Pondy Oxides And Chemicals (532626) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 revenue increased 56% year-on-year to ₹93,489 lakhs, with EBITDA up 30% and PAT up 32%, driven by strong copper vertical performance, improved realizations, and a focus on value-added products.

• Copper production and sales volumes rose over threefold year-on-year, achieving record output, while lead volumes were moderated to prioritize margins and value-added products.

• Strategic initiatives include major copper cathode expansion (36,000 MTPA in two phases), ramping up lead capacities, and forward integration, supporting long-term growth targets.

• Net profit for Q1 FY27 was ₹3,588.02 lakhs, with EPS at ₹4.70, up from ₹3.49 in Q1 FY26.

• The Board approved a stock split from ₹5 to ₹2 per share, effective July 21, 2026, with EPS figures retroactively adjusted.

Financial highlights

• Q1 FY27 consolidated revenue reached ₹93,489 lakhs (INR 931 crores), up 56% year-on-year; EBITDA was INR 56 crores, and PAT was INR 36 crores, up 30% and 32% year-on-year, respectively.

• EBITDA and PAT margins stood at 6% and 3.9% for the quarter.

• Lead EBITDA per ton reached INR 21,595, up 28% year-on-year; copper EBITDA per ton rose 66% year-on-year to INR 48,488.

• Basic and diluted EPS for Q1 FY27 were ₹4.70, up from ₹3.49 in Q1 FY26.

• Net debt to equity improved to 0.11x in FY26, with interest coverage ratio at 8.28x.

Outlook and guidance

• Targets include over 15% volume growth, 20%+ CAGR in revenue and profitability, EBITDA margins above 8%, and ROCE exceeding 20% by 2030.

• Copper cathode expansion project (36,000 MTPA) is underway, with Phase I (18,000 MTPA) to be commissioned by December 2026.

• Value-added product mix for lead is targeted at 65–70% for FY 2027, and renewable power usage to exceed 50% by 2030.

• Sustainable lead EBITDA per ton is guided at INR 18,000–20,000, and copper cathode margins are expected at INR 60,000–65,000 per ton once the new plant is operational.