Paradeep Phosphates Limited (PPL) has announced that its promoter, Zuari Maroc Phosphates Private Limited (ZMPPL), has entered into a strategic agreement with its shareholders to maintain majority control of the company. This move comes in anticipation of a planned scheme of arrangement between PPL and Mangalore Chemicals and Fertilizers Limited.

Key Points of the Agreement

• Parties Involved: Zuari Maroc Phosphates Private Limited (ZMPPL), Zuari Agro Chemicals Limited (ZACL), and OCP S.A.
• Date of Agreement: July 29, 2025
• Primary Objective: To ensure ZMPPL continues to hold more than 50% of PPL's share capital post-effectiveness of the scheme of arrangement

Details of the Inter-se Agreement

The inter-se agreement establishes ZMPPL as the sole entity authorized to acquire additional securities or voting rights in Paradeep Phosphates on behalf of the promoter group. This arrangement is designed to maintain ZMPPL's control over PPL following the implementation of the scheme of arrangement with Mangalore Chemicals and Fertilizers Limited.

Impact on Company Management

According to the disclosure made to the stock exchanges, there will be no immediate impact on the management or control of Paradeep Phosphates Limited. The company will continue to be majority-held and controlled by Zuari Maroc Phosphates Private Limited, as it has been.

Effective Date

The agreement will become effective from the date when the scheme of arrangement between Paradeep Phosphates and Mangalore Chemicals and Fertilizers Limited comes into effect.

Disclosure and Compliance

PPL has made this disclosure in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company's Company Secretary, Sachin Patil, signed the disclosure document submitted to the stock exchanges.

This strategic move by the promoter group appears to be aimed at ensuring stability in the ownership structure of Paradeep Phosphates Limited as it prepares for potential corporate restructuring. Investors and market watchers will likely keep a close eye on further developments related to the scheme of arrangement and its implications for the company's future operations and market position.

Shares of Paradeep Phosphates Ltd (PPL) surged 17.5% to hit a new 52-week high of Rs 234.05 following the announcement of strong quarterly earnings. The fertilizer manufacturer reported impressive financial results for the first quarter, showcasing significant growth across key metrics.

Quarterly Financial Highlights

PPL reported significant financial growth with EBITDA increasing three times and revenue jumping 58% in Q1. The company's consolidated net profit for the quarter jumped 59.9% year-on-year to Rs 255.85 crore, compared to Rs 160.03 crore in the same quarter last year.

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed remarkable growth, tripling compared to the same period last year. The EBITDA margin expanded by 248 basis points to 12.40% from 9.90%, indicating improved operational efficiency.

Operational Performance

Paradeep Phosphates, India's second-largest private sector phosphatic fertilizer company, manufactures non-urea fertilizers including DAP (Di-ammonium Phosphate) and various grades of NPK (Nitrogen, Phosphorus, and Potassium) fertilizers. The company's strong performance can be attributed to its robust product portfolio and efficient operations.

Market Reaction

The market responded positively to PPL's financial results, with the stock price surging 17.5% to reach a new 52-week high of Rs 234.05. This significant uptick reflects investor confidence in the company's growth trajectory and operational capabilities.

Future Outlook

Paradeep Phosphates is targeting margin expansion and long-term growth through several strategic initiatives:

1. Backward Integration: This strategy aims to reduce costs and improve supply chain efficiency.
2. MCFL Merger: The planned merger with MCFL (Mangalore Chemicals and Fertilizers Limited) is expected to create synergies and enhance market presence.
3. Product Diversification: The company is focusing on expanding its product range to cater to diverse agricultural needs.

As Paradeep Phosphates continues to strengthen its position in the fertilizer industry, investors and analysts will be keenly watching its future performance and the execution of these growth strategies.