PCCL - Petro Carbon

📊 NSE: PCCL 🏢 Chemicals 📅 Last Updated: 12/14/2025 10:58

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations declined by 45.05% YoY, falling from INR 53,864.02 Lakhs in FY24 to INR 29,597.12 Lakhs in FY25. This was primarily driven by a sharp decrease in the market price of Calcined Petroleum Coke (CPC). For the half-year ended September 30, 2025, revenue stood at INR 26,040.21 Lakhs.

Geographic Revenue Split

Not specifically disclosed by percentage, but the company operates a primary facility in Haldia, West Bengal, and imports over 90% of its raw materials from international vendors, indicating a global supply chain with domestic sales to Indian metal giants.

Profitability Margins

Net Profit Margin significantly contracted from 15.26% in FY24 to 3.16% in FY25. Return on Capital Employed (ROCE) dropped from 66.60% to 5.15% YoY, reflecting the impact of lower CPC realizations against fixed operational costs.

EBITDA Margin

Core profitability was severely impacted as Profit Before Tax (PBT) fell by 93.68% from INR 11,713.42 Lakhs in FY24 to INR 740.53 Lakhs in FY25. The decline is attributed to material price headwinds and macroeconomic challenges in the CPC sector.

Capital Expenditure

Property, Plant and Equipment (PPE) increased by 79.74% from INR 8,864.58 Lakhs to INR 15,933.03 Lakhs in FY25. This includes the commissioning of a 10 MW Waste Heat Recovery-based Captive Power Plant at the Haldia facility.

Credit Rating & Borrowing

Long-term borrowings increased by 201% from INR 2,000.00 Lakhs in FY24 to INR 6,020.69 Lakhs in FY25. The Debt-Equity Ratio rose from 0.12 to 0.39 to fund expansion and working capital.

⚙️ Operational Drivers

Raw Materials

Green Petroleum Coke (GPC) is the primary raw material used to manufacture Calcined Petroleum Coke (CPC). Raw material imports account for over 90% of total procurement requirements.

Import Sources

Imported from various international vendors (specific countries not named) to ensure a diversified portfolio and competitive pricing.

Key Suppliers

Not disclosed in available documents; however, the company maintains long-term relationships with a diversified portfolio of international vendors.

Capacity Expansion

Current annual capacity is 93,744 MTPA. The company recently added a 10 MW Waste Heat Recovery-based Captive Power Plant to improve energy independence and process stability.

Raw Material Costs

Cost of materials consumed for H1 FY26 was INR 23,067.49 Lakhs. The company uses a cost matrix that factors in shipping costs and 'most economic quantity' calculations based on voyage time and price.

Manufacturing Efficiency

The integration of a Waste Heat Recovery system improves process stability and aligns with sustainability goals while supporting future capacity expansion.

Logistics & Distribution

Strategically located within the Haldia port perimeter with access to motorable roads and a dedicated railway siding to ensure efficient B2B distribution to metal sector clients.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth will be driven by the 10 MW captive power plant for cost optimization, entry into the carbon-based recycling industry, and expansion through new subsidiaries like ACL Alchemy Pvt. Ltd. (incorporated Nov 2024).

Products & Services

Calcined Petroleum Coke (CPC), primarily used as a carbon raiser in the aluminium and steel smelting processes.

Brand Portfolio

PCCL (Petro Carbon and Chemicals Limited).

New Products/Services

Actively evaluating entry into the carbon-based recycling industry to diversify the portfolio and align with long-term sustainability goals.

Market Expansion

Expanding group-level capabilities through a new subsidiary partnership in the carbon chemicals space to access newer markets.

Market Share & Ranking

Identified as a leading manufacturer of CPC in India, though specific market share percentage is not disclosed.

Strategic Alliances

Partnership within the carbon chemicals space via a subsidiary to expand market reach and technical capabilities.

🌍 External Factors

Industry Trends

The industry is shifting toward sustainability; PCCL is positioning itself by installing waste heat recovery systems and exploring carbon recycling to mitigate environmental regulatory risks.

Competitive Landscape

Competes with both domestic and international CPC manufacturers; maintains an edge through logistics efficiency and integrated power generation.

Competitive Moat

Moat is built on strategic location (Haldia Port proximity), integrated infrastructure (railway siding/utility connections), and long-term B2B relationships with NALCO and Hindalco which provide high entry barriers.

Macro Economic Sensitivity

Highly sensitive to the aluminium and steel sectors' demand cycles and global commodity price fluctuations for petroleum coke.

Consumer Behavior

B2B demand is driven by the production volumes of primary aluminium and steel producers in India.

Geopolitical Risks

Exposure to international trade dynamics due to >90% raw material import requirement; mitigated through a diversified international vendor base.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to the Companies Act 2013 and SEBI (LODR) Regulations 2015. The company maintains an audit trail (edit log) facility in its accounting software as per regulatory requirements.

Environmental Compliance

Invested in a 10 MW Waste Heat Recovery-based Captive Power Plant to reduce carbon footprint and comply with evolving environmental standards.

Taxation Policy Impact

Effective tax rate for FY25 resulted in a tax expense of INR -206.54 Lakhs (credit) due to deferred tax adjustments and reversal of earlier provisions, compared to a tax expense of INR 3,467.42 Lakhs in FY24.

Legal Contingencies

The company reversed income tax provisions of earlier years amounting to INR 456.90 Lakhs in FY25. No major pending litigation values were specified in the provided summary.

⚠️ Risk Analysis

Key Uncertainties

Volatility in CPC market prices (impacted FY25 revenue by 45%) and fluctuations in international Green Petroleum Coke (GPC) prices.

Geographic Concentration Risk

Manufacturing is concentrated at a single fully integrated facility in Haldia, West Bengal.

Third Party Dependencies

High dependency on international vendors for >90% of raw materials and reliance on marquee clients like NALCO and Hindalco for the majority of revenue.