Rama Phosphates reported a year-on-year increase in net profit for the quarter ended June 30, 2026 (Q1FY27), driven by strong top-line growth in its core Fertilizers, Micro Nutrients & Chemicals segment. Net profit after tax rose 6.4% to ₹1,706.44 lakhs from ₹1,603.32 lakhs in the corresponding quarter of the previous year. Revenue from operations expanded by 18.1% to ₹22,479.59 lakhs, up from ₹19,031.35 lakhs, reflecting robust demand and operational scale-up despite margin pressures. The Board of Directors approved the unaudited financial results on July 24, 2026, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance Overview

The company’s total income for Q1FY27 stood at ₹22,554.84 lakhs, compared to ₹19,094.74 lakhs in Q1FY26. Profit from operations before exceptional and extraordinary items increased to ₹2,281.23 lakhs from ₹2,146.32 lakhs. Total expenses rose to ₹20,273.61 lakhs from ₹16,948.42 lakhs, primarily due to higher cost of materials consumed, which jumped to ₹17,135.55 lakhs from ₹12,935.62 lakhs. Finance costs also increased to ₹405.23 lakhs from ₹351.79 lakhs. Earnings per share (basic and diluted) were reported at ₹4.82, up from ₹4.53 in the prior year period. The statutory auditor, Khandelwal & Mehta LLP, issued a limited review report on the results.

Segment-wise Contribution

The Fertilizers, Micro Nutrients & Chemicals segment remained the primary growth engine, with revenue rising 25.4% to ₹22,122.71 lakhs from ₹17,640.30 lakhs. The segment’s result before interest and taxation improved to ₹2,867.46 lakhs from ₹2,753.67 lakhs. In contrast, the Soya/Agri segment saw revenue decline sharply to ₹356.88 lakhs from ₹1,391.05 lakhs and posted a loss of ₹28.18 lakhs, compared to a loss of ₹27.85 lakhs in the previous year. This divergence highlights the concentration of profitability in the chemical and fertilizer business. The company does not have any subsidiary, associate, or joint venture companies as of June 30, 2026.

Capacity Expansion Updates

Rama Phosphates is advancing several capacity expansion projects. The company has received Environmental Clearance for its new Greenfield project at Dhule, aimed at manufacturing 216,000 MTPA Single Super Phosphate (SSP) Fertilizer and 90,000 MTPA Sulphuric Acid. Phase-I of this project is in its final stages, with trial production expected by September 2026. Additionally, the Udaipur unit is undergoing an expansion of 65,000 MTPA for SSP, which will raise the unit’s capacity to 315,000 MTPA and the company’s overall SSP capacity to 979,000 MTPA. New plants for Magnesium Sulphate (MgSO₄), Potash Derived from Molasses (PDM), and Phosphate Rich Organic Manure (PROM) are also being set up at Udaipur. The company holds a long-term credit rating of "A-" by ICRA.

What the Numbers Show

The financial results indicate a clear divergence between top-line growth and cost inflation. While revenue grew by 18.1%, total expenses surged by 19.6%, compressing operating margins. The significant jump in material costs (₹17,135.55 lakhs vs ₹12,935.62 lakhs) suggests input price pressures are outpacing sales realizations. However, the company maintained absolute profit growth through volume expansion in its core fertilizer segment, offsetting the underperformance in the Soya/Agri division. The ongoing capacity expansions signal management’s confidence in long-term demand, though near-term margin stability will depend on effective cost pass-through mechanisms.

Rama Phosphates Limited has fixed Friday, July 31, 2026 as the record date to determine member eligibility for a dividend of ₹0.25 per equity share. The dividend, recommended by the Board of Directors at its meeting held on May 18, 2026, is for the financial year ended March 31, 2026. The payout is subject to deduction of tax at source and declaration at the upcoming Annual General Meeting (AGM).

The 41st AGM of the Company is scheduled to be held on Thursday, August 13, 2026, at 3.00 p.m. IST through Video Conferencing (VC) or Other Audio Visual Means (OAVM). The Board had recommended a dividend of ₹0.25 per equity share, which is 5% of the face value of ₹5 each. If declared at the AGM, the dividend will be paid on or after Thursday, September 3, 2026.

Shareholders entitled to vote on the resolutions must hold shares as of Thursday, August 6, 2026, which has been set as the cut-off date. The remote e-voting period will commence on Sunday, August 9, 2026, at 9:00 a.m. IST and conclude on Wednesday, August 12, 2026, at 5:00 p.m. IST. Those attending the AGM via VC/OAVM who have not cast their votes remotely will be eligible to vote during the meeting.

The Company has engaged Central Depository Services (India) Limited (CDSL) to facilitate the e-voting process. M/s. Kavita Raju Joshi, Practicing Company Secretaries, has been appointed as the Scrutinizer to ensure the remote e-voting process is conducted fairly and transparently. The Notice of the AGM and the Annual Report for FY 2025-26 have been dispatched electronically to members with registered email addresses.

Physical copies of the Annual Report will be sent only to members who specifically request them. The documents are also available on the Company’s website and the websites of the Bombay Stock Exchange and the National Stock Exchange of India.