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), driven by strong demand, favorable monsoon, and operational discipline.

• EBITDA nearly doubled to INR 493 crores (₹4,932 million), with profit after tax at INR 256 crores (₹2,559 million), supported by higher production, sales volumes, and improved product mix.

• Finished fertilizer production increased 23% YoY to 6.64 lakh tons; primary sales rose 34% YoY to 7.42 lakh tons, with N-20 and NPK grades showing strong growth.

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

• Merger with Mangalore Chemicals and Fertilizers (MCFL) received shareholder approval and is in final regulatory stages.

Financial highlights

• EBITDA for Q1 FY26 was INR 493 crores (₹4,932 million), nearly double YoY; profit after tax reached INR 256 crores (₹2,559 million).

• EBITDA per metric ton for the quarter was around INR 6,600; sustainable guidance is INR 5,000 per ton.

• Net debt-to-equity ratio stood at 0.78; net debt was approximately INR 2,800–3,300 crores at quarter end.

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

• EBITDA margin improved to 13.0% from 6.9% year-over-year.

Outlook and guidance

• FY26 volume guidance is 3.1 million tons plus, with strong demand expected due to favorable monsoon and government support.

• Sulfuric acid expansion to 2 million tons per annum to be commissioned in Q3 FY26; phosphoric acid expansion to 0.7 million tons per annum expected within two years.

• MCFL merger is anticipated to boost overall volumes by 23% and is in final regulatory stages.

• EBITDA per ton expected to normalize to INR 5,000 for the rest of the year.

• Management remains focused on value creation through integrated value chain and innovation.