Paradeep Phosphates Ltd (PARADEEP) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day and welcome to Paradeep Phosphates Limited Q2 FY '27 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 the conference call, please signal an operator by pressing star then zero on your touchtone 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 (Antique Stock Broking Limited): Thank you, moderator. I am pleased to host today's earnings call of Paradeep Phosphates. We have leadership team represented by Mr. Rajiv Nambiar, Joint MD and CEO, Mr. Harshdeep Singh, President and Chief Commercial Officer, Mr. Bijoy Biswal, CFO, on the call. Without further ado, I would like to hand over the call to Mr. Nambiar for opening remarks. Thank you and over to
Moderator: Yes, sir.
Rajiv Nambiar (Paradeep Phosphates Ltd): Thank you, Manish. Good afternoon, everyone and a warm welcome to Paradeep Phosphates earning call for Q2 FY '27. I appreciate your time and interest in our company. I trust you have seen our earning presentation and press release which have been circulated and are available on our website and stock exchanges. Let me give you an overview. In Q2 '27, revenue from operations stood at 7,364 crores and an EBITDA of 431 crores with the PBT of 164 as well as PAT at 122 crores. In the first half of the year '27, the company has achieved a turnover of 13,488 crores, which is higher by 19% and an EBITDA of rupees 1,173 crores, despite the current global uncertainty, particularly in sulfur pricing and availability and the impact of the Rabi notification, which is yet to be factored in. The company delivered an EBITDA per ton of 5866 in H1, vis-à-vis the corresponding last year's 5719. We have been able to achieve the sales volume of 1 million ton in Q2 and 2 million ton in the first half of 2027, despite the subdued monsoon in the country. During Q2, we launched our new product, Jai Kisaan Navratna Cropkits, for the sugarcane cultivation Karnataka and incorporated an innovative Foundation for Fertilizer Innovation in India to support research in sustainable agriculture practices. These initiatives reflect our commitment to manufacturing diversification, innovation, and improved farm productivity, while creating a long-term shareholder value. Our key expansion project of phosphoric acid expansion from 5 lakh ton to 7 lakh ton at Paradeep is on track. The public hearing for the environmental approval for the enhanced capex program at Paradeep has been completed and we are expecting to receive the environmental approval from the Ministry of Environment and Forests shortly. The energy efficiency improvement project in Goa has been completed and the energy consumption has been optimized. Sustainability remains integral to our approach. We have published our fifth ESG report, externally assured by TÜV India. Our previous S&P Global score of 76 placed PPL among the top 2% of the chemical companies globally, while the latest assessment result is awaited. Looking ahead, we remain positive in this challenging time, in midst of the Middle East situation, and the right policy support for Rabi season, which will enable us to tide over the global volatility, and we remain committed to deliver consistent performance through integrated supply chain and product mix optimization. Thanking all of you, I now open the floor for the questions.
Moderator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Saumya V from Avendus Spark. Please go ahead.
Saumya V (Avendus Spark): Yeah, thanks for the opportunity, sir. My first question is on the Rabi subsidy, which you talked about in your opening remarks. So, your thoughts on the Rabi subsidy, generally we will have it by October. So what is the expectation of Rabi subsidy? And also in terms of industry price so, if you could speak about last two, three months, what are the kind of price hikes especially in NPKs that we have taken and what is our thought on NPKs pricing for the second half? That's the first question.
Rajiv Nambiar (Paradeep Phosphates Ltd): Can you speak a little bit louder, you know, you're not very clear.
Saumya V (Avendus Spark): Sure, sir. I hope I'm audible now. Is it a bit better now? Yeah, yeah. Yeah. So, my first first question was on the Rabi subsidy. In terms of your expectation generally by October Rabi subsidy get announced. So,
Bijoy Biswal (Paradeep Phosphates Ltd): Since, I think it is still not been declared. So, we are waiting for this, you know, Rabi subsidy to be declared. But the you know, our result has been prepared based on the existing, you know, notification which is on the Kharif notification. So, I think, right now, what will be the increase, you know, Rabi will be like little bit of speculative. So, let's wait, you know, I think it will be declared in a couple of days. So, we have to wait for that. And with regard to the price increase and other things, I'll hand it over to Mr. Harish Deep. He will,
Harshdeep Singh (Paradeep Phosphates Ltd): Good afternoon. So if you look at the current, focus as the one as the export has a thing of positive change with the NBS, revision coming and accordingly, based on the NBS revision we would look at, based based on raw material prices, if it permit, we will look at correcting the price for the farmer. Our focus overall is to drive, profitable growth. And tactically, if you look at it the current year, there is a kind of a shift which is happening more towards DAP, where the uncertainty on the MRPs are not there. So, that that's how we are trying to look at it and we have maintained our overall market leadership so far. Thank you.
Saumya V (Avendus Spark): Understood, sir. Sir, again questions on the raw materials part. Have, the phos acid price for the industry for Q3, has it been finalized? That's one. And when it comes to sulphur, on the ground are we seeing improvements in supplies in the last last, 2-3 months? And is there a difference in pricing when we procure sulphur from domestic market vs international market?
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