PCBL Chemical Reports 5% QoQ Growth in Carbon Black Sales, Expands Capacity Despite Profit Decline

PCBL Chemical Limited , a leading chemical manufacturer, has reported mixed results for the second quarter, with growth in sales volume but a decline in net profit. The company has also announced significant capacity expansion plans.

Financial Performance Highlights

Metric	Q2 FY2025-26	Q2 FY2024-25	YoY Change
Net Profit	₹615.00 million	₹1,230.00 million	-50.00%
Revenue	₹21.64 billion	₹21.60 billion	+0.19%
EBITDA	₹2.78 billion	₹3.63 billion	-23.42%
EBITDA Margin	12.85%	16.80%	-395 bps

PCBL Chemical's consolidated revenue for Q2 stood at ₹21.64 billion, showing a marginal increase from the previous year. However, the company's net profit dropped by 50% to ₹615.00 million, compared to ₹1,230.00 million in the same quarter of the previous year.

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) decreased to ₹2.78 billion from ₹3.63 billion in the corresponding quarter last year, marking a 23.42% decline. Consequently, the EBITDA margin compressed to 12.85% from 16.80%, a reduction of 395 basis points.

Operational Performance

Carbon Black sales volume increased 5% quarter-on-quarter to 161,728 MT
Specialty Black sales volume grew 9% QoQ to 17,505 MT
Power generation increased 7% year-on-year to 223 MU
The subsidiary Aquapharm Chemical generated revenue of ₹3.95 billion with EBITDA of ₹0.48 billion

Financial Management

Working capital cycle improved by 12 days in H1, releasing around ₹2.40 billion of cash
Gross debt reduction of over ₹3.00 billion since March

Expansion Plans

PCBL Chemical has announced ambitious expansion plans:

A specialty black line for super-conductive grades is expected to start commercial production from November
A 20,000 MTPA specialty blacks line commissioning is likely to be preponed to March
The company targets a 50% capacity addition over the next 5 years across all product segments

Interim Dividend Declaration

Despite the profit decline, PCBL Chemical's Board of Directors has declared an interim dividend of 600%, which translates to ₹6 per equity share of face value ₹1 each. The record date for this dividend has been set as Monday, October 27.

Outlook

The growth in sales volumes for both Carbon Black and Specialty Black products, along with the announced capacity expansion plans, indicates that PCBL Chemical is positioning itself for future growth. However, the significant drop in profitability despite stable revenues may raise concerns about cost management and operational efficiency.

Investors and analysts will likely focus on how the company plans to address the profitability squeeze while executing its expansion strategy. The ability to improve margins while growing capacity will be crucial for PCBL Chemical's future performance.

The company's efforts to improve its working capital cycle and reduce debt are positive signs, potentially providing more financial flexibility as it pursues its growth plans.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-4.45%	-6.59%	-7.75%	-16.63%	-24.71%	+422.37%

PCBL Chemical , a leading chemical company, has announced significant financial decisions and results for the second quarter of the fiscal year 2026. The company's Board of Directors convened on October 17, 2025, to approve the unaudited standalone and consolidated financial results for the quarter and half-year ended September 30, 2025.

Interim Dividend Declaration

PCBL Chemical has declared an interim dividend of Rs. 6 per equity share, representing a 600% dividend on the face value of Re. 1 each. This dividend is for the financial year ending March 31, 2026, with the record date set for October 27, 2025.

Financial Results and Transparency

The company has approved its unaudited financial results for Q2 FY2026, demonstrating its commitment to financial transparency and compliance with regulatory requirements. As per the SEBI Listing Regulations, PCBL Chemical will publish an extract of these financial results in newspapers. The full format of the results will be made available on the websites of the National Stock Exchange of India Limited (NSE) and BSE Limited, as well as on the company's official website.

Key Financial Highlights

While specific financial figures for Q2 FY2026 were not disclosed in the immediate release, the company's balance sheet as of September 30, 2025, provides some insights into its financial position:

Particulars	Amount (in Rs. Crores)
Total Assets	8,655.48
Property, Plant and Equipment	2,108.02
Investments in Aquapharm Chemical Limited	2,280.00
Cash and Cash Equivalents	1,221.92
Total Liabilities	8,655.48
Total Equity	3,894.12
Non-convertible Listed Debentures	633.73

Security Cover and Debt Structure

PCBL Chemical maintains a strong security cover for its debt instruments:

The company's non-convertible listed debentures are secured by a first-ranking exclusive pledge over shares of Aquapharm Chemical Limited, a subsidiary of PCBL Chemical.
The security cover stands at 1.88 times, exceeding the requirement of 1.5 times as per the Debenture Trust Deed.
Total debt for which the security cover is calculated amounts to Rs. 1,211.98 crores, including interest accrued.

Recent Regulatory Development

In a separate disclosure, PCBL Chemical reported the outcome of an appeal against a GST demand. The Additional Commissioner of Appeals II has issued a revised order, reducing the original demand from Rs. 27.94 lakhs to Rs. 2.36 lakhs, providing partial relief to the company.

Conclusion

PCBL Chemical's declaration of a substantial interim dividend and the approval of its Q2 FY2026 results reflect the company's financial health and commitment to shareholder returns. The reduction in the GST demand following the company's appeal also demonstrates effective management of regulatory challenges. Investors and stakeholders will likely look forward to the detailed financial results to gain a comprehensive understanding of the company's performance in the current fiscal year.