Pondy Oxides targets FY27 growth as copper cathode plans take shape
Management forecasts lead volumes up to 130,000 tons for FY27 while pivoting toward high-margin copper cathode production to lift long-term profitability.
— 3 earlier stories on Pondy Oxides & Chemicals Ltd. →What's new
- FY27 guidance targets 125,000-130,000 tons of lead and 12,000 tons of copper.
- A ₹200 cr copper cathode plant is underway, with phase one due in December 2026.
- Management expects EBITDA of ₹17,000-₹19,000 per ton for lead and ₹60,000-₹70,000 for copper.
Why this matters
The company is moving from volume-based recycling to value-added copper cathode production to push margins above 8%. However, the delay in relocating the plastic recycling unit and lowered recycling targets suggest execution risks remain despite record financial performance.
What we're watching
- Progress on the ₹200 cr copper cathode plant commissioning.
- Whether margins hit the 8% target as the product mix shifts.
- Management's ability to stick to the revised plastic facility timeline.
The full read
Pondy Oxides & Chemicals is betting on a shift toward value-added copper products to sustain its growth. After a record FY26 that saw net profit jump 113% to ₹139 crore on ₹2,939 crore in revenue, the company is now targeting 125,000-130,000 tons of lead and 12,000 tons of copper for FY27. The core of this strategy is a ₹200 crore investment in a copper cathode plant, with the first phase slated for December 2026. Management expects this move to yield ₹60,000-₹70,000 in EBITDA per ton, a significant premium over the ₹17,000-₹19,000 per ton expected from the lead segment. While the financial trajectory is clear, execution remains the test. The company has already flagged delays in its plastic recycling unit relocation and lowered its copper recycling targets. Investors should watch if these shifts in product mix can consistently push margins above 8% and ROCE above 20%.
Questions answered
- What are the production targets for FY27?
- Management is targeting lead volumes between 125,000 and 130,000 tons and copper production of 12,000 tons.
- How does the company plan to improve margins?
- The firm is investing ₹200 crore into a copper cathode plant, which targets higher EBITDA of ₹60,000-₹70,000 per ton compared to its lead segment.
- What were the key financial results for FY26?
- Revenue reached ₹2,939 crore, while net profit grew 113% to reach ₹139 crore.
- Are there any operational delays?
- Yes, the company reported a delay in the relocation of its plastic recycling unit and has downscaled its copper recycling volume targets.
Story so far
All notes on POCL →- 27 May 2026 · 5:04 PM IST Pondy Oxides targets FY27 growth as copper cathode plans take shape
- 1d ago Pondy Oxides reports Q4 revenue growth of 80% YoY
- 1d ago Pondy Oxides to build ₹200 cr copper recycling plant in Tamil Nadu
- 1d ago Pondy Oxides profit doubles to ₹138.73 crore in FY26