Pocl buys 51% of Trichy Metals for ₹12.46 cr, adds ₹163 cr revenue
A binding acquisition that adds refining and smelting capacity, diversifies into copper and aluminium scrap, and brings a ₹163.74 cr revenue stream into the ₹529 cr nano-cap fold.
— 2 earlier stories on Pocl Enterprises Ltd. →What's new
- Board approved acquisition of 51% stake in Trichy Metals and Alloys for ₹12.46 cr cash.
- TMA to become a subsidiary; completion expected by August 30, 2026.
- Deal adds 26,000 MTPA refining and 21,500 MTPA smelting capacity; entry into copper/aluminium scrap processing pending environment nod.
Why this matters
For a nano-cap with trailing revenue decline of 10.8%, this is a material inorganic move. TMA's ₹163.74 cr revenue equals 11% of POCL's own turnover. The acquisition expands lead recycling footprint and diversifies into non-ferrous scrap, drawing on existing smelting know-how. At 2.4% of market cap, the price is modest relative to the scale added.
What we're watching
- Integration of TMA's operations and any margin drag from lower-margin scrap processing.
- Timely environmental clearance for copper/aluminium lines, a gating factor for diversification.
- Funding mix: cash consideration suggests POCL may tap debt or internal accruals (debt/equity at 1.07).
The full read
Pocl Enterprises, a ₹529 cr nano-cap lead recycler, has signed a binding deal to buy 51% of Trichy Metals and Alloys for ₹12.46 cr in cash. TMA brings ₹163.74 cr in annual revenue — roughly 11% of POCL's turnover — and net profit of ₹3.60 cr. The acquisition adds 26,000 MTPA of refining and 21,500 MTPA of smelting capacity, plus a pending entry into copper and aluminium scrap. For a company whose trailing revenue shrank 10.8%, this is a clear inorganic growth move. The price at just 2.4% of market cap is cheap for the scale. Cheap. That's the headline. The risk is execution: TMA's profit margin is thin, and the diversification hinges on environmental clearance. Still, for a nano-cap with a 31.9% ROE, adding a ₹163 cr revenue stream without diluting equity is a constructive step whose next test is whether POCL can wring better margins from TMA's existing operations.
Questions answered
- How will POCL fund the ₹12.46 cr acquisition?
- The filing specifies a cash consideration. With a debt/equity of 1.07 and market cap of ₹529 cr, POCL likely has room to fund it from internal accruals or working capital lines. The amount is just 2.4% of market cap.
- What does Trichy Metals and Alloys manufacture?
- TMA produces lead ingots and other non-ferrous metals at its Trichy, Tamil Nadu plant. It also has smelting and refining capacities of 21,500 and 26,000 MTPA respectively, and is pursuing environmental clearance to process copper and aluminium scrap.
- Is this a related-party transaction?
- No. The board has confirmed the acquisition is not a related-party transaction and requires no regulatory approvals beyond standard closing conditions.
- What is the expected timeline for completion?
- The transaction is expected to close by August 30, 2026. It will be executed through a share purchase followed by preferential subscription, making TMA a subsidiary of POCL.
- How significant is TMA's financial performance relative to POCL?
- TMA reported FY26 turnover of ₹163.74 cr and net profit of ₹3.60 cr. That revenue is equivalent to about 11% of POCL's FY26 turnover, making this a meaningful addition despite POCL's own trailing revenue decline of 10.8%.
Story so far
All notes on POEL →- 1 Jul 2026 · 6:49 PM IST Pocl buys 51% of Trichy Metals for ₹12.46 cr, adds ₹163 cr revenue
- 39d ago Pocl's FY26 results are in. They match expectations.
- 39d ago Pocl's profit grew 27% in FY26. The filing adds nothing new.