Highlights

• PCBL Chemical reported Q3FY26 consolidated revenue of ₹1,846 crore with EBITDA of ₹231 crore.
• The company reduced net debt by approximately ₹400 crore since March 2025 through improved working capital management.
• Total installed capacity reached 850 KT following recent brownfield commissioning.

PCBL Chemical Ltd (NSE:PCBL) witnessed a notable decline in its share price during early trading on 4 February, despite a recent five-day upward movement. The stock traded at ₹280.00, down by ₹19.75 or 6.59% at 11:22 am. The movement might followed brokerage updates that maintained cautious ratings while the company reported its Q3FY26 financial performance and operational developments across its chemical and carbon black businesses.

Brokerage Ratings and Target Prices

IDBI Capital Market Services Ltd issued a Hold rating with a target price of ₹292. JM Financial Institutional Securities Ltd assigned a Reduce rating with a target price of ₹305. Edelweiss Capital Ltd maintained a Hold rating and set a target price of ₹308.

Q3FY26 Financial Performance

For the quarter ended Q3FY26, PCBL Chemical reported consolidated revenue from operations of ₹1,846 crore. EBITDA for the period stood at ₹231 crore, while consolidated profit before tax was reported at ₹10 crore. The company’s total installed capacity increased to 850 KT following the commissioning of a brownfield expansion of a 60 KTPA rubber carbon black line in Tamil Nadu.

Working capital efficiency improved during the nine months of FY26, with the cycle shortening by 12 days. This led to a cash release of approximately ₹400 crore. Net debt was reduced by nearly ₹400 crore compared to March 2025 levels.

Subsidiary and Project Updates

Aquapharm Chemical, a subsidiary, recorded Q3FY26 revenue of ₹327 crore with EBITDA of ₹35 crore. Sales volume during the quarter reached 21,790 metric tonnes. Trial runs for super-conductive grades of 1,000 MTPA commenced at the Palej facility in Gujarat, while pre-commissioning activities began for a specialty black line of 20,000 MTPA.

Nanovace’s pilot plant project with an 80-ton capacity is expected to be operational by the end of March 2026. Co-generation power output rose 28% year-on-year to 206 MU, with external power sales of 125 MU during the quarter.

Capital and Market Developments

During Q3FY26, PCBL Chemical completed the conversion of 1.6 crore warrants into equity shares, amounting to ₹448 crore. This included ₹112 crore received upfront and ₹336 crore during the quarter. Domestic carbon black sales volumes increased 6% year-on-year, supported by higher domestic consumption and growing tyre exports.

Future Outlook

Management highlighted a favourable demand environment for the Indian tyre industry, aided by domestic consumption, export growth, premiumisation, electric vehicle adoption, and upcoming capacity additions. The company is focusing on increasing capacity utilisation across domestic and international markets, expanding customer reach, and diversifying feedstock through R&D initiatives. Cost optimisation measures in the carbon black segment aim for cumulative savings exceeding ₹200 crore over the next two years. Trade agreements such as India-Europe FTA and India-US tariff arrangements are expected to support operations in upcoming quarters.

PCBL Chemical’s Q3FY26 performance showcased stable operational execution, capacity additions, and balance sheet improvement. However, brokerage assessments suggest a cautious stance on near-term stock movement as the company continues to execute its expansion, cost optimisation, and market development strategies.

FAQs

Q1. What was PCBL Chemical’s revenue in Q3FY26?
PCBL Chemical reported consolidated revenue from operations of ₹1,846 crore in Q3FY26.

Q2. Why did the PCBL Chemical stock decline despite recent gains?
The stock declined following brokerage updates that issued hold and reduce ratings with limited upside target prices.

Q3. What are the major capacity developments announced by the company?
The company commissioned a 60 KTPA rubber carbon black line, taking total capacity to 850 KT, and initiated trials and pre-commissioning for specialty and super-conductive grades.

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