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POCL Q4 FY26: Record Year, and a Clear Copper Upgrade Path

Pondy Oxides and Chemicals Limited (POCL) ended FY26 with its highest ever revenue, EBITDA, and profit, backed by a combination of capacity expansion and a deliberate shift towards higher value-added products. In Q4FY26, standalone revenue reached INR 9,317 million (INR 931.7 crore), up 80% year on year. EBITDA rose to INR 609 million (INR 60.9 crore), up 126% year on year, while PAT came in at INR 380 million (INR 38.0 crore), up 111% year on year.

For the full year, standalone revenue grew 45% year on year to INR 29,387 million (INR 2,938.7 crore). EBITDA more than doubled to INR 2,181 million (INR 218.1 crore), and PAT more than doubled to INR 1,387 million (INR 138.7 crore). Margins moved higher as well: FY26 EBITDA margin expanded to 7.4% from 5.3% in FY25, and PAT margin improved to 4.7% from 3.2%.

A key point in management commentary was that the improvement was not only volume-led. POCL attributed the profitability step-up to stronger operational execution, improved product mix, and higher contribution from value-added offerings, especially in the lead segment.

A year where mix mattered as much as volumes

POCL operates across four recycling verticals: Lead, Plastics, Copper, and Aluminium. The company’s scale is still dominated by lead, but copper is increasingly visible in the growth narrative.

In lead, FY26 production increased to 104,481 MT from 94,115 MT in FY25, and sales rose to 100,727 MT from 90,565 MT. However, Q4FY26 showed a different pattern. Lead production declined to 20,735 MT from 26,074 MT in Q4FY25, while sales were broadly steady at 22,930 MT versus 22,988 MT.

Management explained the Q4 moderation as a conscious choice. With supply chain tightness, the company prioritized higher-margin value-added products rather than pushing raw volumes. The payoff is visible in lead EBITDA per ton. In Q4FY26, lead EBITDA per ton increased 43% year on year to INR 19,739, and for FY26, it increased 39% year on year to INR 18,462.

Copper was the opposite story: sharp scale-up.

FY26 copper production increased to 5,480 MT from 741 MT in FY25, while copper sales jumped to 6,543 MT from 700 MT. The company also reported that copper sales value in FY26 was INR 673 crore. Copper EBITDA per ton was INR 45,556 in Q4FY26 (up 17% year on year), and INR 39,896 in FY26.

During the call, management acknowledged copper price volatility but stated that the company keeps copper and forex exposures fully hedged. This approach is intended to protect margins from large swings in metal prices.

Financial snapshot (Standalone)

Capacity expansion is already showing up, but ramp-up is the real story

POCL’s FY26 performance sits on top of meaningful capacity addition. In lead, the company highlighted its TKD expansion, which raised lead recycling capacity at the TKD facility by 55%, from 132,000 MTPA to 204,000 MTPA.

Management said the expanded TKD facility operated at roughly 65% utilization during FY26 and is expected to ramp up, with commentary indicating about 70% to 75% utilization in the coming quarters.

On copper, POCL stated it doubled copper recycling capacity to 12,000 MTPA in Q4FY26. Management expects this facility to ramp up to about 70% utilization during FY27.

The practical implication is that FY26 was the start of the ramp, not the end. Utilization, procurement stability, and working-capital discipline become key variables as the company attempts to translate capacity into consistent cash generation.

The big strategic step: copper cathode forward integration

The clearest strategic announcement in the transcript was the board approval of a 36,000 MTPA copper cathode plant at the TKD facility in Tamil Nadu. The estimated investment is about INR 200 crore and management stated it would be funded purely through internal accruals.

The project will be implemented in two phases of 18,000 MTPA each. Phase 1 is targeted for commissioning by December 2026. In the call, management also said Phase 2 could follow about 6 to 7 months after Phase 1.

Management positioned this project as a value-added upgrade that could improve margins, deepen customer relationships, and provide operational synergies across procurement, logistics, and sales. They also highlighted import substitution and sustainability benefits from higher recycled copper usage.

On economics, management offered indicative EBITDA per ton expectations:

• Copper recycling: guided range of about INR 35,000 to 40,000 per ton
• Copper cathode: expected INR 60,000 to 70,000 per ton on a conservative basis

They also explained how copper recycling and cathode production might link operationally: around 50% to 60% of internally recycled copper could go into the anode and cathode process (depending on grade), with the balance sold as recycled copper.

Balance sheet, working capital, and the receivables question

POCL’s standalone balance sheet shows that scale-up came with working-capital movement.

As of 31 March 2026:

• Net worth increased to INR 7,999 million (INR 799.9 crore) from INR 5,975 million (INR 597.5 crore)
• Short-term borrowings were INR 1,521 million (INR 152.1 crore)
• Long-term borrowings were INR 30 million (INR 3.0 crore)

A key investor discussion point was operating cash flow and the jump in trade receivables. Trade receivables increased to INR 2,630 million (INR 263.0 crore) from INR 1,268 million (INR 126.8 crore).

Management attributed this to a point-in-time issue: export consignments delayed due to vessel movement, pushing collections from the last week of March into early April. Management also discussed inventory and receivable days, stating that overall working capital days were 53 for FY26 and expressing intent to bring the overall cycle below 45 days.

For investors, this is a line item to watch closely. Even if the explanation is operationally reasonable, the ability to maintain discipline as copper volumes rise and new downstream capacity is added will influence the company’s cash conversion.

What was said about other verticals

Plastics and aluminium were discussed briefly but still offer useful signals.

Management said the plastics unit had been relocated and restarted production around March, and that the segment is now PAT positive. In FY26, however, they noted plastics had been largely negative, which partly explains why segment-level EBITDA per ton comparisons may not reconcile neatly to the company’s reported EBITDA.

On aluminium, management indicated activity is not meaningful at present and that scaling will be evaluated when timing is appropriate.

Takeaways from FY26 and what to track next

POCL’s FY26 performance shows a company moving from capacity creation to utilization ramp, while trying to lift profitability through mix improvement.

Three FY27 signposts stand out from management commentary:

1. Copper cathode execution discipline Phase 1 commissioning by December 2026 is the key operational milestone. The margin uplift expectations are meaningful, but delivery and stabilization will matter more than intent.

2. Utilization ramp without working-capital strain Management guided lead utilization around 70% to 75% and indicated higher copper recycling volumes. Receivables and overall working-capital days will remain a critical validation metric.

3. Sustaining lead value-added advantage The Q4 choice to prioritize high-margin value-added products lifted lead EBITDA per ton sharply. Whether this can be sustained as utilization rises will shape blended margins.

POCL ended FY26 with record results and a clearly articulated copper upgrade path. The next phase will be judged on execution: commissioning timelines, utilization ramp-up, and whether cash conversion improves in line with the larger operating base.