Synopsis: Reporting results for FY26 that reflect the first full year of the MCFL merger, Paradeep Phosphates posted consolidated revenue of Rs. 21,826 crore and PAT of Rs. 996 crore but investors looking at headline growth must account for the retrospective restatement of FY25 comparatives, the negative operating cash flow driven by a significant working capital build, and a softer Q4 profit relative to earlier quarters in the year.
Shares of India’s second-largest private phosphatic fertiliser maker came into focus after its board approved audited consolidated financial results for the quarter and full year ended March 31, 2026, on May 11, 2026. The results are the first to reflect a complete fiscal year post the merger of Mangalore Chemicals and Fertilizers Limited with the company, a combination that has materially changed the scale of the business.
With a market capitalisation of Rs. 13,649.87 crore, the shares of Paradeep Phosphates Limited were last quoted at Rs. 131.34 per share, up 7.14 percent from its previous close of Rs.122.59. It is trading at a P/E of 13.60 apiece.
Reading the Merger-Adjusted Numbers
Consolidated revenue from operations for FY26 came in at Rs. 21,826 crore, against a restated Rs. 16,959 crore for FY25, a 29 percent reported increase. PAT grew to Rs. 996 crore from Rs. 663 crore, up 50 percent. The comparatives, however, are restated to include MCFL from April 1, 2024, following NCLT approval of the scheme in September 2025. Both years are therefore on a merged basis.
On a like-for-like organic basis, excluding the MCFL contribution from the retrospective appointed date, the company’s standalone FY26 revenue was Rs. 19,975 crore against Rs. 13,820 crore in FY25, a 45 percent increase driven by higher volumes and trading activity. Pre-tax profit on this basis was Rs. 1,154 crore, up from Rs. 753 crore, reflecting genuine underlying earnings improvement. The merger accounting effect added Rs. 1,852 crore in revenue and Rs. 174 crore in pre-tax profit to the FY26 numbers.
Q4 FY26
For the quarter ended March 31, 2026, consolidated revenue came in at Rs. 4,702 crore, up 12 percent year-on-year from Rs. 4,194 crore. PAT, though, dipped to Rs. 156 crore from Rs. 172 crore in Q4 FY25, a 9 percent decline. Finance costs of Rs. 156 crore and depreciation of Rs. 126 crore (both elevated by the MCFL asset base) compressed Q4 margins.
The Q4 OPM at 9 percent was broadly in line with the prior year but below the 13 percent seen in Q1 FY26 and 10 percent in Q2 FY26. The business is structurally seasonal Q1 and Q2 tend to be stronger due to kharif demand.
Working Capital and Cash Flow
The operating cash flow line warrants attention. Despite pre-tax profit of Rs. 1,328 crore, operating cash flow was negative at Rs. 1,012 crore for FY26. Inventories rose by Rs. 2,038 crore and trade receivables by Rs. 1,726 crore; a combined working capital outflow of over Rs. 3,700 crore. This pattern is not unusual for a large phosphatic fertiliser company, where raw material procurement and government subsidy receivable cycles create significant seasonal cash absorption. Current borrowings stood at Rs. 6,057 crore as of March 31, 2026, up from Rs. 4,210 crore a year ago, reflecting the funding of this working capital expansion.
Finance costs grew to Rs. 528 crore in FY26 from Rs. 443 crore in FY25. Total assets on the consolidated balance sheet expanded to Rs. 17,936 crore from Rs. 14,268 crore, with most of the growth in trade receivables, inventory, and property, plant and equipment following the MCFL integration.
Dividend and Corporate Actions
The board recommended a dividend of Rs. 1.50 per equity share for FY26, unchanged from FY25, subject to shareholder approval at the annual general meeting. The board also recommended the re-appointment of Rita Menon as an Independent Director for a second term of three years effective June 27, 2026. Menon, a former IAS officer with prior roles including Secretary in the Ministry of Textiles and CMD of the India Trade Promotion Organisation, also serves on the board of Chambal Fertilisers.
Business Overview
Paradeep Phosphates Limited, incorporated in 1981, is India’s second-largest private phosphatic fertiliser company. Its product portfolio covers DAP, NPK grades, NP-20, and specialty phosphatic products from its manufacturing complex at Paradeep, Odisha. The company is promoted by Zuari Maroc Phosphates Private Limited, a joint venture between Zuari Agro Chemicals and Morocco’s OCP Group. In FY26, it reported consolidated revenue of Rs. 21,826 crore and PAT of Rs. 996 crore, against Rs. 16,959 crore and Rs. 663 crore respectively in the prior year’s restated figures.
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