Mumbai: Paradeep Phosphates Limited reported a sharp 65 percent year-on-year decline in consolidated net profit to Rs 121.01 crore for the second quarter of FY27, compared with Rs 341.94 crore in the corresponding quarter last year.
Despite the decline in profitability, the fertiliser manufacturer's revenue from operations increased 7.2 percent to Rs 7,364.06 crore from Rs 6,872.20 crore in the year-ago period.
The company announced its unaudited financial results on Thursday, October 29, 2026.
Revenue Growth
Total income increased to Rs 7,381.81 crore during the July–September quarter, compared with Rs 6,913.91 crore in the same period last year.
However, total expenses rose to Rs 7,217.64 crore from Rs 6,445.39 crore, putting pressure on profitability.
Profit before tax declined to Rs 164.17 crore from Rs 468.53 crore in the corresponding quarter of FY26.
Basic earnings per share (EPS) decreased to Rs 1.16 from Rs 3.30 a year earlier.
Sequential Decline
On a quarter-on-quarter basis, consolidated net profit fell 69.2 percent from Rs 392.55 crore reported in the April–June quarter of FY27.
Revenue from operations, however, increased 20.2 percent from Rs 6,124.25 crore in the preceding quarter.
Total expenses also increased from Rs 5,641.40 crore in Q1 FY27 to Rs 7,217.64 crore in Q2 FY27.
Half-Year Performance
For the six months ended September 30, 2026, Paradeep Phosphates reported consolidated net profit of Rs 513.55 crore, down 22 percent from Rs 658.69 crore in the corresponding period last year.
Revenue from operations during the first half of FY27 increased 18.6 percent to Rs 13,488.31 crore from Rs 11,375.70 crore a year earlier.
Inventory Adjustment
According to the company's financial disclosures, an inventory write-down of Rs 59.98 crore was recognised during the September quarter after assessing the net realisable value of inventories.
The company also stated that subsidy income was recognised in accordance with the existing Kharif subsidy notification, as the Rabi subsidy notification had not yet been issued.
An exceptional item of Rs 21.80 crore was recognised in the preceding quarter following reassessment of employee gratuity and leave liabilities under the Labour Codes. No additional adjustment was required during the September quarter.
Auditor Review
The financial results were approved by the company's Board of Directors on October 29, 2026.
Statutory auditor B S R & Co. LLP issued an unmodified limited review conclusion on the consolidated financial statements.
Disclaimer: This report is based on unaudited financial results filed by the company and does not constitute investment advice.
