Pondy Oxides And Chemicals (532626) Q2 25/26 earnings summary

Executive summary

• Achieved record quarterly and half-yearly revenue, EBITDA, and PAT, driven by strong operational execution, efficiency gains, and capacity expansion in Lead and Copper segments.

• Revenue, EBITDA, and PAT for H1 FY26 grew 22%, 83%, and 98% year-over-year, respectively, with EBITDA margin surpassing 8% for the first time.

• Net profit for Q2 FY2026 stood at ₹3,387.18 lakhs, with half-year net profit at ₹5,903.68 lakhs.

• Strategic focus on scaling capacities, value-added products, and maintaining robust financial health with a net cash position.

• The board allotted 4,24,262 equity shares upon conversion of warrants during the quarter, with no outstanding warrants as of September 30, 2025.

Financial highlights

• Q2 FY26 revenue from operations reached INR 635 crores (₹64,036.97 lakhs), up 11% year-over-year; H1 revenue at INR 1,231 crores (₹1,24,320.23 lakhs), up 22% year-over-year.

• EBITDA for Q2 was INR 55 crores (₹5,118.00 lakhs), up 84% YoY; H1 EBITDA at INR 98 crores (₹9,810 lakhs), up 83% YoY.

• PAT for Q2 at INR 36 crores (₹3,387.18 lakhs), up 105% YoY; H1 PAT at INR 63 crores (₹5,903.68 lakhs), up 98% YoY.

• EBITDA margin improved to 8.7% in Q2 FY26 and 8.0% in H1 FY26.

• Exports contributed 60%-61% of total revenue; value-added products in lead segment accounted for ~70% of segment revenue.

Outlook and guidance

• Targeting over 15% volume growth, revenue CAGR above 20%, EBITDA margins above 8%, and ROCE over 20% by 2030.

• Guidance for sustainable EBITDA margin at 8%+ and gross margin in the 12%-14% range.

• Copper division expected to achieve INR 400 crores topline for FY26, with further improvement as value-added products ramp up.

• Lead sales volume guidance for FY26 is 1.2 lakh tons, with H2 expected to be significantly higher than H1.

• Long-term ambition to derive over 60% of revenue from value-added products and reduce energy consumption by 20%.