PCBL Chemical’s Q2 FY26 earnings call emphasized strategic projects poised to enhance growth. Despite a challenging global environment with pricing pressures, the company achieved record power generation and improved working capital cycle by 12 days, freeing up ₹240 crores. Key initiatives include specialty black lines and capacity expansions, with a focus on sustainability, demonstrated by a Gold Medal in EcoVadis Sustainability Rating.
Financial Performance Overview
In Q2 FY26, PCBL Chemical reported volume growth, driven by both year-over-year and quarter-over-quarter improvements in carbon black sales. Capacity utilization across three product lines also saw improvement. Despite pricing pressures in a softer market, the company believes this phase has largely bottomed out, and anticipates steady recovery in profitability during coming quarters. Consolidated revenue for the quarter stood at ₹2,164 crore, with an EBITDA of ₹278 crores.
Segment Performance
The specialty and solution segment under Aquapharm experienced a gross margin improvement of 10% due to a better product mix. During the quarter, the highest ever power generation and sales volume was achieved. Tyre sales accounted for 93,892 tons, performance chemicals stood at 50,331 tons, and specialty sales volume was 17,505 tons.
Strategic Initiatives and Expansions
Several strategic projects are scheduled for completion over the next 18 months, positioning PCBL for sustained growth and value creation. These include a specialty black line for super conductive grades with 1,000 MTPA capacity, expected to begin commercial production in November 2025. A brownfield expansion of 90,000 MTPA for a rubber line in Tamil Nadu is nearing operational status, while commissioning of a 20,000 MTPA specialty black line in Mundra is anticipated by March 2026.
Sustainability and Recognition
PCBL Chemical achieved two significant milestones in its sustainability journey during the quarter. The Company successfully registered under the International Renewable Energy Certificate (IREC) platform and was awarded the Gold Medal in the EcoVadis Sustainability Rating for financial year 2023-24, placing it among the top 5% of companies globally.
Aquapharm Chemical Performance
Aquapharm’s India business delivered strong growth, supported by expanding reach and deeper engagement with key customers, while Saudi Arabia continued to scale on the back of strategic accounts. Home Care business delivered promising growth of 18% QOQ, driven mostly by expanded reach and stronger engagement with key customers. Despite these positives, the U.S. business experienced near-term softness due to market factors.
Source: BSE
