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Paradeep Phosphates Ltd

| Quarterly Financial Results Q3 FY 2025-26

NEUTRAL SENTIMENT

Report Source

⬤2nd Feb 26

Summary : Paradeep Phosphates reported Q3/9M FY26 results, re-appointed MD, appointed Joint MD, and completed a significant amalgamation and acquisition, while addressing new labor code impacts.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Standalone Cost of raw materials consumed: Q3 FY26: Rs. 4,201.07 Cr; 9M FY26: Rs. 9,922.92 Cr.
  2. Consolidated Cost of raw materials consumed: Q3 FY26: Rs. 4,201.07 Cr; 9M FY26: Rs. 9,922.92 Cr.
  3. Exceptional item (Labour Codes impact): Rs. 41.30 Cr for Q3 and 9M FY26.
  4. Standalone Revenue from operations: Q3 FY26: Rs. 5,748.67 Cr; 9M FY26: Rs. 17,124.37 Cr.
  5. Consolidated Revenue from operations: Q3 FY26: Rs. 5,748.67 Cr; 9M FY26: Rs. 17,124.37 Cr.
  6. Standalone Paid up equity share capital: Rs. 815.21 Cr.
  7. Standalone Other equity: Rs. 5,060.12 Cr.
  8. Consolidated Paid up equity share capital: Rs. 815.21 Cr.
  9. Consolidated Other equity: Rs. 5,059.80 Cr.
  10. Unaudited standalone and consolidated financial results presented.
  11. Consolidated results include the Company and Zuari Yoma Agri Solutions Limited.

Corporate Overview

  1. Assessed incremental impact of new Labour Codes as an 'Exceptional item' (Rs. 41.30 crores).
  2. Associate company: Zuari Yoma Agri Solutions Limited.
  3. Operates in a single business segment: 'Fertilisers and Other Trading Materials'.
  4. Factual and compliant, reporting board decisions and financial outcomes.
  5. Acquisition of part of Zuari Agro Chemicals Limited (ZACL) business, including a granulated single super phosphate plant.
  6. Composite Scheme of Arrangement for amalgamation with Mangalore Chemicals & Fertilizers Limited (MCFL).

Risk Factors

  1. Acquisition fair value allocation provisional.
  2. New Labour Codes impact uncertain.
  3. Measurement period adjustments possible.
  4. Associate financial data unreviewed.

Key Drivers

  1. MD re-appointed, ensuring leadership continuity.
  2. New Joint MD strengthens management team.
  3. Amalgamation scheme successfully approved.
  4. ZACL business acquisition completed.

Auditor’s Report

  1. Unmodified opinion for both standalone and consolidated financial results.
  2. Restatement of financial results due to Composite Scheme of Arrangement (amalgamation) with retrospective appointed date of 01 April 2024.
  3. Corresponding amounts for prior periods based on transferor company's unaudited/audited results reviewed by another auditor.
  4. Company's share of net profit/loss from associate based on unreviewed interim financial information, deemed not material.

Board Commentary

  1. Re-appointment of Mr. N Suresh Krishnan as Managing Director and KMP for three years w.e.f. 16.02.2026.
  2. Appointment of Mr. K K Rajeev Nambiar as Joint Managing Director and KMP for three years w.e.f. 01.04.2026.
  3. Both appointments are subject to approval by members at the General Meeting.
  4. Government of India notified four Labour Codes on November 21, 2025, consolidating 29 existing labour laws.
  5. Acquisition of part of Zuari Agro Chemicals Limited (ZACL) business.
  6. Amalgamation of Mangalore Chemicals & Fertilizers Limited (MCFL) with the Company via a Composite Scheme of Arrangement.

Corporate Governance

  1. Audit Committee reviewed standalone and consolidated financial results.

Management Discussion & Analysis

Operational Focus Areas

  1. Monitoring finalisation of Central/State Rules and clarifications regarding new Labour Codes.

Risk Control Measures

  1. Purchase price allocation for ZACL acquisition expected to be completed within one year (by 30 September 2026).
  2. Management continues to monitor Labour Code developments for accounting effect.

Critical Risks

  1. Potential for measurement period adjustments in fair value of acquired assets and liabilities from ZACL acquisition.
  2. Uncertain financial impact from newly notified Labour Codes.