Finolex Cables Stock Surges 10% on Stellar Q1 FY27 Earnings

Finolex Cables Ltd. shares experienced a significant rally, climbing over 10% in early trade to reach a high of Rs 1,332.35 apiece on the NSE. This surge was directly attributed to the company’s impressive first-quarter earnings for the financial year 2027.

The company reported substantial growth across key financial metrics for Q1 FY27 compared to the prior year. Net profit surged 53% year-on-year, reaching Rs 249 crore from Rs 163 crore.

Revenue from operations also saw a robust increase, growing 44.3% to Rs 2,013 crore, up from Rs 1,396 crore a year earlier. Operating profit (EBITDA) demonstrated an even stronger jump.

EBITDA climbed 79% to Rs 244 crore, compared with Rs 136 crore in Q1 FY26. This performance pushed the EBITDA margin to 12.1% from 9.8%, marking an improvement of 230 basis points.

Segmental Performance Drives Growth

Growth was broadly distributed across the company’s product categories, showcasing diversified strength. The electrical cables segment generated revenue of Rs 1,767.45 crore, an increase from Rs 1,205.71 crore in the year-ago quarter.

This segment reported a result of Rs 181.97 crore, up from Rs 117.38 crore last year. The communication cables business delivered an even faster rate of increase.

Revenue for communication cables rose to Rs 176.47 crore from Rs 108.84 crore. Segment results dramatically jumped to Rs 52.52 crore from just Rs 1.30 crore, indicating strong operational leverage.

Jefferies Upgrades Target Price

Following these strong results, global brokerage Jefferies responded by raising Finolex Cables’ price target. The target was increased from Rs 1,200 to Rs 1,410, with the firm maintaining its ‘buy’ rating on the stock.

Jefferies highlighted the robust sales and operating profit growth within the flagship Cables & Wires (C&W) division. This performance was attributed to multiple price hikes implemented over the past 12 months.

The brokerage anticipates that the benefits derived from backward integration, a strategy involving in-house raw material manufacturing, will further enhance margins and profitability by the third quarter of the current fiscal year.

Market Reaction and Outlook

Finolex Cables’ strong first-quarter performance, marked by significant profit and revenue growth, fueled considerable investor interest. The positive analyst outlook from Jefferies further underpins confidence in the company’s trajectory, particularly with anticipated margin improvements from strategic initiatives.