PCBL Chemical (PCBL IN) – Q1FY27 Result Update – Strong Q1, but Inventory gains to normalize in Q2 – Upgrade to ‘Accumulate’
Published on 29 Jul 2026
PCBL reported consolidated revenue of INR24.7bn in Q1FY27, registering a growth of 17% YoY and 20% QoQ. The performance was primarily driven by a 20% increase in Carbon Black segment revenue, supported by higher realizations. However, Carbon Black volumes declined 5% QoQ due to lower export volumes amid elevated freight costs, while domestic volumes remained robust, growing 15% YoY. EBITDA/tn improved sharply to INR22,990 from INR17,791 in Q1FY26, driven by lower input costs and improved realizations. Management has guided for a 14–15% YoY increase in FY27 EBITDA/tn over FY26, implying a full year EBITDA/tn of ~INR17,000. The Aquapharm (Chemicals) segment reported a 16% QoQ increase in revenue, while EBITDA/tn improved 6% QoQ to INR20,449/tn. However, margins are expected to normalize over the coming quarters. Accordingly, we upgrade PCBL to 'Accumulate', valuing the stock at 25x FY28E EPS with a revised target price of INR388. 15% upside to our EBITDA/tn assumptions could provide an additional ~14% upside to our target price.
