Finolex Industries Ltd. share price target

at 50% discount to consensus target market value. We recently met the management of Finolex Industries (FNXP) to gauge volume growth outlook, market share dynamics, PVC resin availability, and price trends post DGTR's final findings on ADD on PVC resin. The company reiterated its 10% volume growth guidance in Pipes & Fittings (P&F) for FY26 and expects margin improvement ahead. We believe FNXP stands to benefit from 1) imposition of ADD on PVC resin given its backward integration, 2) GST rate revision on agri pipes, 3) expanding dealer/distribution network, and 4) gradual expansion in...

Finolex Industries' (FIL) Q1FY26 result was below our estimates on key parameters. The company experienced modest growth in pipes and fittings volumes, despite a weak overall demand scenario, however, operating performance was muted mainly due to weaker realization on account of volatility in PVC prices. The management guided that the demand has shown high single-digit growth as of early August 2025. The company expects this high single-digit trend to continue and is hopeful of crossing double-digit growth for FY26. Net sales declined by 8.5% YoY to Rs10.4bn, while EBITDA came in at...

P&F reported soft volume growth of 2.1% YoY due to challenging demand scenario and delays in ADD on PVC resin prices. The company has guided double digit volume growth for FY26, with margin recovery expected as competitive pricing will improve with demand and normalization in channel inventory. EBIT/kg for the P&F segment moderated at Rs10.5 with lower PVCEDC spread at USD 491/MT and 3.2% YoY lower realization. The correction in realization was mainly due to discounts and correction in RM prices. We...

Beats EBITDA estimate by 47.0% on sharp sequential improvement in the pipe segment margin

Gained market share in pipe segment in a difficult environment by offering heavy discounts to its dealers

Gained market share in pipe segment in a difficult environment, but still missed our EBITDA estimates by 90% due to sharp margin contraction

CPI: Food inflation; still overpowering. FPI Debt Flows: A likely surge in FPI Flow (Debt). ABB: Margins swell; outlook strong. TVSL: Cruising on the right track; maintain BUY. FNXP: Broadly in-line Q4FY24; positive outlook. SYRMA: Strong topline, but margins remain subpar

360ONE: Steady quarter; raise to BUY post correction. IIB: Stable performance. POLYCAB: Fair quarter but I-T search clouds multiples. FNXP: Weak quarter on slow recovery in agri pipe demand

Finolex Industries (FNXP) has reported a tepid Q2FY24 pipe volume growth of 6.2% YoY (-31.7% QoQ, 4-year CAGR of 7.0%) on a low base due to lukewarm demand from agriculture segment (60% volume mix in Q2). Consolidated EBIDTA margin contracted 127bps QoQ to 11.7% (vs EBITDA loss of ~INR 1.4bn YoY) due to lower profitability in pipes segment (EBIT/kg down 21.7% QoQ to INR 10.7).

In Q1FY24, Finolex Industries (FNXP) reported pipe volume growth of 28.1% YoY (+13.2% QoQ, flat 4-year CAGR) on a low base, driven by an uptick in agri sector (70% vol mix) and sustained demand from plumbing segment. Consolidated EBIDTA margin contracted 612bps QoQ to 12.9% (+235bps YoY on low base) primarily due to a steep decline in the profitability of PVC resin segment (EBIT/kg down 96.6% QoQ due to contraction in PVC-EDC/VCM spreads).