POCL H1 revenue rises 33% as EBITDA margin falls to 5.4%

POCL® reported standalone revenue of Rs 1,638.7 crore in H1FY27, up 33% year on year, while earnings before interest, tax, depreciation and amortisation (EBITDA) margin fell to 5.4% from 8.0%. Lower lead throughput and a 39% rise in cost of goods sold outweighed sharply higher copper volumes.

Why did POCL's H1FY27 revenue rise while EBITDA declined?

POCL's H1FY27 standalone revenue increased 33% to Rs 1,638.7 crore from Rs 1,230.7 crore in H1FY26, but EBITDA declined 10% to Rs 88.7 crore from Rs 98.1 crore. H1FY27 refers to the first half of financial year 2027. The company attributed the moderation in profitability to lower lead production and sales volumes, together with elevated operating costs.

Cost of goods sold, or COGS, rose 39% to Rs 1,486.5 crore in H1FY27 from Rs 1,069.4 crore in H1FY26, exceeding the 33% revenue increase. Total expenses increased 37% to Rs 1,552.3 crore, while employee benefit expenses rose 11% to Rs 17.8 crore and other expenses declined 5% to Rs 48.1 crore. EBITDA margin therefore narrowed by 2.6 percentage points to 5.4%.

Profit after tax, or PAT, fell 11% to Rs 56.4 crore in H1FY27 from Rs 63.1 crore a year earlier, and PAT margin declined to 3.4% from 5.1%. Depreciation increased 27% to Rs 11.8 crore, while finance cost declined 29% to Rs 3 crore. The lower finance cost did not offset the decline in operating earnings.

How did lead supply disruptions affect POCL's H1FY27 operations?

POCL produced 31,083 metric tonnes (MT) of lead in H1FY27, down from 50,475 MT in H1FY26, while lead sales declined to 31,679 MT from 47,408 MT. The company said supply-chain disruptions moderated lead volumes, and identified lower lead production and sales as factors affecting profitability in both H1FY27 and Q2FY27.

The decline continued in the second quarter. Lead production was 15,282 MT in Q2FY27, compared with 26,308 MT in Q2FY26 and 15,801 MT in Q1FY27. Lead sales were 15,749 MT, down from 24,878 MT a year earlier and from 15,930 MT in the preceding quarter.

Lead EBITDA per tonne increased marginally to Rs 18,617 in H1FY27 from Rs 18,510 in H1FY26. However, the quarterly measure declined to Rs 15,811 in Q2FY27 from Rs 21,595 in Q1FY27 and Rs 19,970 in Q2FY26. This reduction in unit EBITDA coincided with Q2FY27 standalone EBITDA of Rs 32.9 crore, down 41% from Rs 55.9 crore in Q1FY27.

Did copper growth offset POCL's lower lead volumes?

Copper volumes expanded substantially in H1FY27, but did not offset the earnings effect of reduced lead activity. Copper production rose to 5,649 MT from 2,040 MT in H1FY26, while sales increased to 6,040 MT from 2,074 MT. POCL said the near-threefold year-on-year increase reflected improved capacity utilisation.

Copper EBITDA per tonne rose to Rs 44,536 in H1FY27 from Rs 34,171 in H1FY26. This was more than twice the lead EBITDA per tonne of Rs 18,617 in the same period. The presentation does not disclose segment revenue or total segment EBITDA, so it does not quantify copper's contribution to company-wide EBITDA.

Copper production fell to 2,001 MT in Q2FY27 from 3,648 MT in Q1FY27, and sales declined to 2,039 MT from 4,001 MT. Copper EBITDA per tonne also reduced to Rs 36,979 from Rs 48,488 sequentially and was below Rs 39,772 in Q2FY26. The quarterly decline across both metals accompanied a 24% sequential reduction in standalone revenue to Rs 707.8 crore in Q2FY27.

What do POCL's cash position and investment plans show?

POCL generated positive cash flow from operations, or CFO, of Rs 297.2 crore in H1FY27 and said it maintained a net cash-positive balance sheet. Cash and bank balances were Rs 128 crore at 30 September 2026, compared with Rs 12.3 crore at 31 March 2026. Short-term borrowings decreased to Rs 2.4 crore from Rs 152.1 crore over the same period.

Working-capital balances were lower at 30 September 2026 than at 31 March 2026. Trade receivables fell to Rs 141.8 crore from Rs 263 crore, while inventories declined to Rs 211.3 crore from Rs 268.8 crore. Total current assets fell to Rs 555.4 crore from Rs 700.4 crore, and total current liabilities declined to Rs 40.1 crore from Rs 191.8 crore.

POCL incurred Rs 16 crore of capital expenditure in H1FY27 and disclosed a further Rs 164 crore plan for the remainder of FY27. It also has a Rs 200 crore investment under way for a 36,000 metric-tonnes-per-annum (MTPA) London Metal Exchange (LME) Grade A copper cathode facility. Management expects Phase I, with 18,000 MTPA capacity, to be commissioned by December 2026.

Conclusion

POCL's H1FY27 performance shows that revenue growth from higher copper activity was not sufficient to counter lower lead volumes and higher input-related costs. Copper sales rose by 3,966 MT year on year and its H1 unit EBITDA was Rs 44,536 per tonne, but lead sales declined by 15,729 MT and group operating and net margins both contracted.

The next disclosed developments are execution of the remaining Rs 164 crore FY27 capital-expenditure plan, any recovery in lead supply and volumes, and the planned December 2026 commissioning of the 18,000 MTPA first phase of the copper cathode facility.