Paradeep Phosphates (PARADEEP) Q1 25/26 earnings summary

Executive summary

• Revenue from operations rose 58% year-over-year to INR 3,754 crores (₹37,541 million) in Q1 FY26, with EBITDA nearly doubling to INR 493 crores and net profit reaching INR 256 crores, margin at 6.8%.

• Finished fertilizer production increased 23% YoY to 6.64 lakh tons, and primary sales rose 34% YoY to 7.42 lakh tons, driven by strong demand for N-20 and NPK grades.

• Backward integration projects and innovation in nano fertilizers supported operational momentum and margin expansion.

• The Board approved a merger with Mangalore Chemicals & Fertilizers Limited, which is in final regulatory stages and expected to boost volumes by 23%.

• Unaudited standalone and consolidated financial results for Q1 FY26 were approved by the Board on July 28, 2025.

Financial highlights

• EBITDA for the quarter was INR 493 crores (₹4,932 million), nearly double YoY, with EBITDA margin at 13.0% and EBITDA per ton at INR 6,600.

• Net debt-to-equity ratio stood at 0.77–0.78, with net debt around INR 2,800–3,300 crores and cash at hand of INR 1,200 crores.

• Subsidy received in Q1 was about INR 1,477–1,500 crores; subsidy outstanding at quarter end was INR 2,200 crores.

• Inventory levels decreased from 9.5 lakh metric tons in Q4 to 6.4–6.5 lakh metric tons in Q1.

• Cost of materials consumed increased 25.3% year-over-year, reflecting higher input prices.

Outlook and guidance

• Guidance for sustainable EBITDA is around INR 5,000 per ton for the rest of the year.

• Volume guidance for FY26 is 3.1 million tons plus, with strong demand expected in Q2 due to favorable monsoon and crop area expansion.

• Backward integration and capacity expansions in sulphuric and phosphoric acid are expected to further enhance profitability.

• CapEx and further growth plans will be announced post-MCFL merger.

• Accounting effect of the MCFL merger will be implemented upon regulatory approvals.