PCBL Chemical Q2 FY27 results: net profit up 20.2% to ₹74.14 crore, revenue up 14.4%

How did PCBL Chemical perform in Q2 FY27?

PCBL Chemical reported consolidated revenue of ₹2,474 crore in Q2 FY27, up ₹310.88 crore or 14.4% from Q2 FY26. EBITDA increased ₹28.32 crore or 10.6% to ₹294.48 crore, but the margin declined 0.4 percentage points to 11.9%. PAT rose ₹12.44 crore or 20.2% to ₹74.14 crore, and basic EPS increased ₹0.25 or 15.3% to ₹1.88.

Sequentially, revenue was broadly unchanged, rising ₹1.08 crore from ₹2,473 crore in Q1 FY27. EBITDA fell ₹101.05 crore or 25.5% to ₹294.48 crore, PAT declined ₹80.79 crore or 52.1% to ₹74.14 crore, and basic EPS fell ₹2.06 or 52.3% to ₹1.88. EBITDA margin was lower by 4.1 percentage points at 11.9%. On the standalone basis, revenue was ₹1,694.65 crore and PAT was ₹80.01 crore, against ₹59.63 crore in Q2 FY26.

What changed in PCBL Chemical's costs and profit?

Total expenses increased ₹292.31 crore or 13.9% year on year to ₹2,390 crore. Cost of materials was the largest increase, rising ₹500.22 crore or 33.4% to ₹1,998 crore, while other expenses increased ₹12.13 crore or 5.0% to ₹255.84 crore and depreciation rose ₹13.02 crore or 14.0% to ₹105.80 crore. Employee cost fell ₹6.01 crore or 4.8% to ₹118.39 crore, while finance costs declined ₹3.27 crore or 3.1% to ₹103.88 crore.

Other income increased ₹3.68 crore or 30.5% to ₹15.73 crore, and there was no exceptional item. Profit before tax rose ₹22.25 crore or 28.4% to ₹100.53 crore, but tax expense increased ₹9.81 crore or 59.2% to ₹26.39 crore. Management said geopolitical tensions disrupted trade routes and significantly increased freight costs, while the company pursued pricing discipline and cost optimisation.

How did the first half of FY27 go?

In H1 FY27, consolidated revenue rose ₹670.20 crore or 15.7% to ₹4,947.82 crore, and total income increased ₹672.48 crore or 15.7% to ₹4,967.95 crore. Profit before tax increased ₹106.35 crore or 53.6% to ₹304.78 crore.

What do the balance sheet and cash flow show?

Total assets increased from ₹11,294.54 crore at 31 March 2026 to ₹12,421.05 crore at 30 September 2026, while total equity rose from ₹4,019.15 crore to ₹4,072.55 crore. Borrowings increased from ₹4,825.18 crore to ₹4,927.40 crore and cash declined from ₹229.52 crore to ₹158.90 crore. Inventories rose from ₹1,023.70 crore to ₹1,981 crore, while trade receivables increased from ₹1,395.35 crore to ₹1,589.10 crore and trade payables from ₹1,446.97 crore to ₹2,428.30 crore.

H1 FY27 operating cash flow was ₹363.12 crore, compared with ₹822.25 crore in H1 FY26. Investing cash flow was an outflow of ₹201.97 crore against an outflow of ₹405.64 crore, while financing cash flow was an outflow of ₹231.77 crore against an outflow of ₹518 crore. Capital expenditure was ₹203.11 crore, compared with ₹412.95 crore a year earlier.

How has PCBL Chemical done over the last 8 quarters?

Revenue reached ₹2,474.45 crore in Q2 FY27, slightly above ₹2,473.37 crore in Q1 FY27 and the highest in the reported series. It had fallen to ₹1,845.62 crore in Q3 FY26 before recovering, and revenue has risen year on year in each of the last two quarters.

Profit after tax was ₹74.14 crore in Q2 FY27, down from ₹154.93 crore in Q1 FY27 and well above the low of ₹2.02 crore in Q3 FY26. The EBITDA margin fell from 16.0% in Q1 FY27 to 11.9%, after reaching a low of 11.6% in Q3 FY26. PAT has risen year on year in each of the last two quarters.

Which businesses drove the quarter?

Carbon Black revenue rose 16.8% year on year to ₹1,978.53 crore from ₹1,694.53 crore, while EBIT increased to ₹190.67 crore from ₹162.55 crore. The segment reported an EBIT margin of 9.6%.

Power revenue fell 12.5% to ₹93.56 crore from ₹106.87 crore, while EBIT declined to ₹58.95 crore from ₹76.82 crore. Chemical revenue rose 9.7% to ₹433.25 crore from ₹394.95 crore, but EBIT fell to ₹5.24 crore from ₹11.92 crore. Battery Chemical reported no revenue and EBIT of -₹0.17 crore, against EBIT of -₹0.02 crore.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, along with the statutory auditors’ limited review reports. The filing also included the security cover under Regulation 54 of the Listing Regulations, with the same-day headline reporting debenture security cover at 4.37 times.

The company filed a postal ballot seeking shareholders’ approval by special resolution for the reappointment of T. C. Suseel Kumar as a Non-Executive Independent Director for a second term of five consecutive years from 27 October 2026 to 26 October 2031. Remote e-voting is scheduled from 9:00 a.m. IST on 3 November 2026 to 5:00 p.m. IST on 2 December 2026.

What did PCBL Chemical's management say?

Management said the mid-term outlook was based on “Volume-led growth, with a continued focus on margin improvement”. It also said it was “Expanding Specialty chemical portfolio towards high margin products”, continuing cost and efficiency optimisation, and pursuing backward integration into Coal Tar and Yellow Phosphorus. The company plans to expand its global supply chain and sales footprint and diversify sources of supply in Specialty & Solutions.

Management said co-generation capacity of 122 MW across five plants would expand to 134 MW, with Tamil Nadu capacity under construction for CoD FY27. It also highlighted the Antwerp warehouse and US entity to support local customer engagement, and said Advance Battery Materials would advance through pilot manufacturing, material validation, customer co-development, scale-up and adoption.

Management identified lower carbon-black sales volume, geopolitical trade-route disruptions and higher freight costs as operating pressures. Q2 carbon-black volume was 134,180 MT against 161,728 MT in Q2 FY26, while H1 volume was 287,694 MT against 315,821 MT. The presentation also noted that Specialty & Solutions customer qualifications and Healthy traction in the US and Europe were progressing.

How did PCBL Chemical shares react?

PCBL Chemical’s stock was trading at ₹280.50 when the result appeared. It fell 1.0% after 5 minutes, 0.4% after 15 minutes and 1.8% after 30 minutes. On the reaction day, the stock closed up 2.9% from the previous close of ₹274.00, compared with a 1.6% median rise for the Chemicals & Petrochemicals industry and a 1.4% rise for the Nifty Smallcap 250.

By the next trading day’s close, the stock was up 0.6% from its pre-results close. The industry median was up 1.1%, so PCBL Chemical’s one-day excess sector move was -0.4 percentage points. Earlier results-day moves were 14.7% on 29 July 2026, -3.0% on 30 April 2026 and 11.9% on 3 February 2026.