Paradeep Phosphates Ltd
NSE:PARADEEP
Paradeep Phosphates Ltd
Paradeep Phosphates Ltd is a IN-based company operating in Chemicals industry. The company is headquartered in Bangalore, Karnataka. The company went IPO on 2022-05-27. Paradeep Phosphates Ltd. is an India-based manufacturer of phosphatic fertilizers. The firm is primarily engaged in manufacturing, distribution, trading and sales of a variety of complex fertilizers such as Diammonium Phosphate (DAP), several grades of nitrogen, phosphorus and potassium (NPK), Zypmite and by-product, Phospho-gypsum and Sulphuric Acid, Amonia and Hydrofluorosilicic Acid (HFSA). The firm is also engaged in distribution, trading and sales of Muriate of Potash (MOP), Ammonia, City compost and Phosphorus pentoxide (P2O5-HSS). Its fertilizers are marketed under the brand names Jai Kisaan Navratna and Navratna. The firm's fertilizer plant is located in Goa.
Paradeep Phosphates Ltd is a IN-based company operating in Chemicals industry. The company is headquartered in Bangalore, Karnataka. The company went IPO on 2022-05-27. Paradeep Phosphates Ltd. is an India-based manufacturer of phosphatic fertilizers. The firm is primarily engaged in manufacturing, distribution, trading and sales of a variety of complex fertilizers such as Diammonium Phosphate (DAP), several grades of nitrogen, phosphorus and potassium (NPK), Zypmite and by-product, Phospho-gypsum and Sulphuric Acid, Amonia and Hydrofluorosilicic Acid (HFSA). The firm is also engaged in distribution, trading and sales of Muriate of Potash (MOP), Ammonia, City compost and Phosphorus pentoxide (P2O5-HSS). Its fertilizers are marketed under the brand names Jai Kisaan Navratna and Navratna. The firm's fertilizer plant is located in Goa.
Strong Growth: Paradeep Phosphates reported 13% YoY production growth in Q3, achieving 1 million tonnes for a second consecutive quarter. YTD, production and sales are up 15% and 17%, respectively.
Profitability: Revenue grew by 34% YTD, EBITDA by 45%, and PAT by 71% YoY, with YTD EBITDA per tonne at INR 5,300. Full-year EBITDA guidance of INR 5,000 per tonne is maintained.
Backward Integration: Significant progress on backward integration projects, including new sulfuric and phosphoric acid capacities. Full backward integration at all sites is expected to improve EBITDA per tonne by 30–35%.
CapEx & Expansion: Multiple projects are underway, including granulation and acid plant expansions. Total CapEx for the year is INR 500 crores; next year’s maintenance CapEx is guided at INR 350 crores.
Debt & Subsidy: Net debt stands at INR 5,450 crores, with subsidy receivables at INR 3,780 crores. Working capital borrowings have increased due to inventory buildup but are expected to normalize.
Pricing & Product Mix: Management is actively shifting to higher-margin NPK products. Q3 saw NPK MRP increases, while urea and DAP prices remained stable.
Government Support: Management is optimistic about continued subsidy support, with a 5–7% increase in budget allocation for next year.
Market Outlook: The company is optimistic on fertilizer demand but highlights short-term global volatility and raw material pricing pressures.
