Paradeep Phosphates Limited – Investor Presentation Summary

Key Operational Highlights

  • Sales Volume: 9.85 LMT in Q1 FY27, representing 4% year-on-year growth
  • Nano DAP sales: 496 KL in Q1 FY27, showing 62.2% year-on-year growth
  • TSP sales: 23,905 MT in Q1 FY27
  • Zypmite sales: 15,452 MT in Q1 FY27, showing 45.4% year-on-year growth
  • MOP sales: 64,715 MT in Q1 FY27, showing 109.6% year-on-year growth
  • Sulphuric acid production: Higher by 32% on year-on-year basis in Q1 FY27
  • Phos Acid production: Higher by 7% on year-on-year basis in Q1 FY27
  • Key drivers: Full benefit of expanded sulphuric acid capacities, strength of backward integration in Phos Acid and Sulphuric Acid

Financial Highlights

Revenue: ₹61,243 million (₹6,124 crore)

EBITDA: ₹7,418 million (₹742 crore)

PAT: ₹3,932 million (₹393 crore)

EPS: ₹3.78

Margins: EBITDA margin 12.1%, PAT margin 6.4%

YoY comparison: Revenue increased 36.0% YoY, EBITDA rose 20.7% YoY, PBT increased 24.1% YoY, PAT increased 24.0% YoY

QoQ comparison: Revenue increased 30.2% QoQ, EBITDA rose 53.8% QoQ

Drivers of financial performance: Higher revenue growth, improved quality of earnings from backward integration

Balance Sheet Snapshot

Not Specified

Capex & Cash Flow Health

  • Phos Acid expansion (Phase 1) from 500,000 MTPA to 700,000 MTPA at Paradeep is on track
  • Board approved investment proposal of ₹250 crore for setting up Aluminum Fluoride (AlF3) Plant at Paradeep
  • Investment rationale: Strategic objective to enter and diversify into related industrial chemicals space, build non-subsidy portfolio, convert by-product into value-added products

Strategic & R&D Initiatives

  • Investments in Specialty/Industrial Chemicals to create long-term value for shareholders
  • Phos acid capacity expansion to 1.0 MMTPA underway
  • Sulphuric acid capacity increased by 45% in FY26
  • Focus on value-added fertilizers with NPK (including TSP) sales increasing 22% YoY to 2.46 million tonnes in FY26

Industry Trends & Business Environment

  • West Asia tensions disrupting key shipping routes, increasing freight costs and creating supply chain uncertainty
  • Heightened geopolitical tensions and regional instability
  • Red Sea and Strait of Hormuz disruptions causing vessel rerouting
  • Increase in ocean freight rates and higher war-risk and marine insurance premiums
  • Elevated raw material costs triggered by ongoing Middle East crisis
  • Delays and unpredictability in sourcing key fertilizer raw materials
  • Impact on fertilizer manufacturers: Margin pressure, higher inventory holding and working capital requirements
  • Management response: Diversified sourcing across multiple geographies, optimized inventory planning, flexible procurement approach, strong logistics partnerships, continuous monitoring of geopolitical developments

Management Commentary & Growth Outlook

Strategic Outlook: "PPL has once again demonstrated strong operational and financial performance for the Q1 FY27 reflecting the strength of our integrated operations and our resilience to navigate the global volatility. Looking ahead, we believe the global uncertainty will prevail, and we will remain committed to drive growth in this challenging time through focused operational discipline." - Mr. N Suresh Krishnan, Managing Director and CEO

FY Guidance: Not Specified

Market Share Targets: Not Specified

Risks and Opportunities: Global uncertainty prevailing, supply chain disruptions from West Asia crisis

Sustainability & ESG at PPL

  • S&P Global ESG Score of 76
  • Ranking amongst top 2% of companies globally in Chemical Sector
  • Only Indian Fertilizer Company to be in S&P Sustainability Yearbook Member-2025
  • Published 4th ESG Report for FY 24-25, externally assured by TUV India
  • Paradeep site serves as crucial habitat for migratory birds

CSR at PPL

  • Healthcare & WASH: 7,155 lives touched through mobile health units, safe water initiatives, primary healthcare, TB nutrition support and sanitation services
  • Environment Sustainability/Biodiversity: 6,306 lives touched through water conservation, climate resilience, sustainable resource management, afforestation, waste management, biodiversity conservation
  • Community Empowerment: 1,184 lives touched through entrepreneurship and skill development programs, income-generating opportunities
  • Education: 500 lives touched through school infrastructure, AI & Robotics labs, digital education, scholarships, early learning, skill development for students