Paradeep Phosphates filed its Business Responsibility and Sustainability Report (BRSR) for FY26, recording zero lost-time injury frequency rate for employees and workers. The fertilizer manufacturer also reported a significant expansion in its operational footprint following the integration of Mangalore Chemicals and Fertilizers Limited.

The filing, dated August 25, 2026, discloses that the company's total energy consumption rose to 21,873,233.34 GJ, up from 15,126,324.00 GJ in the prior year. This increase aligns with the inclusion of two additional manufacturing plants—Mangalore and Mahad—broadening the reporting boundary from two to four facilities. Despite the higher absolute consumption, energy intensity per rupee of turnover improved to 100.21 GJ/million ₹, down from 109.4 GJ/million ₹.

Operational Safety and Workforce

Safety metrics remained strong throughout the fiscal year. The company reported no fatalities, permanent disabilities, or high-consequence work-related injuries. The Lost Time Injury Frequency Rate (LTIFR) dropped to 0 for both employees and workers, compared to 0.96 and 0.58 respectively in FY25.

The workforce composition saw a reclassification of certain categories. As of March 31, 2026, the company employed 2,163 permanent employees and 4,945 non-permanent workers. Female representation among permanent employees stood at 4.8%, while women constituted 4.7% of the worker population. Turnover rates for permanent employees decreased to 7.4% from 10.2% in FY24.

Environmental Performance

Water management initiatives contributed to a reduction in water intensity. Total water withdrawal increased to 12,982,987.00 kiloliters, yet water intensity per rupee of turnover fell to 59.48 KL/Million from 73.67 KL/Million. The company maintains Zero Liquid Discharge (ZLD) mechanisms across its plants, utilizing closed-loop water cycles and effluent treatment systems.

Greenhouse gas emissions showed mixed trends when viewed against production volumes. Total Scope 1 and Scope 2 emissions rose to 8,14,982.93 tonnes of CO₂ eq. from 5,36,817 tonnes in FY25. However, emission intensity per rupee of turnover declined slightly to 3.73 tonnes of CO₂ eq./Million rupees from 3.88 tonnes. Renewable energy consumption more than doubled to 1,338.50 GJ from 672.8 GJ, reflecting expanded solar and wind initiatives.

What the Numbers Show

A notable divergence exists between absolute environmental footprints and efficiency metrics. While total energy consumption and GHG emissions surged due to the consolidation of four plants under a unified reporting boundary, intensity ratios improved across energy, water, and waste categories. For instance, waste intensity per rupee of turnover dropped significantly to 11.53 MT/Million ₹ from 17.6 MT/Million ₹, indicating that operational scale-up has been accompanied by enhanced resource efficiency rather than proportional waste generation.

Paradeep Phosphates faces a fine of ₹93.59 crore following an adjudication order by the Commissioner of Customs, Goa.

Customs classification dispute

The penalty stems from the reclassification of seven consignments of Prilled Urea. The adjudicating authority held that the imports did not qualify as Technical Grade Urea because the biuret content exceeded 0.80%. Consequently, the goods were classified as Fertilizer Grade Urea, which falls under a prohibited import category without specific permissions.

The order was received by the company on August 20, 2026. Paradeep Phosphates stated it believes it is fully compliant with applicable laws and will pursue legal recourse against the order.

Key details of the penalty

The company disputed the classification, noting that independent surveyors at the load port had reported biuret content within limits. It argued that post-clearance factory tests used for the decision did not follow prescribed sampling procedures under IS 1781:2022. Paradeep Phosphates stated the order is not expected to have a material operational impact on its ongoing business.