Paradeep Phosphates (PARADEEP) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 revenue from operations was INR 7,364.06 crore, EBITDA INR 431.2 crore, PBT INR 164.17 crore and net profit INR 121.01 crore.

• H1 FY27 revenue from operations was INR 13,488.31 crore, up 18.6% YoY; total income was INR 13,527.6 crore, up 18.1%, while EBITDA was INR 1,173 crore and net profit INR 513.61 crore.

• Fertilizer sales were 1.014 million MT in Q2 and 1.999 million MT in H1, down 25.1% and 12.9% YoY, respectively, amid subdued monsoon conditions.

• Raw-material and geopolitical uncertainty, subsidy timing and subdued monsoon conditions pressured performance; management cited strategic sourcing, inventory planning and product-mix optimization as priorities.

Financial highlights

• Q2 revenue from operations increased 7.2% YoY; EBITDA fell 38.3% to INR 4,312 million, PBT fell 65.0% to INR 1,642 million and net profit fell 64.1% to INR 1,224 million.

• H1 revenue from operations increased 18.6% YoY, while EBITDA declined 10.7% to INR 11,730 million and reported net profit declined 21.8% to INR 5,156 million.

• H1 PBT was INR 690.39 crore, including INR 21.80 crore of exceptional items recognized in Q1; Q2 exceptional items were nil.

Outlook and guidance

• H2 FY27 EBITDA-per-ton guidance was INR 4,500–5,000; product mix and Q4 production plans were to be reviewed against NBS revisions and raw-material prices.

• Q3 was expected to benefit from peak northern and eastern demand, with DAP a favorable mix; Rabi volumes were supplemented by imported DAP and NPK.

• Management expected Rabi sales and collections to reduce inventories and debt; debt reduction was expected by end-December, though year-end debt could remain slightly above the prior year.

• Global uncertainty, sulphur pricing and availability were expected to persist; strategic sourcing, inventory planning and product-mix optimization remained priorities.