Business
Finolex Industries shares jump 8% after Q4 profit surges 59% YoY; stock rallies 20% in a week
The company reported a 59% year-on-year (YoY) jump in consolidated net profit to Rs 261 crore for the March quarter, compared to Rs 164.58 crore in the corresponding quarter last year.
Revenue from operations rose 12% YoY to Rs 1,314 crore in Q4FY26 versus Rs 1,172 crore in Q4FY25, supported by improved realizations during the quarter.
Operationally, the performance remained robust. EBITDA nearly doubled to Rs 332 crore in Q4FY26 from Rs 171 crore a year ago, while EBITDA margins expanded sharply to 25% from 15% in the same period last year. Profit before tax (PBT) also climbed significantly to Rs 334 crore against Rs 203 crore in Q4FY25.
Despite the strong quarterly momentum, the company’s full-year performance remained under pressure. For FY26, net profit declined 25% to Rs 599 crore compared to Rs 800 crore in FY25. Revenue from operations also edged lower to Rs 4,113.43 crore from Rs 4,141.97 crore in the previous financial year.
However, annual operating performance showed improvement. EBITDA for FY26 stood at Rs 679 crore, up from Rs 476 crore in FY25, with EBITDA margins improving from 11% to 17% on a year-on-year basis.
Adding to investor optimism, the board recommended a final dividend of Rs 2 per equity share along with a special dividend of Rs 0.75 per share, taking the total payout to Rs 2.75 per equity share for FY26, subject to shareholder approval at the upcoming 45th Annual General Meeting.The stock has witnessed strong buying interest lately, rallying nearly 20% over the past one week. Finolex Industries currently commands a market capitalization of around Rs 11,053 crore, while its 52-week high stands at Rs 238.
On the technical charts, momentum indicators remain positive. The stock’s 14-day RSI is at 60.5, indicating healthy strength while still remaining below the overbought zone of 70. Further supporting the bullish trend, the stock is trading above all 8 out of 8 key simple moving averages (SMAs), signaling sustained upward momentum.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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