Pondy Oxides Q1 FY27 Results (NSE: POCL)
Signal: Growth decelerated
The read
Strong YoY revenue growth from copper segment (470% YoY) offset lead weakness, but EBITDA margin contracted 47bps to 6.0% on higher raw material costs. PAT grew 43% but EPS lagged at 35% due to share dilution. Sequential metrics were flat to negative, and depreciation vs asset base divergence flags a quality concern. Promoter stake sale ahead of results adds governance watch.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹934.89 Cr | 55.1% | -0.04% |
| EBIT | ₹49.84 Cr | 32.5% | |
| Net profit | ₹35.88 Cr | 42.6% | |
| EPS | ₹4.7 | 34.7% | |
| EBIT margin | 6.0% |
P&L walk
Revenue grew 55% YoY driven by copper segment explosion; EBITDA margin contracted 47bps to 6.0% as raw material cost % rose 220bps; PAT grew 43% but EPS only 35% due to share dilution.
Segments
Copper segment was the growth engine: revenue surged 470% YoY to ₹50,548 lakh and PBIT jumped 525% to ₹1,976 lakh, while lead segment revenue declined 18% and PBIT fell 16%. The standalone-consolidated PAT difference is marginal (₹36.25 Cr vs ₹35.88 Cr), indicating minimal minority interest.
Key positives
- Copper segment revenue grew 470% YoY, driving overall revenue +55%.
- Copper segment PBIT margin improved to 3.9% from 3.6% a year ago.
- Finance costs declined 22% YoY, boosting PAT growth.
- EBITDA margin held near 6% despite raw material cost headwind of 220bps.
Key concerns
- Lead segment revenue declined 18% YoY and 25% QoQ.
- QoQ revenue flat and PAT down 4.4% sequentially.
- Raw material cost as % of revenue rose to 90.4% from 88.2% YoY.
- Depreciation grew 37% while asset base shrank – possible over-depreciation.
- EPS growth (34.7%) lags PAT growth (42.6%) – dilution from share increase.
- Promoter sold 2.95% stake on June 29, 2026, just before quarter end.
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