Fertilizers · Founded 1981 · www.paradeepphosphates.com · BSE 543530 · NSE PARADEEP · ISIN INE088F01024
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Business
Paradeep Phosphates Ltd. (PPL) is primarily engaged in the manufacturing, trading, distribution, and sale of phosphatic fertilizers in India. Its core business revolves around producing Di-Ammonium Phosphate (DAP) and various NPK (Nitrogen, Phosphorus, Potassium) complex fertilizers. The company also produces and sells intermediates like sulphuric acid and phosphoric acid, which are critical inputs for its finished products. PPL makes money by selling these fertilizers directly to farmers through a wide distribution network, as well as to dealers and cooperatives across various states in India, primarily catering to the agricultural sector's demand for nutrient-rich soil inputs.
Revenue Mix
PPL's main revenue driver is its phosphatic fertilizer segment, comprising:
DAP (Di-Ammonium Phosphate): A widely used high-analysis complex fertilizer.
NPK Complex Fertilizers: Various grades of complex fertilizers like NPK 10:26:26, NPK 12:32:16, NPK 14:28:0, and NPK 19:19:19.
The company also produces and sells intermediates such as Sulphuric Acid and Phosphoric Acid, some of which are consumed captive and others sold commercially. While specific segment contributions are not publicly detailed, phosphatic fertilizers constitute the vast majority of its finished product sales.
Industry
Paradeep Phosphates operates within the Indian fertilizer industry, which is characterized by significant government intervention through subsidies, import dependence for key raw materials (like rock phosphate, sulphur, ammonia), and high sensitivity to monsoon patterns. PPL is one of India's largest manufacturers of phosphatic fertilizers, holding a significant market share in this segment. The industry is moderately consolidated, with a few large players dominating the market. PPL benefits from its coastal manufacturing facility, which aids in logistics for imported raw materials.
MOAT
Scale & Integration: PPL possesses large-scale manufacturing facilities for phosphatic fertilizers and backward integration for critical intermediates like sulphuric acid and phosphoric acid. This allows for better cost control and supply chain stability compared to non-integrated players.
Established Distribution Network: The company has a well-entrenched and extensive sales and distribution network across key agricultural states in India, ensuring product reach to farmers.
Brand Recognition: While fertilizers are largely commodity products, an established name like Paradeep Phosphates in the Indian market provides a degree of trust and recognition among farmers and dealers.
Growth Drivers
Agricultural Growth in India: Increasing demand for food grains and commercial crops, coupled with declining per capita arable land, necessitates higher fertilizer consumption to boost yields.
Government Support & Subsidies: Continued government focus on food security and farmer welfare through fertilizer subsidies directly supports demand and profitability for manufacturers.
Capacity Utilization & Expansion: Optimizing existing production capacities and potential future expansions to meet rising demand.
Product Mix Optimization: Introducing new or specialized fertilizer grades that cater to specific crop or soil nutrient requirements.
Risks
Raw Material Price Volatility: PPL is highly dependent on imported raw materials (rock phosphate, sulphur, ammonia), making it vulnerable to global price fluctuations and currency exchange rate volatility.
Regulatory & Subsidy Risk: Changes in government fertilizer policies, subsidy mechanisms, or pricing controls can significantly impact profitability and operational structure.
Monsoon Dependency: Agricultural output and, consequently, fertilizer demand in India are heavily reliant on the quality and distribution of monsoons. Poor monsoons can reduce demand.
Environmental Regulations: Stringent environmental norms for fertilizer manufacturing can lead to increased compliance costs or operational restrictions.
Competition: Intense competition from both domestic and international players can put pressure on pricing and margins.
Management & Ownership
Paradeep Phosphates Ltd. is promoted by Zuari Agro Chemicals Ltd., which is part of the Advent International portfolio (a global private equity firm). The management team typically comprises experienced professionals from the chemical and fertilizer sectors, bringing expertise in manufacturing, marketing, and navigating the regulatory landscape of the Indian fertilizer industry. The ownership structure includes a significant promoter holding, with the remaining shares held by institutional investors and the public.
Outlook
Paradeep Phosphates is well-positioned in the essential Indian phosphatic fertilizer market, benefiting from its large scale, integrated operations, and established distribution network. The company's prospects are tied to the sustained growth of Indian agriculture and supportive government policies.
The bull case suggests that consistent agricultural growth, stable subsidy regimes, and efficient raw material sourcing could drive robust demand and profitability. Its backward integration offers some cushion against raw material price shocks.
The bear case highlights significant exposure to volatile global commodity prices for key raw materials and the inherent uncertainties of government policy in the highly regulated Indian fertilizer sector. Fluctuations in monsoon patterns and intense competition could also put pressure on its operational performance and margins.
Price goes above X
Price falls below X
PE goes above X
PE falls below X
| #(Fig in Cr.) | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 2595 | 2243 | 2377 | 4619 | 4990 | 4194 | 3754 | 6872 | 5749 | 4702 |
| Other Income | 9 | 30 | 19 | 20 | 42 | 60 | 27 | 42 | 31 | 40 |
| Total Income | 2604 | 2273 | 2397 | 4639 | 5032 | 4254 | 3781 | 6914 | 5780 | 4742 |
| Total Expenditure | 2313 | 2095 | 2230 | 4112 | 4551 | 3811 | 3288 | 6216 | 5276 | 4260 |
| Operating Profit | 291 | 178 | 166 | 527 | 480 | 443 | 493 | 698 | 503 | 482 |
| Interest | 82 | 95 | 91 | 105 | 103 | 119 | 87 | 140 | 127 | 156 |
| Depreciation | 55 | 58 | 61 | 86 | 88 | 86 | 64 | 90 | 102 | 126 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -41 | 2 |
| Profit Before Tax | 154 | 25 | 14 | 336 | 289 | 239 | 342 | 469 | 233 | 202 |
| Provision for Tax | 45 | 5 | 8 | 81 | 80 | 66 | 86 | 127 | 51 | 47 |
| Profit After Tax | 109 | 20 | 6 | 255 | 209 | 172 | 256 | 342 | 182 | 156 |
| Adjustments | 0 | 1 | -1 | 0 | 0 | 0 | -1 | 0 | 0 | 0 |
| Profit After Adjustments | 109 | 22 | 5 | 255 | 209 | 172 | 256 | 342 | 182 | 156 |
| Adjusted Earnings Per Share | 1.3 | 0.3 | 0.1 | 3.1 | 2.6 | 2.1 | 3.1 | 4.2 | 1.8 | 1.5 |
| #(Fig in Cr.) | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 3791 | 4358 | 4193 | 5165 | 7859 | 13341 | 11575 | 13820 | 21077 |
| Other Income | 20 | 43 | 35 | 19 | 39 | 91 | 69 | 114 | 140 |
| Total Income | 3811 | 4400 | 4228 | 5184 | 7898 | 13432 | 11644 | 13934 | 21217 |
| Total Expenditure | 3313 | 3920 | 3733 | 4622 | 7188 | 12540 | 10928 | 12567 | 19040 |
| Operating Profit | 498 | 481 | 495 | 561 | 710 | 892 | 717 | 1367 | 2176 |
| Interest | 159 | 159 | 192 | 111 | 86 | 291 | 366 | 362 | 510 |
| Depreciation | 62 | 70 | 72 | 83 | 90 | 175 | 211 | 252 | 382 |
| Exceptional Income / Expenses | -54 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -39 |
| Profit Before Tax | 224 | 251 | 230 | 367 | 535 | 426 | 141 | 752 | 1246 |
| Provision for Tax | 73 | 92 | 36 | 143 | 137 | 122 | 41 | 201 | 311 |
| Profit After Tax | 151 | 159 | 193 | 223 | 398 | 304 | 100 | 552 | 936 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1 |
| Profit After Adjustments | 151 | 159 | 193 | 223 | 398 | 304 | 100 | 552 | 936 |
| Adjusted Earnings Per Share | 2.6 | 2.8 | 3.4 | 3.9 | 6.9 | 3.7 | 1.2 | 6.8 | 10.6 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 19% | 21% | 27% | 0% |
| Operating Profit CAGR | 91% | 24% | 23% | 0% |
| PAT CAGR | 452% | 12% | 23% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | -27% | 31% | NA% | NA% |
| ROE Average | 14% | 9% | 12% | 12% |
| ROCE Average | 14% | 10% | 12% | 12% |
| #(Fig in Cr.) | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|
| Shareholder's Funds | 1395 | 1483 | 1604 | 1828 | 2225 | 3505 | 3564 | 4077 |
| Minority's Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Borrowings | 288 | 219 | 139 | 113 | 528 | 612 | 677 | 622 |
| Other Non-Current Liabilities | 4 | 47 | 49 | 113 | 122 | 149 | 194 | 221 |
| Total Current Liabilities | 2436 | 3879 | 3218 | 2369 | 5053 | 6391 | 5226 | 6226 |
| Total Liabilities | 4124 | 5628 | 5010 | 4423 | 7928 | 10657 | 9661 | 11146 |
| Fixed Assets | 1008 | 1024 | 1214 | 1226 | 1261 | 2872 | 3431 | 3349 |
| Other Non-Current Assets | 269 | 288 | 191 | 259 | 1534 | 770 | 473 | 674 |
| Total Current Assets | 2847 | 4315 | 3605 | 2938 | 5133 | 7015 | 5757 | 7124 |
| Total Assets | 4124 | 5628 | 5010 | 4423 | 7928 | 10657 | 9661 | 11146 |
| #(Fig in Cr.) | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 15 | 24 | 19 | 4 | 92 | 538 | 43 | 91 |
| Cash Flow from Operating Activities | 804 | -920 | 1270 | 1501 | -44 | -2377 | 1437 | 1386 |
| Cash Flow from Investing Activities | 73 | -103 | -143 | -289 | -1099 | -419 | -367 | -597 |
| Cash Flow from Financing Activities | -868 | 1018 | -1141 | -1124 | 1589 | 2301 | -1022 | -6 |
| Net Cash Inflow / Outflow | 9 | -5 | -15 | 87 | 446 | -495 | 48 | 783 |
| Closing Cash & Cash Equivalent | 24 | 19 | 4 | 92 | 538 | 43 | 91 | 874 |
| # | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | 2.62 | 2.76 | 3.36 | 3.88 | 6.92 | 3.73 | 1.23 | 6.77 |
| CEPS(Rs) | 3.69 | 3.98 | 4.62 | 5.33 | 8.5 | 5.89 | 3.81 | 9.86 |
| DPS(Rs) | 0 | 1 | 1.21 | 0 | 0 | 0.5 | 0.5 | 1 |
| Book NAV/Share(Rs) | 24.25 | 25.77 | 27.87 | 31.76 | 38.67 | 43 | 43.71 | 49.94 |
| Core EBITDA Margin(%) | 12.59 | 10.06 | 10.96 | 10.33 | 8.4 | 5.95 | 5.49 | 8.94 |
| EBIT Margin(%) | 10.08 | 9.42 | 10.05 | 9.1 | 7.77 | 5.33 | 4.3 | 7.95 |
| Pre Tax Margin(%) | 5.89 | 5.77 | 5.48 | 6.98 | 6.7 | 3.17 | 1.19 | 5.37 |
| PAT Margin (%) | 3.97 | 3.65 | 4.61 | 4.25 | 4.99 | 2.26 | 0.85 | 3.94 |
| Cash Profit Margin (%) | 5.59 | 5.26 | 6.34 | 5.84 | 6.12 | 3.56 | 2.63 | 5.73 |
| ROA(%) | 3.65 | 3.26 | 3.63 | 4.73 | 6.45 | 3.27 | 0.98 | 5.3 |
| ROE(%) | 10.79 | 11.05 | 12.52 | 13.01 | 19.66 | 10.62 | 2.83 | 14.46 |
| ROCE(%) | 11.76 | 10.45 | 9.91 | 13.69 | 15.03 | 10.78 | 6.46 | 13.95 |
| Receivable days | 184.15 | 178.3 | 195.48 | 114.84 | 47.01 | 62.3 | 99.2 | 68.4 |
| Inventory Days | 63.42 | 87.17 | 108.83 | 68.73 | 72.91 | 61.47 | 62.96 | 53.6 |
| Payable days | 87.54 | 77.85 | 93.85 | 49.69 | 28.75 | 20.75 | 13.57 | 20.58 |
| PER(x) | 0 | 0 | 0 | 0 | 0 | 13.47 | 54.14 | 15.26 |
| Price/Book(x) | 0 | 0 | 0 | 0 | 0 | 1.17 | 1.52 | 2.07 |
| Dividend Yield(%) | 0 | 0 | 0 | 0 | 0 | 0.99 | 0.75 | 0.97 |
| EV/Net Sales(x) | 0.63 | 0.84 | 0.68 | 0.34 | 0.37 | 0.65 | 0.8 | 0.86 |
| EV/Core EBITDA(x) | 4.83 | 7.65 | 5.8 | 3.09 | 4.13 | 9.66 | 12.95 | 8.67 |
| Net Sales Growth(%) | 0 | 14.95 | -3.79 | 23.18 | 52.16 | 69.76 | -13.23 | 19.4 |
| EBIT Growth(%) | 0 | 7.29 | 2.61 | 13.43 | 29.84 | 15.61 | -29.35 | 119.92 |
| PAT Growth(%) | 0 | 5.56 | 21.55 | 15.55 | 78.46 | -23.66 | -67.16 | 452.29 |
| EPS Growth(%) | 0 | 5.56 | 21.55 | 15.55 | 78.46 | -46.06 | -67.17 | 452 |
| Debt/Equity(x) | 1.33 | 2.11 | 1.43 | 0.68 | 1.33 | 1.32 | 1.12 | 1.07 |
| Current Ratio(x) | 1.17 | 1.11 | 1.12 | 1.24 | 1.02 | 1.1 | 1.1 | 1.14 |
| Quick Ratio(x) | 0.9 | 0.75 | 0.79 | 0.86 | 0.56 | 0.75 | 0.75 | 0.78 |
| Interest Cover(x) | 2.4 | 2.58 | 2.2 | 4.29 | 7.25 | 2.46 | 1.38 | 3.08 |
| Total Debt/Mcap(x) | 0 | 0 | 0 | 0 | 0 | 1.13 | 0.74 | 0.52 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 56.08 | 56.08 | 56.08 | 56.08 | 56.05 | 56.05 | 56.04 | 57.2 | 57.7 | 57.8 |
| FII | 5.08 | 1.63 | 1.9 | 2.05 | 5.4 | 7.18 | 13.97 | 15.01 | 11.43 | 8.36 |
| DII | 22.03 | 24.6 | 26.83 | 27.09 | 25.54 | 24.44 | 18.17 | 14.57 | 13.36 | 15.59 |
| Public | 16.81 | 17.68 | 15.18 | 14.78 | 13 | 12.33 | 11.81 | 13.22 | 17.51 | 18.25 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 45.69 | 45.69 | 45.69 | 45.69 | 45.69 | 45.69 | 45.69 | 46.69 | 59.9 | 60 |
| FII | 4.14 | 1.33 | 1.55 | 1.67 | 4.4 | 5.85 | 11.39 | 12.26 | 11.86 | 8.67 |
| DII | 17.95 | 20.05 | 21.86 | 22.07 | 20.82 | 19.92 | 14.82 | 11.89 | 13.86 | 16.19 |
| Public | 13.69 | 14.41 | 12.37 | 12.04 | 10.6 | 10.05 | 9.63 | 10.79 | 18.18 | 18.95 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 81.47 | 81.47 | 81.48 | 81.48 | 81.52 | 81.52 | 81.54 | 81.63 | 103.8 | 103.82 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | +19% | +21% | +27% | — |
| Operating Profit CAGR | +91% | +24% | +23% | — |
| PAT CAGR | +452% | +12% | +23% | — |
| Share Price CAGR | -27% | +31% | — | — |
| ROE Average | +14% | +9% | +12% | +12% |
| ROCE Average | +14% | +10% | +12% | +12% |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 56.08 | 56.08 | 56.08 | 56.08 | 56.05 | 56.05 | 56.04 | 57.2 | 57.7 | 57.8 |
| FII | 5.08 | 1.63 | 1.9 | 2.05 | 5.4 | 7.18 | 13.97 | 15.01 | 11.43 | 8.36 |
| DII | 22.03 | 24.6 | 26.83 | 27.09 | 25.54 | 24.44 | 18.17 | 14.57 | 13.36 | 15.59 |
| Public | 43.92 | 43.92 | 43.92 | 43.92 | 43.95 | 43.95 | 43.96 | 42.8 | 42.3 | 42.2 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 45.69 | 45.69 | 45.69 | 45.69 | 45.69 | 45.69 | 45.69 | 46.69 | 59.9 | 60 |
| FII | 4.14 | 1.33 | 1.55 | 1.67 | 4.4 | 5.85 | 11.39 | 12.26 | 11.86 | 8.67 |
| DII | 17.95 | 20.05 | 21.86 | 22.07 | 20.82 | 19.92 | 14.82 | 11.89 | 13.86 | 16.19 |
| Public | 35.78 | 35.78 | 35.78 | 35.78 | 35.83 | 35.83 | 35.84 | 34.94 | 43.9 | 43.81 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 81.47 | 81.47 | 81.48 | 81.48 | 81.52 | 81.52 | 81.54 | 81.63 | 103.8 | 103.82 |
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