PCBL, a heavyweight in carbon black manufacturing, had a rough start to the week, plummeting over 11% to ₹346.60, its lowest in five months. The selloff was triggered by disappointing Q3FY25 results, which unveiled a 37% YoY slump in net profit to ₹93 crore. The culprit? Soaring costs that overshadowed a modest revenue growth of 21.3%. Operating expenses shot up by 23%, with finance costs alone ballooning by a staggering 254%. Employee benefit expenses also jumped significantly, weighing further on profitability. While EBITDA climbed to ₹317 crore YoY, it marked a sequential drop from ₹364 crore, and operating margins shrank to 16%, down from last year’s 17%. Despite these challenges, PCBL pushed forward with its specialty chemical expansion at its Mundra plant, hitting a total capacity of 790,000 MTPA. The company also secured ISCC PLUS certification, signaling its focus on sustainable practices, and acquired 116 acres in Andhra Pradesh for a new plant, aiming to scale capacity to 1 million MTPA within a few years. While PCBL’s growth ambitions are noteworthy, the stock’s downward spiral underscores the immediate pressure from rising costs and tepid margins. Investors will need more than long-term plans to regain confidence—it’s all about delivering on operational efficiency and profitability in the coming quarters.