POCL Enterprises profit falls as September revenue rises

POCL Enterprises Limited reported Rs 510.58 crore of consolidated revenue from operations for the quarter ended September 30, 2026, but profit attributable to owners fell to Rs 4.03 crore from Rs 8.25 crore a year earlier. The Metal segment’s result declined to Rs 5.10 crore from Rs 16.85 crore despite higher revenue.

What did POCL Enterprises report for the September quarter?

POCL Enterprises reported unaudited consolidated revenue from operations of Rs 510.58 crore for the quarter ended September 30, 2026, compared with Rs 362.55 crore for the quarter ended September 30, 2025. Total income, including other income, increased to Rs 512.39 crore from Rs 363.57 crore, while total expenses rose to Rs 506.96 crore from Rs 350.38 crore. The board approved the results on November 13, 2026.

Profit before tax was Rs 5.43 crore, down from Rs 13.18 crore a year earlier. Consolidated profit after tax before the share of associates was Rs 4.01 crore, compared with Rs 9.76 crore in the prior-year quarter. After accounting for the share of associates, profit attributable to POCL Enterprises owners was Rs 4.03 crore, versus Rs 8.25 crore a year earlier.

The increase in expenses exceeded the increase in operating revenue during the September 2026 quarter. Cost of materials consumed rose to Rs 439.83 crore from Rs 255.03 crore, while purchases of stock-in-trade declined to Rs 46.78 crore from Rs 94.54 crore. Finance costs increased to Rs 5.33 crore from Rs 4.53 crore.

Why did POCL Enterprises’ profit decline despite higher revenue?

POCL Enterprises’ reported decline in profit coincided with a lower Metal segment result. Metal segment revenue increased to Rs 399.44 crore from Rs 293.05 crore, but its result before finance cost and tax fell to Rs 5.10 crore from Rs 16.85 crore. The Rs 11.75 crore decline in the Metal result was greater than the Rs 8.06 crore fall in combined segment results.

Combined segment result before finance cost and tax was Rs 13.56 crore, compared with Rs 21.62 crore in the September 2025 quarter. Finance cost was Rs 5.33 crore, compared with Rs 4.53 crore, while other unallocable expenditure net of unallocable income was Rs 2.80 crore, compared with Rs 3.91 crore. These items resulted in profit before tax of Rs 5.43 crore, down from Rs 13.18 crore.

The year-on-year consolidated comparison has an acquisition-related qualification. POCL Enterprises completed the acquisition of 51% of Trichy Metals and Alloys Private Limited on July 15, 2026, making it a subsidiary from that date. POCL Enterprises said its consolidated results for the September 2026 quarter and six months are not directly comparable with corresponding earlier periods.

Which POCL Enterprises segments grew and which lost earnings?

POCL Enterprises’ Metallic Oxides and Plastic Additives segments reported higher revenue and results, while Metal recorded revenue growth alongside lower segment earnings. Metallic Oxides revenue rose to Rs 135.46 crore from Rs 92.28 crore and its result increased to Rs 7.03 crore from Rs 3.38 crore. Plastic Additives revenue increased to Rs 29.75 crore from Rs 25.36 crore, while its result rose to Rs 1.26 crore from Rs 1.05 crore.

Metal remained the largest reported segment by revenue at Rs 399.44 crore, followed by Metallic Oxides at Rs 135.46 crore and Plastic Additives at Rs 29.75 crore. However, Metallic Oxides generated a higher segment result than Metal, at Rs 7.03 crore against Rs 5.10 crore. The Others segment reported revenue of Rs 2.60 crore and a segment result of Rs 16.89 lakh, compared with Rs 2.16 crore and Rs 34.65 lakh respectively a year earlier.

For the six months ended September 30, 2026, Metal revenue rose to Rs 710.91 crore from Rs 572.70 crore, but its segment result declined to Rs 12.46 crore from Rs 33.28 crore. Metallic Oxides generated six-month revenue of Rs 302.44 crore and a segment result of Rs 12.04 crore, compared with Rs 206.33 crore and Rs 7.97 crore a year earlier. The six-month segment data therefore also identifies Metal as the principal source of the earnings decline.

What do POCL Enterprises’ balance sheet and cash flow show?

POCL Enterprises had consolidated total assets of Rs 479.99 crore at September 30, 2026, compared with Rs 364.63 crore at March 31, 2026. Trade receivables increased to Rs 147.71 crore from Rs 92.41 crore, while inventories rose to Rs 150.23 crore from Rs 90.88 crore. The September balance sheet included Rs 5.09 crore of goodwill and Rs 8.89 crore of investment property, neither of which was reported at March 31, 2026.

Total consolidated borrowings, including current and non-current borrowings, stood at Rs 207.73 crore at September 30, 2026, compared with Rs 131.92 crore at March 31, 2026. Equity including non-controlling interest was Rs 212.27 crore, compared with Rs 194.55 crore at the previous financial year-end. Non-controlling interest was Rs 7.46 crore at September 30, following the July 2026 acquisition.

Consolidated net cash used in operating activities was Rs 77.01 crore in the six months ended September 30, 2026, compared with an outflow of Rs 89.14 crore a year earlier. The current-period outflow included increases in inventories of Rs 59.35 crore and trade receivables of Rs 55.32 crore, partly offset by a Rs 23.41 crore increase in trade payables. Financing activities generated Rs 65.35 crore, including Rs 51.07 crore of net short-term borrowings and Rs 24.73 crore of net long-term borrowings.

Conclusion

POCL Enterprises delivered a Rs 148.03 crore year-on-year increase in September-quarter revenue, but that growth did not translate into higher owner-attributable profit, which declined by Rs 4.22 crore to Rs 4.03 crore. The segment disclosure identifies Metal as the main earnings change, as its revenue rose by Rs 106.39 crore while its segment result fell by Rs 11.75 crore. Higher results in Metallic Oxides and Plastic Additives did not offset the Metal decline.

Investors can watch the financial effects of the 51% acquisition of Trichy Metals and Alloys Private Limited, completed on July 15, 2026, because POCL Enterprises said provisional fair values and possible measurement-period adjustments remain under review. POCL Enterprises also disclosed a plan to expand into copper-scrap processing and recycling and recycled zinc ingots, while reporting no deviation or variation in preferential-issue fund use as of September 30, 2026.