PCBL Chemical Limited reported its Q3 FY’26 results, showing performance shaped by geopolitical tensions and volatile markets. Consolidated revenue for the quarter was Rs. 1,846 crores with an EBITDA of Rs. 231 crores. The company remains confident in underlying fundamentals, citing healthy domestic demand and positive momentum from the recent India-U.S. trade deal, which will support long-term growth trajectories across its chemical businesses.
Q3 FY’26 Financial and Operational Snapshot
PCBL Chemical Limited announced its results for the quarter and nine months ended December 31, 2025. The company recorded consolidated revenue from operations of Rs. 1,846 crores and Consolidated EBITDA of Rs. 231 crores for the quarter. This period included a one-time provision of Rs. 21 crores related to labor code changes.
For the nine-month period, consolidated revenue stood at Rs. 6,124 crores, down from Rs. 6,317 crores in the previous year, while Consolidated EBITDA was Rs. 834 crores (down from Rs. 1,067 crores).
Carbon Black Volume Performance
Consolidated sales volume for carbon black marginally declined by 2% YoY to 141,271 metric tons in Q3 FY’26. Domestic sales volume was robust, growing 6% YoY to 89,615 tons, though international volume decreased by 13% to 51,656 tons.
Segment Highlights
- Tyres volume: 81,219 tons.
- Performance Chemicals volume: 43,352 tons.
- Specialty sales volumes grew significantly, up 17% YoY to 16,700 tons.
- Power generation increased by 28% YoY to 206 MUs.
Strategic Focus and Tailwinds
Capacity Expansion Update
Management provided an update on strategic capacity additions:
- Commissioned 60,000 MTPA brownfield expansion in Tamil Nadu, taking total installed capacity to 8,50,000 MTPA.
- Trial runs commenced for 1,000 MTPA Super-conductive Specialty black grades at Palej.
- Pre-commissioning started for a 20,000 MTPA Specialty Black line in Mundra.
- The 4,000 MTPA Acetylene black plant work has initiated, expected by end of FY’27.
The company highlighted that the India-U.S. trade deal, with a reduced tariff of 18%, is a major boost, expected to improve sales volume and profitability in the U.S. market.
Cost Optimization and Efficiency
PCBL has embarked on a company-wide cost optimization drive targeting cumulative savings of Rs. 200 crores over the next two years through procurement optimization, yield improvement, and logistics efficiency.
Aquapharm Business Performance
The Specialty and Solutions business faced a challenging external environment, with Q3 FY’26 revenue at Rs. 327 crore and EBITDA at Rs. 35 crores. Headwinds included geopolitical tensions and a slowdown in end-offtake, particularly impacting the Oil & Gas segment (down 23% QoQ) and Water Solutions (down 26% QoQ).
Positive developments include securing formal allocation from P&G for GLDA and initiating supplies to Henkel from Q1 FY’27. Management conservatively projects at least 20% volume growth for Aquapharm in the next fiscal year, supported by regulatory tailwinds like the China VAT refund revocation.
Future Outlook and Guidance
The company confirmed its long-term guidance, sticking to the FY’29 PAT guidance of Rs. 2,500 crores. Management noted that the domestic tyre market is expected to see 5-6% growth next year.
Regarding CAPEX, FY’26 is estimated around Rs. 550 crores, with FY’27 projected between Rs. 300-400 crores, significantly lower intensity as much of the brownfield expansion CAPEX has already been incurred.
In Nanovace (battery segment), the commercial pilot plant cost is estimated at $4-5 million, with the full-scale plant estimated at $25-30 million, targeting full utilization closer to the end of FY’29 or beginning of FY’30, potentially generating Rs. 1,700 crore topline at peak.
Source: BSE
