Operating margins improved during the period as the company recorded a 48% increase in EBITDA for the quarter ended December 31, 2025. Financial performance was characterized by higher profitability metrics despite top-line pressure from weak PVC pricing and lower sales volumes.
Finolex Industries Limited (NSE: FINCABLES) announced its unaudited financial results for the third quarter of fiscal year 2026, showing a rise in earnings despite a contraction in total revenue. Earnings before interest, tax, depreciation, and amortization (EBITDA) rose to ₹123 crore, up from ₹83 crore in the corresponding period of the previous year. The results reflect a significant improvement in operating performance even as the company navigated a challenging pricing environment.
Profitability Rises Despite Lower Revenue Growth
The primary development driving the quarter’s results was a notable divergence between profitability and revenue growth. While internal operating efficiencies led to higher margins, the company’s top line was impacted by lower realizations and a decrease in total sales volumes. Management attributed the volume dip primarily to an extended monsoon season that affected seasonal demand.
Company Maintains Liquidity Despite Lower Revenue
Standalone revenue for the third quarter declined 10% to ₹898 crore, compared to ₹1,001 crore in the same period last year. Sales volumes fell 14% to 73,500 metric tonnes, down from 85,767 metric tonnes in the previous year’s third quarter. Despite the lower revenue, profit before tax (PBT) for the quarter rose 54% to ₹146 crore, up from ₹95 crore. For the nine-month period ending December 31, 2025, the company reported revenue of ₹2,800 crore and a PBT of ₹430 crore, representing a 12% increase in year-to-date profit before exceptional items. The company’s liquidity position remains stable, with net free cash of approximately ₹2,429 crore.
Strengthening Dealer Relationships and CSR Outreach
Management’s stated strategy emphasizes strengthening dealer relationships and expanding market reach through targeted initiatives. During the quarter, the company conducted business strategy discussions with its top 61 dealers and maintained a high-profile marketing presence through national sponsorships, including the 16th Agrovision 2025 agri-expo. The company also continues to allocate capital toward corporate social responsibility via the Mukul Madhav Foundation, currently active in 24 states and covering 15 out of 16 mandated CSR areas, including healthcare and rural development.
Macroeconomic Factors Impacting PVC Sector Realization
The broader sector faced headwinds from a decline in global PVC prices, which averaged $641 per metric tonne in the third quarter of fiscal 2026, down from an average of $782 in the prior year’s corresponding quarter. The PVC/EDC delta, a key industry margin indicator, also contracted from an average of $500 to $449 per metric tonne. These macroeconomic factors, combined with domestic weather patterns, remained the principal external influences on the company’s realization and volume performance during the period.