Vision 2030: 2x Revenues, 3x EBITDA, 5x PAT…
About the stock: PCBL Chemicals (erstwhile Phillips Carbon Black) is the leading manufacturer of carbon black, which is used as a reinforcing material in tyres.
• Recently acquired speciality chemical company i.e. Aquapharm Chemicals
Analyst Day Takeaways
• PCBL Chemicals has shared its Vision 2030 at the group Analyst Day event held on 8th Sep’25, wherein it intends to 2x the revenues by 2030 vs. 2025, grow EBITDA to 3x and target PAT of 5x. All this will be achieved amidst calibrated capex spends (~₹ 3,000 crore over a 5-year period) with Net Debt: EBITDA declining from ~3.6x to <1 in the same time period. • Base carbon black capacity is targeted to be enhanced from existing 7.9 lakh tonne to over 1 million tonne by FY28 which includes a new greenfield plant in the state of AP (capacity 1.5 lakh tonne, at a capex of ~₹1,100 crore). It also includes current brownfield expansion of ~90,000 tonne at TN plant. New AP plant can potentially house ~4 lakh tonne capacity. • Existing capacity in specialty grade carbon black is pegged at ~1.1 lakh tonne with realisable volumes pegged at ~70,000 tonne. It aims to further augment capacity in this domain by ~50,000 tonne going forward, which shall upgrade the overall profitability of the carbon black segment. • Aquapharm operates in the niche water chemical space. PCBL is targeting quantum jump in sales & profitability in this domain, primarily driven by better capacity utilisation, expansions and cost efficiencies. It is targeting sales in this space to grow from ~₹ 1,400 crore in FY25 to ~₹ 3,400 crore in FY30E with EBITDA margins improving from ~13.5% to 20-21% • In FY30, it is also targeting an ambitious ~₹ 1,400 crore EBITDA from new verticals which includes super conductive grade carbon black (~1,000 tonne capacity), acetylene black (~4,000 tonne capacity) and most importantly its nano–silica venture (~2,000 tonne capacity in phase 1). • In nano-silica domain, prevailing ASPs are at ~US$ 300/kg with cost of production pegged at ~US$ 150-160/kg. PCBL with the technology developed by the JV partner can product the same at ~US$40-50/kg and with potential ASP drop to ~US$ 100/kg by FY29E. In this domain, it plans to generate ~₹ 1,700 crore revenues & ~₹ 850 crore EBITDA by FY29E. In FY30E it intends to produce ~3,000 tonne of nano-silica. This material finds application in EV battery domain with functional attributes as extended battery range (25-100%), 4x faster charging & 2-5x longer battery life. Rating and Target Price
• Long term growth prospects at PCBL remain unchanged however since quantum jump in numbers will start reflecting from FY28E onwards, we expect the wealth creation journey to be steady in near to medium term. With unchanged estimates, we continue to remain positive on PCBL and retain our BUY rating with target price of ₹ 480 i.e. 25x P/E on FY27E.
