PCBL Chemical Reports 5% QoQ Growth, Expands into Specialty and Battery Chemicals
PCBL Chemical saw a 5% quarter-on-quarter increase in carbon black sales volume for Q2 FY26, reaching 161,728 MT. Revenue from operations grew 2.4% to Rs. 2,164.00 crore, while EBITDA and PAT declined by 14.5% and 34% respectively. The company is expanding its specialty chemicals portfolio with new production lines in Gujarat, including a 1,000 MTPA specialty black line for super-conductive grades set to start in November 2025. PCBL is also progressing on battery material development through its subsidiary Nanovace. The company improved its working capital cycle, reduced gross debt, and declared a 600% interim dividend.
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PCBL Chemical, a global specialty chemical player, has reported a 5% quarter-on-quarter growth in carbon black sales volume for Q2 FY26, demonstrating resilience in a challenging market environment. The company is actively transitioning towards specialty and battery chemicals, with new production lines in Gujarat set to enhance its product portfolio.
Financial Performance
For the quarter ended September 30, 2025, PCBL Chemical reported:
| Metric | Q2 FY26 | QoQ Change |
|---|---|---|
| Revenue from Operations | Rs. 2,164.00 crore | 2.4% ↑ |
| EBITDA | Rs. 278.00 crore | 14.5% ↓ |
| Profit After Tax | Rs. 62.00 crore | 34% ↓ |
| Carbon Black Sales Volume | 161,728 MT | 5% ↑ |
| Specialty Black Sales Volume | 17,505 MT | 9% ↑ |
The company's EBITDA margin stood at 13% for Q2 FY26, reflecting the impact of market challenges.
Strategic Expansion and Innovation
PCBL Chemical is making significant strides in its expansion strategy:
- A new specialty black line dedicated to super-conductive grades (1,000 MTPA) in Palej, Gujarat, is expected to commence commercial production in November 2025.
- Another 20,000 MTPA specialty blacks line is in an advanced stage, with commissioning likely to be preponed to March 2026.
- A brownfield expansion of 90 KTPA rubber line in Tamil Nadu is under commissioning and expected to be operational in Q3 FY26.
The company's subsidiary, Nanovace, is progressing with its pilot plant project for battery materials. PCBL has secured a US patent for its proprietary nanomaterial process and has applied for patents for carbon silicon composites and battery-grade graphite from bio-sources.
Operational Highlights
- Power generation increased by 7% year-on-year to 223 million units during Q2 FY26.
- The company has registered under the I-REC platform to receive International Renewable Energy Certificates for clean energy generation across its co-gen plants.
- Working capital cycle improved by 12 days in H1 FY26, releasing around Rs. 240.00 crore of cash.
- Gross debt reduced by over Rs. 300.00 crore since March 2025.
Future Outlook
PCBL Chemical aims to achieve a 50% capacity addition over the next five years across all product segments. The company is focusing on expanding its specialty chemical portfolio towards high-margin products, developing newer grades with varied applications in specialty blacks, including super-conductive grades and battery chemicals.
The Board of Directors has declared an interim dividend of 600%, amounting to Rs. 6.00 per equity share of Re. 1 each for the financial year ending March 31, 2026.
As PCBL Chemical continues its transition towards higher-value products and expands its global footprint, the company remains well-positioned to capitalize on emerging opportunities in the specialty chemicals and advanced materials sectors.
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