PCBL Chemical Limited held its Q1 FY27 Earnings Conference Call on July 29, 2026, at 17:00 hrs India Time. The transcript was submitted to the National Stock Exchange of India Ltd and BSE Ltd on August 5, 2026.

Financial Performance Highlights

  • Consolidated Revenue: Grew 17% year-on-year to ₹2,474 crores
  • Consolidated EBITDA: Grew 23% year-on-year to ₹400 crores
  • Profit After Tax (PAT): Grew 65% year-on-year to ₹155 crores
  • Carbon Black Sales Volume: 153,513 metric tons (steady performance)
  • Domestic Sales Volume: Grew 15% YoY to 102,985 tons
  • International Volumes: 50,528 tons (reflecting strategic reallocation to domestic market)
  • Power Generation: 217 million units with external sales of 130 million units at improved realizations

Segment-wise Volume Breakdown

  • Tires: 91,379 tons
  • Performance Chemicals: 42,386 tons
  • Specialty Carbon Black: Grew 23% YoY to 19,748 tons

Operational and Strategic Updates

Raw Material Cost Environment:

  • Brent crude averaged USD 97 per barrel during Q1 FY27 compared to USD 78 per barrel in Q4 FY26
  • CBFS costs moved in line with crude prices
  • Higher inward freight costs raised raw material bill during the quarter
  • Company ensured uninterrupted customer service despite geopolitical disruptions

Structural Tailwinds Identified:

1. Trade Architecture: India's trade agreements including India-U.S. trade deal (February 2026), India-EU FTA (concluded January 2026, progressing through ratification), India-U.K. CETA, and agreements with Oman and New Zealand position India favorably

2. U.S. Market Advantage: Indian carbon black now attracts materially lower tariffs than competing Asia and Middle East origins, with China facing significantly higher effective duties

3. Global Supply Chain Tightening: Ukraine's strikes on Russian energy infrastructure have reduced Russian refining throughput, shrinking Russian exports of carbon black feedstock and carbon black

Capacity Expansion:

  • 20,000 MTPA specialty black line in Mundra commissioned in Q1 FY27
  • Total installed carbon black capacity now stands at 900,000 metric tons per annum

Advanced Battery Materials Business:

  • Focus on silicon-based anode materials and high-performance conductive carbons
  • Nanovace pilot plant in Palej in progress, received consent to operate for R&D and customer sampling
  • Trials at individual machine level started, sampling expected to begin in August 2026
  • 1,000 metric ton per annum super-conductive specialty black facility set up in Palej
  • Engineering completed for first phase of modular acetylene black manufacturing facility

Cost Optimization Program:

  • Initiatives expected to yield ₹200-250 crores of savings over next 4-6 quarters
  • Target remains unchanged from previous guidance

Aquapharm Chemicals Performance

  • New CEO: Mr. Rohit Narang appointed (25 years global leadership experience, previously with Eastman Chemicals)
  • Q1 FY27 Performance:
  • Sales volumes: 22,985 metric tons
  • Revenue: ₹394 crores
  • EBITDA: ₹47 crores
  • Segment Performance:
  • Home care and water solutions: Sales volume decreased marginally YoY
  • Application-specific solutions: Posted 10% YoY growth
  • Oil and gas: 35% YoY decrease, but 50% sequential growth
  • Challenges: Raw material availability issues affecting production levels, higher costs across raw materials, logistics and packaging
  • Growth Pillars (Next 1-3 years):
  • Introducing new products across polymers, phosphonates
  • Sharpening focus on U.S. market
  • Qualifying green chelates with key accounts (P&G, Reckitt, Henkel)
  • Expanding oil and gas portfolio through biocides and paraffin inhibitors
  • Securing new customer qualification in desalination

Management Guidance and Outlook

  • Near-term: Operating environment remains dynamic, some customers adopted cautious procurement approach
  • Expected temporary effect on volumes in Q2 FY27, viewed as timing effect not demand effect
  • Constructive on second half of FY27
  • Volume Guidance: Expect good growth in volume for full year despite near-term challenges
  • Margin Guidance: FY27 EBITDA per ton guidance of 14-15% improvement over FY26 average (approximately ₹16,500-17,000 per ton)
  • Capex Outlook: Approximately ₹300 crores (±₹50 crores) for FY27, mostly maintenance capex and productivity enhancement

Key Financial Disclosures

  • Inventory Gains: Approximately ₹70 crores in Q1 FY27, with estimated ₹40-50 crore reversal expected in Q2
  • Tariff Refunds: Applied for tariff reversals totaling ₹40-45 crores between Aquapharm and PCBL, expected in next 2-4 weeks
  • Power Business EBIT: Jumped to ₹110 crores from ₹80 crores last quarter due to better realizations (₹5.39 vs ₹3.66 per unit)
  • Realization Increase: ₹27,000 quarter-on-quarter increase, with ₹11,000-12,000 from better pricing in spot market and balance from cost pass-through
  • CBFS vs CBO Price Difference: Approximately USD 150, with CBO being higher

Geographic Performance

  • Europe Volumes: Approximately 16,000 tons in Q1 FY27
  • U.S. Volumes: Approximately 4,800 tons in Q1 FY27
  • Logistics Impact: Elevated freight costs continue to impact exports, company implementing surcharges where possible