POCL FY26: Margins improve as Planetfirst becomes the next growth lever

POCL Enterprises Limited closed FY 2025-26 with a mix of steadier topline and better profitability, even as operations navigated a tougher external backdrop. Geopolitical tensions linked to the Iran–US conflict pushed up freight and crude-linked costs, and the company also executed a planned 25-day shutdown at its Lead Alloying and Refining facility in Maraimalai Nagar for modernization. In that context, the March quarter numbers looked resilient.

In Q4 FY26, POCL reported revenue of INR 332.29 crores, EBITDA of INR 18.27 crores, and profit after tax of INR 9.70 crores. For the full year, revenue came in at INR 1,431.69 crores compared with INR 1,450.10 crores in FY25. The more important change was profitability: PAT rose to INR 39.61 crores from INR 31.18 crores, and net profit margin improved to 2.76% from 2.15%. Over a longer arc, EBITDA margin expanded to 5.28% in FY26 and interest coverage improved to 4.56 times, pointing to a healthier earnings profile than in prior years.

The story behind these numbers is not just quarterly execution. It is also a shift in the group’s growth plan, led by the fast scaling associate company Planetfirst Green Private Limited, and the planned merger that could rebase POCL’s scale in FY27.

Q4 performance: a quarter shaped by upgrades and mix

Q4 FY26 revenue of INR 332.29 crores fell versus INR 372.36 crores in Q4 FY25. The company attributed part of the pressure to a planned shutdown of around 25 days at the Lead Alloying and Refining facility during a modernization and infrastructure upgrade. That matters because the Metals division remains the largest revenue contributor, and downtime in that part of the system typically shows up quickly in quarterly sales.

Despite the lower revenue base, profitability held up. PAT in Q4 FY26 was INR 9.70 crores, with a PAT margin of 2.91% on revenue, higher than 2.82% in Q4 FY25 and 2.32% in Q3 FY26. The quarter’s EBITDA of INR 18.27 crores suggests margin support, even while operating costs were under pressure from global logistics and crude-linked inputs.

Revenue mix also shifted within the quarter. Export revenue dropped sharply from INR 122.14 crores in Q3 FY26 to INR 69.86 crores in Q4 FY26, bringing total exports back near Q4 FY25 levels. Domestic revenue in Q4 FY26 was INR 262.43 crores, up from INR 242.48 crores in Q3 FY26. The mix changes are visible in segment-level numbers too.

Segment-wise revenue in Q4 FY26 shows the Metals division at INR 208.53 crores, down from INR 270.59 crores in Q3 FY26 and INR 279.13 crores in Q4 FY25. Metallic Oxides moved in the opposite direction, rising to INR 128.05 crores in Q4 FY26 from INR 110.04 crores in Q3 FY26 and INR 98.57 crores in Q4 FY25. Plastic Additives softened to INR 23.36 crores in Q4 FY26 from INR 29.51 crores in Q3 FY26.

The profitability pattern by segment mirrors this. In Q4 FY26, segment profit was INR 13.05 crores for Metals and INR 5.10 crores for Metallic Oxides, while Plastic Additives contributed INR 1.08 crores. The standout in the quarter is Metallic Oxides, which improved both revenue and profit versus earlier quarters, helping offset softer Metals revenue.

Financial summary

FY26: stable revenue, stronger earnings quality

On a full-year basis, the topline was largely steady. Domestic revenue declined from INR 1,224 crores in FY25 to INR 1,099 crores in FY26, while export revenue rose from INR 226 crores to INR 333 crores. That export improvement helped cushion the domestic decline and kept total revenue close to the prior year.

The bigger change was margin expansion. EBITDA increased to INR 75.77 crores from INR 63.93 crores, and PAT increased to INR 39.61 crores from INR 31.18 crores. Net profit margin moved up to 2.76%, continuing a multi-year improvement trend. Over 2019-20 to 2025-26, net profit margin improved from -0.17% to 2.76%, while EPS rose from -0.22 to 13.14.

The operational explanation sits in three places.

First, the business has diversified meaningfully within non-ferrous materials. POCL operates three main divisions: Metallic Oxides, PVC Stabilisers, and Metals. Over time, the contribution from Metallic Oxides and Plastic Additives has increased.

Second, FY26 segment revenue shows Metallic Oxides growing to INR 444.41 crores from INR 421.75 crores, and Plastic Additives growing to INR 104.85 crores from INR 85.82 crores. Metals revenue declined modestly to INR 1,051.81 crores from INR 1,087.55 crores, but it remains the largest segment.

Third, segment profitability improved in Metals and held up in Metallic Oxides. Metals segment profit rose to INR 58.49 crores from INR 49.81 crores, while Metallic Oxides increased to INR 17.00 crores from INR 16.49 crores. Plastic Additives profit was broadly stable at INR 5.73 crores versus INR 5.92 crores.

A cleaner view of the year’s operating structure is that Metals still anchors scale, but Metallic Oxides is increasingly important for stability. The quarter where Metals revenue dips because of a planned shutdown is the same quarter where Metallic Oxides picks up. That mix effect tends to reduce volatility and can support margins, especially when raw material costs and freight remain uncertain.

Segment comparison (FY26 vs FY25)

Strategy: Planetfirst merger, capacity adds, and adjacent metals

Management’s FY26 commentary makes it clear that POCL is building a larger platform than what the standalone numbers show. The key lever is Planetfirst Green Private Limited, the associate company that scaled quickly during the year.

Planetfirst reported FY 2025-26 revenue of INR 244.15 crores and PAT of INR 4.73 crores, with Q4 FY26 revenue of INR 105.21 crores and PAT of INR 7.74 crores. Management also highlighted that Planetfirst achieved turnover of around INR 245 crores during FY26 with effective operations of only around seven months, turned profitable, and expanded lead refining capacity from 21,000 MTPA to 37,500 MTPA.

The Board approved the scheme of amalgamation of Planetfirst with POCL on March 16, 2026, subject to regulatory approvals. The proposal is positioned as a scale and synergy move. Planetfirst’s Surat facility is expected to strengthen presence in Western India, improve customer accessibility, and enhance integrated product, marketing, and distribution capabilities. The scheme is awaiting approvals from the Stock Exchange and SEBI.

The numerical implication is material. Management expects Planetfirst to generate annual revenues of approximately INR 700 crores in FY 2026-27, and indicated that this could increase POCL’s topline by nearly 50%. It also expects overall net margins to improve to around 4% in the upcoming year. While these are forward-looking expectations, the operational foundation is already visible through Planetfirst’s FY26 ramp-up and capacity expansion.

Beyond the merger, POCL is also adding capacity and widening its product footprint.

Zinc oxide capacity is being expanded at its Metallic Oxides division in Mettupalayam, Puducherry by an additional 2,400 MTPA, with completion expected by July 2026. The company expects this to generate incremental annual revenue of INR 60 to 70 crores. This expansion matters because Zinc Oxide has broad applications, and its major industrial demand is linked to tyre manufacturing and rubber products.

In Metals, the modernization at the Maraimalai Nagar facility has been completed, with capital expenditure of about INR 1 crore. The shutdown in Q4 suggests the company was willing to take short-term volume disruption to strengthen efficiency, process optimization, and environmental compliance. If the upgrade improves throughput and yield, it could support margins even in a volatile metal price environment.

POCL also reported early traction in zinc metal. During FY26, zinc metal sales were about 1,815 MT, generating turnover of about INR 48.70 crores. Orders worth INR 50 crores are in hand for the first six months of FY 26-27. This is still a small base relative to the full company, but it signals the company’s intent to move into value-added zinc processing and sales.

Finally, the company entered copper scrap processing as part of its longer-term non-ferrous diversification strategy. It expects annual revenues of INR 80 to 100 crores from this activity. The operational logic described is that processing lead copper cables allows recovery of multiple grades of copper scrap, adding a value-accretive revenue stream.

Taken together, the strategy reads as a three-part plan: deepen the core lead and oxide platform, add capacity where demand is visible, and use Planetfirst to rebase scale. That is also consistent with POCL’s customer list, which includes battery and industrial clients such as Exide, GS Battery, HBL, Sebang, Trafigura, Korea Zinc, and tyre manufacturers such as JK Tyre, MRF, and Yokohama.

What to watch from here

FY26 ends with a clearer shape to POCL’s next phase. The company kept revenue broadly stable, improved margins and earnings, and finished a key modernization that temporarily hit Q4 volumes. The long-term trend is visible in the metrics: EBITDA margin improved to 5.28% in FY26, net profit margin moved to 2.76%, EPS rose to 13.14, and interest coverage improved to 4.56 times.

The next set of investor questions are likely to focus on execution and timing. The Planetfirst amalgamation is pending regulatory approvals, and its contribution will depend on how quickly the integration completes and how the expanded 37,500 MTPA refining capacity ramps. The zinc oxide expansion is expected to complete by July 2026 and has a stated incremental revenue potential of INR 60 to 70 crores. Zinc metal and copper scrap processing add optionality, with stated revenue visibility through in-hand orders and management’s revenue expectations.

The overall theme is disciplined execution with a near-term scale catalyst. If the merger proceeds as planned and Planetfirst reaches the INR 700 crores revenue target in FY27, POCL’s reported financial profile could look meaningfully different. Until then, FY26 already shows a business that is getting better at converting revenue into profit, even when operations face planned downtime and external cost pressure.