Paradeep Phosphates (PARADEEP IN) – Q2FY27 Result Update – Full backward integration by FY29 – Accumulate
Published on 03 Nov 2026
Paradeep Phosphates (PPL) reported consolidated revenue of INR73.6bn and EBITDA of INR4.1bn in Q2FY27. Sales volumes declined 25% YoY to 1mn tn, impacted by below-normal monsoon conditions. EBITDA/tn stood at ~INR4,075, compared with INR7,311 in Q1FY27 and INR4,846 in Q2FY26, reflecting elevated sulphur and other raw material costs, along with supply-side constraints. Management indicated that raw material prices, particularly Sulphur, have started softening, while phosphoric acid prices remained unchanged for Q3FY27. However, the delay in the Rabi NBS subsidy notification and continued raw material price volatility remain key near-term monitorable. At the current market price, the stock trades at 9.6x FY29E EPS. We value the company at 12x Sep'28 EPS, implying a target price of INR148, and maintain our 'Accumulate' rating.
