Financial Performance Overview

Rama Phosphates Limited delivered exceptional financial results for FY 2025-26, reporting record revenue of ₹894.42 crore (₹8,930.43 lacs), representing 20% YoY growth from ₹745.35 crore in FY25. Net profit surged 285% to ₹52.71 crore (₹527.09 lacs) from ₹13.68 crore, while EBITDA increased 89% to ₹88.83 crore from ₹46.97 crore. Basic and diluted EPS stood at ₹14.90 compared to ₹3.86 in FY25.

Revenue Breakdown and Segment Performance

Revenue growth was driven by strong performance across segments: Fertilizer Division contributed ₹642.02 crore (15% growth), Chemical Division generated ₹203.00 crore (100% growth), while Soya Division reported ₹48.02 crore with operational turnaround from loss to profit of ₹2.60 crore. Government subsidies contributed significantly at ₹302.96 crore (₹3,029.62 lacs), up from ₹227.90 crore in FY25.

Dividend Declaration and Capital Management

The Board declared interim dividend of 10% (₹0.50 per share) paid on November 25, 2025, and recommended final dividend of 5% (₹0.25 per share), bringing total dividend for FY26 to 15% (₹0.75 per share). Promoters holding 2.65 crore shares (75% stake) waived dividend entitlement of ₹199.05 lakhs, reducing cash outflow to ₹22.12 lakhs. Record date is July 31, 2026, with payment on or after September 3, 2026.

Capacity Expansion and Strategic Initiatives

The company is undertaking major expansion projects including: Greenfield SSP facility at Dhule with capacity of 216,000 MTPA (expected Q2 FY27), Udaipur unit expansion by 65,000 MTPA, and new Granulation, PDM, and PROM plants with aggregate capacity of 49,000 MTPA. These will increase total SSP capacity to 979,000 MTPA. The company secured supply tie-up with HURL for 121,500 MT of fertilizer and implemented plant automation and NABL accreditation for quality control.

Corporate Governance and Compliance

The 41st AGM is scheduled for August 13, 2026, with agenda items including adoption of financial statements, dividend declaration, re-appointment of Mrs. Nilanjana Ramsinghani as director, and appointment of M/s Dayal & Lohia as statutory auditors for 5 years from FY27. The company paid penalties of ₹80,000 each to BSE and NSE for delayed director appointment approval and transferred unpaid dividend to IEPF.

Financial Position and Ratios

Key financial ratios improved significantly: Current ratio at 1.84 times (1.76 in FY25), debt-equity ratio at 0.32 times (0.33), return on equity at 13.28% (3.78%), and net profit ratio at 5.90% (1.84%). The company settled long-pending income tax disputes for AY 2010-11 & 2011-12 under Vivad se Vishwas Scheme, paying ₹494.12 lakhs as full settlement.

Forward Outlook

The company targets becoming ₹2,000+ crore turnover company with strategic entry into Complex P&K, NPK and DAP fertilizer manufacturing, expansion of fertilizer product portfolio, and exploration of more industrial chemical products to de-risk from product dependency.