Paradeep Phosphates Ltd (NSE: PARADEEP) Q1 2026 Earnings Call dated Jul. 30, 2025
Corporate Participants:
Unidentified Speaker
Rajeev Nambiar — Chief Operating Officer
Harshdeep Singh — President & Chief Commercial Officer
Bijoy Kumar Biswal — Chief Financial Officer
Analysts:
Unidentified Participant
Riju Dalui — Analyst
Prashant Biyani — Analyst
Ahmed Madha — Analyst
Pratik Oza — Analyst
Ramesh Sankaranarayanan — Analyst
Krishan Parwani — Analyst
Dhruv Muchhal — Analyst
Vignesh Iyer — Analyst
Sandeep Mukherjee — Analyst
Manish Mahawar — Analyst
Amit Agicha — Analyst
Ritik Shrawak — Analyst
Ajit Sethi — Analyst
Gagan Thareja — Analyst
Shaurya Punyani — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to The Paradeep Phosphates Limited Q1FY26 earnings conference call 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 and then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Riju Dhalui from Antique Stock Broking Limited. Thank you. And over to you, sir.
Riju Dalui — Analyst
Thank you. Good morning everyone. On behalf of NHL Grouping, a warm welcome to all the participants on the call of Aradi Prospect today. From the management side we have Mr. Rajiv Namlia, Chief Operating Officer. Mr. Harshkit Singh, Chief Commercial Officer. Mr. Digay Rumar Biswal, Chief Financial Officer. Mr. Alok Sapsena, Chief Head Corporate Finance and Mr. Sukna, DGM Strategy IR and ESC. On the. Without any further ado, I would like to hand over the call to Mr. Namdar for his opening remarks whose tweets will open the flip of Q and A. Thank you. And over to you, sir.
Rajeev Nambiar — Chief Operating Officer
Thank you. Thank you, Rajiv. Good morning everyone and welcome to Paradis Phosphate Q1FY 2026 earning conference call. Thank you for joining us today and for your continued interest in Paradis Phosphate. I trust you have reviewed our earnings presentations and press release which are also available on our website and with the stock exchanges. The fertilizer sector began FY26 on a solid footing. Support by a favorable monsoon patterns, healthy reservoir levels and government initiatives to promote. Soil health and balanced nutrient applications. With this backdrop, Paradif Phosphate delivered a strong start to the fiscal year through operational discipline and execution strength. Capitalizing on sustained demand for phosphatic fertilizers. For the first quarter, revenue from operation rose 58% YoY to 3754 crores. EBITDA including other income nearly doubled to 493 crores. While profit before tax increased to 342 crores. Profit after tax reached a level of 256 crores driven by higher production and sales volumes, strong sales velocity and improved product mix, backward integration and strategic sourcing. Operationally. Pleasure.
operator
Ladies and gentlemen, the line for the management has been disconnected. Please be on hold while we reconnect them. Thank you. Ladies and gentlemen, the line for the management has been reconnected. Please go ahead, sir.
Rajeev Nambiar — Chief Operating Officer
Operationally we produce 6.64 lakh ton of finished fertilizers up 23% year on year and achieved primary sales of 7.42 lakh tonnes, a 34% increase over the same period last year. Our product portfolio included diverse NPK grades In addition to DAP, a flagship N20 grade maintained strong momentum delivering sales of 2.24 lakh tonnes. We also sold nearly 7 lakh bottles of our indigenously developed biogenic nano fertilizers during the quarter, underscoring their role in enhancing nutrient absorption and improving farm yield. On the intermediary front, phosphoric acid production grew 22% year on year to 1,13,000 tonnes while sulfuric acid output increased 30% to 2 83,000 tons, further strengthening our integrated operations.
We maintain a healthy net to debt equity ratio of 0.77 times, continue to operate with a lean cash conversion cycle and leveraged our supply relationship and capital infrastructure to secure raw materials at competitive cost. Despite elevated input prices, progress on our strategic growth projects also continued as planned. The sulfuric acid capacity expansion paradigm from 1.39 million tonnes per annum to 2 million tonnes is on schedule for commissioning by the third quarter of this fiscal year. The phosphoric acid expansion which will raise capacity from 0.5 million to 0.7 million ton annum is progressing well and is expected to be completed within the next two years.
Additionally, our proposed merger with Mangalore Chemicals and Fertilizers which receives shareholder approval in June is advancing through the final stages of NCLD process upon completion. This will enhance our scale and market reach. We intend to announce our further CAPEX and growth plans following the conclusion of the merger process. Looking ahead, we remain confident of sustaining our momentum through FY26 supported by above normal monsoon forecast, stable subsidy disbursements and increasing demand for value added and soil specific fertilizers. With our integrated supply chain, flexible production capabilities, Pan India distribution network and established brand equity paradigm, phosphate is well positioned to deliver consistent growth and long term value for all the stakeholders.
Thank you once again for joining us today and for your continued trust in Paradis Phosphates. I will now be happy to take your questions. Thank you.
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 your touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen will wait for a moment while the question queue assembles. The first question is from the line of Prashant Biani from Elara Capital, Please go ahead.
Prashant Biyani
Yeah, thank you for the opportunity, sir. Congratulations on great financial performance. While you have mentioned in the opening remark, but if you can elaborate further as to what drove this extraordinary growth in ebitda.
Rajeev Nambiar
Thank you, Prashant. I think if you look at it actually our production volumes jumped up and early onset of monsoons and which is actually aided in terms of increased sales volume. If you look at it, we have an increase of sales volume plus 30 percentage compared to year over year. And the product mix also helped us in terms of optimizing whatever resources we have in terms of converting to EBITDA levels. And our backward integration programs which are going on all sorts of. Well, for Sullivan Gas It’s 0.5 million. We could actually completely make a target clear.
And the further expansions also will drive our future things.
Prashant Biyani
Sure. So between the three levers of high volume growth, backward integration benefit and maybe some inventory gains, how was the contribution of all three?
Harshdeep Singh
Just good morning here. So if you look at it dominantly, the volume growth of 34% significantly contributed to the growth in the revenues and the bottom line. The further thing was even with the combination of Rajiv was saying the benefit because of backward integration and the market realization in line with the market requirement, we could take realistic pricing for our NPK grades which resulted in a revenue growth higher than the volume growth. So that’s what helped us really get good EBITDA in the first quarter.
Prashant Biyani
So how much price increase have you taken?
Harshdeep Singh
So currently like the complex fertilizers, like 10, 26. 26. They’ve been in the range of 1850-1900 rupees a bag. If you remember, they used to be earlier capped at around 1470 rupees a bag.
Prashant Biyani
Right. Okay. And Paradeep’s view is very well restricted within the government circle. So what would be your view as a company on the trajectory of subsidy for H2?
Rajeev Nambiar
We can’t comment on this. We will have to wait till. Till we have the government notification.
Harshdeep Singh
And Prashant, you are familiar with the process which the government follows. Okay. They typically tend to look at the cost curve from Jank to June. Okay. And that should be in the right direction.
Rajeev Nambiar
Yeah. And just adding I think we have been getting a good support that that will continue for the.
Prashant Biyani
Sure. Okay, I’ll jump back to the queue. I have some more questions.
operator
Thank you. Thank you very much. The next question is from the line of Ahmed Madha from Unified Capital. Please go ahead.
Ahmed Madha
Thanks for the opportunity and congratulations on great Execution and financial performance. I have three questions. First to start with in terms of understanding the strategy behind the mix, I can see the traded volumes this quarter have been much lower while we have manufactured a decent amount of dap. So in terms of changing the mix in terms of increasing DAP trading and manufacturing more npk what is the thinking behind the entire product mix and mix between the training, manufacturing and also any thoughts creating more PSP as well as gmp?
Harshdeep Singh
Yeah, Good morning Harshtip here. See the strategy is to maximize the NPKs. That is as far as manufacturing strategy is concerned and we are moving well in that respect. Our quarter one growth for NPKS has been 48% compared to the regular portfolio growth of 35%. So that direction we continue that trading we are going to look at supporting the market strategically and we will be doing both DEP and TSP in the Q2 because arrivals would happen but the objective will be to do profitable trading volumes. So that’s how our overall core strategy is.
Ahmed Madha
My second question is on the increase in RM prices the sulfur prices have. Been up materially and same as with fossil prices. I’m not sure how the rock prices. Are moving for you guys considering you. Have long term contracts but do you see any material change in profitability margins for the balance of Harriet season? I understand you answered to Prashant that you cannot comment for the next because. The subsidiary has to be announced but. For the balance of the Khari season do you see any major risk in terms of.
Rajeev Nambiar
These prices have been actually going up and we see some of the area now a little softening maybe. I think it is certain area it is peaked out but I think sulfur it is showing some little softening. Other things remain little on the growing side only But I think counter this if you look at it actually our operation efficiency has actually been quite stronger actually and in Q2 are probably Q1 we are taking most of the shutdowns and other things. So Q2 in terms of operational efficiency ability to produce would be much better than Q1 and overall if you look at it, the early monsoons and availability of more crop area all those things basically facilitates our but there is definitely the RM prices are a concern for all of us but we will see what best can be done actually to mitigate this.
Ahmed Madha
Okay, got it. My third question is on the inventory channel positioning. So can you give some broad numbers what was our channel inventory as of Q1N which is June 25 and comparable numbers for Q4 25 and Q1 25 which is March 25 and June 24. That will be very helpful.
Rajeev Nambiar
Vijay, could you take this call?
Bijoy Kumar Biswal
Yeah. Hi. Good morning. You know this is BK Visual. So the inventory level has increased, you know because of the stock you know we have purchased, you know towards the tag end of this quarter. The inventory level if we compare to 31st March 25th. So this has gone up. So this is, you know around thousand crore has gone up and receivable also gone up. So that is mainly on account of the cost which has been accumulated. And we can get the circulated index. Coming in this current season. But you know this inventory level. Yeah it has gone up.
Ahmed Madha
Can you quantify what lakhs?
Harshdeep Singh
I’ll just clarify on the quantified value. Harshtip here. See if you look at last quarter as across trade and primary stocks we were almost 10.9 lakh metric ton which has come down to 7.2 lakh metric tonnes as on 30th of June 2025. So the company stock, the primary stocks are down from 1.44 lakh metric ton to 80,000 metric ton. And the trade stocks are down from 9 and a half lakh metric ton to 6.4 lakh metric ton. So overall trade stocks compared to last year, same level, 30th of June. They are on the lower side.
operator
Thank you very much ladies and gentlemen. Please limit to two questions for participants and rejoin the queue for the follow up question. Thank you. The next question is from the line of Pratik Oza from systematics. Please go ahead.
Pratik Oza
Yeah. Hi sir. Thanks for doing just one question on the PPT. So on page number seven it is showing that N20 sales are grown at 45%. Yoyo, on page 11 it is mentioned that N20 sales grew by 89%. Which figure is current?
Rajeev Nambiar
Yeah. See the sales of N20 sales are 2.24 lakh metric ton. Okay. And last year sales was 1.55 lakh metric ton. There’s a 45% growth in primary sales available last year.
Pratik Oza
Okay. And sir, on page number 11 it’s mentioned NQMPK sales grew by 89%.
Rajeev Nambiar
No, I think you know we kind of stand corrected. It is 45%. But in terms of the overall NPK portfolio it’s about 60% of the entire product mix.
Pratik Oza
Thank you.
operator
Thank you. The next question is from the line of Puran Mangilal Tak from World Capital Services. Please go ahead.
Unidentified Participant
Congratulations sir and thank you for giving me opportunity. I just wanted to understand the unit economics of phosphoric acid production for the Paragraph. So just three question. What is the conversion ratio for our phosphoric acid, that is phosphate rock to phosphoric acid, sulfuric acid to phosphoric acid and sulfur to sulfuric acid. Am I audible, sir? Okay, so I had three questions. First is phosphate rock to phosphonic acid, sulfuric acid to phosphoric acid. And third one is sulfur to sulfuric. Acid for the parabolic rock.
Bijoy Kumar Biswal
And with regard to sulfur cases, to say the sulfur which is one side of the sulfur cases.
operator
Sorry to interrupt, Mr. Puran. Your. Sir, the man. Sir, the audio from the management line, it seems to be distance. Can you come closer to the device?
Bijoy Kumar Biswal
Hello?
operator
It’s very distant.
Bijoy Kumar Biswal
Can you hear me now?
operator
Yes, sir.
Bijoy Kumar Biswal
Yeah, so I am saying phosphoric acid is, you know, 3.5 times. You know, for each of phosphoric acid we consume 3.2, 3.2 to 3.5 ton of rock and sulfuric acid to sulfur it is 1/3. So for this ton of sulfuric acid we consume 1/3 of the rock in a sulfur. And the one last question.
Unidentified Participant
Sulfur to sulfuric acid.
Bijoy Kumar Biswal
Sulfur to sulfuric acid. You define saying that, you know, for each sulfuric acid we consume, you know, one third of the sulfur.
Unidentified Participant
Okay, and what is a. What is a for sulfuric acid to phosphoric acid? Like how much we required sulfuric acid. For phosphoric acid production
Bijoy Kumar Biswal
, 3.3.2 times of the phosphoric acid. For each turn of phosphoric acid we require 3.2 to 3.5 tons of sulfuric acid.
Unidentified Participant
Okay, thank you. Thank you. Thank you so much.
operator
Thank you. The next question is from the line of S. Ramesh from Nirmal Bank Equities. Please go ahead.
Ramesh Sankaranarayanan
Thank you and good afternoon and congratulations on a spectacular set of results. So if you look at the current quarter and the remaining 10 months, how should we see the performance? Will we be able to maintain the EBITDA per ton and improve that based on the backward integration benefits, particularly phosphoric as well, where the contract prices have gone up?
Unidentified Participant
No, I can put this on, you. Know, this way that, you know, right now for this quarter we have a little bit higher EBITDA per turn. But going forward, as for our guidance, you know, it will be around 5,000, you know, rupees for metric turn off, you know, in around that. That will be the EBITDA what we’ll. Be maintaining for the rest of the quarter.
Rajeev Nambiar
We always believe that the sustainable EBITDA number that we have for a Company like us with the kind of backward integration that we have is around 5,000 and we continue to maintain that view. But directionally, with the kind of operational reliability improvements that we have embarked on, the kind of dapper integration that we are doing in the market interventions that we are doing, obviously we would like directionally we are in the right direction. But the sustainable number as we speak today is around 5,000.
Ramesh Sankaranarayanan
In this first quarter. What would be the benefit from the backward integration you can quantify per ton?
Rajeev Nambiar
Well, it will be difficult for us to quantify, you know, as we mentioned earlier, you know, it’s a combination of three, four factors driven by high realizations, you know, higher volumes of production and sales as well as backward integration. But we won’t be able to give you a quantified number for backward integration.
Ramesh Sankaranarayanan
So if you look at the longer term big picture, sulfuric acid expansion, phosphoric acid expansion. Once everything is done, what is the benefit you expect from these projects in terms of backward integration.
Rajeev Nambiar
In the long term? You should assume that whenever the backward integration gets into in the picture there is always a than $50 captive advantage with the ways imported processes per ton. So that will reflect into your, your. Your EBITDA improvement
Ramesh Sankaranarayanan
that is taking both sarcolic acid pulse acid and the you know, benefit of steel everything put together. Right?
Harshdeep Singh
Yeah.
Ramesh Sankaranarayanan
So just one last thought. So if you look at your overall balance sheet, what is the kind of increase in working capital and what is the kind of movement in debt to expect this year and next year?
Bijoy Kumar Biswal
So I’ll tell you that you know, this year the working capital is similar to the last year, you know, the 31st of March closing, it has not gone in a high and you know, this long term we have got around thousand crore, will be maintaining that one, you know, provided whatever we repay and you know, face loan would take, you know, but our guidance is that you know it will be around thousand crore.
Ramesh Sankaranarayanan
So this current trend in interest rate, interest cost reduction that will be sustained or do you see any interest cost going above the next two years? No, I think no.
Bijoy Kumar Biswal
We have got this reduction of the repo rate and everything has really impacted positively. And you know, as and when there is a reduction by the RBA now we did not, you know, we negotiate with the banks and you know, get this rate reduced. So we are quite hopeful that in case there is any reduction by the rba, that benefit will accrue to us.
Ramesh Sankaranarayanan
Thank you very much and I’ll join the queue. Wish you all the best.
Bijoy Kumar Biswal
Yes, thank you,
operator
thank you. The next question is from the line of Krishan Parvani from JM Financial. Please go ahead.
Krishan Parwani
Yeah. Hi sir. Congrats on a good set of numbers and thanks for taking my question. Firstly, can you please highlight the MRP and subsidy realization of debt and NPG 20 in one QFY 26 and July 25 again.
Bijoy Kumar Biswal
During this quarter, you know we have the subsidy realization of around 500 crore and you know, market place of around 2000cr which is what we have ever told, you know, everything has been, you know, converted the subsidiary realized.
Krishan Parwani
Okay,
Harshdeep Singh
just to add to your specific point, on the MRPs, the MRP for DEP currently is 1350 rupees a bag. A bag. And for the NPKs the ranges from 1400 to 1915 rupees a bag. So depending on the grade that we’re. Doing and we maintain leadership as far. As market is concerned on the price realization.
Krishan Parwani
And on the follow up on that like how much per bag MRP you have taken increase from the last quarter.
Harshdeep Singh
Yeah. So specific grades. If you look at it like for example NPKS N10, N12, the average per bag realization was 1470 rupees a bag. Currently it is around 1850 to 1900 rupees a bag.
Krishan Parwani
Okay. And that continues in July also?
Harshdeep Singh
Yes, continue means it’s a part of the process. We review our cost curve and we look at what. What’s best from the market optimization point of view. So that, that’s how. So we already clarified the guidance on the ebitda. So. So that’s what the intention is to maintain. Maintain that, grow that.
Krishan Parwani
Okay. And government isn’t stopping you from taking mrp. Because I think.
Harshdeep Singh
The bureau’s policy is clear on the npk on, on the DAP and tfp. They expect us to keep the MRP as per the guidance. However, for NPK there is no restriction from the government.
Krishan Parwani
Okay. Secondly, we have reported six and a half rupees per kind of kg ebitda. While our targeted EBITDA I think you will be interested around 5 rupees a kg or let’s say 5000 per ton. So is it fair to say? Let’s say there has been kind of an inventing gain of 120150 crores during the quarter. Taking incremental 1 and a half rupees per kilogram for 7 and a half lifetime change.
Harshdeep Singh
That’s not the way to kind of capture that. It’s a combination of factors. That’s what we have clarified.
Rajeev Nambiar
Situations. Volatility needs to be kept in mind
Krishan Parwani
that I Understand. But could you quantify the inventory gain. You could have had
Harshdeep Singh
clarify before we. Quantify that the products which did not. Have any traded volumes. So once the traded volume set in there is some normalization of the EBITDA which happens. And the first quarter was pure manufacturing volumes. So that that’s how you look at the situation.
Krishan Parwani
Okay? Okay. And lastly you were running at almost 95% utilization in one queue.
operator
So. Sorry to interrupt but I requested to rejoin the queue for the follow up question.
Krishan Parwani
Okay, no problem. Thank you.
operator
Thank you. The next question is from the line of Dhruv Muchal from HDFC amc. Please go ahead.
Dhruv Muchhal
Yes sir. Thank you so much. Sir, one data point in case I. Missed earlier is what is the safety outstanding? Siri quadrant.
Bijoy Kumar Biswal
Is 2,200 crores.
Dhruv Muchhal
2,200 crores. And so is it possible to share what was the volumes with the dealers. Or distributors as in the end of last quarter. I mean Q4. Inventory of your products will be dealers at the end of. Day four.
Harshdeep Singh
And retailers was 6.7 lakh metric ton has trade total volume 9.5 lakh metric ton wholesalers plus retailers this. Year the inventory is lower and it is around 6.4.
Dhruv Muchhal
Sorry, your voice was breaking. Last quarter was. And this quarter is.
Harshdeep Singh
Last quarter was around 9 and a half lakh metric ton. And this quarter is 6.5 lakh metric.
Dhruv Muchhal
This is the inventory with dealers, distributors, everyone in the system.
Harshdeep Singh
This does not include the primary inventory which the company holds. Compared to the last quarter that’s around 80,000 tons.
Dhruv Muchhal
Just for time. Thank you so much.
operator
Thank you. The next question is from the line of Mr. Riju Delui. Please go ahead.
Riju Dalui
Hi sir. Great. Numbers. So in terms of bookkeeping question. So how much make in terms of EBITDA per ton for the dap this, this year actually or this quarter.
Bijoy Kumar Biswal
Generally. We don’t give a guidance or you know, we don’t, you know say that. You know. What is that for product wise? What we can say that this quarter we have around EBIT around 6,600 rupees for M overall.
Riju Dalui
Understood. And in terms of you know we have seen some, you know increase in the prices from. From Q4. So if you could share some kind of a you know like view about the inventory gain that we have reported this quarter. If it is possible.
Bijoy Kumar Biswal
Can I repeat the question again?
Riju Dalui
So what the return immensely gain in. In one queue. If you could you know quantify that.
Harshdeep Singh
So did you
Bijoy Kumar Biswal
discover you know where now regarding the subsidy impact already that has been factored in 31st March, you know, 23, 21st March. So that you know impact has already been considered and whatever the we have been, you know taken this, you know, inverted cost, now that has been realized, you can quantify that.
Riju Dalui
Understood sir. And one, one like regarding the CAPEX projects that we have. So in PPT page 11 we have mentioned that the upcoming phosphoric acid acid backward integration so that will be beyond Paradigm site. So is it like. Can we assume that The Parag site is 100 backward integrated and the and the upcoming capacities will support the GOA plant? In terms of backward integration so far.
Rajeev Nambiar
Whatever we announced, basically it is for Paradeev only. So you can take it. Actually the backward integration is now concentrated on paradise.
Bijoy Kumar Biswal
That after the ongoing merger process of MCFL is closed then we will get into more detailing of the next investment plan. But as of now the 0.5 to 0.7 expansion is coming for Parabee.
Riju Dalui
Yeah, so that is for Paraji. But in the PPT we have mentioned that this will support beyond the plant.
Bijoy Kumar Biswal
Whatever excess you know of. I said out of this 2 lakh metric what we are increasing. If that is available then definitely that you know will support it on this our GOA plant or Mango flat going forward.
Riju Dalui
Okay? Okay, Understood sir. So, so with the current capacities in terms of. And the sulfur sulfur to sulfuric acid the part of the plant we have 1.8 million capacity. So how much that plant is backward integrated is it 80, 90 or 100? If you could quantify that.
Harshdeep Singh
On a. Tamru on a humble basis, you know. Typically 30% of the capacity should be backward integrated. So right now we’re kind of, you. Know as the CFO mentioned we are about 95% odd. Once we reach a 7 lakh tons we know we will actually be in excess of 100% and that incremental can be then transferred to the other side that we have.
Riju Dalui
Okay, okay, understood. Yeah. And. And one last question. So yesterday NCSL announced some some kind of a capex roughly around 6 kind of a CAPEX for the NPK integrated with this for capability expansion. So if you could highlight something like. Like this, this new papers that announced by the mcf. So will this the standalone CAPEX for NCFL or like post merger will have a combined capacity addition for NCFL and power sites.
Rajeev Nambiar
Improper for us to actually comment on MCFL currently. But once the merger is done actually we’ll definitely get back to you.
Riju Dalui
Understood. Yeah, thanks. Thank you for answering all my questions.
operator
Thank you. The next question is from the line of Vignesh Iyer from Sequent investments. Please go ahead.
Vignesh Iyer
Thank you for the opportunity sir and congratulations on great setup number. So my two questions from my side. My first question would be procurement of sulfur. Is it more like a yearly contract. That is set and is there a pattern of revision of prices when it comes to that? And second question is on procurement of dap. I mean there is clearly some shortfall in DAP as per the industry commentary. Right? Mainly because of import from China. So wanted to understand what is our strategy and where do we, we where are the other sources? We are looking to procure that DAP. For trading.
Bijoy Kumar Biswal
Regarding software. The contract is a yearly basis in a long term contract. You know, in case there is any shortfall, we go purchase a spot market, you know, based on this price, you know, viability and other things. But regarding dap, I think Arzit can tell, you know, regarding the, you know, DAP procurement.
Harshdeep Singh
Hello. Yeah. See the DAP typically what, what we are doing currently, we are buying dominantly from OCC as a part of a long term contract. And that is driven by a formula pricing both DAP and tsp.
Vignesh Iyer
The pricing of sulfur. I mean does it, I mean it. Is a long term contract but is. There a reset on pricing every 15 days or every month?
Bijoy Kumar Biswal
Yeah. Even though the quantity, the long term contract is for the quantity assurance.
Rajeev Nambiar
To be. Just to clarify, most of the long term contracts are governed by formula and every formula is actually linked to the current market dynamics. So as and when there is a swing upward or downward on of the prices internationally in the commodity markets, you know, we kind of that reflect on our pricing.
Vignesh Iyer
Right. Just one last question to this. So would it be fair to assume. That since the spread has improved between sulfuric and sulphur, we might see some gains coming to us in quarter two?
Rajeev Nambiar
The gains have already been coming. If you look at the prices, the spread has actually been there for the last few quarters. So we are realizing the prices and as and when the spread kind of improves or reduces, will stand to kind of gain accordingly.
Vignesh Iyer
Thanks. Thank you. Thank you sir. And all the best for the rest of the year.
operator
Thank you. The next question is from the line of Formil Shah from Paris Investments. Please go ahead. Sorry to interrupt. Mr. Swamil, your voice is breaking.
Unidentified Participant
Okay. Okay. Can you hear me now?
operator
It’s still breaking.
Unidentified Participant
Hello, can you hear me? Yeah. So most of my questions were answered. I just had one data giving question. I needed some clarity.
Rajeev Nambiar
They are wiser than our people.
Unidentified Participant
I don’t know, maybe some network issue. Can you hear me now?
Rajeev Nambiar
Yeah, yeah.
operator
Yes.
Unidentified Participant
So I just needed some clarity on the shareholding or in promoter category. So for notification it will be 58.64% by the promoters. Is my understanding. Right.
Rajeev Nambiar
So after. After the merger the controlling entity of PPL which is Zwari More Phosphate Limited will hold more than 51%.
Unidentified Participant
Okay. And the rest will be my.
Rajeev Nambiar
Yes. That. That together will. Will be around 7%. So you’re right. 58 will be the collective promoter holding after the model.
Unidentified Participant
Okay. And ZNBBL will be a 50. 50.
Bijoy Kumar Biswal
Yes.
Rajeev Nambiar
It will continue that to that way.
Bijoy Kumar Biswal
Yes.
Unidentified Participant
Okay. Okay. Right. Understood. That’s it. From my side. Thank you. And all the best.
operator
Thank you. The next question is from the line of Shaurya Punyani from Arjun Partners. Please go ahead.
Shaurya Punyani
Hello.
Rajeev Nambiar
Go ahead please.
Shaurya Punyani
I think this year first quarter was. Very good in terms of volume. So what kind of growth can we. Expect in terms of volume?
Bijoy Kumar Biswal
No, this past quarter we sold around, you know, I think you know, by the year end we’ll have what we projected as well as credit product.
Shaurya Punyani
Your voice broke. Can you repeat?
Rajeev Nambiar
We are saying now we have established. Capacity of 2.7 2.8 million ton. And we expect to deliver those volumes.
Shaurya Punyani
2.7 million.
Harshdeep Singh
So we are. We are targeting about 3.1 million tons. And this should actually include a bit of trading as well. And once the MPSL merger is complete, you know, that will kind of get us another additionally 7 lakh tons.
Shaurya Punyani
Okay. 7 lakhs. Okay, sir. And so at what utilization are we operating? Can you repeat it?
Harshdeep Singh
Yeah, we are close to 100 utilization at the moment. And we will try to maintain this kind of utilization levels, you know, throughout FY26.
Shaurya Punyani
Okay. Thank you, sir.
operator
Thank you. The next question is from the line of Sandeep Mukherjee from SKP Securities Ltd. Please go ahead.
Sandeep Mukherjee
Hello. Yes, thanks for taking my question. Can you share the CU volume and EBITDA per turn for Paradip and GOA separately for the npk?
Bijoy Kumar Biswal
So generally what we already mentioned that, you know, we don’t give this numbers on a unit basis as a whole company as a whole, you know, what is reflected is around 6,600 rupees. You know on a overall product for this quarter. And the volume what is sold is around 7.4 lakh.
Sandeep Mukherjee
All right, sir, my next question is how are you seeing the TSP as a substitute to dap? Dap? And what are the challenges of this product?
Harshdeep Singh
So you see, we are positioning TSP as a powerful phosphate fertilizer with 40% P. And we have found good traction. We have been doing a lot of groundwork in terms of promoting it amongst the farmers. We see a good acceptance happening with farmers where the awareness level is high. Like potato farmers in Punjab, soybean farmers in Madhya Pradesh and Maharashtra. So the product has been introduced in almost 10 states currently. It’s a product which is gaining acceptance. However, based on the soil and the crop part of the nitrogen could be supplemented by the farmers. But we see it as a good powerful phosphate fertilizer.
And from a sustainability dimension also it’s something which is good because you’re preventing overuse of nitrogen. No. We currently importing the product from OCP Morocco.
Sandeep Mukherjee
Okay, thank you sir. Thank you very much.
operator
Thank you. The next question is from the line of Manish Mahavar from Antique Stock Broking. Please go ahead.
Manish Mahawar
Yes sir. A couple of questions. One in terms of fossil fit and debt and a rock value chain rate it is a couple of quarters we are seeing the fossil enterprise are going up. It’s been I think five or six quarters. However frog price are still at a. At a lower level. So any specific reason stock price are not going up or in turn with the fossil fit? And because historically if you look at the cycle last 15, 30 years. Right. The rock price always follows forces at depth. Any specific reason this time is not following?
Harshdeep Singh
Yeah, no. Just to kind of give you a clarity here. See while rock prices will follow the overall direction as well as phosphates is concerned. But there is not a one to one correlation. The DUP is a purely demand crypto of supply linked commodity. And currently because the inventory levels in the country are low. So you’re finding typically the prices have moved up significantly. However rock the sources are multiple and the import pattern is different. There are not too many players buying rock today Visa with DAP which everybody wants to build up the inventory to ensure that the farmers get the availability of the material.
And this year China has not been on the supplier side as far as DEP is concerned which has pushed up the prices.
Manish Mahawar
Right. But what you’re talking about, it’s a more of an Indian situation. Right. Globally I think DAP and fossil supply side is still up. So basically rock has to follow the prices. Right.
Harshdeep Singh
The pace will not be the same as with the finished product. Product.
Manish Mahawar
Okay, understood. And F asset price I understand for 2Q is around 1250 or maybe 1260. Right. Dollar for. For Indian contract. Okay. And RP are we or industry are taking price hikes in DAP and NPK to offset this?
Bijoy Kumar Biswal
No, in DAP is covered under this. You know price Raises. That’s why there is no increase of MRP DAP. But in case of other NPKs. Yeah. You know, it is free from this. Price, you know, regulation. So we have increased the price. The MRP has been increased compared to last quarter.
Manish Mahawar
That was first June. Right? Last price hike was first June. What I understand. Right. Or after that we increase also in npk.
Bijoy Kumar Biswal
So during this quarter this has been increased.
Manish Mahawar
Okay. In July month you’re talking about. Right? How much for the quantum for this MRP hike in NPK in July month?
Harshdeep Singh
I think we have clarified the overall price hike for the NPK. See, what was there last year was around 1470 rupees a bag. And over a period of time, gradually we. Currently our average range is between 1400-1900 rupees per bag depending on the product basically. So N20 has a different price. N10, N12 has a different price. So there is a significant increase that we’ve taken in line with our RM increase.
Manish Mahawar
Okay. Just giving example N20, what was the price?
Harshdeep Singh
Maybe the current MRT is around 1400 rupees a bag. Okay. Last year depending on different price point it was prevailing between 1200 to 1300 rupees a bag. N10 was 1470 rupees a bag. Currently N10 prices around 1900 rupees a bag.
Manish Mahawar
Okay, understood. And maybe two book keeping questions. I think you have said in the call. I think inventory at the dealer and who wholesaler or retailer is 6.4 lakhs for for us by the end of this quarter. Can you break it up in terms of a DAP and npk?
Harshdeep Singh
We can do that. But. But there are a number of grades of npk. So I’ll give you that as a.
Manish Mahawar
Total NPK total number you can, you can highlight.
Harshdeep Singh
Yeah. So currently the trade inventory for DAP overall is around a lakh ton. A lakh 3,000 ton. Okay.
Manish Mahawar
Okay.
Harshdeep Singh
And combination would be around 4.35, 4.3 lakh metric ton. Prof.
Manish Mahawar
Understood. And second question in terms of a gross debt and net debt number by end of June.
Rajeev Nambiar
Yeah. So the gross date is, you know, the short term date is close to about 4000 odd crores. Long term is very minimal, about 500 crores. Because there aren’t too many Capex projects, new projects running at the moment in terms of net debt, you know, I think we are doing a net debt to equity ratio of 0.77 with a 1200 crores of, you know, cash, cash at hand.
Manish Mahawar
Okay. It’s around 2,800 crores roughly. Is a net debt number by end of June, right? Okay, sure. Thanks. Thanks very much and all the best.
operator
Thank you. The next question is from the line of Yathat from IGE India. Please go ahead.
Unidentified Participant
Hi sir. Congratulations on the results. Firstly, just wanted to ask a small question regarding nano DAP fertilizers. How do you see nano DAP fertilizers going ahead in the market in the. Next three to four years compared to np?
Harshdeep Singh
Good afternoon. See, we are fighting quite a good acceptance for our nano product. Okay. A nano product is a biogenically done nano and we are seeing the farmers getting a good result for that. Current volumes have grown in the Q1 significantly and we see a good traction building up for nanodep. However, we have to see it in the context it is not a replacement for the existing DEP or NPKs. It’s a partial supplementation of of the kind of current phosphate application which happen through the nanodap. And good thing about our nanodep is that it got nitrogen also as a built in this thing.
And we see a good response from the farmers and good acceptance.
Unidentified Participant
Thank you so much sir.
operator
Thank you. The next question is from the line of Amit Agita from HT Hawa. Please go ahead.
Amit Agicha
Sir. Could you give insights into the order book visibility or the demand pipeline for the rest of FY26.
Harshdeep Singh
Before I’m just taking this in terms of the overall guidance. I think we’ve already indicated that we would be doing 3.1 million ton plus in line with our budgeted numbers. The demand is strong. We are finding good traction for the farmer sales as well as post sales is concerned. And Q2 also should be strong with strong consumption quarter. And we maintain the guidance as far as Overall volume of 3.1 million ton plus is concerned for the whole of the year.
Amit Agicha
And the second question, with government subsidy rising like how much of your revenue is exposed to delayed subsidy payments.
Harshdeep Singh
Directly, we are finding the payments from the government are happening quite on a timely basis linked to the post sales. And as long as farmer sales is happening on time, we’re getting a good cash flow as far as concerned.
Rajeev Nambiar
So currently there are no constraints in. Terms of, you know, getting the receivables from the government. So the subsidy receivable days are pretty much, you know, under 50 actually for. Us,
Amit Agicha
under 50,
Rajeev Nambiar
under 50 and the. trade receivables are, you know, under 17.
Bijoy Kumar Biswal
A little bit higher because of the false accumulation around 30 days.
Amit Agicha
Okay, thank you sir. All the rest for the future.
operator
Thank you. The next question is from the line of Prikik Shravak from Nirmal Bank Securities. Please go ahead.
Ritik Shrawak
Yeah. Hi sir, good afternoon. Congratulation on a good set of number. I just want to ask one question that how much of additional phosphoric acid from expansion will reduce the import and how much will it add to fertilizer volumes.
Bijoy Kumar Biswal
We are adding another 2 lakh term and depends on the pseudotype of you know indicate on this, you know product we are going to take. You know I think mostly we’ll be doing N20 and you know where the requirement is.
operator
Sorry to interrupt but the audio for the management seems to be distance. Can you come pretty closer?
Bijoy Kumar Biswal
Can you hear me now?
operator
Yes sir.
Bijoy Kumar Biswal
Yes. 2 lakh turn of you know this processed what will be added that will be consumed for the NPK products and you know depends on the power percentage of you know what are the NPK we are making. And now if you look at you know mostly we’ll be doing N20 product. So this will give you know 2 lakh ton means it will give. Around. 1, you know 9 lakh ton of you know N20 which can be.
Ritik Shrawak
Okay. Okay. Okay sir.
operator
Thank you. The next question is from the line of Ajit Sethi from Eco Quantum Solutions. Please go ahead.
Ajit Sethi
Thanks for the opportunity. I just need some clarification. Can fertilizer we produce using smelter grade sulfur? The reason for asking this question is because the sulfur which came out from smelter is of low purity as compared to the sulfur which came out from refining crude or natural gas.
Rajeev Nambiar
Normally we prefer actually the refinery gate because of purity to avoid most of the operational related issues. Thank you.
Ajit Sethi
Okay, so. Okay. So next question is that going forward many of the global refineries will be closing down. So do we see any shortage of sulfur going forward?
Rajeev Nambiar
Not really. In fact our procurement team is working in terms of mapping all the resources and since we have got lot of long term contracts we don’t see any problem in terms of the availability of sulfur.
operator
Thank you. The next question is from the line of Prashant Biani from Elara Capital. Please go ahead.
Prashant Biyani
Yeah, thanks for the opportunity again. RM price chart that you have shared in the cpt Rock and sulfur price movement is difficult to assess because of high index value of the ascent. Can you spell out rock posit value in that chart for Q1 and Q4 what we have seen last year?
Bijoy Kumar Biswal
No, I can take a call on this rock prospect price. The Q4 it was around $200. Now I think you know, not similar terms. It Is there, you know in Q4, you know Q1 of this year also. So there is no much change in the Q4 and Q1.
Prashant Biyani
And how was it for Celric ac sor.
Rajeev Nambiar
Yeah, actually, yeah, actually moved up from. Say about 100 levels in Q4 to current levels of 130 odd.
Prashant Biyani
And sir, how much was the subsidy which received in Q1?
Rajeev Nambiar
About 15, 1477 crores. 1500 crores.
Prashant Biyani
Okay. And lastly, what was the trade inventory in Q1 last year?
Rajeev Nambiar
Trade inventory in Q1 last year we were discussing was around nine and a half lakh metric tons.
Prashant Biyani
That was for Q4. Right.
Rajeev Nambiar
So I’m talking of 30-06-2024.
Prashant Biyani
Okay then how much was it for Q4?
Rajeev Nambiar
I can Prashant share with you that number? 73,000 bar number, right?
Prashant Biyani
Yeah,
Rajeev Nambiar
just we compare the quarter to quarter, quarter to quarter like I’ve clarified from nine and a half lakh we are currently down to 6.4, 6.5 lakh metric. So that way the absolute inventory in the trade has come down because of good onset of monsoon season. So that, that’s a very, very positive thing that helps the cash flow both on the market front and as far as the subsidiarialization.
Prashant Biyani
Sir, one last question on the. I mean the fundamentals of phosphate dap, because of government regulation prices are not able to increase. And on NPK we are increasing the price. But by their very nature the price difference between DAP and NPK is increasing. So the balanced nutrition concept, isn’t it going for a toss? And will the market accept such kind of price increase?
Rajeev Nambiar
Prashant, what you’re saying is absolutely right. What is important is for us to promote bio nutrition. And in line with our motto of healthier soil, healthier people, our focus is to promote more complex fertilizers which have a combination of nitrogen, phosphorus and potassium. And wherever farmers are buying, let’s say a standalone DAP or urea, you would also be also promoting that they use specialty nutrient as well as potash and nutrients. But our focus remains on promoting a combination of nutrients I.e. nPK. However, there would be certain set of farmers who still would want dep. And there we promote them to use potash.
But you are right, there is a distortion which happens in the market because of a cap on the prices as far as DAP is concerned.
Prashant Biyani
And sir, this is acceptable right now buying NPK even at higher price.
Rajeev Nambiar
So if you look at the overall trend, Prashant, that I’m talking of as an industry you look at the NPK growth which has happened for the Q1, the NPK growth has been almost 34% right. And the DP is down by around minus 19%. So partly it is linked to the supply side issues also. However, what is important is that you are finding farmers getting a good acceptance for the NPKs.
Prashant Biyani
Sure sir. Thank you so much.
operator
Thank you. The next question is from the line of Gagan Thareja from Ask Investment Managers. Please go ahead.
Gagan Thareja
Good afternoon sir. I hope I’m audible. First question from my side is on your capacity expansion plan. You are at 100% utilization currently. Can you lay out the expansion trend for AFI at 26, 27 and 28?
Rajeev Nambiar
A lot of plans are going on. I think we will be able to announce it once the MCFL merger goes on. Currently the expansion in terms of backward integration is rock solid. 1500 tonnes sulfuric acid plant is expected to get commissioned in Q3 beginning and the phosphoric acid capacity is by September 26th. So that gives us enough leverage in terms of managing the cost and additional PA will definitely get converted to other products.
Gagan Thareja
So can you get into the next financial year? Given the current status, is it reasonable to infer that you know you will have further benefits from backward integration but in terms of output of final tonnage it may not grow. You may choose to vary the mix basis market and basis backward integration. Is that how it will play out?
Rajeev Nambiar
There are a lot of operational related. We may not be announcing big capex as of now in terms of capacity extension. But there are a lot of operational capex will also take the expansion plans on a routine basis which goes on. But we’ll definitely announce bigger plans once the MCFL merger is done.
Gagan Thareja
Right. And can you possibly also enumerate you know, synergies with from. From the MCFL acquisition and over what time can you realize that?
Rajeev Nambiar
Yeah, so a couple of pointers here. The you know, in terms of the synergies on the resources revenue side of course that gives us an access to markets, you know, important markets down south. And also in terms of the product mix rationalization we can do a lot with the existing size that we have in both GOA and Parade. And on the cost side of course, you know the Mangalore asset can get benefit through the economic scale and scope, you know, procuring from the kind of partners that we have been procuring. So you know there are scenarios, very strong synergies on both revenue and the cost side.
Gagan Thareja
Is it possible to enumerate the number and you know the time frame over which you can achieve that number.
Rajeev Nambiar
See we’re in the last stages of. The regulatory process so it should happen anytime now. You can really just kind of keep looking at the website for the update in terms of numbers, you know, you know it’s a listed entity so I’m sure you can do the math. We.
Gagan Thareja
And is it you, you indicated 6600 kind of EBITDA per ton for the quarter. Is it possible to, you know, if, if not enumerate, give us some flavor of, you know, how it would work out for Paradeep versus goa?
Rajeev Nambiar
No, we are not giving any unit. Wise guidance to be very frank. You know we, we work at a, at a company basis. Companies, company level, all the numbers at the company level. You know having said that, in fact we will try to kind of, you know a number better than 5,000 which has been the guidance little on the conservative side for Mars.
Gagan Thareja
Right. And is the gross debt expected to go up further in the coming year and to what extent, I mean at what level do you intend to set up cap the gross debt?
Rajeev Nambiar
Debt is largely a function of the. Price of the raw materials because if you look at the total debt composition, it’s largely the working capital debt and that’s the function of the raw material prices. So depending upon how the RM prices move, the debt will kind of improve or decrease, but more or less we believe that it should be near about this level.
Gagan Thareja
Even if you announce further capacity expansion. You don’t believe
Harshdeep Singh
that is separate? We would not like to cross the bridge at the moment. Moment, let us complete the merger and we’ll have.
Gagan Thareja
Thank you. I’ll get back in the Q.
operator
Thank you. Ladies and gentlemen. We’ll take this as a last question for today. I would now like to hand the conference over to the management for closing comments.
Rajeev Nambiar
Thank you everyone for taking the time to join us today and for your continued trust in our journey. Should you have any further questions, please feel free to reach out. Our investor relations team thanking me again. Thank you.
operator
Thank you very much sir. On behalf of Antique Stock Broking Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.
Riju Dalui
Thank you.
Rajeev Nambiar
Thank you.