Finolex Industries Limited (FINPIPE) share price

₹153.91 on NSE as of 2026-10-07. -0.52% on the day. market cap ₹9,550 Cr. P/E 26.9. 52-week range ₹149.31 to ₹208.23. Capital Goods.

www.finolexpipes.com

What the company does

FIL is the third-largest player in the PVC resin market and second largest manufacturer of PVC pipes in India. The company has four manufacturing facilities, one each in Pune, Talegaon and Ratnagiri in Maharashtra, and one in Masar, near Vadodara in Gujarat. The company is the only backward integrated player, with in-house PVC resin capacity and 43 MW captive power, aiding cost control.

Filed by CRISIL, page 3.

Finolex Industries Q1 FY27: Revenue ₹884 Cr, Volumes Down 27%, EBITDA Margin Up to 12%, and ₹2,636 Cr of Cash

At a glance

Finolex Industries makes PVC pipes, and it makes the plastic those pipes are made from. It is India's second-largest PVC pipe maker, and the only backward-integrated one. Backward integration means owning the supply of a key raw material rather than buying it in.

In the three months to June 2026 the company shipped 67,699 tonnes of pipe. A year earlier the figure was 92,129 tonnes, a fall of 27 per cent. Revenue slid 15 per cent to ₹884 crore. Operating profit before interest, tax and depreciation rose 14 per cent to ₹107 crore. That margin widened from 9 per cent to 12 per cent. Net profit was ₹115 crore, higher by 16.7 per cent on the year.

Management points at the price of PVC itself. Average PVC ran about USD 875 a tonne in the quarter, per ICIS figures cited on the earnings call. ICIS is an agency that reports commodity prices. A year earlier the average was roughly USD 707. Prices corrected sharply inside the quarter, and management says dealers then ran stock down rather than replacing it. That fell in the pre-monsoon window, traditionally the industry's busiest stretch.

The investor presentation puts free cash, after netting off debt, at about ₹2,636 crore. The company's market value is ₹9,927 crore. The market pays ₹16 for every ₹1 of yearly profit here, and the industry median is ₹23. Mid-July brought two government moves on PVC resin. The customs duty exemption was withdrawn and a Minimum Import Price was set. Management says both should support price stability, and notes that July volumes were the best of the last four months.

Introduction

Finolex Industries has been making pipes for 45 years. It said so this quarter in a print campaign across 19 states, with a claimed circulation of 1.08 crore. Forty-five years is long enough to become furniture in Indian agriculture, and Finolex largely has. The company is the third-largest maker of PVC resin in India and the second-largest in PVC pipes. It is the only one that makes both the pipe and the plastic the pipe is made from.

The recent chapters have been eventful in the way corporate India is eventful, which is mostly through announcements written in the passive voice. Mr Udipt Agarwal took over as Managing Director with effect from November 2025. He was appointed at the September 2025 annual meeting, alongside Rambabu Sanka as Director-Technical. The previous Managing Director's resignation was disclosed in August 2025. In September 2025 the company disclosed an Income Tax penalty of ₹18,02,385. The demand relates to assessment year 2016-17, and the company stated that it would appeal.

The bigger strategic shift came earlier. CRISIL's rating rationale says Finolex stopped selling PVC resin to outside buyers from the year to March 2026. The whole 2,72,000 tonne resin capacity now feeds the company's own pipe plants. Resin was 17 per cent of revenue in the year to March 2022, and is now an internal supply department. CRISIL, a credit-rating agency, reaffirmed the company at AA+/Stable and A1+ in May 2026. It cited the established market position and a strong financial risk profile. CRISIL names volatility in raw material prices and intense competition as the offsetting weaknesses.

The 45th annual general meeting is scheduled for 22 September 2026. The year to March 2026 closed with revenue of ₹4,113 crore. Profit after tax for that year was ₹599 crore. Mr Agarwal has held the Managing Director's chair since November 2025.

Business model

Finolex makes PVC pipes. It makes PVC fittings. It also makes the PVC resin that becomes both. It is the only large vertically integrated player in the domestic market, per CRISIL, with in-house resin covering a substantial share of its own needs. CRISIL also records 43 MW of captive power, so even the electricity stays in the family.

The catalogue runs to 2,000 distinct items. It covers ASTM, SWR and CPVC pipes and fittings, sewerage pipes, farm pipes and column pipes. CPVC is a heat-resistant version of PVC, used mainly for hot water plumbing. These are tubes that look identical to civilians and are apparently deeply, commercially different. They move through more than 900 dealers and 30,000 retailers. Nobody buys a farm pipe on an app. They buy it from a shop whose owner has known the family for two generations.

Four plants sit at Ratnagiri, Urse, Talegaon and Masar. Pipe capacity is 5,20,000 tonnes. Utilisation was 71 per cent in the year to March 2026. Resin capacity is 2,72,000 tonnes, and it ran at 77 per cent.

The customer mix is the plot. Farm buyers took 69 per cent of volumes in the June quarter, so the farmer remains the house's favourite child. The non-agricultural share, meaning plumbing and construction, was 30 per cent in the year to March 2018. It reached 38 per cent over the nine months to December 2025. CRISIL notes that this shift brings steadier pricing, farm demand being the sort that arrives with the monsoon and leaves with it. CPVC is about 7 per cent of volumes and fittings are 11 per cent. Fittings are 5 per cent of farm volumes and 25 per cent of non-farm volumes, per the call. A bathroom needs many small joints, and a field mostly needs one long straight line.

One physical quirk deserves its own paragraph. The jetty at Ratnagiri is a fair-weather jetty. The company does not import VCM, a key feedstock, from end-May to end-September. The VCM-based PVC line therefore takes an annual monsoon holiday. The line based on EDC, the other feedstock, works through the rain. Exports are under 1 per cent of revenue, with a plan to reach 2 to 3 per cent in two years.

Quarterly results, balance sheet, cash flow, ratios, shareholding and the filings themselves are on the full page for Finolex Industries Limited.

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