesn’t break rules but doesn’t get attention either.
Add to this: family feuds in management, some GST tax orders, liquidation of a JV with Corning, and the stock’s fall from ₹1,559 to ₹846 in 12 months. Basically, the company is profitable and consistent—but the market is swiping left.
Communication Cables (10%): Fiber optics, coaxial, LAN—stuff your Wi-Fi depends on.
Copper Rods (1%): Backward integration. Basically, they melt copper so they don’t have to buy it expensively.
Others (5%): Includes FMEG (fans, switches, LED lights, smart locks, etc.) and home appliances. The brand endorsement with Kartik & Kiara is clearly to look “cool Gen Z,” even if the products remain boomer-ish.
They also run a JV—Finolex J-Power Systems (49%)—focused on power transmission cables, with a ₹260 Cr order book.
Question to readers: Would you rather bet on a company that sells copper wires to contractors or one that sells glossy LED ads with Kartik Aaryan?
4. Financials Overview
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
₹1,396 Cr
₹1,230 Cr
₹1,595 Cr
13.4%
-12.5%
EBITDA
₹131 Cr
₹120 Cr
₹166 Cr
9.2%
-21.1%
PAT
₹139 Cr
₹123 Cr
₹152 Cr
13.0%
-8.6%
EPS (₹)
9.08
8.01
9.93
13.4%
-8.6%
Commentary: Growth is okay YoY, but margins are thinning and QoQ decline shows demand softness. Basically, sales grew, profits held—but the market yawned.
5. Valuation Discussion – Fair Value Range Only
P/E Method: EPS ₹36.7 × 18–25 = ₹660 – ₹918
EV/EBITDA: FY25 EBITDA ₹525 Cr × 14–18 = ₹7,350–₹9,450 Cr → Per share value ₹480 – ₹620
DCF: Normalised PAT ~₹600 Cr, growth 8%, cost of equity 13% → ₹750 – ₹950
📌 Fair Value Range: ₹650 – ₹950 (Current CMP ₹846 is within range; stock is neither bargain-bin nor champagne.)
Disclaimer: This fair value range is for educational purposes only and is not investment advice.
