Shares of Paradeep Phosphates rallied by 15 percent in Wednesday's trade following the announcement of strong June quarter results and the board's approval for a significant new investment. The fertiliser major reported a robust 24 percent year-on-year (YoY) increase in profit, reaching ₹393 crore for the June quarter, alongside a 36 percent YoY rise in sales, totaling ₹6,124 crore.
Strong Operational Performance Drives Q1 Growth
The company's EBITDA for the quarter also saw a 24 percent YoY increase, climbing to ₹764 crore. This impressive financial performance comes amidst global uncertainties, including geopolitical conflicts that have led to sharp escalations in raw material prices. Paradeep Phosphates attributed its positive results to existing supply chain efficiencies and a proactive sourcing diversification strategy for key raw materials, complemented by strong pan-India marketplace selling and distribution capabilities.
Suresh Krishnan, Managing Director & CEO, commented on the results: "Paradeep Phosphates has once again demonstrated strong operational and financial performance for Q1 FY27, reflecting the strength of our integrated operations and our agility to navigate global volatility. We have been able to run our plants efficiently and manage key raw material sourcing competitively."
Strategic Diversification with New Aluminium Fluoride Plant
In addition to its strong earnings, the company's board approved an investment of ₹250 crore for establishing an aluminium fluoride manufacturing plant. This new facility, to be located at Paradeep, will have a capacity of 15,000 MTPA.
Krishnan highlighted the strategic importance of this investment, stating that it aligns with the company’s objective to diversify into related industrial chemicals. "The proposed investment is a reinforcement of our manufacturing excellence capability, converting a by-product into value-added products. These investments in Speciality/Industrial Chemicals will further augment our endeavor to create long-term value for our shareholders and strengthen our non-subsidy portfolio," he added.
The company stated that this performance further strengthens its leadership position in the phosphatic fertiliser sector, while the diversification into industrial chemicals marks a significant step towards expanding its product offerings and market reach.