Paradeep Phosphates shares jump 15% on strong Q1 results, Rs 250-crore AlF3 plant approval

Shares of Paradeep Phosphates Ltd (PPL) surged in Wednesday's trade after the company reported a strong performance for the June quarter and announced the board's approval for setting up an Aluminium Fluoride (AlF3) manufacturing plant at Paradeep.

The stock climbed 14.54 per cent to hit a day high of Rs 159.50.

For the first quarter of FY27, Paradeep Phosphates reported a 36 per cent year-on-year (YoY) rise in revenue from operations to Rs 6,124 crore. EBITDA increased 24 per cent YoY to Rs 764 crore, while profit before tax (PBT) rose 24 per cent to Rs 526 crore. Profit after tax (PAT) stood at Rs 393 crore, up 24 per cent YoY. Sales volume grew 4 per cent to 9.85 lakh metric tonnes (LMT).

The company said, "Despite the prevailing global uncertainities led by Middle East Conflict (which resulted in sharp escalation and volatility in Raw Material prices), PPL delivered strong performance on the strength of its existing supply chain efficiencies, agile sourcing diversification strategy for key raw material and PAN India Marketplace selling and distribution capabilities. With this performance, the company has been further able to strengthen its leadership position in the Phosphatic Fertilizer."

N Suresh Krishnan, Managing Director & CEO, said, "PPL has once again demonstrated strong operational and financial performance for the Q1 FY27 reflecting the strength of our integrated operations and our agility to navigate the global volatility. We have been able to run our plants efficiently in the Q1 FY27 and have been able to manage sourcing of key raw materials in competitive manner."

He added, "Our key project of Phos Acid expansion (Phase 1) from 500,000 MTPA to 700,000 MTPA at Paradeep is on track."

Separately, the company's board approved an investment proposal of Rs 250 crore to set up an Aluminium Fluoride (AlF3) manufacturing plant with a capacity of 15,000 MTPA at Paradeep.

On the proposed investment, Krishnan said, "The proposed investment aligns with the company’s strategic objective to enter and diversify into related industrial chemicals space and will build and strengthen company’s non-subsidy portfolio in due course. The proposed investment is reinforcement of manufacturing excellence capability by having a by-product converted into value added products. These investments in Speciality /Industrial Chemicals will further augment our endeavour to create long term value for our shareholders."

Commenting on the outlook, he said, "Looking ahead, we believe the global uncertainty will prevail and we will remain committed to drive growth in this challenging time through focussed and agile operational discipline."