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PCBL reported robust results led by inventory gains given sharp up-move in brent crude prices

ICICIdirect Research 30 Jul 2026 DISCLAIMER

News: PCBL reported robust results led by inventory gains given sharp up-move in brent crude prices during the quarter (US$ 97 in Q1FY27 vs. US$ 78 in Q4FY26). On the consolidated basis, at PCBL, net sales for Q1FY27 came in at ₹ 2,473 crore with carbon black sales volumes at 153.5 kt (flat YoY). EBITDA for the quarter came in at ₹396 crore with margins at 16%. PAT for Q1’27 stood at ₹155 crore vs. ₹ 94 crore in Q1’26. Reported EBITDA/tonne in carbon black space for the quarter stood at ~₹ 23,000/t vs. ~₹13,500/t in Q4FY26. For Q1’27; in PCBL’s core carbon black business, domestic volumes grew 15% YoY at 103 KT while export volumes declined 22% on YoY basis at 50.5k. Speciality grade carbon black sales volume came in impressive ~20kT for Q1’27, up 23% YoY.

View: Adjusting for inventory gains, normalised EBITDA/tonne stood at ~₹ 19,700 which is still substantially higher than the figures reported for the last 5 quarters. Management guidance however for full year FY27 came in below expectations at ~₹ 17,000/tonne. Domestic volume growth was supported by healthy tyre demand domestically as well as restocking at customers end amid challenging export environment (especially high ocean freight limiting profitability gains). Struggle at Aquapharm continued with flattish sales value at ₹ 394 crore and ₹ 47 crore as EBITDA. With sharp up-move in stock price yesterday tracking robust profitability, we don’t see meaningful upside in the counter from hereon. Given muted EBITDA/tonne guidance for FY27 and a tad muted Q2FY27, we also expect stock to reverse some of the yesterday’s gains and potentially decline in today’s trading session.

Impact: Negative

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