Paradeep Phosphates Ltd (NSE: PARADEEP) Q3 2026 Earnings Call dated Feb. 04, 2026
Corporate Participants:
Rajeev Nambiar — President & Chief Operating Officer
Analysts:
Manish Mahawar — Analyst
Sucrit Patil — Analyst
Prashant Biyani — Analyst
Shubhra Tripathi — Analyst
Saumil Shah — Analyst
Varun Arora — Analyst
Sandeep Mukherjee — Analyst
Preet Nagarsheth — Analyst
Dhruv Muchhal — Analyst
Gagan Thareja — Analyst
Preeti Jain — Analyst
Jignesh Kamani — Analyst
Dev Gulwani — Analyst
Anik Mitra — Analyst
Nitin Kaushik — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to 3Q and 9 month FY26 earnings con call of Paradeep Phosphates Limited hosted by Antique Stockbroking Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Ladies and gentlemen, good day and welcome to 3Q and 9 month FY26 earnings con call of Paradeev Phosphates Limited hosted by Antique Stockbroking Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during the conference call, please signal an operator by pressing star on your touchtone phone. Please note that this conference is being recorded. I now have the conference over to Mr. Manish Mahawar from Antique Stockbroking Limited. Thank you. And over to you sir.
Manish Mahawar — Analyst
Yeah, thank you. Good morning everyone. I am pleased to host today’s earning call of Paradigm. We have leadership team represented by Mr. Rajiv Nambaya, COO. Mr. Harshly Singh, Chief Commercial Officer, Mr. Bijoy Biswal, CFO and Mr. Alok Satyna, Head Corporate Finance and higher on the call. Without further ado, I would like to hand over the call to Mr. Namiyar for public comment post which will open the floor for Q A. Thank you. And over to Rajesha.
Rajeev Nambiar — President & Chief Operating Officer
Thank you Manish and good morning everyone and a Warm welcome to Parati4State earning call for the quarter ended December and the nine months of 2026.
I appreciate your time and interest in our company. I trust you have seen our earnings presentation and press release which have been circulated and are available in our website and stock exchanges. Let me give you an overview of Q3 and the nine months completed FY25 26. We have been quite consistent and robust for PPL reflecting the strength of our operations and our resilience to navigate the global volatility. Happy to report that the production rose 13 percentage year over year in Q3 to 1 million tonnes. And this is a successive to the second quarter. We are doing a million ton production growth as led by the value added, NPK grade and NPK category which has grown by 30% on YTD for the last nine months.
Production and sales reached 2.86 and 3.37 million tonnes up by 15% and 17% respectively. For the year to date revenue grew by 34 percentage, EBITDA by 45% and PAT by 71 percentage year on year. That was a reflection of both volume growth and quality of 20 let me also update you on some of the strategic progress. We have completed our fifth evaporator at Paradeep facility and which is in operation now. This is after the completion of the 1500 tons of sulfuric acid plant which is stable and reach the rated production capacity and this evaporator is also going to help us in terms of strong phosphoric acid which was actually little waterless for us.
Now we come back to the original state and urea capacity. MCF has also been expanded by around 30,000 tons per year on an annual basis in Q3 for the shutdown. Sulfuric as a plant at Mangalore which is on 300 tons capacity will be commissioned in the end of the quarter 4 of 2526. An energy improvement project at Gova is also likely to be completed by the last quarter of this year. The force asset expansion from 0.5 million to 0.7 million is underway and the increase in Forsas will enable us the company to meet substantial requirement of force acid at both GOA as well as Mangalu through the excess force acid at Paradee.
Thus directionally we endeavor to make all our sites 100% backward integrated phosphoric acid units. This will significantly improve the quality of earnings per tonne at company level. Also we are looking re bottleneck opportunity at Paradeev to increase the granulation capacity from 1.8 million to 2 million tonnes. The benefits of these projects as enumerated earlier will likely to give us incremental EBITDA for 2027. Our long term and short term credit rating has been upgraded to A and A1 respectively reflecting our strong fundamentals and improved credit rating which will help us to optimize our cost of capital for the capexes.
We continue with our endeavor of offering farmers with innovative products and helping to achieve balanced fertilization and optimizing the last mile delivery through digital interventions. Through our expanded distribution and digital outreach we now engages over 12 million farmers across 18 states supported by more than a lakh retailers and 6,800 dealers and a strong on ground advisory network. Looking ahead, we remain optimistic about the fertilizer demand, continued government thrust on soil health and the rising shift toward balanced and specialized nutrient applications. However, we believe that the global uncertainty will remain and the volatility in key raw material prices and the currency volatility will put pricing pressure in the short term.
We continue to invest in our expansion plan as per the schedule and we believe the expansion will enable us to increase our economies of scale and deepen our market presence. We continue to invest in Achieving manufacturing excellence and a LED manufacturing intervention for agility and sustainability being one of the core ethos of our operations. In summary, PPL remains focused to deliver consistent and operational resilience and continued endeavor for strategic growth and expansion. Thanking all of you. I now open the floor for questions.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press STAR and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Sucre Deep Patil from Eyesight Fin Trade Private Limited. Please go ahead.
Sucrit Patil
Good morning to the team. I have two, two questions. My first question is. Just give me a moment please. Yeah. My first question is. Thank you for the detailed commentary. I wanted to take a step beyond what was covered in the opening remarks. Given the dependency on imported raw materials and the variability in demand across crop cycles, how does management think about balancing volume growth, product mix and margin stability as conditions evolve? Looking ahead, what changes in farmer demand, input availability or pricing dynamics would most influence a shift in this priority? That’s my first question.
I’ll ask my second question after this. Thank you.
Rajeev Nambiar
Thank you for the question. It’s important question actually. Even though the current condition is actually we are under little pricing pressure but a lot of optimization is going back in terms of the product profitability and the portfolios along with the manufacturing excellence. Actually we are driving that. So if you look at actually our basic volumes have been shifting from low profitability product to the higher profitable product which has been very consistently followed for the this year we can see the flagship product N20 has been actually moved quite faster and little pressure in terms of DAP profitability.
So this is an ongoing thing actually to make sure that availability to the farmer is ensured. At the same time our guided number like we strongly believe actually the EBITDA guidance of minimum 4,500 to 5,000 is actually an achievable target for us even though off late will little pressure in terms of the international volatility. But we are gauged up in terms of optimizing our product mix as well as the pricing of the raw materials. Thank you. My Second question to Mr. Bijoy is I have a forward looking from a monitor monitoring point of view as raw material prices, subsidiary flows and working capital cycles move through the year, what are the key internal indicators you track? Mostly Closely to anticipate pressure or improvement in margins and cash, cash flow.
You know, before these show up on the balance sheet. I want to understand your point of view on this. Thank you. Good. You know, in fact this December closing we had little bit due to high raw metal prices which has moved northward in form of sulfur and ammonia. So the working capital, the borrowing has increased little bit due to higher investment in this inventory and debtors. But what we understand that this is going to, this is a position what we have taken consciously where this will get liquidated and you will have this, you know, getting back into that, you know, converted to cash.
So I don’t see per se, I don’t foresee that, you know, it will be going largely to impact our profitability and this is well within the control and we’ll be able to sell through whatever the stock we are having and the debtors we are having. You know, this. I don’t foresee any sort of challenge in meeting this requirement and the company, our limits and all things is well, well managed and we have got enough limit to also see that, you know, we don’t have any liquidity issue. Thank you and best of luck for the next quarter.
Yeah, sorry,
Sucrit Patil
I said thank you and best wishes for your next quarter.
Rajeev Nambiar
Okay, thank you. Thank you. Thank you.
operator
Thank you. The next question is from the line of Prashant Biani from Elara Security. Please go ahead.
Prashant Biyani
Yeah, thank you for the opportunity. Mrs. Nambia, what is your view on the next NBS subsidy revision? What should the trajectory be?
Rajeev Nambiar
Prashant, if you see the NBS formulation as well as the current pricing which has happened for the past six months, we expect actually NBS support could be crucial and it is going to happen for coming. It will be difficult to tell a number but I think it will be very positive. That’s what our industry feel. And Prashant, just to add, the government has put in a very robust process on the way they define NBS for the next season.
And everything has been discussed with the industry as a stakeholder team. And finally we have seen that the last three, last four or eight quarters the subsidiaries has been quite positive and supportive to the government. So we are sure that government will continue in the same spirit and that will not be a challenge for the next fiscal year. Yeah, Prasanth, to add that to our, you know, the budget allocation of subsidy is quite good in this, you know, last budget. So what was that? You know what you see that there is an increase of around, you know, 5 to 7% in the budget allocation for the subsidy.
And we will take care of this entire the subsidy requirement for this 2627. And generally government support in case there is a need. So we are quite positive about that. Sure. And sir, of the total capex of 3,600 crore that we are doing. If I have to bifurcate product wise how much we do be the capex for 1 million ton granulation and for 0.25 phosphorus and 0.75 million ton sulfuric acid at granulation will cost you around 800 crores. And the standalone of 300,000 will cost you another 800 to 900 crores. Including sulfuric acid. Sulfuric acid.
What we are planning at paradip that point three million of phosphate and one million of sulfuric acid will cost around 1500 crore. Okay. Out of 1500800 could be for force and remaining for sulfuric acid. Yes. Yes. Right. And sir, at MCFL site what is the quantum of sulfuric acid capacity expansion? It is 300 per day which is almost nearing completion now. Okay. Currently we have got 100 million metric ton per day. Which is going to 400 metric ton per day. Right. And sir, regarding the energy efficiency project for the Goa site. So we I think last year only initiated or completed a energy efficient program.
In this round of energy efficiency how much is the quantum of benefit in terms of gcal per metric then we are anticipating. And how much is the investment that we are planning? Goa. Actually we are going to complete this energy efficiency program by end of this quarter. And we will reduce it by 0.3. And that will release substantial amount. And we are expecting a supportive energy norms. New energy norms coming up. Which is expected to get announced anytime during this quarter. And this will take down the energy consumption to what level? Currently we are at 6.4.
We will come down to 6.1. And what is the investment? Current 220 crores. Payback period could be around 3 to 4 years. 3 to 4 years. Okay.
operator
Sorry to interrupt. Mr. Biani, please rejoin the queue for more questions. Yeah. Thank you. Before we take the next question, a reminder to all. If you wish to ask a question please press star and 1. The next question is from the line of priest Nagashek from Wellspin wizard. Please. Mr. Nagesha, you. Your line is unmuted. Please go ahead. As there is no response from the current participant we’ll move on to our next participant. The next question is from the line of Shubhra Tripathi from Krish Capital. Please go ahead.
Shubhra Tripathi
Good morning sir. Thanks for the opportunity. Firstly, resilient performance considering the sulfur prices which have moved up so sharply. What would be the Y o wide change of sulfur for PPL compared to last year? Can you repeat the question? What was the year over year change of sulfur price for TTN compared to last year?
Rajeev Nambiar
Typically sulfur used to hover around 150 to 200 now. It has reached 540 to 550 now. And all our sourcing is imported or is there some sourcing from IOC paradip as well? We do have actually sourcing of molten cell from IOC for paradib as well as sourcing from MRPL for mangal chemicals.
And my second question is regarding the. There was recent news announcement regarding some agreement with Stacey Solar Energy for offtake of clean ammonia at Paradeep site and Wasite. So there is no announcement or any detail shared in the presentation. Could you share some more light on how you plan to go about this? This is. It’s a preliminary stage and you know as and when it will unfold, you know we’ll share the details. Basically this is an offtake agreement. We have to get with the SEKI and we expect actually when, whenever SEKI is ready we will sign it.
But as far as manufacturing and supply is concerned, it is for a third party. Any tentative timeline for this which financial agreement could be happening anytime soon. But in fact the production and supply could be taking time. So maybe in next two to three years. Yes, yes.
Shubhra Tripathi
Okay. That’s it from my side sir. Thank you. Thank you.
operator
Thank you. The next question is from the line of Shah from Paris Investments. Please go ahead.
Saumil Shah
Yeah. Hi sir. Good morning. I would like to know what is our net debt as on 31st December?
Rajeev Nambiar
So net Debt is around 5,450 crore 31st December.
Saumil Shah
Okay. And. And what would be our subsidy receivable as on 31 December? This net debt is both, you know working capital as a long term debt and subsidy receivable is around 3,780 crores. Okay. Okay. So normally in how much period we receive the subsidy. So I mean can you quantify approx. How much is due in the current quarter and how much is it in the next year.
Rajeev Nambiar
So this is you know out of that generally the subsidy based on the cost sales, you know this sales made to the farmer.
So what we know out of this 3700 or 780 whatever we are talking this all you know based on this farmer said it will be receivable, you know out of that around thousand Tour is what already sales has happened which is going to come and balance quantity 1. Whenever this pharmaceutical happen that will be received. Okay, so only thousand is already. I mean thousand subsidies already about. I mean sold. So that thousand is receivable. Other balance is not yet sold. Yes, yes. So typically you will have two to three weeks of subsidy outstanding at any given point of time.
Saumil Shah
Okay? Okay. Okay. Understood. And can we know what was the EBITDA burden for this quarter? What is the reason for drop 700 rupees per metric turn this quarter? Sorry, I could. I couldn’t get the number. 4700 per metric turn. Okay. Okay. And I think we were targeting about 5,000 from Eric Ton for this year.
Rajeev Nambiar
If you look at it on YTD basis, you know we are already 5,400 sort of. So yes, you know, the 5,000 is quite achievable on a yearly basis. Okay. And how much of our prices is depending on natural gas prices? Sorry, how much of our raw material price is depending on natural gas prices? Because I think there is a huge.
No, it is not much because natural gas price determine the urea price which is a pass through.
Saumil Shah
Okay, so we are not much affected with the natural gas prices, right?
Rajeev Nambiar
Yes. Yes.
Saumil Shah
Okay. Okay. And if I. If I could know.
operator
Please rejoin the queue for more questions.
Saumil Shah
No problem. I’ll begin the queue. Thank you.
operator
Thank you. Yes, the next question is from the line of Varun Arora from MK Global. Please go ahead.
Varun Arora
Yeah, hi sir, thank you for the opportunity. Just to check one clarification I need on the avatar. So your guidance on EBITDA is what? Basically I missed that number. So can you just say it again? Can you repeat it? You know the question. But you said the number on ebitda. I didn’t get that number. Can you just repeat it? Just a clarification.
Rajeev Nambiar
A big number for this quarter is 4700. And you know our guided number for the whole year basis is around 5,000 rupees per metric. Number is five, right? Yeah. YTD number is 5,300, you know, till December.
And as a year we say that, you know, it will be 5,000 rupees. Okay. And what’s your further guidance for FY27? If you can say sir, I think FY27. See our endeavor is that, you know, we should have in around 4,500 to 5,000 rupees. And it all depends on this envious policy and you know, this raw metal prices and how much you are able to pass on to the consumers. You know, this is the price. So we are in the process, you know it is not, you know maybe but our. It looks that we should get around 5000 rupees.
Okay sir. And so on the debt side. So that’s the approximate 5,400 crores tech right now you’re holding. So any going forward, you know any plan to reduce it or just. Or this is we going to stagnant for some time. What’s your, you know plan for? That’s the last question. We are, we. It’s important thing for us to make sure that the debt is not crossed over. We are taking a lot of operation measures to see that the tighter control on the inventory management the same time availability is also ensured. So this should actually in the coming quarter and subsequent quarters it should actually soften down.
Varun Arora
Okay. Okay. Thank you so much sir. Thank you.
operator
Thank you. The next question is from the line of Sandeep Mukherjee from SKP Securities Ltd. Please go ahead.
Sandeep Mukherjee
Thanks for taking the question.
operator
Sorry to interrupt. Mr. Mukherjee, can you please speak a little louder, we are unable to hear you.
Sandeep Mukherjee
Yes sir, thanks for taking my question. Sir, my question is like what was the gas cost and EBITDA per ton for urea? Can you. Can we are not able to hear you. Can you speak a little bit loudly? Is it okay now sir, am I audible better but be louder kindly. Yes. So what was the gas cost and EBITDA per turn for the urea? The gas cost is around 12 but the EBITDA is around 3000 rupees. And what is the short term debt on the book? Sir for the nine months
Rajeev Nambiar
short term. You know if you talk of working capital we have got around 4200 crores.
Long term is 1235 crores. Okay. Okay sir, and my last question is like what was the capex spend for the nine months? No, we have spent almost 450 crore in this nine months period. Okay sir, one more question. We currently we are operating more or less at the same MRP levels which were in Q2. So just to share with you, the MRPs have been improved for the NPK this year. Only product with the MRT remain the same as urea and DP which there is a kind of a guidance otherwise for npk. We have been taking price changes from time to time.
Sandeep Mukherjee
Okay. Okay sir, that’s it for my side. Thank you.
operator
Thank you. Ladies and gentlemen, the management line has been disconnected. Please hold while we get them reconnected. Ladies and gentlemen, thank you for being on hold. We have management connected now on the call. Over to you sir.
Rajeev Nambiar
Is there any more questions?
operator
Yeah, we have next question from the line of Preet Nagashit from Wealth and Visa. Please go ahead.
Preet Nagarsheth
Sure. So I wanted to understand sir the, the product mix that you employ and the reason I ask is that the government is trying to improve the access of SSP and other products more and more. So what happens to the DAP that you make and how do you see the product mix evolving for the next financial year?
Rajeev Nambiar
Very good morning to you. See how the product mix is evolving is directionally our focus is on balance nutrition and we’ve been gradually going into a company which is more dominantly into an NPK portfolio. So if you look at the portfolio of products, some of the products that we are doing, the flagship product that we have is 2020013 which is what we call the Captain.
And that, that’s what we done. The current positioning then we have got 10, 26, 26, 12, 32, 16, triple 19. That’s a complete range of NPK. And in the portfolio volume if you look at it, Almost more than 45 to 50% is NPK mix. So that’s the direction, the other key direction that we’re taking is promoting basically high newton new efficient products like Nano. So that’s the other portfolio change that we’re doing. Okay, so but how do you see the spanning out for DAP versus ssp? What is your view on that on the ground? So my view is overall, I mean the government also is trying to encourage balance creation and there is a shift happening towards the npk.
So this year if you look at the farmer consumption sales there has been a kind of a reduction in the DAP sales but the farmer still keeps demanding dap. So there is a need for a greater awareness. So as a category leader that’s what we’re trying to do that communicate to the farmers the benefits of the balance use of nutrition and the shift happening towards the NPK category. If you look at the market also today, the NPK segment is today bigger than the DAP segment. But yes there is a segment almost 40, 45% of the market which is still on DAP.
And the other pioneering leadership step that we have done as CPL is that we have we also encouraging the use of alternate to DP which is TFP which has got 46% phosphorus but you don’t at least overuse nitrogen there. So that, that’s the shift that we try to also lead in the market. So for this when the availability of rock phosphate becomes important so how are you ensuring security for that? So how we are ensuring security is if you look at the value chain partnership that we have, you know we have partnership with OCP in terms of securing our rock value chain which is the most important source as far as P205 is concerned and for finished product also for TSP and DAP, we have a strategic partnership with OCP Nutri Corps.
So that that’s how we try to ensure. And as far as our own manufacturing is concerned, which is very robust and we are one of the few companies which has a very, very robust portfolio of NPK product in the country. So that’s what we are trying to do to ensure there is availability. And as you’ve seen our footprint, we have played in 18 states today in the country and with a wide reach, almost covering 1 lakh retailers. Understood. So if you add all this up, what kind of volume or top line guidance do you think can come into play for FY27? Yeah.
So volume three, if you look at it last year we achieved 3 million ton the thing and this year the guidance is 4 billion ton plus. So that, that’s what we are basically gearing up for it. We have already done 3.38. Okay, give me 526. I was suggesting FY27 if you have any sense on that. Yes. So we normally don’t give a guidance for the next year but we would be planning a robust growth for the next year. However, the overall objective would be to optimize basically and strengthen our NPK portfolio mix. So that’s what we are gearing up and we will have a robust growth in the next year also.
Preet Nagarsheth
Wonderful. Thank you so much.
operator
Thank you. The next question is from the line of Dhruv Muchan from HDFC amc. Please go ahead.
Dhruv Muchhal
Yes sir. Thank you so much. Sir. Can you give the sulfuric acid and phosphate production for the quarter? You typically give this in the presentation. I think this time it is.
Rajeev Nambiar
So we have produced 4.5 lakh metric ton for this quarter and force received around 1.45 lakh metric ton. Got it. Thank you. The other question was on the, on the inventory. Now typically what we see is this is I’m looking at the change in inventory that you report in the package. Typically we see a buildup in 1Q as the season longs and then drawdown in the next two quarters.
This time the drawdown seems to have not happened as much. So any what is. I mean just trying to understand what’s leading to this. No, see out of this Increase in the, you know, inventory mainly the increase in raw material. So that is. That’s a constant decision that you know, we have a price volatility as well as the rupee depreciation. Keeping all this in mind, this, you know there is a increase in the raw metal stock which is definitely going to be utilized in this quarter. You know, you know, upcoming quarter and finished goods and traded goods.
Yeah, that is well within control. Generally this December a little bit, you know, inventory buildup happens which get liquidated in starting from April onwards. Got it. So if it is possible, if you can suggest how much is the. In quantity terms, how much is the fertilizer inventory at the company level, Finished goods inventory at the company level this year and I mean December and last year. We’ll share with you that data separately. Sure. Okay. And so the other question was on the expansion. The P acid and the sulfuric acid expansion that we are ongoing. So what’s.
I mean I think you announced last quarter. So now what trees are we. Have we done the equipment ordering? I think EC and FC EC clearances already. We have. Any progress that you can highlight in terms of equipment ordering. Other stuff that you might have prepared? Dhruv, Both the unit asset plant, the EC is available for parents and for mangalore. Actually we applied for the EC and the for the granulation unit. Actually the EC application is already on and we are expected to go for the public hearing coming one or two months and by August, September we will get the EC clearance for the granulation expansion paradigm.
Also as far as the status is concerned, actually all the key equipment manufacturers already roped in and the technical discussions are in the final stage. And once the parameters in frozen actually by end of March April we should be able to get the commercials finalized and get ordered. Perfect. And. Yeah, that’s.
Dhruv Muchhal
That’s all. Thank you so much and all the best. Thank you.
operator
Thank you. The next question is from the line of Gagan Thareja from Grow Mutual Fund. Please go ahead.
Gagan Thareja
Good morning. I hope I’m audible. Can you be little louder? Yeah. The first question is on. On the false acid capacity addition of 0.2nm which is stipulated for FY27. When exactly in FY27 will this be commissioned Q2 of 27 and the 0.1mm TPA sulfuric acid addition in. In the Mangalore site for FY27 will be again commissioned by N.
Rajeev Nambiar
That is this quarter actually Q4 of this year we’ll commission that. So Q4 there is. You see if I go by your Q2 presentation, there is a 0.03nm TPA sulfuric acid which is addition which is budgeted for FY26, which I think you mentioned will get commissioned in Q4 of this year.
But then there is another 0.1mm TPA which is budgeted for FY27. I was talking about that. That is actually the brownfield expansion of the existing capacity that technical negotiations are going on. Actually once they’re clear about the equipment ordering, we should be able to finish that, right? And sir, in FY26B, sulfuric acid capacity at Paradis as per this presentation is indicated at 1.9 mm TPA. Just want to understand this is. I think there was a. There was an addition done in FY26 in Paradis sulfuric acid. Can you tell me how much was this and when was this was it commissioned? It is commissioned the month of December, September end and now stabilized.
This is 1500 tons per day plant. It has already reached the rated capacity and working pretty well. Okay. On an annual basis, how much would it be? You said 1500 TPD. In MMTPA terms that would be how much And I’m sorry, I’m unable to understand. Almost like 5 lakhs. So. So 0.5 million out of the 1.9 happened. Okay. Yes. And in force acid, the. The 0.5 got commissioned fully by FY25 itself and would be fully utilized. Yes. It’s also completed the rated outputs. And that’s the thing. We know we’re going for expansion in two phases.
This. Okay, so these sulfuric acid backward integrations that you have recently sort of commissioned and the 2 million that you’ll be commissioning next year in FOS asset, what sort of, you know, benefits in, you know, in EBITDA per terms could this. Typically when you expand the process it. The spread is $150 per ton between a captive and imported processor. So to that extent the benefit will flow to the earning of the company for the next year. For the sulfuric acid, the main advantage is power and also the netback. And that spread is typically $50.
Gagan Thareja
Okay.
And you’re also doing some energy saving initiatives.
operator
Sorry to interrupt. Gagan, please rejoin the queue for more questions. Yeah, all right.
Gagan Thareja
Thank you.
operator
Thank you, ladies and gentlemen. In order to ensure that the management will be able to address questions from all the participants in the conference, please limit your questions to two per participant. Should you have a follow up question, please rejoin the queue. The next question is from the line of Preeti Jain an individual investor. Please go ahead.
Preeti Jain
Hi, good morning.
Rajeev Nambiar
Morning. Morning.
Preeti Jain
Am I audible?
Rajeev Nambiar
Yes sir.
Preeti Jain
I wanted to check in terms of the tax expense in the quarter. Our current effective tax in the quarter has been 2021%. While the same has been 2028% 27% in the last previous quarter. What is that big change that has resulted into a tax differential?
Rajeev Nambiar
Yeah, well this is. You know. You know this tax impact is mainly on account of regular tax as well as deferred tax. So when we took over this mangrove plant, there is a valuation impact. You know, there is a timing difference, permanent difference. And on account of that you see this impact the taxes so generally should be around 25%. But you know you are saying two. 20% in the current quarter.
Rajeev Nambiar
Sorry.
Preeti Jain
We are saying that just because of certain expenses wherein we are beneficially the effective tax system has become 20%. And this is percentage sustainable ahead.
Rajeev Nambiar
Yeah. See the timing difference and permanent difference on account of the deferred tax we get actualized. We see that in an around 22 to 23% tax impact tax expenses.
Preeti Jain
But the deferred tax has not changed. The Deferred tax amount was 7 crore last year and 4 crore current year. There is a negligible impact because of a deferred tax.
Rajeev Nambiar
Now Karen, then you please respond to you specifically on this question referring to the results.
Preeti Jain
The previous quarter deferred tax charge was 7.67 crore. And the current deferred tax charge is 3.68 crores. So there is a negligible gap because of the deferred tax change. There is a significant difference in the current tax. Okay, what is the reason for that change?
Rajeev Nambiar
Why don’t you send your query separately to the id? We’ll respond to that.
operator
Okay. Miss Preeti, you want to ask more questions? That. That was from my side. Thank you so much. Thank you. The next question is from the line of Jignesh Kamani from Nippon Mutual Fund. Please go ahead. Sorry to interrupt. Mr. Kamani, we are unable to hear you. There is a lot of background noise from your side. Can you please speak a little louder?
Jignesh Kamani
Yeah. So at the Mentor UEA plant five year window will be over this much, right? So just want to know what will be the revenue or the profit. Hello.
operator
Sorry sir, but we are unable to hear you. Hello. Can you please use your handset mode? Yeah, yeah, go ahead.
Jignesh Kamani
Yeah. So in the manual Juria plant. I think five year benefit of the energy efficiency over this much. I suppose. Just want to know what would be the EBITDA impact post expiry of data and its efficiency on the mangrove plant
Rajeev Nambiar
they don’t can’t make out what is asking.
Jignesh Kamani
So in urea we had a in mangalore urea plant we did a energy efficiency measure capex I think for five years ago. So we are enjoying the benefit of that I can say which is expiring this much. Right. So yes, profitability at the urea plant will be reduced from this March onwards. So just want to know what will be intake on on that.
Rajeev Nambiar
No, right now this the impact will be around three to four thousand rupees per metric ton Due to this energy impact changes fundamental. One more thing. Yeah. Because the new sulfuric acid which is going to come by under this masterfully the additional energy will be pumped back to the urea plant where we’ll have a significant saving. So this could be not fully nullified. Large extent will nullify. Understood. Second thing on the capex the current ordering of the equipment and the visibility.
Can you provide the separate commencement date for both Paradeep and the Mengalovskite separately For both granulation and the integration Paradep is typically after ordering around 22 months we are targeting a stretched one and Mangalore will take little more. Mainly because the some configurations and special requ is different than Paradis that you can. We can update you actually once the ordering is completed. So tentatively Paradis will be around March 28th and manga would be around December 28th. That could be. Yeah, yeah,
Jignesh Kamani
sure. Okay, thanks.
operator
Thank you. The next question is from the line of Dave Gulwani from CARE pms. Please go ahead.
Dev Gulwani
Hi. Thank you for the opportunity. So company has recently done will be doing debottlenecking for backward integration and expansion in sulfuric and phosphoric acid for FY28 also. So how much incremental EBITDA per turn we can expect for FY27 and FY28?
Rajeev Nambiar
So as you said earlier, the incremental EBITDA will come from the increased process at capacity. As we said, we will extend from 5 lakh to 7 lakh by Q2 of next year. So to that extent the incremental EBITDA flow will happen for the next year. Also the energy efficiency projects, the evaporator that we enumerated in the opening call.
So all these projects will get us, you know, good incremental EBITDA for FY2 and for FY28 after the 100% backward integration. Yes, directionally the sustainable EBITDA per term that we give at 5000 rupees now with one side being 100% backward integrated. When all the sites get 100% backward integrated and assuming that all other things remain same, the sustainable EBITDA portion is likely to improve by 30 to 35%. And also in your speech you mentioned that earning quality should improve going forward. Can you please elaborate? That’s what I said. 30 to 35% will improve when we have all the sites backward integrated.
Dev Gulwani
Okay, thank you.
operator
Thank you. The next question is from the line of Shubhra Tripathi from Krish Capital. Please go ahead. Sir.
Shubhra Tripathi
With regard to the upcoming NBS rate revision. So considering that sulfur prices have gone up by 3.5 to 4 times but cost asset has not really gone up that sharply. So will it have an adverse impact?
Rajeev Nambiar
No, this, you know we can’t be specific about the cost to rate. But you know what we can say. Say that if you compare the last year budget allocation visa is this year’s, you know there is a increase of around 5 to 7%. So keeping that in line, we expect that there will be some incremental, you know, increase in this for turn NBS rate.
So but we have to wait for this 5print or the government notification. But you know there is a strong feeling that there will be increase in this, you know, NBS rate. My question was mostly with regard to what has happened historically. The phosphor content, the phosphor rate has been increased in the past one year. But sulfur, they have not really increased that sharply. And right now see this year the value chain for sulfur has got impacted because of the current the Ukraine, Russia situation. So there’s a temporary effect which happened on a part of the supply chain for sulfur.
We expect that also to get normalized maybe another two months time. That’s the expectation. And fossil value chain is a demand and supply primarily for the NPK and maps. And that’s the reason why typically you’ve not seen the similar kind of impact. But sulfur has kind of behaved abnormally. It’s not the normal behavior for sulfur and we expect that to get normalized.
Shubhra Tripathi
Okay, thank you so much.
operator
Thank you. The next question is from the line of Anik Mitra from Phenomic Solutions Private Limited. Please go ahead.
Anik Mitra
Am I audible? Sir? Yes. Yes. Yeah sir. As like we have found that NPK is contributing more in the in your total portfolio at this point in time. And I believe that that is the trend of the country that we are getting more inclined towards NPK than dep. So you are backward integrating your DAP facilities. So from that aspect I understand that Your facilities are fungible as well. Now considering from that context how significant it is backward integrating your DAP facilities, maybe you will be producing more that will be quite normal. Like that NPK will contribute more in your portfolio going forward as well.
No. So just to clarify, the expansion that we are doing is in the production of granulation and that is totally fungible. Okay. So the product mix is totally determined by the market requirement and the kind of drivers of profit and growth. So when we are saying we are expanding the granulation train in Paradis by a million tonnes, the product mix is going to be a combination of NPK and dac. But we can completely move on to complete NPK in. In that portfolio. Sir, I was referring for means you are backward integrating force asset that I was referring to.
Yeah. So you’re back to it. Integrating FOX asset to kind of power all your granulation train with a dominant NPK portfolio. Okay, so like whatever the inter capacity you are planning to utilize in that the similar kind of utilization will be there if you incline like if you start producing more NPK as well. Is my understanding correct? Yeah, that is how we planned it out. That’s how the capacity expansion plan for phosphoric acid to power the complete granulations. If you look at it where we are dominantly GOA and Mangalore is already totally npks. Okay. So paradigm we do a little bit of tc.
Okay. Okay. And sir, in terms of this processed backward integration you said 250. If I’m not wrong, you said USD 250 per metric ton will be the benefit. Am I sorry to interrupt.
operator
Mr. Mitra. Please Rej. Come.
Anik Mitra
I’ll come back. I’ll come back to the interview. Sir, please answer this question.
operator
Mister.
Anik Mitra
Yeah, I asked the question.
operator
Can you please repeat your question again?
Anik Mitra
Sir, Iing that the f acid benefit from the phosphate integration. Backward integration. So in US dollar you say 250 per metric ton. Am I correct or I have missed something? You can take it as 150. 150 per metric. USD 150 per metric ton. Right? Yeah. Okay. Okay. Thank you so much.
operator
Thank you. The next question is from the line of Nitin Kaushik from AFIN Capital Private Limited. Please go ahead. So good morning sir.
Nitin Kaushik
Thank you for the opportunity.
operator
My question is after the merger with MCFL and with all these synergies coming up and also the capacity expansion happening, can you please guide us on long term EBITDA margin coming up. So can we maintain about 10% mark going forward or by how much quantum Would it increase?
Rajeev Nambiar
Your voice is not very clear. Can you repeat the question a little bit louder?
Nitin Kaushik
Hello sir, is it clear now?
Rajeev Nambiar
Better. Better now?
Nitin Kaushik
Oh yes sir, my question was after the merger with MCFL and with all the synergies coming up and all this capacity expansion happening can you please guide us on long term EBITDA margins coming up? I was asking if we can maintain about 10% mark going forward or by how much quantum would it improve.
Rajeev Nambiar
Already we are, we are. This E margin right now is 11%. So we’ll be, you know we’ll be maintaining that sort of margin.
Nitin Kaushik
Okay.
Rajeev Nambiar
Yes.
Nitin Kaushik
The second question was can you please specify the amount of total capex which would be incurred in FY26.
Rajeev Nambiar
FY26. Already we have spent around 450 crores, you know 2546. So another 50 crore will be spent. So the first year we’ll be closing at 500 crore. And next year you know the budget is at, you know our table. Capex around maintenance, capex around 350 crore.
Anik Mitra
Okay sir, thank you.
Rajeev Nambiar
Thank you. Okay.
operator
Thank you. The next question is from the line of Prashant Peani from Elara Securities. Please go ahead.
Prashant Biyani
Yeah, so thanks for the opportunity again sir. How much was the subsidy received in Q2.3 and how much is the gross debt? No, we have received subsidy of around 2,500 crore in Q3 and the second gross gross date is around 5,000. You know 5,400 crores out of that after netting of this investment. Okay sir, any price have we taken in Fertilizer specifically in Q3. If you see we had taken Prashant a price increase for the NPKs primarily N10 and N12 and how much? So we had increased our MRP from around 1900 level to almost 2025, 2011.
Okay. And so lastly how much is the current stock of DAP NTK lying in the channel at the end of Q3. Okay so. So currently we have got DAP stocks which is approximately around 1 lakh 6000 as far as channel is concerned. And NCK stocks are of 5 lakh. Done. ESP. Sorry tsp. Tsp. We’ve got approximately 65,000 tons of ESP stock. Okay, thank you so much.
operator
Thank you. The next question is from the line of Raghan Sareja from grow mutual fund. Please go ahead.
Gagan Thareja
So my question is on the ebitda. I think last quarter you indicated that with all these backward integration measures next year you could incrementally add another 350360crores to your EBITDA, if I remember it correctly from your transcript. And I mean in the interim, some input prices have moved up sharply. So do we maintain that, you know, we can next year add that sort of a number to the EBITDA on this year’s closing number? I think the we continue to say that all the incremental EBITDA from the backward integration that we have planned and the projects that we have completed will be in the line that we discussed last time.
But obviously it is subject to the global price movements and we’ll see how the price movements pans out in next year. And given your capacity expansion plans, how should we think of your gross debt movement from the current levels? How will it move going ahead? Gross debt will be around 0.75 of the equity. We will be maintaining that, you know, at that level, you know, we don’t want to leverage it further. So it will be hovering around the same round. Thank you. Thanks for taking question.
operator
Thank you ladies and gentlemen. We’ll take that as the last question for today. I now hand the conference over to the management for closing remarks.
Rajeev Nambiar
Thank you for taking the time to join our earning call by all the investing community. Should you have any further questions, please reach out to our investor relations team. Thank you once again and have a good day. Thank you. Thank you.
operator
Thank you very much on behalf of NP Stockbroking limited that concludes this conference. Thank you all for joining us today and you may now disconnect your lines.
Rajeev Nambiar
Thank you. Thank you.