PCBL Chemical Limited , a leading specialty chemical player, has reported no deviation in the utilization of funds raised through its Rs 448 crore convertible warrants issue. The company's Audit Committee reviewed and approved this statement for the quarter ended June 30, 2025.

Warrant Issue Details

On May 7, 2024, PCBL Chemical raised an initial subscription amount of Rs 112.00 crore, representing 25% of the total warrant issue price. The company issued 1.6 crore convertible warrants on a preferential basis, with each warrant convertible into one fully paid-up equity share of face value Re. 1.

The remaining Rs 336.00 crore is expected to be received when warrant holders exercise their conversion rights, which can be done by November 8, 2025.

Fund Allocation

The funds raised were allocated for three primary purposes:

1. Debt Repayment: Rs 168.00 crore
2. Working Capital Funding: Rs 168.00 crore
3. General Corporate Purposes: Rs 112.00 crore

Current Status

As of June 30, 2025, no warrants have been exercised, and consequently, no additional proceeds were received during the quarter. The total issue proceeds received by the company remain at Rs 112.00 crore, which were fully utilized by the September 2024 quarter.

Monitoring and Compliance

CRISIL Ratings Limited serves as the monitoring agency for the fund utilization. The company has confirmed its adherence to the original fund utilization plan, with no deviations reported.

Financial Performance

In its Q1 FY26 results, PCBL Chemical reported:

The company's carbon black sales volume increased by 2.6% quarter-on-quarter to 154,093 MT in Q1 FY26, with specialty black sales volume rising by 4.5% to 16,065 MT.

Future Outlook

PCBL Chemical is actively expanding its operations:

• A brownfield expansion of 30,000 MTPA at PCBL (TN) is in trial runs and will be commissioned soon.
• The second phase of 60,000 MTPA expansion, along with a 12MW Green Power facility, is expected to be ready by FY26 end.
• These expansions will increase the total Carbon Black capacity to 900,000 MTPA and Green Power capacity to 134 MW in FY26.
• The company is also planning a new Specialty Black line with a 20,000 MTPA capacity.

With these developments and the steady growth in the tyre sector, PCBL Chemical is well-positioned to capitalize on both domestic and export opportunities in the specialty chemicals market.

Note: All financial figures are in Indian Rupees (INR).

PCBL Chemical Limited , a leading chemical manufacturer, has released its financial results for the first quarter, revealing a decline in both revenue and profitability.

Financial Performance Highlights

The company reported a net profit of ₹940.50 crore for Q1, marking a significant decrease of 21.6% compared to ₹1,200.00 crore in the same quarter of the previous year. This decline in profitability comes alongside a slight dip in revenue, which fell to ₹21,100.00 crore from ₹21,400.00 crore year-over-year.

EBITDA and Margin Contraction

PCBL Chemical's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also saw a decrease, falling to ₹3,200.00 crore from ₹3,600.00 crore in the corresponding quarter last year. The EBITDA margin contracted to 15.00% from 16.70%, indicating pressure on the company's operational efficiency.

Quarterly Performance Analysis

A closer look at the quarterly performance reveals some interesting trends:

While there's a notable decline in revenue compared to the previous quarter, the company has managed to improve its net profit and earnings per share (EPS) on a quarter-on-quarter basis.

Management Commentary

In the company's filing with the stock exchanges, PCBL Chemical's management stated, "The Board of Directors, at its Meeting held on Wednesday, 23rd July, has considered and approved the Unaudited Standalone and Consolidated Financial Results of the Company for the quarter ended 30th June."

Outlook

Despite the year-on-year decline in Q1 performance, PCBL Chemical's ability to improve profitability over the previous quarter suggests potential resilience in its operations. Investors and analysts will be keenly watching the company's performance in the coming quarters to assess whether this represents a temporary setback or a more prolonged challenge for the chemical manufacturer.

The full detailed financial results are available on the websites of the National Stock Exchange of India (NSE) and BSE Limited, as well as on the company's official website at www.pcblltd.com .

As PCBL Chemical navigates through these challenging market conditions, stakeholders will be looking for signs of recovery and the effectiveness of any strategic initiatives the company may undertake to improve its financial performance.