Paradeep Phosphates Q3 FY26: EBITDA Grows to ₹4.7B Despite Margin Compression
Paradeep Phosphates announced Q3 FY26 results showing EBITDA growth to ₹4.7 billion from ₹4.4 billion year-over-year, despite EBITDA margin compression to 8.23% from 8.78%. The company reported revenue growth to ₹57.49 billion but net profit declined to ₹1.82 billion. Board approved re-appointment of N Suresh Krishnan as Managing Director and appointment of K K Rajeev Nambiar as Joint Managing Director.
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Paradeep Phosphates Limited announced its quarterly financial results for the quarter ended December 31, 2025, along with significant board appointments during a meeting held on February 2, 2026. The fertilizer company's board approved both financial results and key leadership changes that will shape its future operations.
Financial Performance Overview
The company's standalone financial results for Q3 FY26 showed mixed performance with revenue growth but declining profitability compared to the previous year. Net profit for the quarter was ₹1.82 billion compared to ₹2.1 billion in the corresponding quarter of the previous year, while revenue increased to ₹57.5 billion from ₹49.9 billion year-over-year.
| Financial Metric | Q3 FY26 | Q3 FY25 | Nine Months FY26 | Nine Months FY25 |
|---|---|---|---|---|
| Revenue from Operations (₹ billion) | 57.49 | 49.90 | 171.24 | 127.65 |
| Total Income (₹ billion) | 57.80 | 50.32 | 172.31 | 128.53 |
| EBITDA (₹ billion) | 4.70 | 4.40 | - | - |
| EBITDA Margin (%) | 8.23 | 8.78 | - | - |
| Profit Before Tax (₹ billion) | 2.33 | 2.89 | 11.26 | 6.73 |
| Net Profit (₹ billion) | 1.82 | 2.09 | 8.41 | 4.91 |
| Basic EPS (₹) | 1.76 | 2.02 | 8.11 | 4.73 |
EBITDA Performance Analysis
The company reported EBITDA of ₹4.7 billion for Q3 FY26 compared to ₹4.4 billion in the corresponding quarter of the previous year, representing a year-over-year growth. However, the EBITDA margin compressed to 8.23% from 8.78% in Q3 FY25, indicating pressure on operational efficiency despite absolute growth in earnings.
| EBITDA Metrics | Q3 FY26 | Q3 FY25 | Change |
|---|---|---|---|
| EBITDA (₹ billion) | 4.70 | 4.40 | +6.82% |
| EBITDA Margin (%) | 8.23 | 8.78 | -55 bps |
For the nine months ended December 31, 2025, the company demonstrated strong year-over-year growth with net profit increasing significantly to ₹8.41 billion from ₹4.91 billion in the corresponding period of the previous year.
Key Board Appointments
The Board of Directors approved two critical leadership appointments that will strengthen the company's management structure:
| Position | Name | DIN | Term | Effective Date |
|---|---|---|---|---|
| Managing Director (Re-appointment) | N Suresh Krishnan | 00021965 | 3 years | February 16, 2026 |
| Joint Managing Director (New Appointment) | K K Rajeev Nambiar | 07313541 | 3 years | April 1, 2026 |
Both appointments are subject to approval by members at the General Meeting. The company confirmed that neither director has been debarred from holding office by SEBI or any other authority.
Leadership Profiles
N Suresh Krishnan brings over 35 years of corporate experience across fertilizer, energy, sugar, and cement sectors. He holds B.E (Hons.) and M.Sc. degrees from BITS Pilani and has served as the immediate past Chairman of Fertilizer Association of India. His expertise spans manufacturing, corporate finance, strategy, and mergers & acquisitions.
K K Rajeev Nambiar is a mechanical engineer from the National Institute of Technology Suratkal with over 31 years of corporate experience. Prior to joining Paradeep Phosphates as President & Chief Operating Officer in January 2024, he served as MD & CEO of Shree Digvijay Cement, where he successfully managed a turnaround of the 1.20 MTPA integrated cement business.
Corporate Developments
The financial results reflect the impact of the Scheme of Arrangement between Paradeep Phosphates Limited and Mangalore Chemicals & Fertilizers Limited, which was approved by the National Company Law Tribunal on September 26, 2025, with an appointed date of April 1, 2024. The company has restated its financial results to include the transferor company's results from the appointed date.
Additionally, the company reported exceptional items of ₹41.30 crores for the quarter, related to the incremental impact of new Labour Codes notified by the Government of India on November 21, 2025. The management continues to monitor developments regarding these regulatory changes.
Historical Stock Returns for Paradeep Phosphates
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.75% | +2.12% | -20.07% | -39.49% | +13.08% | +200.21% |
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