The financial year 2025 has been a defining period for Paradeep Phosphate Ltd having strengthened its market position and delivering strong financial results.
The company posted stupendous 452% year on year Profit after tax for FY25 on the back of improved operational efficiency and significant strategic focus progress. This transformational year was powered by highest ever fertiliser sales of 3.03 million tonnes and revenue climbing to Rs 13820 crores , registering a 19% growth over the last financial year. On the other hand, EBITDA rose by 91% to Rs 1367 crores while profit before tax increased by 434% to Rs 752 crores.
The company has demonstrated solid growth over the last few years with successful execution of its capital expenditure plans which are now yielding excellent visible cash flow benefits. Paradeep Phosphate has a wide network of around 95000 retail points across 15 Indian States serving over 9 million farmers. The company produces nine different crop and soil specific NPK grade phosphate in its portfolio which provides a balanced fertilisation for the soil. There was all round progress in sales with the company producing 4.86 million tonnes of phosphoric acid during the year, which is an increase of 30% year on year while the sulphuric acid production stood at 1.03 million tonnes. The company received a strong market response in the country selling 1.66 million bottles of nano fertilisers thereby maintaining high sales velocity.
Paradeep Phosphate has received record Improvement in receivables aided by better capital efficiency along with maintaining a strong focus on supply chain and strategic sourcing plus navigating the storage of raw materials. The company has a strategic roadmap with three core pillars , such as scale in operation, backward integration and product innovation and hence the future is extremely bright for the company on the back of the impending merger with MCPL wherein sales volumes should grow to 3.7 million tonnes per year. Paradeep Phosphate has undertaken and invested in both sulphuric and phosphoric acid backward integration at its facilities which should help the company achieve greater self-reliance and long-term sustainability in overall operations.
The demand outlook also looks very strong on the back of a good monsoon in 2025 which augurs well for Indian farmers and the Indian economy and with reservoirs carrying a good water level, agriculture sector should do very well in FY26. In terms of stock inventory, while Di-Ammonium Phosphate or DAP inventory is low on the back of limited availability from China due to import restrictions, the other constituent NPK should see a good demand in the current year from customers for an excellent season. While DAP prices have gone up over the last one year due to supply disruption and export restriction by China, domestic manufacturers like Paradeep phosphates have been able to circumvent the hit as other raw material prices have not gone up that much in comparison.
While India consumes around 10 million tonnes of DAP on an annual basis , it imports half while the balance 5 million tonnes is produced domestically by companies such as Pardeep phosphates, Coromandel International, IFFCO, etc. Fund managers and Brokerage houses have started covering the company and posting positive reports on Paradeep Phosphate Ltd. The stock has appreciated to around Rs 170 on the bourses and analysts are betting on the stock to post strong profits and sales over the next 18 months time frame.
