Pondy Oxides & Chemicals Limited

Pondy Oxides reported its strongest ever quarterly and 9-month performance in Q3 FY26. Revenue for the quarter increased to INR 776 crores, marking a 22% quarter-on-quarter and 55% year-on-year growth. This robust top-line performance translated into significant profit growth, with EBITDA rising 122% year-on-year to INR 59 crores and PAT surging 148% year-on-year to INR 38 crores. For the first nine months of FY26, revenue, EBITDA, and PAT grew 33%, 96%, and 114% respectively, driven by substantial increases in both production and sales volumes across the lead and copper businesses.

The company made steady progress on its capacity expansion roadmap, commissioning the second phase of its lead expansion project, adding 36,000 metric tons per annum (MTPA) in December 2025. This increased the total lead capacity to 204,000 MTPA, representing an over 50% increase from FY25 levels, with capacities expected to ramp up to 70% in coming quarters. Copper recycling capacity is also set to double from 6,000 MTPA to 12,000 MTPA by the end of January 2026, with trials ongoing and operationalization expected in February and March 2026. Overall lead capacity utilization for Q3 FY26 was 79.2%, and for copper, it was 86.2%.

The India-EU trade deal is viewed as a structural catalyst, potentially enhancing POCL's global price competitiveness and opening up the European market with zero duties on metals, making it a sustainable long-term business. Domestically, supportive regulatory environments, including stronger enforcement of BWMR and EPR frameworks, are improving scrap collection and traceability, enabling higher local sourcing. The amalgamation of the wholly-owned subsidiary POCL Future Tech into the parent company aims to strengthen vertical integration in plastic recycling, improve cost efficiency, and create long-term value.

While the company maintained its blended EBITDA margin guidance of 7% to 8%, the copper segment experienced a slight margin shrink in Q3 due to extreme price volatility and challenges in passing on price increases to end consumers. This volatility also led to a mark-to-market provision of INR 7.28 crores related to copper hedging. Lead EBITDA per ton for Q3 was INR 17,427, which was slightly lower than previous quarters due to a reduced value-added product mix (55% in Q3 vs. typical 70%) and higher costs associated with increased domestic raw material procurement.

POCL invested INR 25 crores in capital expenditure during the first nine months of FY26 and plans to deploy an additional INR 35 crores in Q4 FY26, totaling INR 60 crores for the fiscal year, primarily for lead and copper expansions. The company's 'Target 2030' vision focuses on delivering 20% plus volume growth and 20% plus CAGR in revenue and profitability, with a focus on maintaining EBITDA margins above 8% and ROCE above 20%. The significant Mundra land expansion is slated for implementation in the second half of calendar year 2027, targeting existing businesses and new market entries in Europe and the Middle East.