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Paradeep Phosphates Delivers Strong Q2 & H1 FY26 Performance, announces ₹3,600 Crore Expansion Program

Posted On : 2025-11-08 14:24:42( TIMEZONE : IST )

Paradeep Phosphates Ltd (BSE: 543530, NSE: PARADEEP), one of India's largest private-sector fertilizer companies, yesterday announced its financial results for the quarter and half year ended 30th September 2025, along with a ₹3,600 crore capacity expansion plan to further strengthen its growth trajectory.

Under this plan, PPL will add 1.0 million tonnes of granulation capacity and expand backward integration of phosphoric acid by 0.5 million tonnes and sulphuric acid by 1.5 million tonnes across its Paradeep and Mangalore units. This investment will enable the company to achieve 5.0 million MT in sales over the next 2.5 years, aligning with its long-term strategy to become a fully integrated and self-reliant fertilizer manufacturer.

For Q2 FY26, the company reported Revenue from Operations of ₹6,872 crore, up 49% year-onyear, and EBITDA (including other income) of ₹698 crore, up 32% YoY. Profit Before Tax (PBT) stood at ₹469 crore, while Profit After Tax (PAT) grew 34% YoY to ₹342 crore.

For H1 FY26, Revenue from Operations increased 46% YoY to ₹11,376 crore, and EBITDA rose 69% YoY to ₹1,313 crore. PAT for the half year stood at ₹659 crore, up 135% YoY.

Operationally, production volumes grew 19% YoY in Q2 to 10.06 lakh tonnes, while sales volumes rose 30% YoY to 13.55 lakh tonnes. In H1, production and sales were 18.6 lakh tonnes and 22.96 lakh tonnes, respectively, up 17% and 28% year-on-year.

Growth was led by strong performance in value-added NPK grades. N-20 sales grew 52% YoY in Q2 to 4.94 lakh tonnes, while TSP sales surged 339% YoY to 1.6 lakh tonnes.

The successful merger with Mangalore Chemicals & Fertilizers Ltd (MCFL) expanded PPL's capacity by 23% to 3.7 million MT, unlocking new markets in South India and driving economies of scale, procurement efficiency, and product-mix synergies.

Despite volatility in input costs, PPL maintained strong margins through strategic sourcing and operational efficiency. The cash conversion cycle improved by 30 days, and the net debt-to-equity ratio remained comfortable at 0.66x.

Commenting on the performance, Mr. N. Suresh Krishnan, Managing Director & CEO, said: "Q2 and H1 FY26 have been strong for PPL, reflecting the strength of our operations and strategic direction. The successful merger with MCFL marks a pivotal milestone-expanding our southern presence, enhancing market share, and unlocking scale and product-mix synergies.

Our combined production and sales grew 19% and 30% respectively, driven by robust demand for NPK and value-added grades. Efficient working capital management improved our cash cycle by 30 days, maintaining a healthy net debt-to-equity of 0.66x.

We have announced a ₹3,600 crore investment program to add 1 million tonnes of granulation capacity and strengthen backward integration across phosphoric and sulphuric acid, targeting 5.0 million tonnes of sales within 2.5 years.

We are also delighted to welcome Rahul Dravid as our Brand Ambassador, symbolizing trust, consistency, and integrity - values that define both PPL and the farming community we serve.

Looking ahead, we remain focused on driving growth through operational excellence, innovation, and disciplined execution."

Shares of Paradeep Phosphates Limited was last trading in BSE at Rs. 173.95 as compared to the previous close of Rs. 163.85. The total number of shares traded during the day was 1195057 in over 11794 trades.

The stock hit an intraday high of Rs. 175.45 and intraday low of 166.85. The net turnover during the day was Rs. 204306021.00.