The Phosphate Company , a manufacturer of superphosphate fertilizer and sodium silicofluoride, has released its unaudited financial results for the quarter ended September 30, 2025. The company's performance shows a mixed picture with significant revenue growth but continued losses.

Financial Highlights

*Net Profit

Revenue Growth and Operational Performance

The company witnessed a substantial increase in revenue from operations, which more than doubled to Rs 3,075.52 lacs in Q2 FY26 from Rs 1,405.92 lacs in the previous quarter. This significant jump in revenue indicates a strong recovery in the company's core business activities. However, when compared to the same quarter last year (Q2 FY25), there is a decline from Rs 3,915.75 lacs, suggesting some year-on-year challenges.

Profitability Concerns

Despite the revenue growth, The Phosphate Company reported a net loss of Rs 248.67 lacs for Q2 FY26. This loss, while concerning, is an improvement from the loss of Rs 299.22 lacs in the same quarter of the previous year. The company's earnings per share (EPS) stood at negative Rs 6.89 for the quarter, reflecting the impact of these losses on shareholder value.

Half-Yearly Performance

For the first half of FY26, the company recorded a total income of Rs 4,537.40 lacs, slightly lower than the Rs 4,728.19 lacs reported in H1 FY25. The net loss for H1 FY26 was Rs 168.92 lacs, showing an improvement from the loss of Rs 349.54 lacs in the corresponding period of the previous year.

Cost Pressures and Inventory Management

The company's cost of material consumed increased significantly to Rs 2,847.45 lacs in Q2 FY26 from Rs 1,034.74 lacs in Q1 FY26. This surge in material costs, coupled with an increase in inventory levels, suggests that the company may be preparing for anticipated demand or facing challenges in managing its supply chain efficiently.

Balance Sheet Position

As of September 30, 2025, The Phosphate Company reported total assets of Rs 17,131.98 lacs, up from Rs 12,650.43 lacs at the end of the previous fiscal year. The increase in assets was primarily driven by a rise in inventories and trade receivables, indicating potential working capital management challenges.

Management Approval and Audit Review

The Board of Directors approved these results in their meeting held on October 31, 2025. The financial statements have undergone a limited review by the company's statutory auditors, S K Agrawal and Co Chartered Accountants LLP, who have not raised any significant concerns in their review report.

Outlook

While The Phosphate Company has shown strong revenue growth quarter-on-quarter, the persistent losses and increased costs present challenges. The management may need to focus on cost optimization and operational efficiency to translate the revenue growth into profitability. Investors and stakeholders will likely be watching closely to see if the company can capitalize on its revenue momentum to achieve a turnaround in profitability in the coming quarters.

Phosphate Company , a key player in the agro-input sector, has announced its financial results for the quarter, showcasing a remarkable turnaround in profitability and significant revenue growth.

Financial Highlights

• Net Profit: Rs 79.75 lacs vs. Net Loss of Rs 50.32 lacs in the same quarter last year
• Revenue from Operations: Rs 1,405.92 lacs, up 76% year-over-year from Rs 796.89 lacs
• Total Income: Rs 1,416.53 lacs, a 75% increase from Rs 808.15 lacs in the previous year quarter
• EBITDA: Rs 219.05 lacs, a substantial rise from Rs 28.77 lacs in the same quarter last year
• Earnings Per Share (EPS): Rs 2.21, compared to a loss of Rs 1.39 per share in the corresponding quarter last year

Performance Analysis

The company has demonstrated a strong financial performance in the quarter. The significant improvement in revenue and profitability indicates a robust recovery and growth trajectory for Phosphate Company.

Revenue Growth

The company's revenue from operations saw a substantial increase of 76%, rising to Rs 1,405.92 lacs from Rs 796.89 lacs in the corresponding quarter of the previous year. This growth reflects the company's strong market position and increased demand for its products.

Profitability Improvement

The most notable aspect of the results is the company's shift from a net loss to a healthy profit. The net profit of Rs 79.75 lacs marks a significant turnaround from the net loss of Rs 50.32 lacs reported in the same quarter last year. This improvement in profitability can be attributed to increased operational efficiency and better cost management.

EBITDA Performance

The company's EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) showed remarkable growth, increasing to Rs 219.05 lacs from Rs 28.77 lacs in the previous year's quarter. This substantial rise in EBITDA indicates improved operational performance and cost efficiency.

Seasonal Nature of Business

It's important to note that Phosphate Company operates in the agro-input business segment, which is seasonal in nature. The company has stated that the performance of a particular quarter may not be indicative of the full year's results.

Conclusion

Phosphate Company's strong quarterly performance sets a positive tone for the future. With significant improvements in revenue, profitability, and operational efficiency, the company appears well-positioned for continued growth. However, investors should consider the seasonal nature of the agro-input business when evaluating the company's long-term prospects.

Investors are advised to consult financial experts before making investment decisions based on these results.