Pondy Oxides down 5%

Pondy Oxides & Chemicals fell 5.10% to Rs. 503 on the BSE, slipping below its previous close of Rs. 530.05. The stock opened at Rs. 520.05, touched an intraday low of Rs. 491.10, and saw selling pressure despite Q1 FY27 showing strong year-on-year growth.

The company reported a solid quarter, with standalone revenue rising 56% YoY to Rs. 9,309 million, EBITDA up 30% to Rs. 559 million and PAT up 32% to Rs. 363 million. Growth was driven by improved realisations, higher value-added product mix and copper sales rising more than 3x YoY.

The market, however, appears to be focusing on the weaker sequential picture. Revenue was flat QoQ, EBITDA declined 8%, PAT fell 5%, while EBITDA margin narrowed to 6.0% from 6.5% in Q4 FY26 and 7.2% in Q1 FY26. This suggests that while the YoY base remains strong, near-term margin delivery has softened.

Sentiment was also weighed down by technical and ownership-related factors. The stock had recently undergone a 2:5 stock split, which lifted volumes but also triggered short-term repositioning. Separately, the reported reduction in promoter holding by around 2.95% to 36.4% added to caution, as markets often treat promoter stake cuts as a near-term confidence overhang.