paradeep phosphate 4qfy26 concall transcript

MANAGEMENT

MR. RAJEEV NAMBIAR – JOINT MANAGING DIRECTOR

& CHIEF OPERATING OFFICER

MR. HARSHDEEP SINGH – PRESIDENT & CHIEF

MODERATOR

MR. MANISH MAHAWAR – ANTIQUE STOCK BROKING

Moderator

Ladies and gentlemen, good day, and welcome to Paradeep Phosphates Limited Q4 FY '26

Earnings Conference Call hosted by Antique Stock Broking Limited.

As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal the operator by pressing star then zero on your touch- tone phone. Please note that this conference is being recorded.

I now hand the conference over to Mr. Manish Mahawar from Antique Stock Broking Limited.

Thank you, and over to you, sir.

Manish Mahawar

Thanks, Neerav. Hello everyone. I am pleased to host today's Earnings Call of Paradeep

Phosphates.

We have leadership team represented by Mr. Rajeev Nambiar – Joint MD and COO; Mr.

Harshdeep Singh – President and Chief Commercial Officer; Mr. Bijoy Biswal – CFO; and Mr.

Alok Saxena – Head, Corporate Finance and IR on the call.

Without further ado, I would like to hand over the call to Mr. Nambiar for opening comments.

Post which, we will open the floor for Q&A. Thank you, and over to you, Rajeev sir.

Rajeev Nambiar

Thank you, Manish. Good morning, everyone, and welcome to Paradeep Phosphates Limited's earning con call for the quarter-ended March and the Financial Year 2026. I appreciate your time and interest in our company. I trust you have seen our earnings and presentations and press release which have been circulated and are available on our website and stock exchange.

Let me give you an overview of our business:

I am happy to report that PPL has once again delivered a robust financial and operational performance and best-in-class EBITDA per ton. Many congratulations to all of you.

In the Financial Year 2026, revenue from operation increased by 29% Y-o-Y to INR 21,826 crores. EBITDA rose up by 33% to INR 2,259 crores. Profit before tax increased by 46% year- over-year to INR 1,328 crores. And the profit after tax stood at INR 1,000 crores, up by 52%.

For the quarter-ended March, the company reported total revenue of INR 4,702 crores with an

EBITDA of INR 484 crores with the PBT stood at INR 202 crores and the profit after tax at INR

161 crores.

Production volumes grew by 8% year-over-year and it stood at 36.66 lakh metric tons, achieving almost 100% capacity utilization of our existing capacities, reflecting our continued endeavor for manufacturing excellence.

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Sales volume rose up to 42.1 lakh metric tons with a 10% Y-o-Y. Growth was led by strong performance in value-added NPK grades. NPK as a category, including TSP, grew by 22% to

24.64 lakh tons.

Despite global uncertainty and volatility in key raw material availability as well as pricing, along with the INR depreciation, PPL has been able to deliver a consistent and robust performance through high operational agility, integrated operation and supply chain sourcing efficiencies.

Let me also give an overview related to the key projects we have completed in the Financial

Year 2026:

During the year, we commissioned our Sulfuric Acid plant at Paradeep, half a million ton capacity, and at Mangalore, 0.1-million-ton capacity, thereby increasing our Sulfuric Acid capacity at company level by 0.6 million tons annually, an increase of 45% of the total capacity.

The benefit of incremental Sulfuric Acid capacity commissioned this year will be available to us in Financial Year 2027 and will aid in improving our quality of earnings further.

One more important project at Goa, we have completed our energy efficiency project, and the improved energy benefits have started coming as we speak now.

Our plan to double the Phos Acid capacity from 0.5 million ton to 1 million tons is on track, and directionally, we endeavor to make all our sites 100% backward integrated in phosphoric acid.

The Phase-I of this expansion, that is from 0.5 million to 0.7, Paradeep is underway and is expected to be commissioned by Financial Year 2027.

Sustainability remains core to our operations and during the year, we achieved S&P Global ESG score of 76 and ranked top 2% in the global chemical sector. Through our expanded distribution and digital outreach, we are now engaging with over 15 million farmers across 18 states, supported by more than a lakh retailers and 6,800 dealers, and a strong on-the-ground advisory network.

In summary

PPL remains committed for strategic growth and expansion, build economies of scale, and deepen our market presence.

Let me also give you an outlook for the future:

Looking ahead, we remain optimistic about the fertilizer demand, continued government trust on soil health, and rising shift towards balanced and specialized nutrient applications.

However, we remain in the challenging time amidst the Middle East situation, and we have seen spurt in key raw materials, particularly ammonia and sulfur. As you are aware, Middle East contributes significantly to raw materials, particularly ammonia and sulfur, which is almost like

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70%-75%, and most of the shipments across the Strait of Hormuz. While industry stock remains balanced at this point, industry is making concentrated efforts and empowered committee comprising of government and industry officials have been working in close coordination to ensure fertilizer production and raw materials sourcing planning.

Thanking you all of you once again, and I now open the floor for questions. Thank you.

Moderator

Thank you very much. We will now begin the question-and-answer session. The first question is from the line of Deep Sanghavi from Dalal & Broacha. Please go ahead.

Deep Sanghavi

So, yes, first of all, thank you so much for taking a question. My first question is regarding the operating cash flow, which was negative this year, around negative 1,000 crores. So that was largely driven by the increase in the inventories and receivables, right? So, could you help me understand the key reasons behind this and whether this should normalize going forward?

Bijoy Biswal

So, thanks for the question. No, this is, yes, we are quite mindful of that there is a negative operating cash flow. But this is mainly on account of the increase in the inventory and increase in the trade receivables and subsidy. This increase in inventory is mainly to accommodate this increase in the raw material prices. This is going to unfold in Q1 of '27.

So, that is a, what is it, strategic call that we should, you know, we hold this additional inventory of around 30 odd days. And this subsidy receivable is mainly on account of the increase of the

DAP prices, DAP subsidy, and other things which came toward the end of the period. And all these things, whatever is there, that will get unwinded in this Q1 and we will definitely reap the benefit of this stock holding and this subsidy receivable in Q1.

Deep Sanghavi

And my other question is regarding the Sulfur prices, which are still higher. So, what could you give a little guidance about that for the future? And so last, I think last con call, you also said that you are sourcing domestically from the IOC and MRPL, which is in Mangalore. So, can you also give something about that, please?

Rajeev Nambiar

Sulfur prices remain under stress actually for last few months. And we expect that actually, under the Hormuz situation deescalates. There won't be a major impact which is coming and supporting us. But as you said, actually, we are taking out 100% of this Sulfur MRPL from Mangalore.

Even with the increased capacity, the recent 300 tons plan we commissioned is currently running at almost 400 tons. And the Paradeep, almost 20%-30% of the Sulfur requirement comes from the IOC Paradeep. So put together, domestically, we are poised towards a comfort position. But yes, internationally, we remain under stress condition for Sulfur.

Deep Sanghavi

And my last question is regarding the future guidance. So the company is, I think, they are looking for increasing the share in higher margin NPK fertilizers, right? And of course, the backward integration as well. So, in the medium-term trajectory, so what could be the EBITDA per ton For FY '26, it was around 5,100 per ton, right? So, what could be the--

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Alok Saxena

Yes, so currently, the spread was 5,300, I think. And as we deepen the backward integration across Phos Acid and Sulfuric Acid, the spread is going to increase. But we also have to take care of the global situation that is in place. So, it will be hard for us to give you a specific number for FY '27. But given the supply chain linkages and the backward integration that we have, the backward integration benefit should flow in FY '27.

Moderator

Next question is from the line of Prashant Biyani. Please go ahead.

Prashant Biyani

Sir, how are you placed with regard to raw material availability for Q1? How much of your requirement you have already bought pre-war? And how much are you having to buy at higher prices which are prevailing right now?

Rajeev Nambiar

Prashant, we remain optimistic for the Q1 because we have covered most of the Q1. And Q2, the situation is unfolding. It will be a little difficult for us to give a direct answer for the rest of beyond Q1, I think.

Alok Saxena

And Prashant, I think industry is actively engaging with government on this aspect, particularly for Q2. And almost daily discussions are being discussed with Secretary of Fertilizers and MDs of the major companies. So, I think all the stakeholders are involved and we should get some clarity very soon. But as Mr. Nambiar said, Q1 is adequately covered. For Q2, the company as well as the industry is working with the government to have more visibility.

Prashant Biyani

Mr. Nambiar, can you share some update on our CAPEX, which is underway across granulation,

Phos Acid, and Sulfuric Acid?

Rajeev Nambiar

Sulfuric Acid, if you look at it, actually two projects were completed last year, that 0.5 and 0.1,

0.6 altogether. The next Sulfuric Acid project is actually we are in the stage where the commercial offers are coming now. We should be able to take a call in terms of our proposed

3,000 tons per day Sulfuric Acid by within this quarter, actually. And Phos Acid also, it will be coupled with both together. So, in spite of all these challenges coming on the global scenario, our commitment for our CAPEX remains the same.

Prashant Biyani

Currently, it would be in design stage or we have finalized vendors for construction?

Rajeev Nambiar

We are in the finalizing stage for the vendors. We have almost received the quotes and there is a separate team working on it.

Prashant Biyani

How much would be the CAPEX for FY '27 that we are planning?

Bijoy Biswal

FY, normal CAPEX will be around INR 600 crores, which is completely, the financial closure has been done. So, this is normal CAPEX and something of all this major projects or some outflow will be included there.

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Alok Saxena

And Prashant, just for FY '27, the major projects that we expect to close this year will be expansion of Phos Acid from half a million tons to 0.7. So, there is an incremental 200,000 tons of Phos Acid that is expected in FY '27. And the key other project is some debottlenecking at

Paradeep unit. So, these are the incremental, I would say, the cash flows that are expected to receive from the project that is getting completed. And all other major CAPEXs, as we have said earlier, is likely to be done by FY '28 and FY '29.

Prashant Biyani

I will rejoin the queue.

Moderator

Next question is from the line of Riju from Antique Stock Broking. Please go ahead.

Riju

A few questions. First one is regarding the Goa plant energy efficiency. So, the Goa plant energy efficiency project that we have completed in Q4 or in the Q3?

Bijoy Biswal

So, can you repeat the question?

Riju

So, the Goa plant energy efficiency project, so that we have completed in Q4 or earlier Q4?

Rajeev Nambiar

No, no, this is Q4.

Bijoy Biswal

Q4. We have taken the shutdown actually from the month of February and completed in the last week of April.

Riju

So, sir, I think as per your earlier guidance, I think 6.4 to 6.1 Gcal kind of energy efficiency that will be in Goa plant. So with that, how much EBITDA per ton improvement that we can expect from going forward?

Bijoy Biswal

So, look, the guidance that we have given that from 6.4 to 6.1, that energy efficiency will accrue to us. So, in current gas price scenario, it will be around INR 1,000 to INR 1,200 per ton of urea at EBITDA level.

Riju

And sir, in terms of the MCFL urea plant, I think there were some issues, like there was some policy issues due to which we were expecting that EBITDA per ton to be lower. So, if you could indicate the EBITDA per ton for the MCFL plant as of now, maybe in the H2 of '26?

Bijoy Biswal

No, look, earlier to this policy change, there is a reduction in this norm, a benchmark energy norm from 7.3 to 6.5. So that impacted the EBITDA by around INR 3,000 per ton. And current level, it will be around INR 6,000, INR 6,500 rupees. And yes, this is the scenario as of now.

Alok Saxena

Just to add, there was no policy change. That was an incentive given, because we switched over from naphtha to gas and that has expired. So there is no, as far as policy change, it was an investment benefit that was accrued to us for a period of year, which has done so. So, there is no major policy shift as far as that is concerned.

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Riju

So the margin that we used to get roughly INR 6,000 per ton for the MCFL urea, so that we are getting till now, right?

Alok Saxena

Yes. And it is also a function of the global gas prices. The margins in urea is a function of the global gas prices.

Riju

And also, sir, we have expanded Sulfuric Acid capacity at the MCFL plant. I think that might help in terms of getting the higher margin for the urea plant because of the power generation from the Sulfuric Acid plant. So, how we can look at that scenario in '27?

Rajeev Nambiar

We are expected, actually, we have been using this team from the Sulfuric Acid plant to the other one. So, at least almost INR 1,000 per ton could be the impact, which is on a favorable side.

Riju

And sir, one last question in terms of the overall capacity utilization for the Goa plant for this year and for the MCFL plant for this year for the NPK and for the like urea and non-urea, both if you could bifurcate those two numbers for the FY '26.

Bijoy Biswal

No, we have produced around 4 lakh ton of urea at Goa and around 7 lakh ton of NPK. And in

Mangalore, same 4 lakh ton of urea and 3.5 lakh ton of NPK.

Rajeev Nambiar

Both the plants have actually completed the RAC quantity. And afterwards, only we went for the Goa energy saving project. And in terms of NPK, actually, Goa is almost like 0.7 to 0.8 in between. And Mangalore is almost a full capacity of 0.4. So put together, both the plants are run wonderfully well in terms of capacity utilization.

Riju

And sir, one last thing. I think earlier we have mentioned the debottlenecking of granulation capacity to Odisha plant, roughly around 2 lakh ton. So, that might come in FY '27. Is that correct understanding?

Rajeev Nambiar

It will be in 2027. This current year, it will come.

Riju

So the incremental volume, that can we expect from this year or maybe from the next year?

Alok Saxena

So you should expect this in second half, the incremental volumes coming into the company.

Riju

Thanks for clarifying all this.

Moderator

Next question is from the line of Viraj from SIMPL. Please go ahead.

Viraj

Just a couple of questions. Firstly, if I look at Q4 and for the year gone by, what will be the

EBITDA per ton on the manufactured volumes DAP NPK?

Bijoy Biswal

Yes, we give the product blended margin, EBITDA margin, that is around 5,700, you know.

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Rajeev Nambiar

For the Q4, it is 5,700. And the whole year, it is 5,300.

Viraj

Yes, but for the manufactured business, any indication you can give, how much would that be?

Alok Saxena

Yes, we give you a blended company level and obviously traded products will be at a lower number.

Viraj

But this will be purely the DAP NPK business, right? Not in the Urea piece.

Alok Saxena

No, this is at a company level. So, it includes everything.

Rajeev Nambiar

All put together.

Viraj

Second question is, now, what is the current level of backward integration post the Sulfuric Acid and the phos acid we have? And once the expansion of phos acid and other initiatives, what will be the backward integration in a year or two down the line?

Rajeev Nambiar

It will be around 80% to 90% percent.

Bijoy Biswal

Paradeep is almost like fully integrated, actually. So, Paradeep expansion, which is coming from

0.5 to 0.7 should cover most of the other two units requirement of Phos Acid also.

Viraj

And for Sulfuric Acid, sir, are we?

Bijoy Biswal

No, Sulfuric Acid, for Phos Acid, it is 100% backward integrated. If you take up N20 product, then there will be some requirement. You have to import around 10%. But in Mangalore, it is

100% backward integrated, Sulfuric Acid.

Viraj

Just one last question. I mean, now the subsidy rates are out by the government. With the way the key raw material prices are behaving right now, how should one understand strides for us in the first half? I mean, do you think there is more flexibility in terms of adjusting the market prices to cover for the raw material under recovery or where does the larger focus lie? Any color you can give?

Harshdeep Singh

Just to share with you, we retain our price leadership as far as market is concerned. So, we have taken a price increase in NPK. However, we are also working very closely with the government because the entire price increase cannot be passed on to the customer also because the sulfur and ammonia prices are extremely high in the current situation. And we expect the government also to be equally supportive on that.

And at the same time, we are also having a strategy where there is clarity in margin like focusing on products like DAP, which also ensures that we maintain our overall profitability. So, that is how we are doing it. But in terms of NPKs, we are a leader in the market in terms of our market realization also.

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Viraj

I understand. But generally, there is no issue in terms of availability of raw material. It is just the prices are at abnormal levels. So, in terms of Kharif, we are well covered in the supplies.

Rajeev Nambiar

Yes, Kharif, I think we are quite confident and optimistic about it. But we are making our endeavor to see actually for future tie-ups certain faster.

Viraj

I will come back in queue.

Moderator

Next question is from the line of Kiran Naik from Modi Fincap. Please go ahead.

Kiran Naik

Sir, if I am correct, I saw the presentation shown on the BSE India on a website. Sir, the EBITDA margin for the full year was 8.4. Am I right?

Rajeev Nambiar

8.4 what?

Kiran Naik

Percentage. EBITDA margin shown for the '26 financial year. Or was it 10.03? 10.3?

Bijoy Biswal

EBITDA margin is 11% for the year.

Kiran Naik

11% for the year. So, can we expect, sir, because the conditions are not good geopolitically, so can we expect for '27 EBITDA margin 10%?

Alok Saxena

See, I think the percentage is not the right metrics for us as an industry. We evaluate the industry as EBITDA per ton. So, I think the right metrics for us is to look at it as EBITDA per ton.

Given the situation we are in today of the Middle East, we will not be able to give EBITDA per ton at this moment of time. But I think with the kind of supply side linkages that we have and the marketplace penetration we have, we should be able to end the year with good margins.

Kiran Naik

Revenue expectation for '27?

Rajeev Nambiar

What is that?

Kiran Naik

Revenue expectation for '27?

Rajeev Nambiar

We will still hold ourselves because let things settle and we will come back actually.

Bijoy Biswal

The situation is quite volatile. See, our endeavor is to get the raw materials to produce. So, if we are able to do that, then definitely we will see a growth.

Harshdeep Singh

See, just to kind of give you a perspective from the market side, see, we had opening stocks, we have had a good visibility on Kharif. So, we will continue to maintain our leadership. And hopefully by another two to three months, we should get a clarity on the Rabi supply chain. But

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Paradeep Phosphates Limited

May 13, 2026 we are very confident as far as market leadership is concerned. So, I don't see any concern, except for very unacceptable situations where the value chain is impacted.

Moderator

Kiran, may I request you to come back for a follow-up question, please?

Kiran Naik

Yes.

Moderator

Next question is from the line of Sandeep Mukherjee from SKP Securities. Please go ahead.

Sandeep Mukherjee

Sir, my first question is like what was the N20 volume in the total NPK mix for Q4 and FY '26?

Harshdeep Singh

Good morning. So, N20 volume which we did was 14.5 lakh metric ton. And we grew almost

9% over last year. And we are among the top two, three companies today in the NPK volumes.

Sandeep Mukherjee

Sir, for N20, this is for N20, sir?

Harshdeep Singh

This is for N20, what I am talking of, 14.5 lakh metric ton.

Sandeep Mukherjee

And for traded products, what were the volumes for TSP, DAP and MOP, sir?

Harshdeep Singh

TSP was around 2.8 lakh metric ton. And DAP was around another 2.2 lakh metric ton. Overall import portfolio was around 0.6 million tons.

Sandeep Mukherjee

0.6 million tons. Okay, sir. And what was the gas cost for the quarter?

Rajeev Nambiar

What is that?

Harshdeep Singh

Gas cost.

Bijoy Biswal

Around $14 for MMBTU.

Sandeep Mukherjee

And what is the current gas cost, sir?

Bijoy Biswal

It has slightly moved up. It is now around $18 to $19 because of this disturbance in the supply.

But I can tell you that this entire urea energy cost is a pass-through. So whatever the increase in the gas cost, that will be pass-through. That will not impact this bottom line of the urea.

Sandeep Mukherjee

And out of the new project cost, sir, that INR 3,600 crore, so what was your spent in FY '26 and what is your planning for FY '27 spend?

Rajeev Nambiar

FY '26, actually most of the things were in the engineering stages. The actual cash flow will start happening in '27. And we expect that INR 600 crore will be spent in FY '27.

Moderator

Sandeep, may I request you to come back for a follow-up question, please?

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Sandeep Mukherjee

Yes.

Moderator

Next question is from the line of Aman from Unified Capital. Please go ahead.

Aman

You made few remarks around government support and your communication with government.

Can you elaborate a bit, I mean, what sort of measures you are expecting? Is it certain kind of an ad-hoc subsidy increases or support in some other form? If you can just expand on it, how you are looking at things as of today? I am asking this question considering the subsidy hike for the season has been just 10% while the raw material prices are up significantly.

Harshdeep Singh

Good morning to you. See, just to kind of give you the overview, government's policy as far as

DAP and TSP is concerned, government has a clear advantage-disadvantage as a policy, which factors in the increase in the import prices and the price of the product.

So, to that extent, DAP gets adjusted and your bottom line gets kind of adjusted positively with any price change. And we are also working closely with the government as far as the Sulfur and

Ammonia raw material prices are concerned. So, that is how we look at it.

Aman

But in terms of availability, you don't see any challenge, even if you have to buy at current prices for Quarter 2.

Harshdeep Singh

So, the way we are looking at it, see, it is not that there is no challenge. We have ensured that more or less we covered our Q1 and we are securing our Q2. But you understand there is a lot of Sulfur which flows through the Gulf of Hormuz.

So, while we are equally balanced because a lot of our Sulfur is sourced from the refineries within India. So, there is a good balance. And hopefully, if the situation resolves within the next few weeks, then I think the value chain should be streamlined. That is how we look at it.

Bijoy Biswal

And to add on to that, we are now focusing on low Sulfur grade products, which is increasing

DAP and other things. So, there is a clarity of that policy. So, we are trying to minimize our

Sulfur requirement.

Moderator

Next question is from the line of Aman Kothari from Aequitas Investments. Please go ahead.

Aman Kothari

Hello, everyone. Firstly, congratulations, sir, on a wonderful set of results. Sir, I think you covered the point on the inventory increase that we have done that deliberately for, let's say, meeting Q1. Can you tell how much inventory additional we are keeping a stock of as against to what we would do on a normal year?

Bijoy Biswal

No, this stock increase, the raw material stays around another 30 days. It is there to take care of this production for Q1. And in fact, that will benefit us looking at this northward movement of the raw material prices.

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Aman Kothari

And on the balance sheet side, also, I think, for us, the total gross debt has increased to 6,800.

And as you mentioned, a large part of this is, again, subsidy receivable that has to happen. So, do you think that, let's say, barring Q1, we could have a problem in the timing of the subsidy?

And that could lead us to raising a possibility of short-term working capital? Because the government is already this thing--

Bijoy Biswal

Actually, in our working capital limit, we have adequate limit, which we have got it. Only thing is that the money what is stuck in this subsidy and inventory, that will wind up in this quarter.

So, I don't see that this level goes up beyond from here. In all probability, it should come down.

So, once this parcel happens, the subsidy starts flowing, and this inventory goes out, the main consumption happens in June and July. So, this will definitely reduce, you know, this borrowing level, what are the working capital borrowing level, that will reduce.

Aman Kothari

And in terms of the NPK leadership that we have established, sir, we are almost growing on a company level, almost as 22% among the top companies. So, do you think that, I think in the last call also you had mentioned that maybe 50% of the market is still NPK, but that is also increasing, it is 45%. So, do you see that push by the government also happening, and you also seeing an increase in farming adopting to nitrogen NPK products?

Harshdeep Singh

Good morning. There are two dimensions. So, first is on the leadership. So, just to give you a perspective, let us say the industry growth of NPK standalone this year was minus 1%. And your company grew by 10%. So, in a situation where there was degrowth, we grew.

And if you include the TSP plus NPK, the industry growth was around 1.6%. We grew by 15%.

So, that is the direction that we consciously taken to provide balanced nutrition. So, that is a long term strategy we continue to build up.

However, in the current year, you could have a mixed this thing because of constraints of Sulfur and other products. So, the strategy might be more tilted to ensure that the phosphate and nitrogen also is secured so that the food security is maintained.

So, you will see a government putting a lot of emphasis on urea and DAP. And of course, complexes it continues, but be conscious of the fact that the complexes for the farmer today are priced quite higher compared to the DAP and TSP.

Aman Kothari

So, if the prices are higher in this current phase, do you think farmers would want to switch to a

NPK kind of product? I mean, I can understand the nutrient balance that they would want to have, but...

Harshdeep Singh

No, it is a natural preference. The first preference for a farmer would be to typically go products like urea and DAP. So, that is what would happen.

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But like I was sharing with you with the last year also, with the industry where in NPK the industry didn't grow, but we grew by more than 10%. So, from that perspective, once you convey the benefits of the balanced nutrition to the farmer, you will see an uptake happening.

But in the current situation where there is too much of variance between the NPK price and

DAP, you would see a balanced kind of growth in both the segments. But the overall phosphatic segment remains strong. That is how I look at it.

Moderator

Aman, may I request you to come back for a follow-up question?

Aman Kothari

Sure.

Moderator

Next question is from Shreya from CapGrow Capital Advisors. Please go ahead. Due to no response, we move on to the next participant. Next question is from the line of Sourabh Gupta from Madhya Bharat Agro Products. Please go ahead.

Sourabh Gupta

First of all…

Moderator

Sir, the line for the participant dropped. Next follow-up question is from the line of Prashant

Biyani. Please go ahead.

Prashant Biyani

Sir, how much is the Phos Acid volume for Q4 as well as for FY '26?

Bijoy Biswal

No, we produce around 1.25 lakh metric tons in Q4. And year-on-year basis, 5,01,000.

Harshdeep Singh

5 lakh plus.

Prashant Biyani

And for Sulfuric Acid for Q4 and full year?

Rajeev Nambiar

Altogether with the whole year, we produce around 1.8 million. 1.75.

Prashant Biyani

And for Q4?

Rajeev Nambiar

Just a second.

Prashant Biyani

Yes.

Harshdeep Singh

For Q4, this was 4,10,000.

Prashant Biyani

Sir, how much is the subsidy that we received in Q4 and how much is the outstanding right now?

Bijoy Biswal

We have received in Q4 2,600-odd crores. And the outstanding subsidy is 3,800 crores.

Prashant Biyani

3,800?

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Bijoy Biswal

Yes.

Rajeev Nambiar

Both brought coal and channel stock.

Prashant Biyani

Mr. Harshdeep, out of the total trading volume for Q4, how much is DAP and TSP?

Harshdeep Singh

DAP and TSP?

Prashant Biyani

Yes.

Harshdeep Singh

So, DAP was 2.2 million tons. Quarter also we will tell you the number. Just give me a minute.

Q4 number for DAP was, DAP imported was 0.3 million tons. And TSP was 0.4 million tons for the Q4.

Prashant Biyani

3 lakh and 4 lakh tons.

Harshdeep Singh

Yes, 0.3 and 0.4 million. Yes. Sorry, 0.3 lakh and 0.4 lakh metric tons.

Prashant Biyani

Okay, 30,000 and 40,000.

Harshdeep Singh

30,000, 40,000. Yes.

Prashant Biyani

And sir, how much is the POS stock at the end of Q4 for DAP and NPK?

Harshdeep Singh

Total stock is around 8,30,000. And you want to understand the DAP stocks?

Prashant Biyani

No, for total phosphatic, DAP plus NPK.

Harshdeep Singh

DAP is around, at the end was 1.28 lakh metric tons. And NPK was around 6 lakh metric tons,

5.95.

Moderator

Next follow-up question is from the line of Aman Kothari from Aequitas Investments. Please go ahead.

Aman Kothari

Sir, is there any production guidance that we can currently factor in at this time of the year?

Rajeev Nambiar

Can you repeat it?

Aman Kothari

Any production guidance that we can give at this time of the year? I mean, I know there is uncertainty, but regards, let's say, 1st Quarter and then probably something further year.

Rajeev Nambiar

Basically, there are two anxieties is coming. One is ammonia side and second is in terms of the sulfur and Sulfuric Acid. The production volume remains almost like steady to large extent, at least 70% to 80% for us in the Q1. But we are just slightly shifting from these two intensive

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Paradeep Phosphates Limited

May 13, 2026 products, ammonia intensive as well as from the sulfur intensive products, and wherever the policy clarity exists.

So, in terms of the running of the plants, as you know, all the three plants are running. To large extent, actually, we are covered till end of June. We don't have major anxieties. But since we produce around five to six different kinds of products, we have access actually whichever is shooting to the market as well as in terms of the policy clarity.

Aman Kothari

So, all the three plants are operating, we can say, above 90%?

Rajeev Nambiar

Not exactly. We can say around 80%.

Aman Kothari

And this is primarily because of the raw material constraints?

Rajeev Nambiar

Yes, yes.

Aman Kothari

And sir, the price of DAP that we are seeing at current rates, I think this has happened before also in a previous year where they deliberately reduced the volumes of DAP or trading. If you see the prices elevated, let's say, at a similar level for the next couple of quarters, do you think this is a deliberate step that we are going to again take?

Harshdeep Singh

See, we are not getting into the deliberate step. The way we look at it is the government has put kind of a structure where we are doing a buying as an industry consortium. So, there will be a very transparent and effective process as a country that we have done so that instead of people taking spot positions individually, okay, so we have kind of asked the people to quote, and we have got the L1 prices discovered. So, you are right, these are exceptionally high prices both for urea and DAP.

However, the view from the government side is that it is important that the farmers get their phosphates and nitrogen for the cropping season. So, that is how we look at it. And it is important that we maintain a certain strategic inventory as a country so that we are in a better bargaining position as we go into the subsequent season. That strengthens our position that way.

Aman Kothari

So, the two tenders that India Potash did, I think, at those elevated prices, that was an industry level procurement that was done, right?

Harshdeep Singh

Yes. So, it is not IPL's tender alone. It is IPL on behalf of a consortium of five, six companies, okay, the large phosphate company. We are a part of that. And we had a good offer availability.

And we have only picked up the quantity that L1 prices.

Aman Kothari

And sir, I think, CAPEX plan that also that we have, I think, debottlenecking would almost contribute to us 0.3 million tons. So, I think you already mentioned that 0.2 is something we are targeting for this year. So, I am assuming that 0.1 will be targeted for FY '28.

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Paradeep Phosphates Limited

May 13, 2026

Harshdeep Singh

Yes, yes.

Aman Kothari

And that will again be as a parity plan?

Harshdeep Singh

Yes.

Rajeev Nambiar

Partly, it could be coming from Mangalore, but both the units will have some growth coming out.

Aman Kothari

And just one last question to add on. Sir, this is an if scenario, but considering that we have now seen an import duty increase of some deliberate steps that government is having to take to reduce the impact that it is having. So, do you think that if this situation is elevated and there are steps that, since you are having a plenty of discussions with the industry, is there a possibility that fertilizer subsidies could get delayed at these elevated prices?

Bijoy Biswal

No. See, look, this ammonia and Sulfur prices, there is no custom duty. In fact, very recently.

So, with this, now the kharif is coming in and the type of stock built up and the consumption is happening, we don't see that the subsidy will be delayed. As of now, we have got the subsidy up to April end.

Alok Saxena

And with the kind of discussions that are happening on daily basis with the government and industry, government is very protective of the industry because they believe that manufacturing has to go to ensure food security. So, there is no reason for us to have subsidy delayed.

Bijoy Biswal

And it is adequately budgeted. They have budget support for the subsidy. So, we don't see any reason for delaying the subsidy.

Moderator

Next question is from the line of Ankit from Steptrade Capital. Please go ahead.

Ankit

I just wanted to know how much percentage of your raw materials are imported? I mean, in terms of sulphates, etc.

Bijoy Biswal

It is not very clear.

Ankit

How much percentage of your raw materials are currently imported? I mean, via Strait of

Hormuz.

Bijoy Biswal

See, we get almost entire thing of ammonia imported earlier from Strait of Hormuz. Now, it has been shifted to East Coast. So, we are getting mostly now from the Southeast Asian countries, this ammonia. As well as Sulfur is concerned, yes, it was through Strait of Hormuz. Now, that is also impacted.

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Paradeep Phosphates Limited

May 13, 2026

Rajeev Nambiar

If you see large extent actually diversification happen in ammonia. Sulfur remains a critical resource for us actually to bother us. But I am sure actually, the kind of tie up all industry as well as government is supporting us to make, we will see at least better days to coming.

Harshdeep Singh

So, just to kind of update you, we are also earnestly sourcing of Sulfur that we are doing within the country. So, that partially supplements and like for the finished fertilizers, there is a consortium, which is working also on Sulfur and ammonia, securing Sulfur and ammonia in a transparent way. So, that also has been kind of, we have already declared that as industry and we are hopeful of securing that. Rather, one of the vessels that we secured for Sulfur came via

Strait of Hormuz.

Ankit

Sir, considering the commissioning of the Sulfuric plant, so, I mean, how much margin expansion are we looking at? I mean, after getting the war situation getting sabotaged?

Bijoy Biswal

No, the delta between the imported Sulfur and, you know, inputs of Sulfuric acid and indigenous

Sulfuric acid is around INR 3,000. But it depends on that what source, in what price you are sourcing this Sulfur. So, at this current level, it will be reduced, and it will be at around 1,500-

2,000 level of delta.

Moderator

Next question is from the land of Riju from Antique Stock Broking. Please go ahead.

Riju

Sir, as you earlier said that in our Goa plant, urea plant was taken under maintenance shutdown due to energy efficiency. So, how much was the volume impacted or if you could indicate the production volume for this quarter for the Goa urea plant?

Rajeev Nambiar

Overall, if you look at it the whole year, actually, we will be completing RAC, okay, because anyway, around 30-35 days are always kept on shutdowns of annual shutdowns. So, that we are consumed, actually. So, we don't see any decrease in volume on a yearly basis.

Bijoy Biswal

This year, we have done 4 lakh tons. And now with the policy, suppose, the new change in the policy come, we can do up to 4.5 lakh tons at Goa.

Riju

So, going forward, we can do 4.5 lakh tons kind of volume, right?

Harshdeep Singh

Yes.

Riju

Understood. And, sir, for the MCFL, you said that our production volume for the urea was somewhere around 4 lakh tons for the MCFL. Is that correct understanding?

Rajeev Nambiar

Yes.

Bijoy Biswal

Yes.

Riju

So, with that number, was there any dip in the urea production volume in the MCFL for 4Q?

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Paradeep Phosphates Limited

May 13, 2026

Rajeev Nambiar

The MCFL will continue to run. We have taken the shutdown in the last October-November.

But if there is a supportive policy, we can still produce more than that, more than 4 lakhs.

Riju

So, like, for the H2, if you could indicate the production volume of urea at MCFL plant, that will be helpful.

Rajeev Nambiar

H2, if you look at it, our overall RAC is around 4 lakhs. With the supportive policy, we can go up to 4.4 to 4.5.

Alok Saxena

We will share that specific number.

Rajeev Nambiar

We took a month shutdown last year for annual maintenance.

Riju

No, sir. My question was that, like, in 3Q and 4Q, how much was the production volume for

MCFL urea plant?

Alok Saxena

Riju, we will get back to you separately on that. I think we do not give a that data here. We will get back to you separately.

Moderator

Thank you. Ladies and gentlemen, we will take that as the last question. I now hand the conference over to the management for closing comments.

Rajeev Nambiar

Thank you. And on behalf of the management team, PPL, we thank you for taking time to join

Earnings Call and a lot of interesting questions from you. Should you have any further questions, please reach out to our investor relation team. And thank you once again and have a good morning and afternoon. Thank you.

Moderator

Thank you. On behalf of Antique Stock Broking Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.

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