01 — At a Glance
The Scrappy Recycler That’s Recycling Expectations
- 52-Week High / Low₹1,578 / ₹501
- Q3 FY26 Revenue₹776 Cr
- Q3 FY26 PAT₹37.6 Cr
- Q3 EPS₹12.31
- Annualised EPS (Q3×4)₹49.24
- Book Value₹228
- Price to Book4.69x
- Dividend Yield0.34%
- Debt / Equity0.05x
- CRISIL RatingA/Stable
Auditor’s Opening Note: Pondy Oxides delivered its “strongest ever” Q3 FY26 with ₹776 crore revenue (+55% YoY), ₹37.6 crore PAT (+148% YoY), annualised EPS of ₹49.24. Lead capacity doubled to 204,000 MTPA. Copper capacity is doubling. The company raised ₹175 crore via QIP in Dec 2024. CRISIL upgraded ratings to A/Stable in April 2025. And yet the stock sits at 27.4x P/E—a good 45% above sector median. This is the recycling business equivalent of paying premium prices for premium scrap. The irony is spectacular.
02 — Introduction
Welcome to the Lead Recycling Economy. Your Car Battery Called.
Let’s talk about Pondy Oxides & Chemicals. No, not the fancy organic brand. The industrial metals recycler based out of Tamil Nadu that turns your dead car batteries into pure lead, lead alloys, copper, aluminum, and plastic pellets. And yes, someone has to do this. No, it’s not glamorous. And yes, there’s actually serious money in it.
Founded in 1995, POCL is India’s largest secondary lead manufacturer—turning used lead-acid battery scrap into pristine metal that goes straight back into new batteries. It’s the circular economy in its truest form: your car battery dies → POCL melts it → pristine lead emerges → your next car’s battery is born. Rinse, repeat, profit.
The company operates five manufacturing units across Tamil Nadu, Andhra Pradesh. Total lead capacity jumped from 132,000 MTPA (FY25) to 204,000 MTPA (>50% increase). Copper capacity doubling to 12,000 MTPA by end of January 2026. The concall from January 2026 called Q3 FY26 the company’s “strongest ever quarterly and 9-month performance.”
But here’s the funny part: the stock is trading at 27.4x P/E—a 45% premium to the sector median of 26.5x. Is it cheap? Is it expensive? Is it a screaming buy? Is it a value trap? Let’s dig into the numbers, the business, the macro tailwinds, and the very real risks that nobody’s talking about.
Concall Highlight (Jan 2026): “Strongest ever quarterly and 9-month performance.” Management said this. They’re usually conservative. When they say “strongest ever,” they mean it. This is not hyperbole. This is ex-post-facto honesty.
03 — Business Model: WTF Do They Even Do?
They Mine Your Battery Graveyard. Literally.
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