Pondy Oxides & Chemical has announced robust financial results for the third quarter, showcasing strong operational performance and significant growth momentum. The chemical company demonstrated impressive profitability improvements alongside substantial revenue expansion during the reporting period.

Financial Performance Highlights

The company's financial metrics for Q3 reflect strong business fundamentals and effective operational management. Key performance indicators showed substantial year-on-year improvements across both revenue and profitability measures.

Profitability Analysis

The company's net profit performance stood out as a key highlight, with earnings reaching ₹376 million in Q3 compared to ₹151 million in the corresponding quarter of the previous year. This represents a substantial 149% year-on-year increase, indicating strong margin expansion and operational efficiency improvements.

Revenue Growth Trajectory

Revenue performance complemented the strong profitability metrics, with the company recording ₹7.76 billion in Q3 revenue compared to ₹5 billion in the same period last year. The 55% year-on-year revenue growth demonstrates the company's ability to expand its market presence and capture increased business volumes.

Business Performance Overview

The quarterly results reflect Pondy Oxides & Chemical's strong positioning in the chemical sector, with both top-line and bottom-line metrics showing robust growth. The significant improvement in profitability margins, evidenced by the net profit growth outpacing revenue growth, suggests enhanced operational efficiency and effective cost management strategies during the quarter.

Pondy Oxides & Chemicals Limited announced that its board of directors has approved a scheme of amalgamation with its wholly owned subsidiary POCL Future Tech Private Limited (PFTPL) during a board meeting held on January 28, 2026. The meeting commenced at 3:00 PM and concluded at 4:40 PM.

Amalgamation Details

The scheme involves the merger of PFTPL as the transferor company with Pondy Oxides & Chemicals Limited as the transferee company under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013. The amalgamation is subject to approval from the National Company Law Tribunal (NCLT), shareholders, and creditors of both companies.

Financial Position of Entities

As of December 31, 2025, the financial positions of both companies demonstrate significant differences in scale and performance:

PFTPL shows a negative net worth of ₹944.21 lakhs, while POCL maintains a strong net worth of ₹73,192.06 lakhs. The turnover figures for the nine months ended December 31, 2025, show POCL's significantly larger scale of operations.

Business Operations

The two entities operate in complementary business areas that support the strategic rationale for amalgamation:

• PFTPL (Transferor Company): Engaged in the business of recycling plastics
• POCL (Transferee Company): Manufactures lead metals and alloys, copper, other non-ferrous metals, and plastics

Strategic Rationale

The board identified several key benefits expected from the amalgamation:

• Operational Synergies: The merger will bring together complementary business operations, enabling the combined entity to leverage synergies and strengthen competitive positioning
• Vertical Integration: Integration of PFTPL's plastic recycling operations with POCL's manufacturing processes will ensure secure access to recycled metal inputs and reduce dependence on external suppliers
• Operational Efficiency: Elimination of duplicate functions, streamlined decision-making processes, and unified management oversight
• Economies of Scale: Improved operational efficiencies, better coordination of financial resources, and optimized cash flow management
• Value Creation: Enhanced long-term value maximization for all stakeholders of the combined entity

Transaction Structure

Since PFTPL is a wholly owned subsidiary of POCL, no cash consideration or share exchange will occur. The equity shares of PFTPL will stand cancelled on the effective date without any further action required. Consequently, there will be no change in the shareholding pattern of the listed entity.

The transaction qualifies as a related party transaction under Section 2(76) of the Companies Act, 2013. However, according to MCA Circular No. 30/2014 dated July 17, 2014, transactions arising from amalgamations under the Companies Act, 2013, do not attract the requirements of Section 188.

The company has complied with disclosure requirements under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and provided detailed information as per SEBI Circular No. SEBI/HO/CFD/PoD-2/CIR/P/0155 dated November 11, 2024.