Fertilizer stock skyrockets 17% after announcing strong Q1 results

Synopsis:
Driven by strong demand and favorable monsoons, Paradeep Phosphates reported a strong Q1FY26 with a 60 percent QoQ profit jump and robust growth in sales and production.

A small-cap fertilizer company is in  the spotlight today after its stock surged up to 17.67 percent in intraday trade following the announcement of its Q1FY26 financial results. Read the full article to know more about its performance.

With a market capitalization of Rs. 18,052 crore, the shares of Paradeep Phosphates Ltd were trading at Rs. 221, up by 11.14 percent from its previous closing price of Rs. 199.18.

Q1FY26 Results

Paradeep Phosphates Ltd reported Rs. 3,754 crore in revenue for the first quarter of FY26, a sharp incline of 57.93 percent over the Rs. 2,377 crore for the same period in FY25. However, from Rs. 3,494 crore in Q4 FY25, revenue increased by about 7.44 percent sequentially.

The consolidated net profit for the first quarter of FY26 was Rs. 256 crore, which was 60 percent higher than the Rs. 160 crore reported in the previous quarter and gave a strong growth year over year from the Rs. 5 crore in Q1 FY25.

Profit growth was also reflected in earnings per share (EPS), which increased to approximately Rs. 3.14 in Q1 FY26 from Rs. 0.07 in Q1 FY25 and Rs. 1.96 in Q4 FY25. 

Production increased 23 percent to 6.64 lakh tonnes, and sales volume increased 34 percent to 7.42 lakh tonnes, demonstrating the company’s robust growth. A record 2.24 lakh tonnes of N-20 fertilizer and 7 lakh bottles of nano fertilizers were sold. The ratio of net debt to equity, which was 0.77 times, stayed healthy.

Also Read: Chemical stock skyrockets 14% after company reports 58% QoQ revenue growth

Management View

According to Mr. Suresh Krishnan, MD and CEO of Paradeep Phosphates, the company had a great first quarter because of strong demand, record sales and favorable rainfall, especially in N-20 and value-added NPK grades.

YoY, sales and production volumes increased by 34 percent and 23 percent, respectively. “Fiscal discipline is still strong, backward integration projects are on track to boost margins, and the MCFL merger is in its final regulatory phase,” he said. The company’s strong market presence and integrated operations help it stay focused on creating value.

Future Strategic Projects

The expansion for phosphoric acid at Paradeep is expected to be finished in two years, while the expansion for sulfuric acid is scheduled to be put into service by Q3 FY26. The merger with MCFL is currently in the last stages of NCLT and has been approved by shareholders. The demand for fertilizer in India is anticipated to remain strong due to favorable policies, robust monsoon forecasts, and a focus on soil health.

About the company

One of India’s top fertilizer companies, Paradeep Phosphates Ltd (PPL), has a 3 million MT production capacity in Odisha and Goa. Through 95,000 retail locations, it provides DAP, NPK, and urea to more than 9.5 million farmers.

The business gains from well-known brands, effective logistics, and robust backward integration. PPL went completely private following its 2022 IPO, with Zuari Maroc Phosphates owning the majority of the company. Globally, it also performs well in terms of ESG.

Written By Akshay Sanghavi

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