Incorporated in 1960, Company is a part of RP‑Sanjiv Goenka Group and is in the business of production of Carbon Black, speciality chemical and generation of electricity for the purpose of captive consumptions and sale of surplus to outsiders. Presenting below are its Q2 FY26 earnings results.
Q2 FY26 Earnings Results
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Total Income: ₹2,164 crore, a marginal increase of 0.1% QoQ from ₹2,173 crore, and a slight YoY decrease of 0.4% from ₹2,183 crore.
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Net Profit (PAT): ₹61.54 crore, down 49.59% YoY from ₹123.28 crore and down 34.78% QoQ from ₹94.05 crore, reflecting significant profitability pressure.
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EBITDA: ₹266 crore, down 27% YoY from ₹363 crore, and a sequential decline from ₹341 crore, with EBITDA margin contracting to 12.2% from 16.7% YoY.
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Gross Margin: 29.52%, down from 31.5% YoY, impacted by raw material inflation and product mix shifts.
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Interest & Finance Costs: ₹107.15 crore, significantly elevated compared to ₹72 crore in Q2 FY25, emphasizing higher debt servicing costs.
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Debt/Equity Ratio: 130.7%, reflecting high leverage, with total debt of ₹2,999 crore and equity of ₹2,297 crore.
Operational Highlights
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Sales Volume: Carbon black sales volume grew 5% QoQ to 161,728 MT, driven by domestic and export sales expansion, particularly into battery materials and special chemicals.
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Revenue Contribution:
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Carbon Black (~81% of total revenue on sales volume basis).
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Specialty chemicals and battery materials segment expanding rapidly, contributing roughly 15% to total revenue.
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Expansion & Capex: Announced ₹1,200 crore capex plan towards new specialty chemical plants in Gujarat, to be operational by late FY26.
Management Commentary
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CEO & MD Harsh Mariwala highlighted that the company faced headwinds from raw material inflation, supply chain disruptions, and currency volatility but remained committed to long-term growth in specialty and battery chemicals segments.
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Management emphasized diversification into eco-friendly products, including phosphonates, flame retardants, and superconducting black for EV battery applications, which will help stabilize profits going forward.
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Operational margins have been compressed, but cost management, focus on high-margin specialty products, and capacity ramp-ups are expected to offset pressures in H2 FY26.
Historical Performance & Long-term Outlook
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Over the past 12 months, PCBL stock has declined about 20% due to weakening margins, high debt, and global economic uncertainties affecting raw material prices and demand.
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Long-term outlook remains positive, with the company aiming to expand into niche chemical markets, reduce debt, and capitalize on EV and renewable energy opportunities, supported by its global presence and R&D investments.
Q1 FY26 Earnings Results
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Total Income: ₹2,168.85 crore, stable YoY but impacted by market softness.
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Net Profit: ₹94.05 crore, down 52% YoY, reflecting margin pressures and cost inflation.
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Operational Margins: Contracted due to raw material cost increases, mitigated by volume growth.
To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet India news channel.