Pondy Oxides and Chemicals Limited: Q1 : Revenue from Operations, EBITDA and PAT increased by 35%, 78% and 94% on YoY basis.

PONDY OXIDES & CHEMICALS: Smallcap story

• The company’s major customers are battery manufacturers and chemical manufacturers. Pondy Oxides garners about 55 per cent of revenue from exports.

• The company is one of the largest exporters of lead products from India. Over the past 15 years, it has been exporting to Southeast Asian countries and the Middle East. It ships its products directly to the battery manufacturers in countries like Japan, South Korea, Thailand, Indonesia, Vietnam and Malaysia, among others.

• PONDY OXIDES & CHEMICALS; leading manufacturer of lead, lead alloys and plastic additives, is taking up greenfield and brownfield capacity expansion programmes at an estimated investment of Rs.570 crore on favourable growth opportunities.

• The acquisition of land is a significant step in prioritising our strategic expansion plans, with focus on the Make in India initiative and cater to both domestic and international markets. 
• The investment is aimed at establishing and expanding facilities in existing and other related manufacturing verticals, according to a stock exchange filing of the company.
• Mundra has been chosen due to its proximity to the port and the region’s ongoing industrialisation and development. 
• This will position us advantageously to serve the Western Region effectively and to further expand our export capabilities across the globe
• Meanwhile, the company has taken up a brownfield and a greenfield projects for capacity ramp-up. It is expected to invest about ₹70 crore in increasing the lead capacity of its newly acquired company - from 1,32,000 tonnes per annum to 2,04,000 tonnes per annum at Thervoykandigai near Chennai
• The company has proposed to set up a state-of-the-art recycling and manufacturing plant in Tamil Nadu for non-ferrous metals, lithium-ion batteries, paper, plastics, and rubber. It plans to invest ₹300-500 crore in the proposed projects over the next five years.

Pondy Oxides and Chemicals  :   FY25 Revenue, EBITDA & PAT up 33%, 39% & 65%

• TARGET 2030 – Under its Target 2030 vision, POCL has laid out a well-defined roadmap for sustainable growth and diversification. The focus is on expanding capacities in different verticals of nonferrous metals. Key objectives include delivering over 15% volume growth, maintaining a 20%+ revenue CAGR and profitability growth, achieving EBITDA margins above 8%, ROCE exceeding 20%, and driving more than 60% of revenue from value-added products. Additionally, POCL aims to reduce energy consumption by over 20% as part of its commitment to lowering its carbon footprint.   
• Pondy Oxides and Chemicals Limited (BSE Code – 532626; NSE Code - POCL), India’s leading recycling and manufacturing company, has demonstrated remarkable performance in FY2024-25 showcasing accelerated growth, operational strength, and strategic momentum.
•    POCL's financial health has improved significantly, with a lower net debt, better debt-to-equity metrics, and enhanced working capital management.
•   The FY25 sales mix between domestic and export markets stood at 34% and 66% respectively. The percentage of value-added products in the Lead segment has been constant.
• PAT increased to INR 65 Cr., up 65% (YoY) on annual basis and to INR 18 Cr., up 46% (YoY) on quarterly basis 
• FY25 procurement mix of Lead, Plastics and copper through imports is approximately 73%, 65% and 100% respectively.
• The capacity utilization of Lead, Plastics and Copper increased substantially on both annual and quarterly basis.
• The production of Lead has increased significantly by 30% to 94,115 MT on annual basis and by 21% (YoY) to 26,074 MT on quarterly basis.
• The sale of Lead has increased by 32% to 90,565 MT on annual basis and 30% (YoY) to 22,988 MT on quarterly basis.   
• There is a significant increase in production and sales of Plastics and Copper as well on annual and quarterly basis (YoY). On annual basis, production of Plastics and Copper increased by 147% and 818% whereas the sales increased by 170% and 760% respectively  
•   Lead Capacity Expansion of Thervoykandigai Project - POCL is expanding its lead production capacity by 72,000 MTPA (in 2 Phases of 36,000 MTPA each) in its plant, located in Thervoykandigai. The commercial production for Phase 1 of 36,000 MTPA Lead Capacity has commenced. The capex for the same was Rs. 85 Cr. and the same is funded through the proceeds of QIP and internal accruals. Phase 2 expansion is expected to be commissioned by H2’FY26. The capex estimated for Phase 2 is Rs. 20 crores approximately.
• Fund Raising – POCL has successfully raised INR 175 Cr. approx through QIP. The funds will be strategically utilized to strengthen POCL’s operational capabilities, drive expansion plans, and achieve its TARGET 2030, focusing on sustainable growth, innovation, and value creation for all stakeholders.
• Credit Rating Upgrade – CRISIL Rating Limited has upgraded the credit rating to CRISIL A/Stable from CRISIL A-/Stable reflecting improved financial strength and stability. This upgrade underscores the company’s strong operational performance, robust balance sheet, and positive growth outlook.  

Pondy Oxides and Chemicals Limited: Q1 :  Revenue from Operations, EBITDA and PAT increased by 35%, 78% and 94% on YoY basis. 

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• Q1FY26 Key Financial Highlights 
•  Revenue from Operations has increased to INR 596 Cr., up 36% and 15% on YoY and QoQ basis. POCL experienced this substantial growth as a result of increased production, sales, and realizations in both Lead and Copper. 
•  EBITDA increased significantly by 82% to INR 43 Cr on a YoY basis. EBITDA margins exceeding the 7% mark represent a significant milestone in POCL’s journey toward long-term, sustainable value creation. 
•  PAT increased by 90% to INR 28 Cr on YoY basis. PAT Margins increased to 4.6%, up from 3.3% in Q1FY25. 
•  On a Consolidated basis also, POCL reported a strong financial performance. Revenue from Operations, EBITDA and PAT increased by 35%, 78% and 94% on YoY basis. 
•  The Q1FY26 sales mix between domestic and export markets stood at 44% and 56% respectively. 
•  The percentage of value-added products in the Lead segment stands at 71% compared to 50% and 58% on YoY and QoQ basis.   
• Management Comments Mr. Ashish Bansal, Managing Director: “I am pleased to report that POCL has begun FY26 with its strongest quarterly performance to date, driven by solid operational execution. Revenue, EBITDA, and PAT grew by 36%, 82%, and 90% YoY, respectively, supported by a rise in production and sales volumes across Lead and Copper. Crossing the 7% EBITDA margin is a significant milestone in our journey of sustained value creation. POCL remains well on course to achieve its Target 2030—centered on capacity expansion, 15%+ volume growth, 20%+ revenue CAGR, improved profitability, and a higher share of value-added products. With a clear strategic roadmap, strong financial health, operational discipline, favorable regulatory environment, experienced leadership, and strong stakeholder backing, POCL is well-positioned for long-term, consistent growth.”  
•  Q1FY26 Strategic Updates 
•  Lead Capacity Expansion of Thervoykandigai Project - POCL is expanding its lead production capacity by 72,000 MTPA (in 2 Phases of 36,000 MTPA each) in its plant, located in Thervoykandigai. The commercial production for Phase 1 of 36,000 MTPA Lead Capacity has commenced in Q1FY26. Phase 2 expansion is expected to be commissioned by H2’FY26. The capex estimated for Phase 2 is Rs. 20 crores approximately. 
•  TARGET 2030 – Under its Target 2030 vision, POCL has laid out a well-defined roadmap for sustainable growth and diversification. The focus is on expanding capacities in different verticals of nonferrous metals. Key objectives include delivering over 15% volume growth, maintaining a 20%+ revenue CAGR and profitability growth, achieving EBITDA margins above 8%, ROCE exceeding 20%, and driving more than 60% of revenue from value-added products. Additionally, POCL aims to reduce energy consumption by over 20% as part of its commitment to lowering its carbon footprint. 
•  R&D Projects – POCL is looking at setting up R&D Facilities for the creation of value-added products both for the current portfolio and for feasible products which will add overall value to the top and bottom line of the Company. 
•  CAPEX – POCL has invested INR 8 Cr. in Capex during Q1FY26 and expects to invest INR 42 Cr. in 9MFY26.