Goa Carbon Ltd Q2 FY26 – The Coke is Hot, But the Profits Are Burnt!

1. At a Glance

If “burning cash” was an Olympic sport, Goa Carbon Ltd (GCL) would probably be representing India in Paris 2026. The calcined petroleum coke maker from the scenic land of feni and fish curry has once again delivered a spicy quarter — minus the profit masala. For Q2 FY26 (ended September 2025), the company reportedsales of ₹102 croreand anet loss of ₹21.4 crore, continuing its streak of red-hot red ink. TheOperating Profit Margin (OPM)stands at a disheartening–10%, which means every tonne of pet coke sold probably took a small piece of their bank balance with it.

With amarket cap of ₹371 croreand astock price around ₹404, GCL’s story looks like a sad sequel to an old blockbuster — “Goa Carbon: The Roast Continues.” The company’sROE is –10.3%,ROCE –2.28%, andDebt-to-Equity ratio 2.08, which says enough about the financial stress. Over the past year, the stock has fallen by38%, reminding investors that calcined petroleum coke might light up furnaces, but not necessarily portfolios.

So what’s cooking in Goa Carbon’s coke ovens this time? Let’s grab a metaphorical hard hat and go mining through the financial rubble.

2. Introduction

Goa Carbon Ltd, part of the Denpo Group, has been around since 1967 — which means it has survived wars, recessions, and countless finance ministers. Its business? Converting raw petroleum coke into calcined petroleum coke (CPC), which is then sold to industries like aluminium smelters, steel manufacturers, and electrode makers.

But let’s be honest — the last few years have been less “refined industrial success” and more “industrial survival drama.” The company’s fortunes have been welded to the demand cycles of aluminium producers likeHindalcoandVedanta Aluminium, who together account for over90% of GCL’s revenues. When aluminium prices tumble or smelters take production holidays, Goa Carbon catches a cold… or in this case, a full-blown financial flu.

In FY25, the company’sannual sales fell 19%, and profits evaporated like camphor at a temple aarti. Even the most optimistic shareholder has probably run out of adjectives. What’s worse, itscredit rating has been downgraded multiple timesin 2024 and 2025 — from CRISIL and Acuité both — now sitting atACUITE BBB+ (long-term)with a stable outlook (which is finance-speak for “we hope they survive”).

But wait — there’s some comic relief. GCL recently received₹7.61 crore in tax refundsfrom the Income Tax Department for assessment years 1999–2000 and 2009–10. That’s like finding an old ₹500 note in your dad’s kurta pocket — nostalgic, but not enough to solve your EMIs.

3. Business Model – WTF Do They Even Do?

At its core (literally), Goa Carbon takes raw petroleum coke (a byproduct of oil refining) and roasts it in large kilns at temperatures above 1,200°C. This process removes moisture and volatile compounds, producingCalcined Petroleum Coke (CPC)— a vital input for aluminium smelters, graphite electrode manufacturers, and titanium dioxide producers.

Think of GCL as the tandoor chef of the metals world: they take raw coke, cook it to perfection, and serve it hot to industrial clients. TheirGoa,Paradeep (Odisha), andBilaspur (Chhattisgarh)plants together have a combined capacity of3.08 lakh tonnes per annum— with Paradeep being the largest.

However, the catch is: this tandoor needs raw material (green pet coke), which is imported and priced in dollars. Add shipping costs, forex volatility, and fluctuating energy prices — and you’ve got a perfect recipe for profit instability.

Nearly97% of GCL’s revenuecomes from aluminium smelters — a single-industry dependency that’s like owning a restaurant where 97% of your customers are just one joint family. If one cousin skips dinner, you’re in trouble.

4. Financials Overview

Let’s crunch the Q2 FY26 numbers and put them in