POCL Enterprises - POCL Enterprises

📊 BSE: 539195 🏢 Commodity Chemicals 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

The company achieved a total revenue of INR 1,450.10 Cr in FY25, growing 29.42% YoY. The Metal segment grew 42.38% to INR 1,087.55 Cr, Metallic Oxides grew 12.70% to INR 421.75 Cr, and Plastic Additives grew 7.52% to INR 85.82 Cr.

Geographic Revenue Split

Domestic sales account for 85% of revenue (INR 1,232.58 Cr), while International/Export sales contribute 15% (INR 217.52 Cr).

Profitability Margins

Operating Profit Margin improved to 4.41% in FY25 from 3.50% in FY24. Net Profit Margin increased to 2.15% from 1.58% due to better margins retained on sales and improved operational efficiency.

EBITDA Margin

PBILDT margin improved to 4.28% in H1FY25 compared to 3.52% in FY24 and 2.44% in FY22, driven by increased scale, better capacity utilization, and effective pricing strategies to mitigate raw material volatility.

Capital Expenditure

The company made substantial additions to fixed assets in FY25, evidenced by a 95.7% increase in depreciation and amortization costs to INR 3.39 Cr (from INR 1.73 Cr) following the capitalization of new projects.

Credit Rating & Borrowing

CARE Ratings upgraded the long-term bank facilities to CARE BBB+; Stable from CARE BBB. Finance costs increased 37.6% to INR 18.73 Cr in FY25 to support higher working capital requirements for increased scale.

⚙️ Operational Drivers

Raw Materials

Primary raw materials include lead and zinc scrap materials, which are processed through smelting and refining. Material costs represent 90.30% of total revenue, amounting to INR 1,309.51 Cr in FY25.

Import Sources

The company utilizes a diversified supplier base across both domestic and international markets to mitigate sourcing risks.

Key Suppliers

Not specifically named in the documents, but the company maintains a diversified supplier base to reduce dependency on single vendors.

Capacity Expansion

Current annual capacity is 67,240 MT as of September 30, 2024, across five factories (three in Tamil Nadu and two in Pondicherry). A new dedicated manufacturing facility has been established in Pondicherry for non-toxic stabilizers.

Raw Material Costs

Raw material costs including inventory changes were INR 1,309.51 Cr in FY25, up from previous levels in line with the 29.42% revenue growth. The company employs strategic diversification and localized procurement to manage these costs.

Manufacturing Efficiency

Efficiency is driven by improved capacity utilization and cost optimization measures, which helped raise the PBILDT margin to 4.28% in H1FY25.

Logistics & Distribution

Freight costs are a significant component of the INR 54.90 Cr other expenses, impacted by the 29.42% increase in sales volume.

📈 Strategic Growth

Expected Growth Rate

29.42%

Growth Strategy

Growth is targeted through the expansion into non-toxic stabilizers at the new Pondicherry facility to meet BIS regulations, strengthening the marketing team for international expansion, and focusing on high-margin value-added products in the Plastic Additives segment.

Products & Services

Refined lead metal, zinc metal, PVC stabilizers (lead-based and non-toxic), and metallic oxides used in construction, agriculture, and industrial applications.

Brand Portfolio

POCL Enterprises Limited (POEL).

New Products/Services

Non-toxic stabilizers for PVC pipes and fittings, developed to comply with new Bureau of Indian Standards (BIS) norms, expected to be the fastest-growing product segment.

Market Expansion

Actively exploring new customer opportunities in both domestic and international markets, with a specific focus on the construction and agriculture sectors for PVC additives.

Market Share & Ranking

Not disclosed, though the company notes intensifying competition in lead, zinc, and PVC additive segments.

🌍 External Factors

Industry Trends

The industry is shifting toward non-toxic stabilizers due to BIS regulations. Demand for PVC products in construction and agriculture remains robust, while lead-based products face regulatory decline.

Competitive Landscape

Intense competition in lead and zinc metal segments; the company competes by focusing on operational efficiency and value-added products.

Competitive Moat

Moat is built on long-standing customer/vendor relationships, a 67,240 MT established capacity, and early adoption of non-toxic stabilizer technology. Sustainability depends on maintaining environmental compliance in the polluting lead segment.

Macro Economic Sensitivity

Sensitive to global trade tensions, U.S. merchandise tariffs, and domestic infrastructure spending. Growth is linked to the government's capital expenditure push and fiscal consolidation.

Consumer Behavior

Increasing demand for durable and non-toxic PVC pipes and fittings in the construction and agriculture sectors is driving the shift in the product mix.

Geopolitical Risks

Global trade tensions and potential adverse effects from U.S. tariffs on merchandise exports pose risks to international sales (INR 217 Cr).

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013, SEBI Listing Regulations, and Bureau of Indian Standards (BIS) norms for PVC stabilizers.

Environmental Compliance

The company must adhere to rigorous pollution control norms for lead manufacturing. Deviation from waste handling procedures could result in stringent regulatory action.

Taxation Policy Impact

The company is subject to Indian corporate tax laws; the Union Budget 2025 introduced tax rationalization measures expected to enhance investor confidence.