Paradeep Phosphates shares rallied 15% today; here's why

Fertiliser stock Paradeep Phosphates rallied 15 per cent in Wednesday’s trade after the company reported strong June quarter results and its board approved setting up of an aluminium fluoride manufacturing plant with a capacity of 15,000 MTPA.

Amid global uncertainties, led by Middle East conflict, which resulted in sharp escalation in raw material prices, Paradeep Phosphates said its results were aided by existing supply chain efficiencies, sourcing diversification strategy for key raw material, PAN India Marketplace selling and distribution capabilities.

Paradeep Phosphates said its profit grew 24 per cent year-on-year (YoY) to Rs 393 crore in the June quarter on 36 per cent YoY rise in sales at Rs 6,124 crore. Ebitda for the quarter rose 24 per cent YoY to Rs 764 crore.

Following the development, the stock rose 14.54 per cent to hit a high of Rs 159.50 on BSE.

"Paradeep Phosphates has once again demonstrated strong operational and financial performance for the Q1 FY 27 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," said Managing Director & CEO, Suresh Krishnan.

Aluminium fluoride plant
Krishnan said his company would incur Rs 250 crore investment for setting up Aluminium Fluoride plant at Paradeep. 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, he said.

"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," Krishnan said.

"With this performance, the company has been further able to strengthen its leadership position in the phosphatic fertiliser, it said.