PCBL buoyed by strong carbon black demand in India

Mumbai, India – PCBL Chemicals has delivered a strong first quarter, with consolidated revenue up 17% year-on-year to INR24.7 billion (€224 million), the Indian group has announced.

Earnings (EBITDA) for the three months to end of June rose 23% to INR4 billion and profit after tax jumped 65% to INR1.55 billion, said the carbon black and speciality chemicals supplier in a 29 July earnings call.

Carbon black sales volumes were steady at 153,513 tonnes in the quarter, while domestic volumes rose 15% year-on-year to 102,985 tonnes.

International volumes stood at 50,528 tonnes, reflecting what PCBL described as “a deliberate shift towards the domestic spot market,” where realisations were more attractive.

“This has been a strong quarter for us on almost every parameter,” said Nilesh Koul, managing director.

The results, said Koul, were particularly significant against a backdrop of volatile costs and ongoing geopolitical disruption.

“What makes this performance particularly satisfying is the background against which it was delivered,” Koul said. “Cost continues to be volatile with the West Asia [Iran war] situation persisting through the quarter.”

PCBL, according to the company leader, was able to benefit from its exposure to spot-market business as crude prices increased sharply during April and May.

Almost one-third of its volumes were sold on the spot market, Koul said, allowing the company to “monetise this exposure very effectively” and capture stronger realisations.

On the formula-linked portion of the business, he said, “the pricing mechanism works exactly as designed”, with input-cost movements passed on to customers with a contractual lag.

Brent crude averaged $97/barrel during the quarter, compared with $78/barrel in Q4 FY26, largely as a result of the escalation of the West Asia conflict. Carbon black feedstock (CBFS) costs moved in line with crude, while higher inward freight also increased PCBL’s raw-material bill.

Domestic sales were a particular bright spot in the first quarter, with demand steady across key segments. PCBL said domestic volumes were also supported by some inventory building among customers during the previous quarter.

International realisations, meanwhile, were temporarily affected by elevated freight costs.

PCBL responded by diverting some volumes to the domestic spot market while continuing to supply key strategic export customers.

As freight costs normalise and the benefits of India's new tariff and FTA position emerge, the company expects substantial scope to rebuild international volumes.

“You should see those volume flows happening quarter two, quarter three and quarter four onwards,” Koul said.