Paradeep Phosphates (PARADEEP) Q2 25/26 earnings summary

Executive summary

• Q2 and H1 FY26 delivered strong operational and financial performance, highlighted by the completed merger with MCFL, which increased production capacity by 23% to 3.7 million MT and expanded national market presence.

• Major capex projects totaling INR 3,600 crore were approved for granulation and acid plants at Paradeep and Mangalore, targeting 5.0 MMTPA sales and full backward integration within 2.5 years.

• The integration broadens market presence, enhances customer access, and unlocks synergies in procurement, logistics, and product mix.

• Appointed Rahul Dravid as brand ambassador and new board members to strengthen brand and governance.

• Financials restated retrospectively to include MCFL from April 1, 2024, as per NCLT-approved scheme.

Financial highlights

• Q2 FY26 revenue from operations rose 49% YoY to INR 6,872 crore; EBITDA grew 32% to INR 698 crore (margin 10.1%); PAT increased 34% to INR 342 crore.

• H1 FY26 net profit rose 134.7% YoY to ₹6,587 million, with EBITDA up 69.3% YoY to ₹13,131 million.

• Cash conversion cycle improved by 30 days to 58 days; net debt to equity at 0.66.

• Basic EPS for H1 FY26 at ₹6.35, up 134.3% YoY.

• Standalone and consolidated financials reflect the amalgamation of MCFL from April 1, 2024.

Outlook and guidance

• Major capacity expansions at Paradeep and Mangalore to be completed within 2.5 years, aiming for 100% backward integration and reduced import dependency.

• Targeting 5.0 MMTPA sales by FY28 through capacity expansion and backward integration.

• Strategic priorities include scale efficiency, product innovation, and sustainability.

• Full capacity from new investments expected to be operational by end of FY28, with peak capacity in FY29.