Paradeep Phosphates Ltd Q1 Revenue Rises 58% to ₹3,754 Crore

Paradeep Phosphates Ltd, India’s second-largest private-sector phosphatic fertilizer company, yesterday reported its financial results for the quarter ended 30th June 2025, delivering robust operational, financial, and strategic performance.

For Q1 FY26, the company reported revenue from operations of ₹3,754 crore, up 58% year- on-year. EBITDA (including other income) doubled to ₹493 crore, while profit before tax (PBT) stood at ₹342 crore. Profit after tax (PAT) came in at a healthy ₹256 crore, supported by strong fertilizer sales.

Operationally, PPL achieved production of 6.64 lakh tonnes and primary sales of 7.42 lakh tonnes, representing 23% and 34% year-on-year growth, respectively. The company served over 9.5 million farmers across 15 states through a network of 95,000+ retail points. Demand was led by crop- and soil-specific NPK grades, with N-20 sales reaching a record

2.24 lakh tonnes. PPL also achieved high POS sales velocity, improving receivables and working capital efficiency, while continuing its innovation-led approach by selling nearly 7 lakh bottles of nano fertilizers.

Production of intermediaries also saw strong growth, with phosphoric acid volumes rising 22% YoY to 113 KTPA and sulphuric acid production increasing 30% YoY to 283 KTPA.

Despite an upswing in key raw material prices, PPL leveraged its long-term supplier relationships, strategic sourcing, and on-site storage capabilities to maintain cost efficiency and supply continuity.

Commenting on the performance, Mr Suresh Krishnan, Managing Director & CEO of Paradeep Phosphates, said, “PPL delivered a strong financial and operational performance in Q1, aided by favorable rainfall and healthy reservoir levels. Our operational momentum translated into record sales volumes, driven by N-20 and our value-added NPK grades N-10, N-12, and N-19. Year-on- year, sales and production volumes rose 34% and 23%, respectively, reflecting both market demand and our execution strength.

Our backward integration projects remain firmly on track, positioning us to further enhance profitability margins over the medium term. At the same time, we continue to demonstrate fiscal discipline, with a lean cash conversion cycle and a healthy net debt-to-equity position. In June, we also secured shareholder approval for our merger with MCFL, which is now advancing through its final regulatory stages.

Looking ahead, we remain committed to creating value for our stakeholders by leveraging PPL’s integrated value chain capabilities—from global sourcing and efficient production to expansive distribution and trusted brand equity—to better serve the soils and farmers of India.”

Q1 FY 26 Highlights

• PAT increased to ₹256 crore, driven by strong fertilizer sales.
• Revenue from operations rose 58% YoY to ₹3,754 crore.
• EBITDA (including other income) doubled YoY to ₹493 crore.
• Profit before tax (PBT) rose to ₹342 crore.
• Production volumes: 6.64 lakh tonnes (+23% YoY).
• Primary sales volumes: 7.42 lakh tonnes (+34% YoY).
• N-20 sales reached a record 2.24 lakh tonnes.
• Nano fertilizer sales (nano-DAP & nano-urea): 7 lakh bottles.
• Net debt-to-equity ratio maintained at a healthy 0.77 times

Strategic Projects

• Sulphuric acid expansion at Paradeep (from 1.39 MMTPA to ~2 MMTPA) is progressing on schedule and expected to commission by Q3 FY26.
• Phosphoric acid expansion at Paradeep (from 0.5 MMTPA to 0.7 MMTPA) is slated for completion within two years.
• The merger with MCFL received shareholder approval in June and is currently progressing through the final stages of the NCLT process.
• With favorable government policies, a forecast of above-average monsoons, and a growing emphasis on soil health, food security, and balanced fertilization, fertilizer demand in India is expected to remain strong.