Paradeep Phosphates reports strong Q3 & 9M FY26 results with revenue increasing by 34.1% Y-o-Y for 9 months. The company’s EBITDA grew by 44.7%, showcasing efficient operations. Looking ahead, Paradeep Phosphates aims to expand its granulation capacity to 5.0 MMTPA, enhancing its position in the phosphatic fertilizer market. The company focuses on sustainable growth and backward integration to strengthen its operations.
Financial Performance Highlights
Paradeep Phosphates announced robust financial results for Q3 & 9M FY26, demonstrating strong operational performance and market growth. Key highlights include:
- Total Income for Q3 FY26: Rs. 57,797 Million (up 14.9% Y-o-Y)
- EBITDA for Q3 FY26: Rs. 5,035 Million
- Total Income for 9M FY26: Rs. 172,311 Million (up 34.1% Y-o-Y)
- EBITDA for 9M FY26: Rs. 18,166 Million (up 44.7% Y-o-Y)
The company’s performance was driven by increased sales volumes and efficient sourcing of raw materials, benefiting from a wide distribution network and strong brand recognition.
Sales Volume Analysis
Sales volumes showed notable increases across key product categories:
- Total Fertilizers (9M FY26): 3,365,727 MT (up 16.9% Y-o-Y)
- DAP (9M FY26): 414,579 MT
- N-20 (9M FY26): 1,164,453 MT (up 24.5% Y-o-Y)
The increase in sales reflects strong market demand and effective distribution strategies, further enhanced by the integration of Mangalore Chemicals & Fertilizers Limited (MCFL).
Production Volume Review
Production volumes also experienced significant growth, contributing to the company’s strong financial performance:
- Total Fertilizers (9M FY26): 2,860,231 MT (up 15.4% Y-o-Y)
- DAP (9M FY26): 411,432 MT
- N-20 (9M FY26): 1,207,233 MT (up 34.4% Y-o-Y)
These figures highlight Paradeep Phosphates’ ability to scale its operations and meet increasing market demands efficiently.
Strategic Expansion Plans
Paradeep Phosphates is focused on expanding its granulation capacity to 5.0 MMTPA. This expansion aims to capitalize on the growing phosphatic fertilizer market in India. The company plans to fund this growth through a mix of internal accruals and external debt, expecting to fully realize the benefits by FY29. Key elements of the expansion include:
- Backward integration of phosphoric acid and sulphuric acid capacities
- Enhancing operational efficiency and reducing costs
- Strengthening its presence in key markets across India
Merger Synergies and Integration
The successful merger with MCFL has created significant synergies and strengthened the company’s market presence. The integration is proceeding smoothly, with the following key benefits:
- Expanded geographic reach, especially in southern India
- A more comprehensive product range
- Economies of scale and optimized operations
ESG Initiatives and Sustainability
Paradeep Phosphates is committed to sustainable practices and has implemented various ESG initiatives. The company achieved a high S&P Global CSA score. The company actively works to reduce its environmental footprint, promote biodiversity, and engage with local communities to support sustainable development.
Source: BSE
