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Informist, Thursday, Aug. 6, 2026

 

By Vidhi Thacker

 

MUMBAI – Finolex Industries Ltd. is expected to report a robust on-year growth in its net profit for the June quarter on the back of a lower base and

higher realisation, according to brokerages tracking the company. Net sales for the company are likely to grow despite weak volumes.

 

The pipe manufacturer is expected to report a net profit of INR 1.30 billion for the June quarter, up over 34% on year but down 49% sequentially, according to the average of estimates from five brokerages. The highest estimate for the net profit is INR 1.54 billion from Prabhudas Lilladher Pvt. Ltd. and the lowest estimate is INR 963 million from ICICI Securities Ltd. The company's net profit had declined 81% on year to INR 969 million in the June 2025 quarter, which will be a low base for this quarter. The company's net profit was INR 5.1 billion in the June 2024 quarter, which included an exceptional gain of INR 3.4 billion. 

 

The company is likely to report net sales of INR 12.1 billion for the quarter, which is up 16% on year but down 8% sequentially, according to the average of estimates. The company reported net sales of INR 10.43 billion in the year-ago quarter. The highest estimate for the net sales is INR 13.3 billion from Anand Rathi Share and Stock Brokers Ltd. and the lowest estimate is INR 11.1 billion from Nuvama Wealth Management Ltd.

 

The company's pipe volumes for the quarter are expected to decline around 4% on year due to a fall in average polyvinyl chloride prices due to which plastic pipe manufactures faced destocking and demand pressures, ICICI Securities said. Polyvinyl chloride prices fell 26.5% on quarter and returned to their pre-war level, the brokerage added.

 

Agricultural demand for pipes was weak during the quarter and this impacted pipe sales volume for the industry. Despite low volume growth, higher polyvinyl chloride resin prices are expected to support Finolex's realisation growth of 15% on year, Prabhudas Lilladher said.

 

Finolex's earnings before interest, tax, depreciation, and amortisation for the June quarter are expected to be between INR 1.3 billion and INR 1.7 billion. The lower estimate is from Nuvama while the higher is from Prabhudas Lilladher. At the lower end of the band, the EBITDA will be 41% higher on year, but at the upper end of the band it will be 83% higher from INR 940 million in the year-ago quarter. The company's earnings before interest and tax per kilogram of pipes sold is expected to grow 6.3% on year to INR 7.7 per kg, ICICI Securities said.

 

Finolex makes polyvinyl chloride pipes and fittings. It is also a major producer of polyvinyl chloride resin. The company will detail its June quarter earnings Thursday. Investors will monitor demand for agricultural pipes, capacity addition, and product launches, IDBI Capital Market Services Ltd. said.

 

At 1425 IST, shares of the company traded at INR 171.02 on the National Stock Exchange, up 2%. The stock is down 9% since the company reported its March quarter earnings on May 28.

 

Out of the seven brokerage reports on the company available with Informist, four have a "buy recommendation, two have a "hold" recommendation, and one has a "sell" recommendation. The average target price for the "buy" recommendations is INR 218.25, which is around 28% higher than the current market price.

 

Following are the Apr-Jun earnings estimates for Finolex Industries from five brokerages in the descending order of net profit estimates, in INR million:

 

Brokerages	Net Sales	Net Profit	EBITDA
Prabhudas Lilladher Pvt. Ltd.	12,543	1,543	1,718
Anand Rathi Share and Stock Brokers Ltd.	13,379	1,351	--
Nuvama Wealth Management Ltd.	11,133	1,340	1,327
IDBI Capital Market Services Ltd.	11,475	1,318	1,606
ICICI Securities Ltd.	11,761	963	--
Averages	12,058	1,303	1,550

 

End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Pankaj Aher

 

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