POEL Q2 FY27 PAT falls to Rs 3.24 crore as margin reaches 0.70%

POEL reported Q2 FY27 profit after tax of Rs 3.24 crore and a 0.70% profit-after-tax margin on Rs 459.05 crore of revenue, versus Rs 9.75 crore and 2.68% in Q2 FY26. Management attributed the pressure to elevated raw-material, operating, employee and finance costs amid copper and zinc volatility, material premiums and supply-chain disruption.

Why did POEL's Q2 FY27 profit fall despite revenue near Rs 459 crore?

POEL's Q2 FY27 profit after tax fell to Rs 3.24 crore even though revenue was Rs 459.05 crore because management cited elevated raw-material, operating, employee and finance costs. Profit before tax was Rs 4.35 crore, while earnings before interest, depreciation and tax, or EBITDA, was reported as Rs 11.24 crore in the Managing Director's message.

The comparison with the preceding quarter shows revenue broadly holding while earnings reduced further. The Managing Director's message reported standalone revenue of Rs 466.04 crore in Q1 FY27, compared with Rs 459.05 crore in Q2 FY27, while profit after tax declined from Rs 5.71 crore to Rs 3.24 crore. The quarterly revenue chart shows totals of Rs 466.03 crore and Rs 459.04 crore respectively, a Rs 0.01 crore difference from the message and financial-highlights table.

The year-on-year pattern was more pronounced. The revenue chart reported Q2 FY27 total revenue of Rs 459.04 crore, compared with Rs 362.55 crore in Q2 FY26, but profit after tax fell from Rs 9.75 crore to Rs 3.24 crore. Profit before tax also declined from Rs 13.18 crore in Q2 FY26 to Rs 4.35 crore in Q2 FY27.

How much did POEL's margin change in Q2 FY27?

POEL's profit-after-tax margin reduced to 0.70% in Q2 FY27 from 1.22% in Q1 FY27 and 2.68% in Q2 FY26. The quarterly profitability presentation pairs the Q2 FY27 margin with profit after tax of Rs 3.24 crore and revenue of Rs 459.05 crore.

For H1 FY27, revenue increased to Rs 925.08 crore from Rs 734.98 crore in H1 FY26, while profit after tax reduced to Rs 8.95 crore from Rs 21.39 crore. The half-year profit-after-tax margin consequently fell to 0.96% from 2.91%, and profit before tax reduced to Rs 12.04 crore from Rs 28.80 crore.

The presentation's longer-term metrics likewise show net profit margin at 0.96% up to Q2 FY27, compared with 2.77% for FY26. Earnings per share were Rs 2.91 up to Q2 FY27, versus Rs 13.14 in FY26, while interest coverage was 2.27 times up to Q2 FY27 compared with 4.56 times in FY26.

Which POEL segment had the largest profitability decline?

POEL's Metal segment had the largest disclosed year-on-year decline in quarterly segment profitability, falling to Rs 4.02 crore in Q2 FY27 from Rs 16.84 crore in Q2 FY26. Metallic Oxides moved in the other direction, with disclosed segment profitability rising to Rs 7.03 crore from Rs 3.38 crore.

Metal revenue rose to Rs 347.91 crore in Q2 FY27 from Rs 293.05 crore in Q2 FY26 and Rs 311.47 crore in Q1 FY27. Metallic Oxides revenue was Rs 135.46 crore in Q2 FY27, above Rs 92.28 crore a year earlier but below Rs 166.98 crore in Q1 FY27. The segment figures therefore show increased Metal revenue alongside substantially lower disclosed Metal profitability.

Plastic Additives generated Rs 29.75 crore of Q2 FY27 revenue and Rs 1.26 crore of segment profitability, compared with Rs 25.36 crore and Rs 1.05 crore respectively in Q2 FY26. Others recorded revenue of Rs 2.60 crore and profitability of Rs 0.17 crore, compared with Rs 2.16 crore and Rs 0.35 crore a year earlier.

What expansion and transaction plans has POEL disclosed?

POEL completed the acquisition of a 51% controlling stake in Trichy Metals and Alloys Private Limited for Rs 12.47 crore during Q2 FY27. The new subsidiary has installed lead-refining capacity of about 26,000 metric tonnes per annum, or MTPA, and smelting capacity of about 21,500 MTPA, according to management.

POEL also completed an additional 2,400 MTPA of Zinc Oxide manufacturing capacity at Mettupalayam, Puducherry. Management estimated incremental annual revenue potential of Rs 60 crore to Rs 70 crore from that expansion, but the presentation did not disclose a commissioning-to-revenue timeline or a projected profitability contribution.

The proposed amalgamation of Planetfirst Green Private Limited into POEL progressed after BSE Limited issued an observation letter conveying no adverse observation. The National Company Law Tribunal, Chennai Bench, directed meetings of POEL's equity shareholders and unsecured creditors for November 27, 2026; Planetfirst reported six-month revenue of Rs 288.78 crore, profit of Rs 2.23 crore and export turnover of Rs 50.74 crore for the period ended September 30, 2026.

What is POEL's stated FY27 revenue projection?

POEL's yearly revenue chart projects FY27 revenue of Rs 1,850 crore, comprising Rs 1,538 crore of domestic revenue and Rs 312 crore of export revenue. That compares with FY26 actual revenue of Rs 1,432 crore, including Rs 1,099 crore domestic revenue and Rs 333 crore export revenue.

Management said the group has combined manufacturing and processing capacity of about 1,04,000 MTPA and is focusing on capacity optimisation, operational synergies and product diversification. Its disclosed priorities include strengthening the lead business, expanding into copper-scrap recycling and recycled zinc, and developing specialty materials and chemicals through value-added formulations.

Conclusion

POEL's Q2 FY27 figures show that revenue near Rs 459 crore was not matched by earnings conversion, with profit after tax of Rs 3.24 crore and a 0.70% margin. Management linked the outcome to cost pressure and commodity-market disruption, while the segment data show Metal profitability declining despite higher Metal revenue and Metallic Oxides profitability increasing.

The next disclosed event is the November 27, 2026 shareholder and unsecured-creditor meetings on the proposed Planetfirst amalgamation. Subsequent results can show whether the 2,400 MTPA Zinc Oxide expansion reaches management's estimated Rs 60 crore to Rs 70 crore annual revenue potential, and whether the added capacities and integration plans translate into the improved profitability management has identified as a priority.