Finolex Industries shares slid 3.2% on the NSE after the company released its Q2 FY27 results, revealing a 27% leap in revenue to ₹1,094 cr yet a 5% drop in EBITDA to ₹124 cr.
The jump was powered by a 28% rise in volumes, which hit 83,407 MT against 65,336 MT in Q2 FY26. This volume surge pushed revenue from ₹859 cr last year to ₹1,094 cr today, but the cost of raw materials eroded the operating cushion.
EBITDA slipped 5% year‑on‑year, falling from ₹130 cr to ₹124 cr, while the operating margin slipped from 12.0% to 11.3%. The company said that raw‑material price hikes offset the benefit of higher throughput, a trend mirrored across the sector.
Profit before tax eased to ₹153 cr, down ₹5 cr from ₹158 cr, but the firm highlighted a healthy liquidity position with net free cash of ₹2,584 cr, a 12% rise from the same period last year.
In the first half of FY27, Finolex reported revenue of ₹1,978 cr, a modest 4% increase, and EBITDA of ₹231 cr, roughly flat against ₹223 cr a year earlier, underscoring the company’s focus on cost control amid a 4% dip in volumes.
Looking ahead, the management said it will tighten cost discipline and focus on high‑margin product lines for FY28. The company is also monitoring raw‑material price trends closely to shield margins. Investors will watch the upcoming Q3 earnings call for any revision in guidance.