Finolex Industries (FNXP IN) – Q2FY27 Result Update – Channel Restocking Drives Volume Recovery – BUY
Published on 03 Nov 2026
FNXP P&F volumes recovered in Q2FY27, supported by channel restocking following significant destocking in Q1FY27 amid PVC price volatility. Management indicated that channel inventory levels have largely normalised, with Oct’26 volumes witnessing a relatively better performance and turning marginally positive YoY. While the company refrained from providing specific volume growth guidance for FY27, it remains cautiously optimistic about H2FY27 recovery, supported by stabilising PVC prices and improving demand conditions. Management reiterated its FY27 EBITDA margin guidance of 14–15%.We estimate revenue/EBITDA/PAT CAGR of 6.2%/1.4%/2.9% for FY26-29E with P&F volume CAGR of 3.0% and EBITDA margin of 14.4% by FY29E. We maintained ‘BUY’ rating with a TP of INR 206 based on 18x Sep’28 earnings plus valued stake in the group listed entity Finolex Cables at 50% discount to consensus target market value.
