Synopsis: A leading non-ferrous recycling company reported record FY26 performance alongside major capacity expansion plans and a proposed stock split, signaling its focus on growth, scalability, profitability, and broader investor participation.
The shares of this small cap company majorly engaged in manufacturing lead metal, alloys, non- ferrous metals and many were in focus after the company announces stock split after robust FY26 performance
With the market capita;ization of Rs. 3,981 Crores, the shares of Pondy Oxides & Chemicals Ltd were trading at around Rs. 1305 per share which is 19 percent discount from its 52 weeks high of Rs. 1619 per share and is trading at a P/E of 28.6 whereas industry P/E stands at 34.8
Record Financial Performance in FY26
Pondy Oxides and Chemicals Limited delivered its strongest-ever financial performance in FY26, supported by higher production volumes, operational efficiency improvements, and better contribution from value-added products. Revenue from operations rose 45 percent year-on-year to Rs. 2,939 crore, while EBITDA more than doubled to Rs. 218 crore. Profit after tax also witnessed a sharp 113 percent jump to Rs. 139 crore, reflecting improving profitability across businesses.
Quarterly performance remained equally strong, with Q4FY26 revenue increasing 80 percent YoY to Rs. 932 crore and PAT climbing 111 percent YoY to Rs. 38 crore. The company also reported EBITDA margin expansion to 7.4 percent , indicating better cost efficiencies and operational leverage.
Strong Momentum Across Lead and Copper Businesses
POCL continued to strengthen its presence across both lead and copper segments during FY26. Lead business remained the key contributor with 77 percent share in overall sales mix, while copper contributed 23 percent . The company witnessed a significant rise in copper sales, which increased 11.11 times to Rs. 672.58 crore due to higher production and demand momentum. Lead sales also increased 11 percent YoY to 100,727 MT during the year. Export markets remained a major growth driver for the company, accounting for 66 percent of total sales mix, while domestic markets contributed 34 percent . The improvement in business mix and higher contribution from value-added products further supported margin expansion during the year.
Capacity Expansion Driving Next Phase of Growth
The company undertook aggressive expansion initiatives during FY26 to support future growth requirements. POCL expanded its lead production capacity by over 50 percent , increasing from 132,000 MTPA to 204,000 MTPA at its Thervoykandigai facility. Commercial production for Phase 1 began in Q1FY26, while Phase 2 was commissioned in December 2025. The company expects these expanded capacities to gradually ramp up utilization over the coming quarters.
In the copper segment, POCL doubled its copper recycling capacity from 6,000 MTPA to 12,000 MTPA. Additionally, the company is setting up 36,000 MTPA finished copper products capacity in two phases with planned capex of around Rs. 200 crore, highlighting its long-term focus on diversification and scale expansion.
Target 2030 Vision and Growth Roadmap
POCL has outlined an ambitious “Target 2030” strategy focused on sustainable and profitable growth across non-ferrous metal verticals. The company aims to achieve over 15 percent volume growth, maintain more than 20 percent revenue CAGR, and improve EBITDA margins beyond 8 percent .
It is also targeting ROCE above 20 percent while increasing the share of value-added products to over 60 percent of total revenue. Alongside growth initiatives, the company is working towards reducing energy consumption by more than 20 percent as part of its sustainability and carbon reduction goals. During FY26, POCL invested Rs. 49 crore towards capex and expects to invest around Rs. 180 crore going forward to support expansion plans.
Proposed Stock Split to Improve Accessibility
The company has also proposed a stock split aimed at improving affordability and liquidity of its shares in the market. Under the proposal, existing equity shares with face value of Rs. 5 each will be subdivided into shares with face value of Rs. 2 each, subject to shareholder approval through postal ballot. The move is expected to improve retail participation and increase accessibility for a wider investor base while aligning with the company’s ongoing growth trajectory.
For example, if a shareholder owns 1,000 shares valued at Rs. 5 each in Pondy Oxides & Chemicals Limited, after the 2:5 stock split, their total holding will increase to 2,500 shares with a face value of Rs. 2 each. The value of the holding will remain unchanged.
Conclusion
Pondy Oxides and Chemicals Limited delivered a landmark FY26 performance backed by strong execution across its lead and copper businesses, improving margins, and aggressive capacity expansion initiatives. The company’s robust growth in revenue, EBITDA, and profitability reflects rising operational scale and increasing contribution from value-added products. Alongside this, the proposed stock split is expected to improve share affordability and enhance retail participation. With ongoing capex plans, expanding capacities, export strength, and its Target 2030 roadmap, POCL appears well-positioned to sustain long-term growth momentum in the non-ferrous recycling and manufacturing sector.
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