Thank you, Steve. Good afternoon everyone and welcome to Pondy Oxides and Chemicals Limited's earnings call to discuss Q4 and FY2026 financial results.

Today, we are joined by Mr. Ashish Bansal, Chairman and Managing Director, Mr.

K. Kumaravel, Director Finance and Company Secretary, Mr.

R. Vaidyanathan, Executive Director, Mr.

Vijay Balakrishnan, Chief Financial Officer, and Mr. Prateek Gupta, Associate Vice President Operations.

We must remind you that the discussion on today's call may include certain forward-looking statements and must be therefore viewed in conjunction with the risks that the company faces. May I now request Mr.

Ashish Bansal to take us through the company's business outlook and financial highlights, subsequent to which we will open the floor for Q&A. Thank you and over to you, sir.

Thank you, Sana. Good afternoon everyone and thank you for joining us for POCL Q4 and FY2026 earnings call.

I hope you've had the opportunity to go through our financial disclosures available on the exchanges. I will walk you through the key strategic updates, operational progress, and financial performance followed by a Q&A session.

FY2026 stands as one of the most remarkable years in POCL's journey with the company delivering all-time high production and sales volumes, revenue, EBITDA, PAT, and profitability margins. The stellar performance reflects the combined strength of our growth strategy, execution excellence, and operational discipline, building on this momentum.

POCL has generated an outstanding 5-year CAGR of 24% in revenue, 52% in EBITDA, and 67% in PAT, demonstrating a consistent track record of accelerating growth, expanding margins, and creating significant long-term value for all stakeholders. Before turning to the numbers, I would like to highlight the business developments and growth initiatives that have not only contributed to our strong performance in FY2026, but are also laying the groundwork for POCL's continued expansion and value creation in the years ahead.

One of the key highlights of FY2026 was the significant progress made in expanding our capacity and strengthening our growth platform. During the year, POCL enhanced its lead refining capacity at the Thervoy facility by 55%, increasing it from 1,32,000 metric tons per annum to 2,04,000 metric tons per annum.

The expanded facility operated at approximately 65% during FY2026 and is expected to steadily ramp up, reaching nearly 75% utilization in the coming years, coming quarters. We also successfully doubled our copper recycling capacity to 12,000 metric tons per annum in Q4 FY2026, reinforcing our presence in the copper recycling segment.

The facility is expected to progressively ramp up to 70% utilization during FY2027. Further strengthening our growth platform, the board has approved the setting up of a 36,000 metric tons per annum copper cathode plant at our Thervoy facility in Tamil Nadu with an estimated investment of approximately ₹200 crores, funded purely through internal accruals.

The project will be implemented in two phases of 18,000 metric tons per annum each and phase one is targeted for commissioning by December 2026. This marks a significant step in expanding our non-ferrous recycling portfolio and enhancing value-added capabilities.

The facility will utilize integrated pyrorafining and electro-refining technology to produce LME grade-A copper cathodes, strengthening our vertical integration capabilities. Upon commissioning, the project is expected to enhance the revenue and profitability through the value-added copper products, improve margins through a richer product mix, generate operational synergies across procurement, logistics, and sales, and create a scalable platform for future expansion and diversification.

It will also support import substitution, reduce the carbon footprint through increased use of recycled copper, and further reinforce POCL's commitment to sustainability, circular economy principles, and long-term value creation. Backing our growth strategy, POCL deployed approximately ₹49 crores towards capital expenditure in FY2026.

We remain committed to investing for future and expect to incur an additional ₹180 crores in FY2027 to support capacity augmentation in copper, downstream integration, and other strategic growth initiatives. In line with its commitments to reward the shareholders, the board has recommended a final dividend of ₹5 per equity share representing 100% of the face value for FY2025-26.

Against this backdrop of strategic progress, our operational performance in FY2026 remained exceptionally strong, and the company achieved record production and sales volumes of both lead and copper, reflecting the strength of our operating model, execution excellence, and growing market presence. The procurement mix from imports stood at approximately 73% for lead, 61% for plastic, and 98% for copper during the period.

Our lead business delivered strong growth and enhancing profitability. Lead production and sales increased by 11% each in FY2026 to 1,04,481 metric tons and 1,07,727 metric tons respectively on a quarterly basis.

Volumes moderated as we strategically focused on higher margin value-added products. As a result, EBITDA per ton of lead improved significantly by 39% to ₹18,462 in FY2026 and by 43% year-on-year to ₹19,739 during the quarter, reflecting the success of our value optimization synergies.

FY2026 production and sales volume of copper increased by 7 times respectively, whereas EBITDA per ton stood strong at INR 39,896 per ton. Copper sales witnessed a significant increase in FY2026, growing by nearly 11 times to INR 673 crores.

Building on the operational momentum, POCL delivered its strongest ever financial performance in FY2026, underscoring our ability to drive sustainable growth. Revenue growth remained robust across both quarterly and annual periods.

Revenue increased to ₹932 crores in Q4 FY2026, registering a strong growth of 80% year-on-year and 20% quarter-on-quarter. For FY2026, revenue stood at ₹2,939 crores, reflecting a 45% year-on-year increase driven by improved capacity utilization and higher production and sales volumes.

Exports contributed 66% of total revenue during the year, highlighting our expanding global footprint and growing customer confidence. Sales mix between lead and copper verticals stood at 77% and 23% respectively in FY2026.

Additionally, value-added products accounted for 65% of lead segment revenue, reinforcing our strategic focus on increasing the contribution of value-added products to over 60% over the long term. EBITDA more than doubled on both quarterly and annual basis, reaching ₹61 crores in Q4 FY2026 and ₹218 crores in FY2026, reflecting the improved earnings profile of the business.

EBITDA margin expanded by 212 basis points to 7.4% in FY2026 compared to 5.3% in FY2025. Profitability growth remained strong with PAT more than doubling on both quarterly and annual basis and PAT increased by 111% year-on-year to ₹38 crores in Q4 FY2026, while FY2026 PAT grew by 113% year-on-year to ₹139 crores, reflecting the improved profitability of the business.

PAT margin expanded by 151 basis points to 4.7% in FY2026 compared to 3.2% in FY2025. Our consolidated performance mirrored the strong momentum witnessed in the stand-alone business.

On a consolidated basis, revenue, EBITDA, PAT grew by 44%, 102%, and 127% year-on-year respectively in FY2026. The strong performance continued during the quarter with revenue, EBITDA, and PAT increasing by 78%, 124%, 126% year-on-year respectively, reflecting broad-based growth and improved profitability across the business.

FY2026 also witnessed notable improvement in our financial health indicators. Return on capital employed increased to 17%.

Cash conversion days remained healthy at 53 days. Interest coverage improved to 20x from 8x in FY2025 and net debt to equity stood at comfortable 0.17 times, highlighting the strength of our balance sheet and capital efficiency.

In conclusion, POCL remains firmly on track to achieve its Target 2030 aspiration guided by a clear and disciplined strategy focused on sustainable growth, operational excellence, and long-term value creation. We continue to expand our lead and copper capacities while strengthening our presence across adjacent non-ferrous recycling segments to deliver a 20% and 20% CAGR in revenue and profitability.

Our growth is complemented by a strong focus on margin expansion with targets maintaining EBITDA margins above 8% and return on capital employed above 20%. At the same time, we remain committed to enhancing operational efficiency through innovation, modernization, and increased value addition with the goal of deriving over 60% of revenue from value-added products while significantly improving energy efficiency.

Anchored by a clear strategic roadmap, a robust balance sheet, disciplined execution, a sizeable land bank, supportive government norms, proven leadership, and support from all stakeholders, POCL is well positioned to capitalize on future opportunities and drive long-term sustainable growth. That concludes my update.

Thank you for your attention. We will now be happy to take your questions.

Hi, sir. Congratulations for a great set of numbers and thank you for taking up the question.

Sir, your traded goods has increased during the quarter. Can we expect this to continue or what was the reason behind this?

Dheeraj, thank you. Yes, we had some opportunity on trading in the last quarter and we had taken up based on that opportunity that was available.

I cannot specifically say that it will continue, but definitely there will be some trading which has always been there. As the opportunity comes in, our focus is generally on manufacturing only and that remains our commitment.

Got it. Is this more related to copper, sir, or should we correlate this to lead?

This is more related to copper.

Got it. Sir, our lead volumes for the quarter has dipped slightly.

However, we have commenced Thervoy 1 and Thervoy 2. Is this a short-term dip or how do we take it for FY2027?

What is the volume growth for lead?

This is only a short-term thing. It's not a dip.

It was a conscious decision. At that point in time, when the supply chain was a little tight, we deliberately focused more on the value-added products and where customers also well accepted the change as they were able to get the regular products from other suppliers, as we are one of their prime suppliers for the value-added products.

We were able to convert those into value-added products, giving us better margins over the quarter as well.

Got it. Just last question, sir, is on the CapEx.

What is your CapEx forecast for FY2027 as in the ₹200 crores? Is there anything else?

What is your CapEx for FY2028? Can you give inventory days break-up for lead and copper?

Yes. For the current year, our CapEx will be well within approximately around ₹180 crores will be the CapEx, ₹180 crores, ₹200 crores for this financial year.

The following financial year will be probably in the range of ₹50 crores to ₹60 crores unless anything else is specifically added, which we'll keep you updated.

Got it. This question on inventory days, sir?

Current inventory days in lead and copper break-up and then what is it going to be in FY2027 and '28?

Currently, as overall this thing, we stand at 53 days. Technically, it is well below 50 days.

It was at that point in time because towards the end last week, there was some delay in our shipment due to some vessel movement and those payment payouts were delayed by a week. At that point in time, it showed little higher.

Once we account for that, we are well below 50 days. As on the specific numbers, it is at 53 days.

Guidance for going forward, sir?

For lead, we are at about 45 days. In copper, we were earlier at about 70 days and we have brought that also closer to 50 and below 50.

Can

we expect this to continue?

We are strongly poised to bring overall below 45 days as we had spoken earlier as well and we will continue to do that.

Correct. Thank you, sir.

All the best for your future results.

Thank you, Dheeraj.

Hi. Thanks for the opportunity.

My first question is on the lead realization. Just wanted to get your thoughts on lead premiums.

As we have kind of reported close to $700 per ton of premium, while if I look at our peers, they do somewhere around $300 per ton of premium. What are we doing differently which are fetching these obnoxiously high premium compared to our peers?

$700 premium. Can you give me a reference to your calculation of the premium?

How did you derive the $700 and $300 numbers?

I've got the realization number, it is somewhere around ₹2,42,000 and USD-INR of 91. somewhere around 5.

Minus the basic cost. That means your minus the basic cost, all right.

Basically the value-added products that we manufacture are specific alloys and all of that, which are a blend of different other elements and metals. The prices of those specific alloys are higher than the basic mix of the regular pure lead or the basic antimonial alloys or something of those sorts.

No, I get that. Still, what kind of product lines we are into which are fetching these high premiums?

Because if I look at our peer, like I mentioned that, they are also into similar kind of product line and they are doing premiums of around $300 per ton.

There are some specific niche alloys that we manufacture, which few of the other peers are not manufacturing. Those alloys are what fetch us a high premium and realization.

Could you please give us a couple of examples of that, what would that be?

These are very industry-specific alloys, which, on a open forum, I would not like to give out the names of those specific alloys. These are specific to those customers who are We are a one-point source for them to buy these alloys and hence we demand and command those premiums.

Got it. No worries.

My second question would be could you please talk more about plastic and aluminum segments as well? How are we doing there?

Are we EBITDA positive? If yes, then how much EBITDA per ton are we kind of making in those two segments?

On the plastic, as we updated during our last con-call, we were moving the unit and now the unit has been moved to the new location and it's been set up. The production started in the new location in March.

As of now, we are PAT positive, not only EBITDA positive. Currently, we are doing PAT positive and we are very, very confident that this year, you will see on the plastic segment as well positive numbers.

In terms of per metric ton realization, we'll update you over our next quarter.

Okay. Sure.

Because the question came because when I add lead EBITDA and copper EBITDA per ton, what you have given in your PPT, that comes more than what EBITDA kind of you have reported, right? Just wanted to get clarity.

The EBITDA per ton what you report includes other income also or how is it?

This year, plastic was marginally negative. That is why it is different.

Now in the coming quarters, it will be positive.

Okay. Aluminum, are we doing anything there?

As of now, not much on aluminum. We'll probably look into that when we feel the time is right.

Got it. Thank you so much and all the best.

Thank you.

Yes, sir. Thanks for the opportunity.

Our heartiest congratulations to the entire team of Pondy Oxides for delivering such numbers, actually. Sir, my first question was related to the CapEx guidance.

The CapEx guidance that you just alluded was around ₹50 crores to ₹60 crores for FY2028. FY2027, you have already disclosed on this presentation.

Still ₹50 crores to ₹60 crores of CapEx, is this just for maintenance CapEx or does it include the CapEx for Mundra plant as well?

Basically, in this year's CapEx what we have guided, this is in the phase one. Also it includes our other internal smaller CapEx and some balancing equipments and so on.

The phase two of the copper will require that ₹50 crores to ₹60 crores of CapEx.

That means in FY2027, we'll go live for only 18,000 tons of incremental copper capacity, right? If my understanding is correct.

Yeah. By December, we'll go live for incremental 18,000 and after that following 6 months, we'll go live for the next 18,000, 6 to 7 months, yeah.

Okay. Now my second question, sir, was related to the copper itself.

You have actually disclosed on the investor presentation that we are looking for the forward integration of copper. You even alluded on the presentation that you will be going for the copper busbars and from the copper wires.

Now can you actually highlight something that what is the exact product profile that you are looking to clock? Secondly, is this different from the traditional copper volumes that we are actually already doing?

Naturally your EBITDA per ton will also increase if you're going for forward integration. Can you highlight on that point, sir?

Sagar, hi. We have not spoken anything on busbars or any other wires or something, which I'm not sure where the data you've derived from.

Definitely, yes, the copper cathode project by itself is a forward integration from what we are doing currently as recycling. Yes, from the point where we are doing recycling now, when we reach our completion of this copper anode and cathode project, the margins per ton will significantly increase.

Once this copper cathode is done, then we will look into further products of forward integration.

Okay. At least for copper cathode, we can assume the same margins that we are drawing as of now, basically?

No, it will be at elevated level. As of now, what we can see we are looking at about ₹60,000 to ₹70,000 per ton on the copper cathode versus ₹35,000 to ₹40,000 what we are currently doing.

However, the precise numbers, once the trial production is up, we will be able to give you more precise on the numbers.

Okay. Fine, sir.

My last question was related to our working capital, actually. In this year, in spite of such a robust performance, actually, we had a negative operating cash flow.

That is just because of the heavy trade receivables that are sitting on the balance sheet of around ₹265 crores. Can you split that between the raw materials and the finished goods of the trade receivables?

One more thing, that basically how are we planning in FY2027 and FY2028 to bring in the operating cash flow to be at least positive in line with the PAT growth, actually, so that at least we can have some better visibility and so that in the future also, we are not in a position to take incremental debt, actually, to cover up those receivables.

Let me just explain to you. This what you see as a negative cash flow technically not a negative cash flow because this happened due to movement of some vessel, our export consignment getting delayed because of movement of time on some vessel departures.

That's when the receivables on the last week of March got moved to first week of April. Technically around April 5th, we received close to about ₹128 crores to ₹130 crores in payment within that immediate next week.

That is what has impacted the cash flow. You have to look at it as a point in time figure.

Had this come in on time because of the external factors, the vessel not moving, these numbers would have been extremely positive.

Okay.

In fact, inventory inventory is similar level. Only on receivable, as he explained, that month end March end sales realization is delayed by a day or two.

That's all.

Right, sir. Can you split between RM and finished goods in that ₹265 crores worth of trade receivables?

No, RM and finished goods in trade receivables, Sagar, only the finished goods what are ₹160 crores. It is purely finished goods aspect.

If you see the inventory, it is only ₹36 crores increase, which is more or less with our increased revenue. Increased seems okay.

As Mr. Ashish said, only on the trade receivable front, there is a huge increase, but that is a point in time figure, which has impacted our operating cash flows.

Okay. Fine, sir.

Thank you so much and all the best, sir.

Thank you.

Hi, good evening. Thank you for the opportunity and congratulations everyone on a good set of numbers.

A couple of questions. Firstly, on the copper side, we commissioned 6,000 tons of additional copper in 4Q and we still surpassed 3,000 tons volume mark within 4Q.

What kind of capacity utilization are we now looking at on the entire 12,000 tons for FY2027? Second question, once we get into the downstream or copper cathode anode capacity of 18,000 tons in the next phase also, what would be the difference in capacity utilization of that segment versus the current recycled copper capacity?

Whether we'll continue to sell the recycled copper externally or use it to feed our Thervoy copper plant? Shweta, yeah.

In terms of the recycled part, in the current financial year, we're looking at something around 9,000, 8 to 9,000 tons of recycled copper. In the 18,000 tons capacity in the first phase, we'll have the production for the last three, that's the last quarter.

That will have approximately anywhere between, depending on the raw material required, about 50% to 60% from this recycled copper will directly go into the anode process, and there will be other raw material also that will be purchased, which will be blended. That will be the product mix in terms of copper.

FY2027 volumes would be 8, 9,000 tons of sales volume on a capacity of 12,000 tons. Is that correct?

Including the copper cathode, the volumes on copper will be approximately 12,000 tons.

Okay. In FY2027.

Sir, another thing was if we're looking at around ₹180 crores of CapEx for this year, how are we likely to fund it? Because still the operating cash flow is negative and we've already a little bit seen on the cash side.

How are we trying to fund this ₹180 crores of CapEx?

In his opening remarks, Mr. Ashish clearly informed this is through the internal accruals we are going to fund this project.

We are not going to take term loans. Anyhow, we have sufficient net worth to handle this.

Though it is a point-of-time figure for the negative cash flow, we have sufficient profit earned available in the system to take care of this. Shweta,

for the numbers part, approximately if you see the overall reserve and surplus plus equity is about ₹800 crores, whereas if you see our borrowings is about ₹150 crores. Now the balances that was short term.

We don't have any long-term debt in our books. We are very confident that we will be able to meet this expenditure through our internal accruals.

We have sufficient liquidity to meet it.

Lastly, on lead volumes, we saw significant decline this quarter. I understand the focus was on value-added products.

The new lead plant primarily focuses on pure lead and the existing ones focus on value added. Are we likely to see this run rate continue going forward when the focus is on value-added products or what kind of utilization can we expect on 2,04,000 tons of capacity for FY2027?

Definitely, we would love to focus and will focus on value-added products more, but the volumes will not decline in terms of going forward. We are looking at a utilization of approximately close to 70% on the new plant capacity, 70% to 75%.

There will be a good mix.

Okay. That's it from my side.

I'll join back the queue for more questions later. Thank you.

Thank you, Shweta.

Hi, sir. Thank you for the opportunity.

Just wanted to understand, this quarter, copper pricing has been very volatile and we have seen some impact on the reported margins as well. Could you highlight how do you handle this, what has happened in the copper side, and how are the contract structure?

That would be my first question.

You're definitely right. Copper price have been extremely volatile and not only this quarter, through the last whole year, they have been pretty volatile.

As we have explained in our earlier calls as well, we maintain a completely hedged position on the copper side and as well as our Forex as well, and which gives us a proper clear indication what margins we are able to derive out of the product. Further also, if this quarter the margins have been better than the previous quarter, one of the good reasons being there was some good demand in the domestic market on the copper, which fetched us little higher value and value addition for our recycled copper, and that is what gave us little better margins on the copper side in this quarter.

Sure, sir. When you say aspiration of 8% EBITDA margin, currently copper is at the lower level of margins when compared to lead.

Is there room for increment in the copper margins, and by how much if you can quantify? That would be helpful.

Because

then the math is not coming as 2x. Yeah.

With our current capacity, lead and this thing is a blended, it will be lower. When you look at our forward integration in terms of our anode and cathode plant and our further products that we are planning, the margin will definitely go up as I spoke on the earlier questions as well.

We will have a blended margin.

Got it, sir. For FY2027 and '28, what are the plans for lead in terms of capacity addition and utilization levels?

We are looking at utilization of approximately close to 70% on the lead side.

FY2028, we would need to add more capacity in lead. Are you planning anything as of now?

As of now, in these locations, we're not planning. We will try to move towards close to 80% to 90% utilization by FY2028.

Got it, sir. Last question, where are we on the EPR norms in terms of implementation and the taking the credit, et cetera?

On the EPR front, the portal registrations are starting from June 1st and as of now, government has restructured and they are looking at the registrations and people to start uploading the data. Maybe in three 3 to 6 months' time, they might then further come out with the further framework for the same.

Got it, sir. Thank you.

That's it from my end. Thank you.

Hello. Am I audible, sir?

Yes, please.

Yeah. Congratulations on a good set of numbers, sir.

My question actually was regarding the other expenses only which you explained to the last participant. We were on a run rate of ₹25 crores to ₹30 crores per quarter, which was majorly when our new capacities came online in the past two quarters and then it dipped to around ₹18 crores in this Q4.

I just wanted to understand a little bit more on this.

As we said, the first part is about the MTM, which got reversed in the current quarter. Apart from that, if you see the expenses when it comes to lead volumes, as we said, the TKD utilization about 65% level.

We have seen very good efficiencies in each and every line item of P&L like power and fuel, we have reduced. Environmental expenses, factory expenses, everything has been reduced.

In the coming years to come, the other expenses will be in the range of with the increased volume as well, it will be in the range of ₹22 crores to ₹25 crores moving forward.

All right. That was my only question.

Good luck for the future quarters. Thank you.

Thank you.

Yeah. Hi, thanks for taking my question.

I had one question was on the trade receivables. Now given that you've had ₹120 crores of that had flown in in April 5th, should we expect that your incremental capacity expansion that you're doing in copper cathode will largely be taken care from that money that you've got in, right?

I didn't get your question. Which money that we've got in?

Are you referring to the trade payment?

Correct. The trade receivables that was a point-in-time effect that you got after 31st March.

The

trade receivable is for the products sold for which we were to get our payment.

Correct. You've said that on April 5th, you've got ₹120 crores.

If

that was for the cash flow part what I said. If you had received that in time if the delay was not there in terms of vessel movement, we would have received that before March 31st and the cash flow would have been positive.

Okay. That's it.

What is going to

happen It's still growing.

No, what you said was right. Had we received that money, probably we would have a reduced borrowing, otherwise we should have been invested in the short-term instruments.

That is what would have our net net would have drastically come down had we received that money.

Got it. The second question was on your overall lead volumes for this quarter.

Was there any difficulty in procuring scrap because of the war or was this a conscious decision to kind of produce lesser and improve your EBITDA per ton?

The war situation was more towards the later half of the quarter. None of that impact was it.

It was a conscious decision to sell these specific products in terms of the margin profile.

Okay. Because I think you've guided for 1,20,000 tons of lead for the full year and I think you've done 1

We guided for 1,10,000.

10,000, okay.

Yeah. We've achieved almost close to that.

Okay. Congrats on the good set.

I think your copper expansion has been very good. Thank you.

Thank you, Shivam.

Hi, sir. A very good evening.

Am I audible?

Yes, sir.

Yes, sir. My question is mostly on industry side like actual increase in the waste capacity, then is there an opportunity of lithium-ion recycling?

Most of our peers are also going over there. What is our take on lithium-ion recycling going ahead?

Do we have any plan in taking any capacity in that segment? Sir, what can effect of this war that is being escalated and two months is going to pass, what kind of impact that could happen in this first half of our business in the sourcing and all?

Because all over the logistic cost has been increased and there is very difficult time going on.

Yeah. Hi, this is Vaidyanathan here.

As regards the lithium is concerned, we have been constantly keeping an eye on what is happening in the lithium-ion industry. We have been consulting a lot of technical experts on this and we are in touch with people.

We are understanding the feedstock availability and the chemistry that is possible to recycle and the frame of the kind of informal sector dominance in the market and also the collection infrastructure and all that. We feel that whatever the batteries, the EV vehicles that has been sold between 2018 to 2022, we feel the battery stock might hit the market by 2028.

We thought it's probably since we are focused on various other things, we'll take this up later. We are on it kind of, yeah.

What is your take on war escalated?

There has been a little delay in overall receiving of the material, like I said earlier as well when I was speaking with Shweta, that mostly there has been 10, 15 days, many days delay in receiving of the raw material. That is actually the major impact.

On our procurement side, most of our contracts are on CIF basis. Our sales in terms of exports, apart from domestic sales, apart from that happening to the Southeast Asian market, where the freight incremental on the outward freights is very marginal when we boil it down to per-ton basis, maybe about $2 or so per ton on averaged out basis.

That part of it has not impacted. Definitely, yes.

In terms of the shipping, the shipping schedules move a little back and forth, so that planning has to be a little more precise and back-up plans need to be on that.

Hi, sir. I have joined a bit late, I don't know whether this question was covered or not.

Just wanted to have an understanding on scrap formula. Actually, one of your peers highlighted a drop in scrap formula for copper segment, which was highlighted as an industry phenomenon.

Could you please just highlight or give some brief on what this scrap formula is for copper and as well as lead and how does it move?

Are you referring to the purchase side? Are you referring to the sales side, drop in

Purchase and sales, both. How does the purchase move and how does the sale move, sir?

Is there any difference? That is the reason why the margins get impacted?

Our margins are not impacted. In fact, our margins have improved.

I'm not too sure what any other peer has spoken about drop in formula. Are they referring to both sales and purchase?

If it's a sales and purchase, it's the whole delta that has moved, so that should not have impacted. As of what I am seeing along with generally if a purchase price goes down, also the sale price also marginally goes down and vice versa.

It's only a follow-through impact. If the raw material gets little expensive, the sale part also starts getting expensive.

It all depends on the demand and supply at that point in time and how you manage your books hedged. If you're managing your books well-hedged and if you create a delta in terms of your purchase and sale margin, your margins generally should not get impacted.

The impact can be from the volatility on the metal side or from the FX side. If you're hedged on both ways, you'll be able to protect your margins.

Okay. Even when there is high volatility in copper segment, there should be no impact on the margins with respect to formula?

Irrespective of this thing, you are hedging your position. Formula is based on your metal content, quality of scrap that you're buying or could reflect to some other terms of your deal.

Generally, that is how it is done. In case if I'm buying something on X price and hoping that the market will go up and does not go up and come down or vice versa, that becomes a speculative trade, which we do not do.

I'm not sure what it's being referred to as in terms of formula drop or any of those sense.

Sir. Okay.

Okay. Great, sir.

That was it, sir. Thank you so much.

Thanks.

Am I audible?

Yes. Yes, ma'am.

My first question is if we see any further increase in the competition in span of 3 to 5 years, will we see a dip in margins and volumes for POCL?

You see another 3 or 5, I lost you, ma'am.

I'll repeat my question. If I see the competition in coming up in next 2 years, will I see a dip in margins and volumes for Pondy Oxides?

Ma'am, as we transition through years going forward, definitely more players would come into the industry like they've come in in the last one or two decades. We need to also remember one critical part that with the energy transition and the various infrastructure activities that are happening across the country and the push, our copper consumption is poised to almost go 3x in the next 3 to 4 years from almost close to 1.2 million tons to about 3, 3.5 million tons.

Also the demand if the demand is surpassing your consumption and you do not have that much manufacturing, the margin profiles, as long as your products are right and you are able to place them in the right market, right customers, and stay well covered in terms of your both side hedges and all of those, you should be able to protect your margins.

Hello. Am I audible, sir?

Yes, you are audible.

Sir, I just wanted to check you've already clarified about the 40% we are in this quarter at around 40% utilization of our blended 2,04,000 capacity. For Q1, has the utilization moved up already?

Sir, I think you misunderstood the statement. The 40% and 60% mix was told that the lead sales and copper sales mix for the quarter was 60% and 40% in the overall 100% sales mix, not about the capacity utilization.

No, sir. What I'm talking about is that if you take our 2,04,000 capacity, right, blended 2,04,000 total capacity.

For a quarter, it's about 51,000 and our production is around 20,700 in this quarter. I'm just calculating based on that that we've done around a 40% capacity utilization.

Is that correct?

Last quarter if you see, we have to take a blended capacity. Even phase two first month, January, we have started.

It was, under trials. Effectively, the phase two capacity was fully utilized in the third month.

Overall if you see, 2,04,000 on a blended basis for full year, it is. For this year only we have to count.

For last quarter, it is approximately it's about So in TKD alone, it should be taken as 15,000 capacity approximately for one quarter.

Okay.

On that basis, TKD, yes, effectively, we utilized. For full year, the blended capacity is what we have to take is about 1,75,000 metric ton for full year

approximately.

Approximately.

Got it, sir. In Q1, have we seen an improvement already?

Q1 is a forward-looking statement. There is always growth is there in the current quarter.

That's what we can say. Beyond that, it's not correct on our part to reveal the numbers.

Thanks for the opportunity. I just wanted to confirm.

You said that in FY2027, your lead utilization will be 70%, which is volume of 1,40,000 odd thousand and copper will be 12,000?

Yes, that is what we are targeting and looking at.

For the FY2028, can you tell me what could be this similar number, approx?

We are seeing year-on-year on the lead, the volumes, we are looking at about close to 15% growth in volumes. Accordingly, we will be taking up at that point in time.

Copper?

Sorry?

What about Copper, yeah.

Towards the end of FY2028, we should be able to do volume of 36,000 tons close to. In FY2028, we can look at anywhere between 28 to 24 to 28, 29,000 tons of copper.

24 to 28. So 12,000 tons in FY2027 and 24,000 minimum in FY2028.

Yes, on a conservative basis, yes.

Yes. Sir, one more question.

Your EBITDA per ton for lead, can we assume you can do 18,500 in FY2027 and for copper, 45,000 or you think these numbers will be better next year?

In lead, we'll give you a margin guidance of ₹17,000 to ₹19,000 as we've been doing. On a conservative basis for copper on the recycling part anywhere between ₹35,000 to ₹40,000, trying to maintain on the upper band.

Once the cathode part comes in, right now with our numbers, we are looking at a margin of ₹60,000 to ₹70,000, again being on the upper band on a conservative level.

We can achieve 60,000 for the whole year in FY2028 in copper?

No, I specifically mentioned for the cathode part of it.

Can you give me a blended number if possible?

For FY2028 you're asking? Yes, FY2028, we can achieve.

60,000 blended number in FY2028, right, for copper on a volume of 24,000?

Yes. Lead the

same, 17 to 19k?

As of now, yes, for 17 to 19,000 for lead. If there would be any product mix or something, and if we can achieve higher through our value-added products, we'll be targeting to do that.

Sir, your delta in copper from FY2027 to '28 is going to be humongous because your volumes are doubling and your EBITDA per ton is going from 40 to 60.

Yes, sir. That's right.

Amazing. Good luck and thank you so much.

Thank you, sir.

Hello. Yeah.

Thank you for this and congratulations on a good set of numbers. Sir, one specific question in terms of the Q4 numbers.

We have a purchase of stock-in-trade and traded goods of about ₹122 crores in the fourth quarter of March 2026. If you could explain in terms of why there is a purchase of stock-in-trade and did this translate to a superior profitability in the particular quarterly numbers?

Sir,

I'm not sure if you joined in the earlier part of the call. The same question was asked by Mr.

Dheeraj and I'll just quickly recap that. This was an opportunity that was available in the market for us and with good margins, we were able to take it up and we did the trade.

Right. Thank you so much for explaining it again and all the very best.

Thank you, sir.

Yeah. Thanks.

Am I audible?

Yes, sir.

Yeah. Thanks for the opportunity.

Just I would like to congratulate POCL management for a great set of numbers. I've been following your concalls for last 2 years and it's really amazing that every time whatever you are promising and it's getting delivered.

That is actually I would like to congratulate for that. I have a couple of questions.

Sir, the first question

is with respect to procurement and the sales, is there any impact because of the Middle East conflicts? Sir, we're unable to audibly understand.

Could you be a little louder and a little slow?

Is it better now?

Yes.

Yeah. What I was saying is I've been attending concalls of POCL for last 2 years and each and every concall, whatever you have promised and it's been getting delivered.

That is a great and I have seen only with a few companies, sir. Since I'm an individual investor, I used to attend different calls, but only few where I can see what is promised is getting delivered.

Thank you, sir. Yes.

Yeah. I have a couple of questions.

Maybe there are direct questions. The first question is with respect to procurement and the sales, is there any impact because of the Middle East conflict?

Basically, like I said earlier, the impact is a little bit on the time delay in terms of receiving the raw materials. That is what is impacted majorly for us.

That again in terms of our cash flow or something since we have everything on a CIF basis contract, there's not much of pass-through. Accordingly, little bit on the timing part and all of those, we need to plan little more in advance.

Accordingly, we have also shifted a lot of our procurement to different regions, trying to avoid the Middle Eastern part of it.

That's great. Also, since it's in India, right, especially last couple of weeks, we've been seeing increase in the petrol and diesel prices.

Does it have any impact on our margins going forward?

Currently, we don't use petrol and diesel, basically we use oils and other gases. There's a quota and there's a marginal impact in terms of the pricing.

I think that should not be for too long and it will be a pass-through as we go to our forward months.

Okay. One last question.

If you see in the last Q3, if I'm not wrong, we got around 8% of margin, but if you see in the last quarter, that means Q4, it's reduced to 6.5%. Could you throw some light on it?

I would again repeat and highlight that the sales mix is different. If you look at the lead part of it, lead is in excess of 8% still even for the Q3 part of it.

Since copper sales are accounting for about 40%, where the margin profile is in the range of 3.5% to 4%, and that is why you look at a blended margin of 6.4%. All the numbers have been maintained in terms of lead and copper individually.

Hello. Am I audible?

Yes, sir.

Yeah. Thanks for the opportunity.

Sir, my first question was what led to the sharp spike in the other non-current assets and in the other current assets in our balance sheet?

The non-current assets is mainly GST receivable from the Government of India. Mainly that thing, sir.

If you follow Mr. Kumaravel, if you see the non-current assets, it's just the fixed asset additions that have happened during this year.

In terms of current assets, it is about trade receivables, it's just a big pie in the overall current assets. Apart from that, in other current assets, we have about GST receivables and supplier advance for that increase.

If you see the inventories, it is more or less with the revenue, it is more or less in line with the revenue numbers. The major amount attributed to trade receivables.

Okay.

Okay. Sir, my second question was in our copper business, our sales volume has increased approx 9x for the current year.

Then why is the EBITDA per ton has reduced from FY2025? FY2025

was the starting year and the volumes were very low. At that point in time, only very specific amounts were processed and sold.

Technically, taking that as a base number for a larger volume would not be a right yardstick. From the first quarter, we have always given a guidance of about approximately in the range of ₹35,000 to ₹40,000 per ton for copper and that has been achieved.

Hi. Thank you for the opportunity again.

Just a clarification. The copper volume for the quarter include trading volumes as well?

In terms of sales, yes.

On a blended basis, if you've done ₹45,000 per ton EBITDA, then this is a blended EBITDA per ton for both trading volume as well as direct manufactured products on sales volume, right?

Like I told Shweta, the reason we took up the trade was because it was a lucrative trade and that's why we took it up. The margin was on the higher side for a trade and that is why it was taken up by us.

Generally, the trading margins are on the lower side, but since we got a higher margin trade opportunity, we took it up.

Okay. Understood.

Lastly, just a clarification on what's the lead volume growth you guided for FY2027 and '28? We're

looking at a growth of about 15 odd percent.

In FY2027. From 1 lakh, we're looking at 1,15,000 tons for FY2027?

We are looking at from 1,10,000, somewhere around 1,25,000, 1,30,000 range levels we're looking at.

Thanks for taking my question and congratulations to the entire team for delivering such stellar results in such tough environment. Just two clarifications from my side.

One, you just said that there is a 40% 70% utilization on the 2 lakh volume of lead. That comes to about 1,40,000.

What should we take? Should we take a 30% kind of growth on a conservative basis on 1 lakh tons that we have done in last year?

70% was specifically for the newly commissioned unit. In terms of overall, see earlier also in few calls we have explained, the 2,04,000 includes your value-added product capacities and a various continuous processing different chains.

Certain equipments can be used only for certain products. If those sales are not happening, that capacity is slightly vacant.

The 70% what we spoke was specifically for the Thervoy plant. In terms of volume, like I just spoke to Shweta, we're looking at somewhere around 1,25,000, 1,30,000 tons of volume for this year.

If you're able to push it up, we will try to reach slightly higher. As of now, the guidance that we can look at is about 1,25,000 to 1,30,000.

Okay. Sir, this still is a very large volume jump.

Lead structurally doesn't grow that high. Have we got some new customers getting added next year which is driving this 25%, 30% kind of lead volume growth?

Yes, we have added some new products as well and customers as well.

Okay. Great, sir.

Lastly, on copper, when you add this 18,000 copper cathode capacity, it is not fully backward integrated, right, with recycling? So 12,000 will be the recycling cap

Yeah. So 12,000 is the recycling capacity and 18,000 will be.

Like I said, we would debottleneck that and we will scale that up as well to 18,000.

Thank you everyone for joining us today and for your continued interest in POCL. If you have any further questions, please feel free to reach out to our investor relations team at Go India Advisors and we appreciate your participation and continued support.

Thank you and have a great day.