According to reports from CNBC TV18, Finolex Industries delivered robust financial performance in Q2 FY27, with revenue increasing 27% year-on-year to ₹1,094 crore compared to ₹859 crore in the corresponding quarter last year. The revenue growth was primarily driven by 28% volume expansion to 83,407 metric tonnes during the quarter, up from 65,336 MT in Q2 FY26. This strong volume performance demonstrates the company's ability to capitalize on surging demand in the market.
Despite the strong revenue performance, Finolex Industries faced margin challenges during the quarter. As reported by CNBC TV18, EBITDA declined to ₹124 crore in Q2 FY27 from ₹130 crore in the year-ago period, while profit before tax (PBT) decreased to ₹153 crore from ₹158 crore. The margin pressure resulted from higher material costs that offset the benefits of volume growth, highlighting the impact of raw material inflation on operating performance. However, the company maintained its strong liquidity position with substantial cash reserves.
According to CNBC TV18 reports, for the first half of FY27, Finolex Industries demonstrated resilience despite volume challenges. Revenue increased 4% to ₹1,978 crore in H1 FY27 compared to ₹1,902 crore in H1 FY26, while EBITDA remained broadly stable at ₹231 crore versus ₹223 crore in the previous year. The company maintained EBITDA margin around 12% despite lower overall volumes and higher material costs. PBT increased to ₹300 crore in H1 FY27 from ₹284 crore in the corresponding period last year, demonstrating the company's ability to manage cost pressures effectively.
As reported by CNBC TV18, Finolex Industries maintained a strong liquidity position with net free cash of approximately ₹2,584 crore, providing substantial financial flexibility for future growth initiatives. Despite the company's solid financial performance, Finolex Industries shares fell 3.2% on NSE ahead of the Q2 earnings announcement, suggesting investor concerns about the margin pressure from rising input costs despite strong volume growth and revenue expansion.
