Fertilizer stock hits upper circuit after reporting 854% YoY increase in net profit

Synopsis:
Rama Phosphates Limited reports 24% YoY revenue growth and an 854% YOY net profit surge in Q1 FY26 results

This micro-cap fertilizer stock, engaged in manufacturing phosphatic and fortified fertilizers such as SSP, mixed NPK grades, micronutrients, essential chemicals, and soya-based edible oil products, hit a 2 percent upper circuit after the company reported June quarterly results with an 854.17 percent YoY increase in net profit.

With a market capitalization of Rs. 572.78 crores, the shares of Rama Phosphates Limited hit a 2 percent upper circuit of Rs. 162.25 per share on Thursday, up from its previous closing price of Rs. 159.10 per share.

Q1 FY26 Result Walkthrough

Coming into the quarterly results of Rama Phosphates Limited, the company’s consolidated revenue from operations increased by 23.83 percent YOY, from Rs. 153.69 crore in Q1 FY25 to Rs. 190.31 crore in Q1 FY26, and decreased by 5.28 percent QoQ from Rs. 200.92 crore in Q4 FY25.

Rama Phosphates Limited generated 92.69 percent of its revenue from fertilizer, micronutrient & chemical sales (Rs. 176.40 crore) and 7.31 percent from soya or agricultural sales (Rs. 13.91 crore) in Q1 FY26.

In Q1 FY26, Rama Phosphates Limited’s consolidated net profit increased by 854.17 percent YOY, reaching Rs. 16.03 crore compared to Rs. 1.68 crore during the same period last year. As compared to Q4 FY25, the net profit has increased by 205.92 percent, from Rs. 5.24 crore. The basic earnings per share increased by 843.75 percent and stood at Rs. 4.53 as against Rs. 0.48 recorded in the same quarter in the previous year, 2025.

Financial Highlights: Rama Phosphates Limited’s revenue has increased from Rs. 603 crore in FY24 to Rs. 744 crore in FY25, which is a growth of 23.38 percent. The net loss of the company has turned into net profit, from a loss of Rs. -31 crore in FY24 to a net profit of Rs. 14 crore in FY25.

In terms of return ratios, the company’s ROCE and ROE stand at 7.81 percent and 3.77 percent, respectively. Rama Phosphates Limited has an earnings per share (EPS) of Rs. 7.92, and its debt-to-equity ratio is 0.34x.

Rama Phosphates Limited (RPL) was founded in 1982 and is a leading Indian manufacturer of phosphatic fertilizers, primarily specializing in Single Super Phosphate (SSP). 

The company makes a variety of products, including phosphatic fertilizers like SSP in powder and granule form, and fortified types like zincated and boronated SSP. They also produce mixed NPK fertilizers, micronutrients such as magnesium sulphate, chemicals like sulphuric acid and oleum, as well as soya edible oil and lecithin.

The company’s key fertilizer brands are Suryaphool and Girnar, which are well-recognized among farmers across multiple Indian states, including Maharashtra, Madhya Pradesh, Rajasthan, Karnataka, Gujarat, Uttar Pradesh, and Haryana.

Written By – Nikhil Naik

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