PCBL Chemical Limited (PCBL) AI Stock Analysis

• Market Cap: ₹123.61B
• Dividend Yield: 1.94%
• Average Volume (3M): 59.75K
• Price to Earnings (P/E): 46.0
• Beta (1Y): 1.58
• Revenue Growth: 6.12%
• EPS Growth: -30.31%
• Country: IN
• Employees: 1,275
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.30
• Shares Outstanding: 393,462,620
• 10 Day Avg. Volume: 57,340
• 30 Day Avg. Volume: 59,751
• PEG Ratio: -3.20
• Price to Book (P/B): 4.34
• Price to Sales (P/S): 1.91
• P/FCF Ratio: -1.20K
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹296.00
• Price Target Upside: 3.71% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ₹342.00 ▲(19.83% Upside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is primarily supported by strong revenue growth and solid operating margins, but is held back by margin compression, higher leverage and negative free cash flow. Technicals are mixed (better short-term than long-term), and valuation is constrained by a high P/E despite a modest dividend yield.

Positive Factors

Strong revenue growth

Sustained 30.89% revenue growth indicates durable demand for PCBL's carbon black products and expanding market penetration. Over 2-6 months this supports continued scale benefits, better fixed-cost absorption, and a stronger platform to up-sell specialty grades that command higher margins and customer stickiness.

Healthy gross and operating margins

A high gross margin near 31% and resilient EBIT/EBITDA margins show the business retains pricing power and operational efficiency in manufacturing carbon black. This structural margin profile supports reinvestment and buffers input cost volatility, sustaining profit generation across the industry cycle.

Strong cash conversion (operating cash flow)

An OCF-to-net-income ratio of 1.75 signals high earnings quality and reliable cash generation from operations. Over months this supports funding working capital and interest obligations, enables prioritized capex on specialty lines, and gives management flexibility to address leverage or invest in higher-margin products.

Negative Factors

High leverage

A debt-to-equity ratio of 1.51 is materially elevated for a cyclical industrial chemical player, constraining strategic flexibility. Over the medium term this increases interest expense sensitivity, raises refinancing risk during downturns, and limits ability to pursue growth projects or absorb prolonged weak demand without external financing.

Negative free cash flow

Negative free cash flow despite strong OCF points to heavy capex or working capital drawdowns. Persisting negative FCF would force reliance on debt or equity to fund operations, hamper deleveraging, and reduce room to sustain dividends or invest in specialty-product upgrades that drive higher long-term margins.

Net margin compression

A drop in net margin to 5.17% from 7.65% signals bottom-line pressure possibly from rising input or energy costs or pricing limits in commodity grades. If structural, this reduces ROE and cash available for debt reduction or reinvestment, making the company more vulnerable to cyclical demand swings in tyre and industrial markets.

PCBL Chemical Limited Business Overview & Revenue Model

Company Description

PCBL Limited produces, sells, and exports carbon black in India and internationally. The company operates through Carbon Black and Power segments. It offers various carbon black grades for the rubber industry under the Orient Black brand name. The company also manufactures specialty blacks for non-rubber applications, such as food contact plastics, fibers, wire and cables, films, engineering plastics, adhesives and sealants, pressure pipes, drip irrigation pipe systems, printing inks, paints/coatings, batteries, and fertilizers under the Royale Black brand name. In addition, it generates and distributes electricity from the tail gas recovered from carbon black production. The company has a total of 84 MW of power generation capacity. It sells its carbon black through local distributors and channel partners. The company was formerly known as Phillips Carbon Black Limited and changed its name to PCBL Limited in December 2021. The company was incorporated in 1960 and is based in Kolkata, India. PCBL Limited is a subsidiary of Rainbow Investments Limited.

How the Company Makes Money

PCBL generates revenue primarily through the sale of its carbon black products, which account for a significant portion of its earnings. The company has established long-term relationships with major tire manufacturers and other industries that rely heavily on carbon black for their products. In addition to carbon black, PCBL also offers specialty chemicals that cater to niche markets, further diversifying its revenue streams. The company benefits from economies of scale in production, allowing it to maintain competitive pricing while optimizing margins. Strategic partnerships and collaborations with key players in the rubber and automotive sectors also enhance its market presence and contribute to consistent revenue growth.

PCBL Chemical Limited Financial Statement Overview

Summary

Strong revenue growth (+30.89% from 2024 to 2025) and healthy gross/EBIT margins support the score, but the drop in net profit margin (to 5.17% from 7.65%), elevated leverage (debt-to-equity 1.51), and negative free cash flow in 2025 temper overall financial strength.

Income Statement

PCBL Chemical Limited has demonstrated impressive revenue growth with a 30.89% increase from 2024 to 2025 and consistent growth over recent years. Gross profit margins have been strong, maintaining a high level at 30.88% in 2025. However, net profit margin has shown some volatility, decreasing to 5.17% in 2025 from 7.65% in 2024, which may indicate rising costs or pricing pressures. EBIT and EBITDA margins remain healthy, suggesting operational efficiency.

Balance Sheet

The company's equity ratio of 31.54% indicates a balanced capital structure, but a debt-to-equity ratio of 1.51 highlights significant leverage, which could pose a risk if not managed carefully. Return on equity is relatively low at 11.75%, reflecting moderate profitability relative to shareholder investment. Overall, the balance sheet shows stability but with potential risk from high leverage.

Cash Flow

PCBL Chemical's cash flow performance is mixed, with a decline in free cash flow from 2024 to 2025. The operating cash flow to net income ratio is robust at 1.75, indicating strong cash generation relative to net income. However, the negative free cash flow in 2025 suggests potential challenges in covering capital expenditures, signaling a need for improved cash management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	83.75B	84.04B	64.20B	57.74B	44.46B	26.60B
Gross Profit	25.03B	25.38B	19.11B	13.88B	12.80B	10.28B
EBITDA	11.86B	12.46B	9.56B	6.94B	6.10B	4.91B
Net Income	4.11B	4.35B	4.91B	4.42B	4.26B	3.14B
Balance Sheet
Total Assets	0.00	117.22B	112.95B	54.33B	47.85B	37.26B
Cash, Cash Equivalents and Short-Term Investments	3.89B	3.83B	4.16B	913.20M	4.84B	2.59B
Total Debt	0.00	55.71B	49.83B	10.29B	7.86B	7.24B
Total Liabilities	-37.09B	80.13B	80.45B	25.94B	21.62B	17.83B
Stockholders Equity	37.09B	36.97B	32.47B	28.30B	26.14B	19.35B
Cash Flow
Free Cash Flow	0.00	-133.30M	5.70B	-3.92B	-157.80M	2.70B
Operating Cash Flow	0.00	7.60B	11.05B	5.04B	2.90B	3.85B
Investing Cash Flow	0.00	-6.90B	-42.14B	-5.52B	-5.41B	-2.03B
Financing Cash Flow	0.00	-639.30M	33.81B	-305.70M	2.17B	-1.80B

PCBL Chemical Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 285.40
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PCBL, the sentiment is Neutral. The current price of 285.4 is below the 20-day moving average (MA) of 292.26, below the 50-day MA of 292.02, and below the 200-day MA of 355.20, indicating a neutral trend. The MACD of 6.42 indicates Negative momentum. The RSI at 54.02 is Neutral, neither overbought nor oversold. The STOCH value of 42.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:PCBL.

PCBL Chemical Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PCBL	68 Neutral	₹123.61B	46.02	―	1.94%	6.12%	-30.31%
GSFC	68 Neutral	₹69.41B	10.03	―	2.80%	15.25%	26.49%
AARTIIND	63 Neutral	₹166.65B	44.08	―	0.26%	8.26%	-34.62%
RALLIS	63 Neutral	₹57.43B	34.39	―	0.92%	0.91%	18.12%
PARADEEP	62 Neutral	₹126.22B	11.01	―	0.62%	64.80%	151.92%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ALKYLAMINE	61 Neutral	₹78.35B	43.36	―	0.62%	3.95%	8.28%

PCBL Chemical Limited Corporate Events

PCBL Chemical Starts Commercial Production on New Carbon Black Line in Tamil Nadu

PCBL Chemical Limited has announced that its wholly owned subsidiary, PCBL (TN) Limited, has commenced commercial production on Line-4 at its plant from 28 January 2026, adding 60,000 metric tonnes per annum of carbon black capacity as part of a brownfield expansion. This capacity addition, on top of an existing 147,000 MTPA with 87% utilization, is aimed at meeting rising market requirements and should strengthen the company’s ability to serve growing demand, enhance operational scale, and potentially improve its competitive position in the carbon black market.

PCBL Chemical Limited Announces Special Window for Share Transfer Requests

PCBL Chemical Limited has announced the publication of a newspaper disclosure under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements, 2015. This disclosure pertains to the opening of a special window for re-lodgement of transfer requests for physical shares, as per SEBI Circular dated 2nd July 2025. The company has published this information in the Business Standard and Aajkal newspapers and uploaded it on their website. This move is significant for stakeholders as it provides an opportunity to address pending transfer requests, potentially impacting shareholder engagement and compliance processes.

PCBL Chemical Limited Receives Tax Appellate Authority Order

PCBL Chemical Limited has announced a recent decision by the State Tax Appellate Authority, which imposed a general penalty of Rs. 10,000 under the Goods and Services Tax Act 2017, while waiving a tax liability of Rs. 1,77,171. The company has assessed that this order will not have a material impact on its financial, operational, or other activities.