PCBL Chemical Ltd. share price target

PCBL's Q4FY26 performance was below our expectations. Carbon black sales remained flat YoY, as a decline in NSR (-7% YoY) was offset by an increase in volumes (+8% YoY), amid geopolitical and logistical uncertainty. Domestic volumes increased by 21% YoY, driven by higher local consumption due to rising tire exports, while export volumes declined by 10% YoY due to increased logistics costs and tighter container availability. Consolidated EBITDA margin contracted by 249bps YoY to 11.8%, reflecting margin compression across segments, driven by a sharp rise in input costs, increased employee costs (+4%...

Present in speciality chemical domain though Aquapharm Chemicals Q4FY26 Result: PCBL reported stable results. On the consolidated basis, at PCBL, net sales for the quarter came in at 2,066 crore with carbon black sales volumes at 162 kt (up 8% YoY). EBITDA for the quarter came in at 243 crore with margins at 11.8%. PAT for Q4'26 stood at 40 crore vs. 100 crore in Q4'25. EBITDA/tonne...

PCBL’s Q4FY26 print was good with a rise in domestic carbon black volumes and stabilised gross profit/kg. It remains hopeful of high single-digit volume growth and double-digit EBITDA growth for carbon black in FY27, aided by US tariff reductions, higher power realisation and cost reductions.

Recently acquired speciality chemical company i.e. Aquapharm Chemicals Q3FY26 Result: PCBL reported subdued results in Q3FY26. On the consolidated basis, at PCBL, net sales for the quarter came in at 1,846 crore with carbon black sales volumes at 141 kt (down 2% YoY). EBITDA for the quarter came in at 215 crore with margins at 11.6%. PAT for Q3'26 stood at 2 crore vs. 93 crore in Q3'25, incl. exceptional charge of 21 crore on account of labour code change charges....

PCBL's Q3FY26 profitability was below our expectations. Carbon black sales declined 11% YoY, primarily due to a 9% YoY drop in realizations and 2% YoY drop in volumes, driven by weak demand amid global uncertainty. Domestic volumes increased by 6% YoY, while export volumes declined by 13% YoY. The Consolidated EBITDA margin contracted 416bps YoY to 11.6%, reflecting margin compression in both the carbon black and Aquapharm segments, owing to negative operational leverage and a one-time provision for labour code amounting Rs210mn. EBITDA/t for carbon black segment fell 31% YoY to...

Taking into consideration the impact of cheaper imports and a weak demand environment, we downgrade PCBL to HOLD' rating with TP of Rs302, valuing the stock at 18x Dec'27 EPS. PCBL reported consolidated revenue of Rs18.5bn in Q3FY26, down 15% QoQ and 8% YoY, driven by a 13% QoQ and 2% YoY decline in carbon black volumes and a sharp fall in realization to Rs104. Lower operating leverage led to a decline in EBITDA/t to Rs13,855 from Rs19,868 in Q3FY25. Realization is expected to remain under pressure in the near term due...

Recently acquired speciality chemical company i.e. Aquapharm Chemicals Q2FY26 Result: On the consolidated basis, at PCBL, net sales for Q2'26 came in at 2,164 crore with carbon black sales volumes at 162 kt (up 9% YoY & 5% QoQ) and realisation at 99/kg (vs. 108/kg in Q1FY26). EBITDA for the quarter came in at 266 crore with margins at 12.3% (down 280 bps QoQ). PAT for Q2FY26 stood at 62 crore, down 50% YoY. EBITDA/tonne in carbon black space for Q2'26 stood at ~ 14,250/tonne vs. ~17,800 clocked Q1FY26. Global uncertainty to weigh on near term performance: For Q2'26;...

PCBL's Q2FY26 profitability was below our expectations. Carbon black sales declined 3% YoY, primarily due to an 11% YoY drop in realizations driven by weak demand amid global uncertainty. Domestic volumes increased by 10% YoY, while export volumes grew by 6% YoY. The Consolidated EBITDA margin contracted 450bps YoY to 12.3%, reflecting margin compression in both the carbon black and Aquapharm segments, largely due to pricing pressure on falling crude prices. EBITDA/t for carbon black segment fell 24% QoQ to Rs13,489 amid high input tariffs imposed by US. Consequently, we revise our...

PCBL Chemicals has shared its Vision 2030 at the group Analyst Day event held on 8th Sep'25, wherein it intends to 2x the revenues by 2030 vs. 2025, grow EBITDA to 3x and target PAT of 5x. All this will be achieved amidst calibrated capex spends (~ 3,000 crore over a 5-year period) with Net...

PCBL's Q1FY26 revenue and PAT came in below our expectations. Carbon black sales declined 4% YoY, primarily due to 4% YoY drop in realizations driven by weak crude oil prices. Domestic volumes decreased by 1% YoY, while export volumes grew by 2% YoY. Consolidated EBITDA margin contracted 162bps YoY to 15.1%, reflecting margin compression in both carbon black and Aquapharm segments, largely due to increased freight costs and pricing pressures. EBITDA/t for carbon black remained flat QoQ to Rs17,791 impacted by lower realizations amid weak demand and oversupply caused by an influx of Russian supplies in...

flat both on QoQ and YoY basis. In the CB segment, volumes grew 3% stable QoQ, but lower YoY, primarily due to pricing pressure from increased dumping by Russian players in the domestic market. Going forward, realization is expected to remain largely stable. Power segment delivered strong...

Company has total installed capacity of 678,000 MTPA of Rubber Black and 92,000 MTPA of Specialty Black which is set to cross total 1,000,000 MTPA by FY27 (increase of ~30%) spread across 5 locations in India.
Blended margins (EBITDA / MT) has been increasing Y-o-Y on account of increase in exports as well as product mix (performance and specialty chemicals).

PCBL’s Q1FY25 volume growth accelerated with new capacity addition alongside spreads remaining favourable. The company expects volumes to grow at a CAGR of 11–12% p.a. over the next five years.