Finolex Cables shares have fallen 36% so far in 2025, trading at around Rs 750 each today. The company’s Q2 performance was stable. Revenue growth was modest, but profits (EBITDA and PAT) increased sharply, helped by strong demand for industrial and solar cables. The communication cables segment remained slow, but the start of new preform and fibre-draw facilities should help improve profit margins as fibre prices stabilize.
With better demand visibility in the second half of FY26, upcoming FMEG product launches, and a strong balance sheet, the company is expected to have strong earnings growth.
Anand Rathi maintained a ‘Buy’ rating on the stock, with a 12-month target price of Rs 975. They valued the core business at 20 times September 2027 EPS under their SOTP framework. The brokerage noted that healthy margins, improving demand, and new fibre capacity position Finolex well for steady earnings growth.
They also said that the new preform and fibre-draw units would help recover margins in the communication cables business. Stabilising fibre prices and more state-level BharatNet projects are expected to increase utilisation. Near-term growth in electrical cables will depend on a rebound in agriculture demand and steady improvements in real estate activity.