Paradeep Phosphates (PARADEEP IN) – Q4FY26 Result Update – Full backward integration by FY29 – Accumulate
Published on 13 May 2026
Paradeep Phosphates (PPL) reported consolidated revenue of Rs47bn in Q4FY26, up 12% YoY, however there was 10% YoY decrease in sales volumes. Gross margins expanded by 480bps, supported by strategic raw material sourcing and inventory management. Management indicated that inventory levels remain adequate for Q1FY27, though prolonged disruptions may pose sourcing challenges going forward. All existing capacities operated at full utilization during FY26. The company is undertaking 1mmtpa granulation capacity expansion and debottlenecking initiatives at its Paradeep plant, which are expected to drive volume growth from H2FY27 onwards. On the capex front, PPL increased its sulphuric acid capacity to 2mmtpa from 1.4mmtpa in FY26 and is on track to double phosphoric acid capacity to 1mmtpa by early FY29, enabling full backward integration upon completion.
While elevated raw material prices may exert near-term margin pressure, we believe the company’s integrated operations, scale expansion will support sustained earnings growth over the medium term. At CMP, PPL trades at ~10x FY28E EPS, we value the company at 11x FY28E EPS with a target price of Rs141 and maintain ‘Accumulate’ rating
