Paradeep Phosphates (PARADEEP) Q1 26/27 earnings summary

Executive summary

• Delivered strong financial and operational performance in Q1 FY27, with revenue from operations up 36% year-over-year to INR 6,124 crore (₹61,243 million), EBITDA up 25% to INR 742 crore (₹7,418 million), and PAT at INR 393 crore, reflecting the amalgamation of MCFL.

• Sales volumes grew 4% year-over-year to 9.85 lakh tons (985,143 MT), with DAP volumes up 55% and MOP up 109.6%, while NPK and Urea volumes declined.

• Expanded sulfuric acid production by 32% and phosphoric acid by 7% year-over-year, leveraging backward integration.

• Maintained leadership in the phosphatic fertilizer sector through supply chain efficiency, sourcing diversification, and pan-India distribution.

• Board approved INR 250 crore investment for a 15,000 ton Aluminum Fluoride plant, targeting INR 180–200 crore topline and INR 50 crore EBITDA annually, to be commissioned in 22–24 months.

Financial highlights

• Revenue from operations rose 36% year-over-year to INR 6,124 crore (₹61,243 million).

• EBITDA increased 25% year-over-year to INR 742 crore (₹7,418 million); margin at 12.1%.

• PAT stood at INR 393 crore (₹3,932 million); sales volume grew 4% to 9.85 lakh tons.

• Basic EPS for Q1 FY27 was ₹3.78, up from ₹3.05 in Q1 FY26.

• Received INR 2,650 crore in subsidy during Q1; outstanding subsidy at INR 4,600 crore as of June 30.

Outlook and guidance

• Expect continued volatility in sulfur and ammonia prices due to Middle East disruptions; supply chain risks remain.

• Sustainable EBITDA per ton guidance for the year is INR 5,000, with potential to reach INR 7,000+ post-expansion in 2–2.5 years.

• Non-subsidy business targeted to contribute at least 20% of EBITDA in the long term.

• Phosphoric acid expansion (Phase 1) from 500,000 MTPA to 700,000 MTPA at Paradeep is on track.

• The company continues to assess the impact of new Labour Codes and has recognized related liabilities as exceptional items.