PCBL Chemical (PCBL) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 was marked by geopolitical volatility, trade tensions, and lower industry utilization, impacting profitability, but domestic demand remained robust, especially in tires, and export prospects improved with new trade deals.

• Leadership transition occurred with a new Managing Director, and a company-wide cost optimization drive targeting INR 200 crore savings over two years was launched.

• Aquapharm Chemical reported Q3 FY26 revenue of Rs. 327 Cr and EBITDA of Rs. 35 Cr, with sales volume at 21,790 MT.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, with no material misstatements found.

• Sustainability initiatives advanced, with certifications, reductions in water and energy consumption, and zero waste to landfill achieved at all sites.

Financial highlights

• Q3 consolidated revenue was INR 1,846 crore, with EBITDA at INR 231 crore; a one-time labor code provision of INR 21 crore was recorded.

• Q3 FY26 PAT was Rs. 2 Cr, with diluted EPS at 0.05, compared to Rs. 62 Cr and EPS of 1.6 in Q3FY25.

• Nine-month FY26 revenue was INR 6,124 crore (down from INR 6,317 crore), EBITDA at INR 834 crore (down from INR 1,067 crore), and carbon black sales volume up 2% year-on-year.

• Standalone Q3 FY26 revenue from operations: Rs. 1,273.99 crores; net profit after tax: Rs. 36.08 crores.

• Exceptional item of Rs. 12.45 crores (standalone) and Rs. 20.85 crores (consolidated) due to statutory impact of new Labour Codes.

Outlook and guidance

• Export momentum is expected to continue, supported by recent FTAs and reduced U.S. tariffs, with medium- to long-term export opportunities increasing.

• Domestic tire demand is projected to grow 5%-6% annually, with international market share also expected to rise.

• Focus on improving sales volume, margin profile, and cost optimization targeting Rs. 200 Cr+ savings over two years.

• EBITDA per ton for carbon black is targeted to reach INR 24-25/kg over the next 4-5 years.

• Long-term PAT guidance of INR 2,500 crore by FY 2029 remains unchanged.