Synopsis:
Pondy Oxides & Chemicals jumped sharply after it announced its latest quarter financial results. It reported a revenue growth of 11% YoY and Net Profit doubled to Rs 34 crore from Rs 15 crore, mainly because of lower expenses, with a mixed segment performance, with its copper segment growing by a staggering 698 percent.
The shares of this leading manufacturer, Lead Metal and Alloys, and other Non-ferrous metals are in focus after a robust financial performance. In this article, we will dive more into the details.
With a market capitalization of Rs 4,133 crore, the shares of Pondy Oxides & Chemicals Ltd made a day high of Rs 1507.05 per share, up by 10 percent from its previous day closing price of Rs 1,367.15 per share. Over the past five years, the stock has delivered a robust return of 455 percent, outperforming NIFTY 50’s return of 119 percent.
Q2 Highlights
Pondy Oxides & Chemicals has reported an operating revenue of Rs 640 crore in Q2 FY26, representing an 11 percent growth compared to Rs 579 crore in Q2 FY25. However, on a quarter-on-quarter basis, it declined by 6 percent from Rs 603 crore.
The lead segment was the highest contributor to its topline, but its growth declined by 2 percent to Rs 548 crore in Q2 FY26 as compared to Rs 560 crore in Q2 FY25. However, its copper segment grew the highest with 698 percent growth, reaching Rs 84 crore in Q2 FY26 as compared to Rs 10.5 crore in Q2 FY25. At the end, its others segment grew by a modest 1.6 percent to Rs 8.96 crore in Q2 FY26 as compared to Rs 8.82 crore in Q2 FY25.
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Regarding its profitability, it reported a net profit of Rs 34 crore in Q2 FY26, a staggering growth of 122 percent as compared to Rs 15 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 35 percent from Rs 25 crore. One of the major reasons behind the significant growth is the lower expenses; despite revenue growing by 10 percent, its total expenses grew by only 6.6 percent during the same period.
Pondy Oxides & Chemicals recycles non-ferrous metals and manufactures Lead and Lead alloys, and is among the top 5 companies of India in these sectors. It was established in 1995, and over time it has not only spread to different parts of India but also to foreign countries.
With an aim to increase the capacity of their Lead and Lead Alloys production, the company is setting up a new, state-of-the-art smelter in South India. POCL is committed to delivering value to all its stakeholders by engaging in continuous improvement, upgrading technology, and making investments, thereby maintaining its operations at global standards.
Written by Satyajeet Mukherjee
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