1. At a Glance
PCBL Ltd just dropped Q1 FY26 results, and while carbon black is their core product, their profit was looking a bit… grey. With revenue at ₹2,114 Cr and PAT at ₹94 Cr, margins held, but EPS looked like it had a hangover from Q4. Market says “meh”, stock fell 2%. But the patent news and capacity expansion? That’s where the plot thickens.
2. Introduction with Hook
If chemical stocks were movie characters, PCBL would be the tough guy in sunglasses making money in the shadows — literally, because it sells carbon black.
And here’s the twist:
- India’s largest carbon black producer
- World #7 in the segment
- But trading at 4.15x Book Value with a P/E of 37+, it’s starting to look like the chemical sector’s version of overpriced sushi.
3. Business Model (WTF Do They Even Do?)
PCBL is what happens when you take soot and sprinkle it with science.
3 Legs of the Tripod:
- Rubber Carbon Black (678 KT) – Tyres, mostly. It’s like ketchup in the chemical world: goes with everything industrial.
- Specialty Carbon Black (112 KT) – High-margin, high-use in plastics, electronics, inks — like designer soot.
- Chemicals (Phosphonates) – Over 275 products, among global top 3.
- Power – Captive generation + surplus sales. Because why not?
Basically, they take crude residue, spin it into magic dust, and charge a fortune.
4. Financials Overview
| FY | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) | OPM % |
|---|---|---|---|---|
| FY23 | 5,774 | 731 | 442 | 13% |
| FY24 | 6,420 | 1,037 | 491 | 16% |
| FY25 | 8,404 | 1,337 | 435 | 16% |
| Q1 FY26 | 2,114 | 319 | 94 | 15% |
Color Commentary:
- Sales are scaling fast — carbon boom!
- Margins holding like a chemical engineer’s ego.
- PAT for Q1 is flat YoY. But hey, they squeezed 15% OPM out of a price-sensitive biz.
5. Valuation
| Method | Assumption | Fair Value Range |
|---|---|---|
| P/E | 30–35x on FY26E EPS ₹10.5–₹11 | ₹315 – ₹385 |
| EV/EBITDA | 12–14x on FY26E EBITDA ₹1,350 Cr | ₹400 – ₹470 |
Current Price: ₹406
This is fairly valued to slightly spicy, especially for a commodity-driven player.
6. What’s Cooking – News, Triggers, Drama
- Q1 PAT ₹94 Cr, down 20% YoY. But OPM holding firm = not a disaster.
- New patent announced — R&D team isn’t sleeping.
- 2.6% volume growth — not thrilling, but it’s not shrinking either.
- Capacity expansions in progress — carbon black plants aren’t made overnight.
- Power biz remains small but cash-generative.
And in the usual twist:
- Warrants worth ₹112 Cr used, no deviation — SEBI is happy.
7. Balance Sheet
| Particulars | FY24 | FY25 |
|---|---|---|
| Equity Capital | ₹38 Cr | ₹38 Cr |
| Reserves | ₹3,209 Cr | ₹3,660 Cr |
| Borrowings | ₹4,983 Cr | ₹5,571 Cr |
| Total Liabilities | ₹11,295 Cr | ₹11,722 Cr |
| Fixed Assets | ₹6,892 Cr | ₹6,597 Cr |
Spicy Notes:
- Leverage? Present, but under control.
- Massive capex = future ready.
- Debt-funded growth — classic industrial script.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | ₹504 Cr | ₹-552 Cr | ₹-31 Cr | ₹-78 Cr |
| FY24 | ₹1,105 Cr | ₹-4,214 Cr | ₹3,381 Cr | ₹272 Cr |
| FY25 | ₹760 Cr | ₹-690 Cr | ₹-64 Cr | ₹6 Cr |
Verdict:
Capex monster. They’ve turned on the investment tap and are guzzling capital like it’s Diwali bonus week.
9. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 12.5% |
| ROCE | 11.9% |
| PAT Margin | 4.9% |
| D/E | ~1.5x |
| P/E | 37.3x |
Takeaway:
- Decent return ratios for a capital-heavy biz.
- Valuation… definitely baking in future growth.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹5,774 Cr | ₹731 Cr | ₹442 Cr |
| FY24 | ₹6,420 Cr | ₹1,037 Cr | ₹491 Cr |
| FY25 | ₹8,404 Cr | ₹1,337 Cr | ₹435 Cr |
| Q1 FY26 | ₹2,114 Cr | ₹319 Cr | ₹94 Cr |
Trendline:
- Strong top-line trajectory.
- Margins stable despite RM volatility — chemical Zen mode.
11. Peer Comparison
| Company | CMP | P/E | Revenue (Cr) | PAT (Cr) | ROE % |
|---|---|---|---|---|---|
| Himadri Speciality | ₹515 | 41.6 | ₹4,531 | ₹611 | 16.4% |
| PCBL Chemical | ₹406 | 37.3 | ₹8,375 | ₹411 | 12.5% |
Punchline:
PCBL has scale. Himadri has margins. Pick your poison — or polymer.
12. Miscellaneous – Shareholding, Promoters
| Shareholder | % Holding |
|---|---|
| Promoter (RP-SG) | 51.41% |
| FIIs | 5.53% |
| DIIs | 9.89% |
| Public | 31.95% |
Observations:
- FIIs have trimmed. DIIs stepped up — maybe they see the long-term carbon curve.
- Public is HODLing. All 2.87 lakh of them.
13. EduInvesting Verdict™
PCBL is not your average commodity stock. It’s a high-capex, medium-margin, R&D-invested chemical player trying to make carbon black… well, not so dark.
Q1 FY26 was steady, not spectacular. But the groundwork (capacity, IP, diversified mix) screams long game.
A gritty, grey horse in the chemicals race. Not a unicorn, but probably a Clydesdale.
Metadata:
Written by EduInvesting Team | 23 July 2025
Tags: PCBL Chemical, Carbon Black, Phosphonates, Q1 FY26, RP-Sanjiv Goenka, EduInvesting Premium
