Why Did PCBL Chemical’s Q2 Profit Plummet by 50% to Rs 61.7 Crore?
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Synopsis
PCBL Chemical Limited has reported a staggering 50% drop in profits for Q2 FY26, raising concerns about its operational performance. The company’s EBITDA also saw a substantial decline, indicating potential challenges ahead. What does this mean for investors and the future of the company in a competitive market?
Key Takeaways
- PCBL Chemical's Q2 FY26 profit fell by 50% YoY.
- Revenue remained stable at Rs 2,163 crore.
- EBITDA decreased by 27% to Rs 266 crore.
- Interim dividend of Rs 6 per share announced.
- Shares dropped 4.05% post-earnings report.
Mumbai, Oct 17 (NationPress) PCBL Chemical Limited, a subsidiary of the RPSG Group, announced a significant decline in profits, reporting a drop of 50% year-on-year (YoY) to Rs 61.7 crore for the July-September quarter (Q2 FY26), down from Rs 123 crore during the same period last financial year (Q2 FY25).
The company’s revenue for the quarter remained relatively stable at Rs 2,163 crore, as per its filing with the stock exchange.
Additionally, operational performance showed signs of deterioration. The company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) plummeted by 27% to Rs 266 crore compared to the previous year.
Furthermore, the EBITDA margin shrank by over 450 basis points, falling to 12.3% from 16.8%% last financial year, indicating increased pressure on profitability.
Alongside their financial results, PCBL Chemical declared an interim dividend of Rs 6 per share, with the record date set for Monday, October 27.
After the earnings report, PCBL Chemical’s shares dropped to a day’s low, closing at Rs 363.5, reflecting a decline of 4.05% or Rs 15.35 on the NSE.
In the past five days, the shares have seen a decrease of Rs 20.05, or 5.23%. Over the last month, the stock has dropped by Rs 28.90, or 7.36%.
In the past six months, it has fallen by Rs 70.70, or 16.28%. Year-to-date (YTD), the shares have decreased by Rs 95.05, or 20.73%.
PCBL Chemical Limited is an Indian chemical manufacturer that is part of the RP-Sanjiv Goenka Group. Established in 1960, the company produces a variety of products, focusing on specialty chemicals, performance materials, and green chemistry.
The firm has a robust global footprint, exporting to over 50 countries and diversifying into sectors such as battery chemicals and phosphonates.
Point of View
It’s crucial to remain objective while analyzing the financial downturn of PCBL Chemical Limited. The substantial profit decline and shrinking margins indicate significant challenges. However, the company’s commitment to innovation in specialty chemicals and global expansion may offer potential pathways for recovery. Stakeholders should remain vigilant and informed.
NationPress
19/10/2025
Frequently Asked Questions
What caused the decline in PCBL Chemical's profits?
The decline in profits can be attributed to weakened operational performance, as evidenced by a significant drop in EBITDA and contracted margins.
How much was PCBL Chemical's profit in Q2 FY26?
PCBL Chemical reported a profit of Rs 61.7 crore in Q2 FY26, a 50% decrease from the previous year.
What is the interim dividend declared by PCBL Chemical?
PCBL Chemical announced an interim dividend of Rs 6 per share, with the record date set for October 27.
How did the stock react to the earnings announcement?
Following the earnings announcement, PCBL Chemical's shares fell by 4.05% to close at Rs 363.5.
What products does PCBL Chemical manufacture?
PCBL Chemical manufactures a range of specialty chemicals, focusing on performance materials and green chemistry.
