PCBL's revenue grew by 9% YoY, led by a 6% YoY improvement in realizations and a 3% YoY increase in volumes driven by the homecare and water treatment portfolio.
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IDBI Capital Report
PCBL Chemcials Ltd.'s Q2 FY26 profitability was below our expectations. Carbon black sales declined 3% YoY, primarily due to an 11% YoY drop in realizations driven by weak demand amid global uncertainty.
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Domestic volumes increased by 10% YoY, while export volumes grew by 6% YoY. The consolidated Ebitda margin contracted 450bps YoY to 12.3%, reflecting margin compression in both the carbon black and Aquapharm segments, largely due to pricing pressure on falling crude prices.
Ebitda/tonne for carbon black segment fell 24% QoQ to Rs 13,489 amid high input tariffs imposed by US.
Consequently, we revise our FY26 EPS estimates downwards by 5% and maintain FY27 EPS estimates. We value the stock at a PER of 23x FY27E EPS, resulting in a revised target price of Rs 387. We maintain our Hold rating on the stock.
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