Mumbai: Rama Phosphates’ December quarter earnings show a dip in profitability despite consistent revenue. The company posted a net profit of Rupees 402.56 lakh in Q3 FY26, compared to Rupees 1,728.34 lakh in Q2, marking a 19% sequential decline. This follows a sharp earnings recovery earlier in the fiscal, with Q1 profit at Rupees 603.32 lakh, pushing 9M PAT to Rupees 734.22 lakh versus Rupees 42.27 lakh in the same period last year.
Revenue remains resilient
Revenue from operations stood at Rupees 23,799.76 lakh in Q3, slightly lower than Rupees 24,565.73 lakh in Q2 but up 32% from Rupees 17,961.84 lakh in Q3 last year. The fertilizers, micronutrients, and chemicals segment continued to be the primary revenue driver, contributing Rupees 21,804.45 lakh. However, the Soya/Agri division remained volatile, with a minor pickup from Q2’s negligible base.
Profit hit by cost and tax
The sequential profit drop was largely due to higher material costs and a sharp rise in tax expenses, which stood at Rupees 507.58 lakh in Q3 versus Rupees 561.28 lakh in Q2. While operating expenses were largely flat, the absence of earlier tax reversals seen in Q2 skewed the comparison. Finance costs also rose to Rupees 302.20 lakh from Rupees 221.15 lakh in Q2.
Outlook driven by project ramp-up
Despite Q3 softness, the company remains optimistic, with a greenfield SSP fertilizer plant at Dhule expected to start trial production in Q4 FY26. Management continues to prioritize the fertilizers segment while extending the Nimbahera lease for five more years, indicating confidence in long-term volume growth.
Rama Phosphates’ FY26 results so far reveal strong year-on-year gains, though quarterly volatility underscores the need for cost control and diversification.
