Finolex Industries (FNXP IN) – Q3FY26 Result Update – Volume pressure continues, margins Intact – Accumulate
Published on 03 Feb 2026
P&F volume declined by ~6.0% YoY in 9MFY26 due to early and prolonged monsoon, FNXP has revised its FY26 pipes segment volume growth guidance from mid-single digit to flattish, with a EBITDA margins at ~12%. In Q3FY26 CPVC contributes nearly 8%, while fittings contribute 12% to the total volume. Agri:Non-agri mix stood at 62:38 (vs. 67:33 in Q3FY25), and management aims to achieve a balanced 50:50. We estimate revenue/EBITDA/adj PAT CAGR of 6.3%/11.6%/17.0% for FY25-28E with P&F volume CAGR of 6.2% and EBITDA margin of 13.5% by FY28E. We have downward revised our earnings estimates by 3.4%/3.4% for FY27/FY28E and Maintain ‘Accumulate’ rating with revised TP of Rs199 (earlier Rs 211) based on 18x Mar’28 earnings plus valued stake in the group listed entity Finolex Cables at 50% discount to consensus target market value.
