POCL Shatters Records with Stellar Q3 Performance and Massive Capacity Boost

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AuthorKavya Nair|Published at:
POCL Shatters Records with Stellar Q3 Performance and Massive Capacity Boost
Overview

Pondy Oxides & Chemicals (POCL) posted its best-ever quarter and nine months for Q3 FY'26. Revenue surged 55% YoY to ₹776 crore quarterly, with PAT up 148% YoY to ₹38 crore. The company is aggressively expanding lead and copper recycling capacities, boosting exports and benefiting from regulatory tailwinds, targeting over 20% CAGR.

POCL Reports Unprecedented Q3 FY'26 Performance Amidst Aggressive Expansion

The Numbers:
Pondy Oxides and Chemicals Limited (POCL) announced its strongest-ever quarterly and nine-month financial results for Q3 FY'26 on January 29, 2026. For the nine-month period, revenue grew by an impressive 33% year-on-year (YoY) to ₹2,007 crore. Profitability saw a significant uplift, with EBITDA climbing 96% YoY to ₹157 crore and Profit After Tax (PAT) soaring 114% YoY to ₹101 crore.

On a quarterly basis, the company achieved a 55% YoY revenue growth to ₹776 crore. PAT demonstrated exceptional growth, increasing by 148% YoY to ₹38 crore, while EBITDA surged by 122% YoY to ₹59 crore. EBITDA margins remained robust, consistently exceeding 7% for the nine-month period and hovering around 7-8% on a quarterly basis. The lead EBITDA per ton also showed strength, rising 46% YoY to ₹18,086 for the nine months.

Operational Milestones & CapEx:
The company has been actively expanding its capacities. The second phase of its lead expansion project was commissioned in December 2025, adding 36,000 MTPA and raising total lead capacity to 204,000 MTPA. Furthermore, POCL's copper recycling capacity is set to double from 6,000 MTPA to 12,000 MTPA by the end of January 2026. Capital expenditure (CapEx) for the first nine months of FY'26 stood at approximately ₹25 crore, with an additional ₹35 crore planned for deployment in the final quarter. The board also approved the amalgamation of its wholly-owned subsidiary, POCL Future Tech, into the parent entity to enhance vertical integration.

Strategic Drivers & Outlook:
POCL highlighted a supportive domestic regulatory environment, including the enforcement of BWMR and EPR frameworks, which are expected to increase domestic scrap availability. The India-EU trade deal is viewed as a structural catalyst, enhancing global price competitiveness and demand visibility. Exports contributed a significant 67% of total revenue for the nine-month period.

Looking ahead, POCL reaffirms its 'Target 2030' vision, aiming for 20%+ volume growth and a 20%+ CAGR in revenue and profitability. The company targets maintaining EBITDA margins above 8% and ROCE above 20%. Value-added products are projected to constitute over 60% of lead segment revenue. The Mundra expansion is scheduled for the second half of calendar year 2027. Management discussed strategies to navigate copper market volatility and maintain sustainable margins, acknowledging a ₹7.28 crore mark-to-market provision in Q3 that impacted EBITDA. Expected inventory levels are between ₹230-250 crore by year-end, with a working capital cycle around 47 days.

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