Paradeep Phosphates (PARADEEP) Q2 25/26 earnings summary

Executive summary

• The MCFL merger was completed and consolidated from April 2024, increasing production capacity by 23% to 3.7 million MT and expanding the national market presence, with financials restated accordingly.

• Q2 FY26 saw 49% YoY growth in total income to ₹6,872 crore, with net profit up 33.9% YoY to ₹341.9 crore; H1 FY26 net profit rose 134.7% YoY to ₹658.7 crore, and EBITDA up 69.3% YoY to ₹13,131 million.

• Announced a strategic INR 3,600 crore investment program for granulation and acid capacities, targeting 5 million tons total capacity and 100% backward integration within 2.5 years.

• Expanded distribution network now reaches over 10 million farmers across 18 states, supported by 75,000 retailers and 6,000 dealers.

• Appointed Rahul Dravid as brand ambassador and onboarded new directors to strengthen market presence and governance.

Financial highlights

• Q2 revenue from operations grew 49% YoY to INR 6,872 crore; EBITDA margin at 10.1%, net profit margin at 4.9%; H1 EBITDA margin at 11.5%, net profit margin at 5.8%.

• H1 revenue rose 46%, EBITDA 69%, and PAT 135% YoY, reflecting strong volume growth and improved product mix.

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

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

Outlook and guidance

• Optimistic demand outlook driven by favorable rabi season, government focus on soil health, and shift to specialized nutrients.

• Strategic priorities include scaling efficiency, deepening backward integration, accelerating product innovation, and embedding sustainability.

• Full capacity from new investments expected by end of FY28, with peak revenues in FY29; targeting 5.0 MMTPA sales.

• EBITDA per ton expected to rise by INR 1,000 post full backward integration, reaching INR 5,500–6,500 per ton.