Finolex Industries Limited has released the transcript of its Earnings Call held on May 27, 2026, following the declaration of its Audited (Standalone & Consolidated) Financial Results for the Quarter and Year ended March 31, 2026. The transcript is available on the company's website. During the call, the company reported a 12% year-on-year growth in revenue for Q4 FY26, reaching ₹1,314 crore compared to ₹1,172 crore in Q4 FY25. EBITDA nearly doubled to ₹332 crore from ₹171 crore, resulting in a 25% margin improvement. Profit before tax rose 65% to ₹334 crore. For the full year FY25-26, revenue was flat at ₹4,113 crore against FY25's ₹4,142 crore, while EBITDA was up 43% to ₹679 crore and EBIT grew 55% to ₹572 crore. Sales volumes for the full year were 332,736 metric tons against 347,982 metric tons in the previous year. The company maintains a strong balance sheet with a net free cash of approximately ₹2,563 crore. Management discussed the impact of the Middle East conflict on petrochemical and PVC markets, noting that while it led to higher prices and better realizations in the near term, supply uncertainty and cost inflation remain risks. The company also addressed the demand scenario, noting that agri demand was subdued in Q4 due to price volatility and anticipation of price softening, though non-agri demand saw an increase. For Q1 FY27, April was subdued due to falling prices, but May showed some improvement. The company aims for a more balanced business mix, targeting a 50-50 split between agri and non-agri segments over the next 4-5 years. Regarding margins, management indicated that while current margins are high, they are expected to moderate. The target for EBITDA margin on a yearly basis is mid-to-lower double digits, aiming to maintain sub-15% levels. The company also discussed its capacity, stating that the current 5,20,000 tons capacity provides sufficient headroom for growth, with ongoing capex for augmentation. Dividend payouts were ₹3.60 per share last year and ₹2.75 per share this time, with the Board yet to decide on the utilization of accumulated cash.
