Paradeep Phosphates Limited announced its audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, at its Board of Directors meeting held on May 11, 2026. The results, audited by M/s. BSR & Co. LLP with an unmodified opinion, reflect a significant improvement in profitability and revenue on both standalone and consolidated bases, supported by the merger of Mangalore Chemicals and Fertilizers Limited (MCFL) with effect from the appointed date of April 1, 2024. In FY26, revenue from operations increased 29% YoY to ₹21,826 crore, EBITDA rose 33% YoY to ₹2,259 crore, PBT increased 46% YoY to ₹1,328 crore, and PAT stood at ₹1,000 crore, up 52% YoY.

Standalone Financial Performance

The company delivered strong financial performance for FY26 on a standalone basis. Revenue from operations rose to Rs. 21,826.34 crores for the year ended March 31, 2026, compared to Rs. 16,958.65 crores in the year ended March 31, 2025. Total income for the full year stood at Rs. 21,972.92 crores against Rs. 17,106.69 crores in the prior year. Net profit for the year reached Rs. 996.84 crores, up from Rs. 662.85 crores in FY25. The following table summarises the key standalone financial metrics:

On the cost side, raw material consumption for the full year stood at Rs. 13,247.47 crores (FY25: Rs. 10,303.90 crores), while finance costs were Rs. 527.78 crores (FY25: Rs. 443.18 crores) and depreciation and amortisation expenses were Rs. 403.20 crores (FY25: Rs. 344.29 crores). The company recognised an exceptional item of Rs. (39.42) crores for FY26, relating to the incremental financial impact of four Labour Codes notified by the Government of India on November 21, 2025.

Q4 FY26 Performance

For Q4 FY26, the company reported revenue of ₹4,702 crore, EBITDA of ₹484 crore, PBT of ₹202 crore, and PAT of ₹161 crore. On a year-on-year basis, Q4 EBITDA rose to Rs. 4.4B from Rs. 3.5B in the corresponding quarter of the previous year. The Q4 EBITDA margin, however, moderated slightly to 9.40% compared to 9.93% in the same period last year. The key Q4 profitability metrics are summarised below:

Operational Highlights

Production and sales volumes recorded healthy growth in FY26. Production volumes grew 8% YoY to 36.66 LMT, while sales volumes rose 10% YoY to 42.10 LMT. Growth was led by strong performance in value-added NPK grades; NPK as a category (including TSP) grew 22% YoY to 24.64 LMT. Despite global uncertainty and volatility in key raw material availability and pricing, coupled with INR depreciation, the company delivered consistent performance through high operational agility, backward integration, and supply chain and sourcing efficiencies. The following table captures key operational metrics:

During FY26, the company commissioned a Sulphuric Acid Plant at Paradeep (500,000 MTPA) and at Mangalore (100,000 MTPA), increasing Sulphuric Acid capacity at the company level by 0.6 MMTPA, representing a 45% capacity increase. The Phase 1 expansion of phosphoric acid capacity — from 0.5 MMTPA to 0.7 MMTPA — at Paradeep is underway and is expected to be commissioned in FY27, as part of the company's plan to double phos acid capacity from 0.5 MMTPA to 1 MMTPA.

Consolidated Financial Performance

On a consolidated basis, which includes Paradeep Phosphates Limited and its associate Zuari Yoma Agri Solutions Limited, the company reported revenue from operations of Rs. 21,826.34 crores for FY26 (FY25: Rs. 16,958.65 crores) and total income of Rs. 21,972.92 crores (FY25: Rs. 17,106.69 crores). Consolidated net profit for the year was Rs. 996.35 crores compared to Rs. 662.13 crores in FY25. The company's share of net loss from its associate for the year ended March 31, 2026 was Rs. 0.49 crore. Total comprehensive income on a consolidated basis was Rs. 1,000.81 crores for FY26 against Rs. 657.62 crores in FY25. Consolidated basic EPS stood at Rs. 9.60 and diluted EPS at Rs. 9.59 for FY26.

Balance Sheet Highlights

The standalone balance sheet as at March 31, 2026 reflects total assets of Rs. 17,935.92 crores, compared to Rs. 14,268.77 crores as at March 31, 2025. Total equity stood at Rs. 6,782.66 crores (March 31, 2025: Rs. 5,875.33 crores), comprising equity share capital of Rs. 1,038.17 crores and other equity of Rs. 5,744.49 crores. Key balance sheet items are presented below:

Cash Flow Summary

On a standalone basis, the company reported net cash used in operating activities of Rs. (1,011.86) crores for the year ended March 31, 2026, compared to net cash generated of Rs. 1,647.86 crores in the prior year, reflecting significant working capital build-up including an increase in inventories of Rs. (2,038.39) crores and an increase in trade receivables of Rs. (1,725.96) crores. Net cash used in investing activities stood at Rs. (557.50) crores (FY25: Rs. (694.38) crores), while net cash generated from financing activities was Rs. 998.31 crores (FY25: Rs. (389.13) crores). Cash and cash equivalents at the end of the year stood at Rs. 363.45 crores, compared to Rs. 934.50 crores at the beginning of the year.

Scheme of Arrangement and Business Combination

The financial results incorporate the impact of the Composite Scheme of Arrangement between Paradeep Phosphates Limited and MCFL, approved by the Bangalore and Cuttack benches of the National Company Law Tribunal (NCLT) on September 24, 2025 and September 26, 2025 respectively, with an appointed date of April 1, 2024. The company restated its financial results from April 1, 2024 to include the financial results of MCFL. Additionally, on September 30, 2025, MCFL (merged with the company) completed the acquisition of a part of the business of Zuari Agro Chemicals Limited (ZACL), including its granulated single super phosphate plant at Mahad, Maharashtra, on a slump sale basis, resulting in recognition of goodwill of Rs. 2.24 crores.

The results excluding the impact of the scheme from the retrospective appointed date are as follows (standalone basis):

Management Commentary

Commenting on the performance, Mr. N. Suresh Krishnan, Managing Director & CEO, said: "PPL has demonstrated robust operational and financial performance for the FY26 reflecting the strength of our integrated operations and our resilience to navigate the global volatility. In FY26, we have been able to achieve 3.67 MMTPA of Fertilizer production, achieving almost 100% capacity utilization of our existing capacities reflecting our continued endeavour for manufacturing excellence. At the marketplace in FY26, we have been able to grow our NPK sales (including TSP) by 22%, on the strength of our deep distribution network capabilities spanning across 18 states and strong brand equity. The enhanced long term credit rating AA-(stable) shall aid in our strive to optimize our working capital and long-term finance cost. Sustainability remains core to our operations and during the year FY26 we achieved S&P Global ESG score of 76 and ranked in top 2 percentile in the Global Chemical Sector."

Dividend and Corporate Governance

The Board of Directors recommended a dividend of Rs. 1.50 per equity share of Rs. 10 each fully paid up for the financial year ended March 31, 2026, subject to the approval of shareholders at the ensuing Annual General Meeting. The Board also approved the re-appointment of Mrs. Rita Menon (DIN: 00064714) as an Independent Director for a second term of three years with effect from June 27, 2026, subject to shareholder approval. Mrs. Menon holds an M.A. in Economics from the Delhi School of Economics and is a retired Indian Administrative Service officer who joined the Civil Services in 1975. She has served as Secretary in the Ministry of Textiles, Government of India, and as Chairman and Managing Director of the India Trade Promotion Organisation. The company confirmed that Mrs. Rita Menon has not been debarred from holding the office of Director by any SEBI order or any other authority. The company's operations fall within a single business segment — Fertilisers and Other Trading Materials — and no separate segment information has been disclosed.

Paradeep Phosphates Limited has filed reports from its Audit Committee and Independent Directors dated May 11, 2026, certifying the completion of distribution of sale proceeds from fractional shares to eligible shareholders of Mangalore Chemicals & Fertilizers Limited (MCF). The certification has been made in compliance with SEBI Master Circular No. SEBI/HO/CFD/POD-2/P/CIR/2023/93 dated 20th June, 2023, and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Background: Composite Scheme of Arrangement

The Composite Scheme of Arrangement amongst MCF (Transferor Company) and Paradeep Phosphates (Transferee Company) and their respective shareholders and creditors was approved by the Hon'ble National Company Law Tribunal, Bengaluru Bench vide its Order dated September 24, 2025, and the Hon'ble National Company Law Tribunal, Cuttack Bench vide its Order dated September 26, 2025. As of October 16, 2025 (Effective Date 2 as defined in the Scheme), MCF merged with and into Paradeep Phosphates and stands dissolved without being wound up.

Eligible equity shareholders of MCF as on the record date of October 31, 2025, were allotted equity shares of Paradeep Phosphates on December 03, 2025, in the share exchange ratio of 187 fully paid-up equity shares of Rs. 10 each of Paradeep Phosphates for every 100 fully paid-up equity shares of Rs. 10 each of MCF. The allotted shares rank pari-passu in all respects with the existing fully paid-up equity shares of Paradeep Phosphates.

Share Allotment and Fractional Entitlements

Pursuant to the Scheme, Paradeep Phosphates allotted a total of 22,16,23,331 equity shares of Rs. 10 each to eligible equity shareholders of MCF. This included the allotment of 23,217 equity shares of Rs. 10 each as Fractional Shares. The Board of Directors appointed PPL Merger Trust, managed by Vistra ITCL (India) Limited as Trustee, to hold the Fractional Shares in trust on behalf of the eligible equity shareholders of MCF.

In terms of the Scheme and the SEBI Master Circular, the Fractional Shares were required to be sold in the open market within 90 days from the date of allotment, with net proceeds distributed to the respective eligible equity shareholders in proportion to their fractional entitlements. Accordingly, the Fractional Shares were allotted directly to the PPL Merger Trust and sold in the open market at market price.

Distribution of Sale Proceeds

The distribution of sale proceeds, after deduction of expenses incurred, was completed on May 08, 2026. The following table summarises the financial details of the transaction:

Certification by Audit Committee and Independent Directors

The Audit Committee, comprising Mr. Dipankar Chatterji (Chairperson), Mr. Satyananda Mishra, Mrs. Rita Menon, and Mr. Karim Lotfi Senhadji, certified that Paradeep Phosphates has compensated the eligible equity shareholders by distributing the sale proceeds of the fractional entitlements in accordance with the provisions of the Scheme and the SEBI Master Circular.

The Independent Directors present at their meeting included:

• Mr. Satyananda Mishra
• Mr. Dipankar Chatterji
• Mr. Subhrakant Panda
• Mrs. Rita Menon
• Mrs. Ruchira Kamboj
• Mr. Marco Philippus Ardeshir Wadia

Mr. Dipankar Chatterji was unanimously elected as Chairman of the Independent Directors' meeting. The Independent Directors similarly certified that the distribution of proceeds from the sale of consolidated fractional entitlements was made to eligible shareholders in proportion to their entitlements, in full compliance with the Scheme and the SEBI Master Circular. Both reports were signed by Mr. Dipankar Chatterji (DIN: 00031256) on May 11, 2026, at Bangalore.