Pondy Oxides and Chemicals Limited: Q3 FY26 Performance Highlights and Strategic Vision

Pondy Oxides and Chemicals Limited (POCL), a leading Indian recycling and manufacturing company, has delivered an outstanding performance in Q3 and 9MFY26, marking its highest-ever quarterly and nine-month revenue, EBITDA, and PAT. This strong showing reflects robust growth acceleration, operational excellence, and strategic progress. For the nine-month period ended December 31, 2025, POCL reported a standalone revenue of INR 2,007.0 crore, a significant 33% year-on-year increase. EBITDA for the same period surged by 96% to INR 157.3 crore, while Profit After Tax (PAT) more than doubled, growing by 114% to INR 100.7 crore. The company's Q3 FY26 standalone revenue stood at INR 776.3 crore, up 55% year-on-year, with EBITDA at INR 59.1 crore (up 122%) and PAT at INR 37.6 crore (up 148%). These impressive figures underscore POCL's consistent execution and strategic initiatives.

Driving Growth Through Core Verticals and Strategic Expansions

The strong financial performance was primarily driven by higher production and sales volumes across POCL's key Lead and Copper segments. The company's operational highlights reveal a significant increase in lead production by 57% year-on-year to 33,271 MT in Q3 FY26 and by 23% to 83,746 MT for 9MFY26. Lead sales also saw substantial growth, rising 41% year-on-year to 30,388 MT in Q3 FY26 and 15% to 77,796 MT for 9MFY26. The EBITDA per ton for lead increased by 39% year-on-year to INR 17,427 in Q3 FY26 and by 46% to INR 18,086 for 9MFY26.

Copper sales witnessed an exceptional surge, increasing by 15 times on a nine-month basis to INR 296 crore. This growth is supported by strategic capacity expansions. POCL has expanded its lead production capacity by 72,000 MTPA (in two phases of 36,000 MTPA each) at its Thervoykandigai plant, bringing the total lead capacity to 204,000 MTPA. Phase 2 was commissioned in December 2025, and the company expects lead capacities to ramp up to 70% utilization in the coming quarters. Furthermore, POCL is doubling its copper recycling capacity from 6,000 MTPA to 12,000 MTPA, with the expansion expected to be operational by the end of January 2026.

Financial Performance Snapshot (Standalone)

Note: The above numbers are after provisioning mark to market position of INR 7.28 crore as on 31st December 2025.

Strategic Roadmap and Future Outlook

POCL's 'Target 2030' vision outlines a clear roadmap for sustainable growth and diversification. 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. The company also aims to reduce energy consumption by over 20% as part of its commitment to lowering its carbon footprint. The amalgamation of its wholly-owned subsidiary, POCL Future Tech, into the parent company is expected to strengthen vertical integration in plastic recycling, improve cost efficiency, and enhance cash flow management.

On the domestic front, the regulatory environment, with stronger enforcement of BWMR and EPR frameworks, is proving supportive for organized recyclers, leading to more efficient collection mechanisms and increased domestic scrap availability. Internationally, the India-EU trade deal is seen as a structural catalyst, enhancing global price competitiveness and securing long-term demand visibility, particularly for Indian materials flowing into the EU market. This also makes the company's Mundra land bank, acquired in 2024, strategically important for future expansions targeting European and Middle Eastern markets, with plans to commence development in the second half of calendar year 2027.

While the company acknowledges some challenges, such as the mark-to-market provision due to copper price volatility and softer demand in the plastics segment, management remains confident in maintaining its EBITDA margin guidance of 7-8%. They are actively managing inventory and working capital cycles to mitigate the impact of volatile commodity prices. POCL's robust balance sheet, disciplined execution, sizable land bank, and experienced leadership position it well for sustained long-term growth and value creation for its stakeholders.

Operational Performance Highlights

POCL's strategic focus on capacity expansion, operational efficiency, and value-added products, coupled with a supportive regulatory environment and a strong balance sheet, underpins its confidence in achieving its ambitious Target 2030 vision. The company's consistent performance and proactive approach to market dynamics reinforce its position as a leader in the recycling and manufacturing sector.