Finolex's EHV JV turns ₹21 cr profit, but optical fiber payoff waits until FY27
Core electrical revenue grew 22% in Q4 FY26. A ₹300 cr capex plan is underway, but the optical fiber expansion won't contribute until the second half of FY27.
— 1 earlier story on Finolex Cables Ltd. →What's new
- Extra high-voltage joint venture turned profitable with ₹21 cr profit in Q4 FY26.
- Core electrical segment delivered 22% revenue growth.
- Capex plan of ₹300 cr for current capacity enhancements is underway.
Why this matters
The EHV JV's swing to profit is a clean win for a venture that was previously a drag. The optical fiber preform plant is commissioned, but management is tempering expectations—financial benefits only arrive in the second half of FY27. The core electricals business is the growth engine right now.
What we're watching
- When optical fiber segment contribution becomes visible in P&L.
- Execution of the ₹300 cr capex and its impact on capacity.
- Supply chain challenges in the communication sector segment.
The full read
Finolex Cables's management confirmed a strong quarter for its core business and a key turnaround in a joint venture. The electrical segment grew revenue by 22% in Q4 FY26. The extra high-voltage joint venture, a potential past drag, posted a ₹21 crore profit. The company is deploying ₹300 crore in capex to enhance capacity. The big future catalyst is the optical fiber business: the preform plant is built and commissioned, but the management explicitly stated that financial gains will not show until the second half of FY27. For now, the growth story rests on electricals and the newly profitable EHV venture.
Questions answered
- What drove the growth in Q4 FY26?
- The core electrical segment led with 22% revenue growth. The extra high-voltage joint venture also contributed, turning profitable with a ₹21 crore profit.
- What is the status of the optical fiber expansion?
- The preform plant has been commissioned. However, management stated that financial benefits from this expansion will only be visible from the second half of FY27.
- How much is the company spending on capex?
- Finolex Cables has a capex plan of ₹300 crore for enhancing current capacity.
- Are there any headwinds in the business?
- The management discussion detailed supply chain challenges within the communication sector segment.
Story so far
All notes on FINCABLES →- 3 Jun 2026 · 11:11 AM IST Finolex's EHV JV turns ₹21 cr profit, but optical fiber payoff waits until FY27
- 13d ago Finolex Cables loses CS and Compliance Officer