PCBL Chemical Q1 FY27: Revenue Up 17%, PAT Soars 65% Amidst Volatile Costs

PCBL Chemical Limited reported a strong Q1 FY27, with consolidated revenue growing 17% year-on-year to ₹2,474 crore, and profit after tax (PAT) surging 65% to ₹155 crore. EBITDA increased by 23% to ₹400 crore. The company navigated volatile raw material costs, influenced by geopolitical events in West Asia, by effectively managing spot market exposure and contractual price adjustments.

The company highlighted structural tailwinds favoring India and PCBL, including strengthened trade architecture with preferential market access due to new trade agreements (India-U.S., India-EU FTA, India-U.K. CETA, India EFTA). The U.S. market presents an opportunity due to diversification away from China and Russia, with PCBL's upcoming Texas presence enhancing its service capability. Tightening global supply chains, particularly due to reduced Russian exports of carbon black feedstock and finished products, further create opportunities for PCBL.

Domestically, sales volume grew 15% year-on-year, driven by steady demand across key segments. Export realizations were impacted by elevated freight costs, leading to a strategic shift towards the domestic spot market. However, key export customer relationships were maintained, with expectations of scaling international business as freight normalizes and trade agreements take effect.

The tire industry outlook remains positive, with Indian tire exports growing and domestic demand supported by a growing vehicle fleet and EV penetration. PCBL's specialty carbon black volumes remained healthy, supported by a rich product mix and increasing customer acceptance. The company commissioned a 20,000 MTPA specialty black line in Mundra, bringing its total carbon black capacity to 900,000 metric tons per annum.

In its advanced battery materials business, PCBL is progressing with its Nanovace pilot plant for silicon-based anode materials and has set up a 1,000 metric ton per annum super-conductive specialty black facility. The company is also advancing its entry into acetylene black. A cost optimization and efficiency program is expected to yield savings of ₹200-250 crore over the next 4-6 quarters.

Aquapharm Chemicals reported Q1 FY27 sales volumes of 22,985 metric tons, revenue of ₹394 crore, and EBITDA of ₹47 crore. While home care and water solutions volumes saw a marginal year-over-year decrease, application-specific solutions posted double-digit growth. The oil and gas segment experienced a 35% year-over-year decrease but showed strong sequential growth of 50%, indicating turnaround momentum. The company is focusing on expanding its phosphonates portfolio, green chelates, and oil and gas segments, with plans for new product launches and market development.