POCL September-quarter profit falls 42% as lead earnings drop

Pondy Oxides And Chemicals Limited reported consolidated net profit of Rs 19.71 crore for the quarter ended September 30, 2026, down 42% year on year, although revenue from operations rose 11% to Rs 708.48 crore. POCL’s lead segment result fell Rs 28.06 crore from a year earlier, exceeding the Rs 5.13 crore improvement in copper earnings.

Why did POCL’s September-quarter profit fall despite higher revenue?

POCL’s September-quarter profit fell because expenses increased faster than revenue and the lead business reported lower segment earnings. Net profit was Rs 19.71 crore in the quarter ended September 30, 2026, compared with Rs 33.87 crore a year earlier, while profit before tax fell to Rs 26.00 crore from Rs 46.20 crore.

Revenue from operations increased to Rs 708.48 crore from Rs 640.37 crore in the September 2025 quarter. However, cost of materials consumed rose to Rs 622.78 crore from Rs 536.40 crore, and total expenses increased to Rs 683.82 crore from Rs 595.27 crore. The 15% increase in total expenses exceeded the 11% growth in revenue from operations.

Tax expense declined to Rs 6.30 crore from Rs 12.33 crore, following current tax of Rs 6.56 crore and a deferred-tax credit of Rs 0.27 crore in the September 2026 quarter. The lower tax charge did not offset the Rs 20.20 crore year-on-year fall in profit before tax.

How did POCL’s lead segment affect quarterly earnings?

POCL’s lead segment was the main contributor to the decline in quarterly earnings, with its result falling 58% year on year. Lead segment revenue declined to Rs 420.02 crore in the September 2026 quarter from Rs 547.80 crore a year earlier, while segment result fell to Rs 20.44 crore from Rs 48.50 crore.

Lead remained POCL’s largest segment by September-quarter revenue, generating Rs 420.02 crore of total segment revenue of Rs 708.48 crore. Its contribution was lower than in the corresponding 2025 quarter, when lead supplied Rs 547.80 crore of total segment revenue of Rs 640.37 crore. The group’s revenue growth therefore came from segments other than lead.

The lead business also recorded a sequential fall in profitability. Revenue rose slightly from Rs 414.66 crore in the June 2026 quarter to Rs 420.02 crore in the September quarter, but segment result declined from Rs 33.60 crore to Rs 20.44 crore. That represented a Rs 13.16 crore quarter-on-quarter reduction in the lead segment result.

Did copper growth offset POCL’s lead segment decline?

No, copper growth did not fully offset the reduction in POCL’s lead earnings. Copper revenue rose to Rs 266.24 crore in the September 2026 quarter from Rs 83.60 crore a year earlier, and copper segment result increased to Rs 8.98 crore from Rs 3.84 crore.

The copper segment added Rs 5.13 crore in year-on-year segment result, but the lead segment lost Rs 28.06 crore. The Others segment reported a profit of Rs 1.08 crore, compared with a loss of Rs 1.17 crore in the September 2025 quarter. Together, the copper and Others improvements were smaller than the decline in lead earnings.

Copper was also lower sequentially, with September-quarter revenue of Rs 266.24 crore versus Rs 505.48 crore in the June 2026 quarter. Its segment result declined to Rs 8.98 crore from Rs 19.76 crore over the same comparison, while consolidated net profit fell from Rs 35.88 crore in June 2026 to Rs 19.71 crore in September 2026.

What do POCL’s first-half results show?

POCL’s first-half revenue grew while net profit declined, reflecting the reduction in lead earnings despite higher copper sales. Revenue from operations for the half year ended September 30, 2026 increased 32% to Rs 1,643.37 crore from Rs 1,243.20 crore in the prior-year half, while net profit fell 6% to Rs 55.59 crore from Rs 59.04 crore.

Lead revenue for the first half declined to Rs 834.68 crore from Rs 1,053.55 crore, and the lead segment result fell to Rs 54.04 crore from Rs 88.30 crore. Copper revenue increased to Rs 771.72 crore from Rs 172.18 crore, while its segment result rose to Rs 28.74 crore from Rs 7.01 crore. The Rs 34.27 crore reduction in lead result was larger than the Rs 21.73 crore increase in copper result.

First-half profit before tax was Rs 73.36 crore, compared with Rs 80.64 crore a year earlier. Finance costs declined to Rs 3.08 crore from Rs 4.75 crore, but other unallocable expenditure net of unallocable income increased to Rs 8.64 crore from Rs 7.50 crore.

What changed in POCL’s cash and borrowings?

POCL reported net operating cash inflow of Rs 299.86 crore for the half year ended September 30, 2026. This included a Rs 120.45 crore reduction in trade receivables, a Rs 58.35 crore reduction in inventories and Rs 318.19 crore of cash generated from operations before income taxes of Rs 18.32 crore.

Cash and cash equivalents rose to Rs 108.60 crore at September 30, 2026 from Rs 10.23 crore at March 31, 2026. The cash-flow statement recorded repayment of short-term borrowings of Rs 149.68 crore during the half year, while short-term borrowings on the consolidated balance sheet declined to Rs 2.43 crore from Rs 152.11 crore at the March year-end.

Total consolidated assets decreased to Rs 842.03 crore at September 30, 2026 from Rs 982.94 crore at March 31, 2026. Trade receivables fell to Rs 144.16 crore from Rs 264.61 crore and inventories decreased to Rs 214.36 crore from Rs 272.71 crore; total liabilities fell to Rs 43.19 crore from Rs 194.55 crore.

How were POCL’s results reviewed and were per-share figures adjusted?

POCL’s consolidated September 2026 results were unaudited and received a limited review from the statutory auditors. The Audit Committee reviewed the results and the Board approved them on November 12, 2026, according to the filing made under the Securities and Exchange Board of India listing regulations.

POCL adjusted earnings per share, or EPS, for all comparative periods after its share split. The Board approved the split on May 26, 2026, shareholders approved it through a postal ballot on July 2, 2026, and each Rs 5 face-value share was split into shares with a Rs 2 face value. Basic and diluted EPS for the September 2026 quarter were Rs 2.58 each, against Rs 4.60 each in the year-earlier quarter.

Conclusion

POCL’s September-quarter figures show that higher consolidated sales did not translate into higher profit. Copper revenue rose sharply year on year, but lead remained the largest segment and its Rs 28.06 crore reduction in segment result outweighed the profit gains in copper and Others, leaving net profit 42% lower at Rs 19.71 crore.

The next disclosure will be watched for whether lead segment revenue and results recover from the September 2026 levels of Rs 420.02 crore and Rs 20.44 crore, respectively, and whether copper sustains its contribution after its sequential decline from June 2026. POCL gave no operating target or segment outlook in the results release, leaving these movements unresolved.