Paradeep Phosphates Ltd Q1 FY27 Results

Paradeep Phosphates opened FY27 with consolidated revenue of ₹6,124.25 Cr and net profit of ₹392.54 Cr (EPS ₹3.78) for the June 2026 quarter. On a like-for-like basis — comparing against the merger-restated year-ago quarter (revenue ₹4,503.50 Cr, PAT ₹316.75 Cr) — that is +36.0% on the topline and +23.9% on PAT. Stripping the ₹21.80 Cr one-off exceptional gain (a write-back of gratuity/leave liability on the new Labour Codes), underlying PAT growth is closer to ~19%, so this is solid rather than spectacular profit growth riding on a strong topline. A caution on the optics: our records carry the pre-merger Q1FY26 base (₹3,754.06 Cr revenue, ₹255.85 Cr profit), against which the print looks like +63% revenue / +53% PAT — but that compares the merged entity to the old standalone Paradeep and is not apples-to-apples; the filing itself restates the year-ago to fold in Mangalore Chemicals, and the honest read is +36% / +24% (~19% adjusted).

The quarter is seasonally the strongest for fertiliser makers (kharif stocking), so the +30% QoQ revenue and the optically huge +152% QoQ jump in PAT off a weak ₹155.60 Cr March quarter are largely seasonality and should not be read as a step-change. Margins actually thinned year-on-year on a like-for-like basis: net margin was ~6.4% versus ~7.0% in the restated year-ago, and EBITDA margin compressed to ~12.1% from ~13.7%, with the squeeze sitting in raw-material and traded-goods cost — cost of materials plus stock-in-trade purchases ran hot even as revenue scaled. Finance costs also rose to ₹131.70 Cr (from ₹104.35 Cr), reflecting the enlarged, capex-heavy balance sheet.

The stock went into the print at ₹139.21, up 3.5% over the past month of trading.

For context: this is the highest quarterly PAT in the last 6 quarters on our records.

Management offered no quantitative FY27 guidance on the Q4 concall (May 2026), citing geopolitical volatility and high raw-material prices, but pointed to benefits from newly commissioned sulphuric acid capacity and an ongoing phos-acid expansion materialising through FY27 alongside a planned ₹600 Cr capex; the +19% adjusted operating profit growth this quarter is directionally consistent with that backward-integration thesis, though it is early. No brokerage consensus estimate for the quarter surfaced in a web check, so the print cannot be graded beat/miss versus the Street. On the corporate front, the quarter carried mostly housekeeping (trading-window closure, the ₹20.57 Cr income-tax refund in May) but also an NCLAT order rejecting the company's entry-tax exemption appeal in May — an unquantified contingent liability worth tracking. Standalone and consolidated tell the same story (PAT ₹392.60 Cr vs ₹392.54 Cr), the ₹0.06 Cr associate loss being immaterial.