Paradeep Phosphates Ltd (NSE: PARADEEP) Q3 2025 Earnings Call dated Feb. 05, 2025
Corporate Participants:
Manish Mahawar — Senior Vice President
N. Suresh Krishnan — Managing Director & Chief Executive Officer
Alok Saxena — General Manager, Head Corporate Finance and Investor Relations
Bijoy Kumar Biswal — Chief Financial Officer
Harshdeep Singh — President & Chief Commercial Officer
Analysts:
Prashant Biyani — Analyst
S. Ramesh — Analyst
Unidentified Participant
Viju — Analyst
Vignesh Iyer — Analyst
Aman Jain — Analyst
Dhruv Muchhal — Analyst
Krishan Parwani — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to Paradi Phosphate Limited Q3 and Nine Months FY ’25 Earnings Conference Call hosted by Adding Stock Broking 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 this conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Manish Mahawar from Antique Stock Broking Limited. Thank you, and over to you, Mr Mahawar.
Manish Mahawar — Senior Vice President
Thank you, Nirav. On behalf of Antique Stock Broking, I would like to welcome all the participants on the call of Paradi Phosphate. Today, we have Mr Sudesh Krishnan, MD and CEO; Mr Rajesh Nambia, CEO; Mr Bijoy Biswal, CFO; Mr Alok Saksena, Head, Corporate Finance and IR; Mr Lahiri, DGM Strategy, IR and ESG on the call. Without further ado, I would like to hand over the call to Mr Kishnan for opening remarks, post which we will open the floor for Q&A. Thank you, and over to you, Mr Kishnan.
N. Suresh Krishnan — Managing Director & Chief Executive Officer
Yeah. Thank you, Vanish. Good morning, everyone, and welcome to Paradi Limited Q3 and Nine-Month FY 2025 earnings conference call. We have shared our earnings presentation and press release both available on our website and stock exchanges. And I hope you’ve had a chance to review them. Building on our momentum, Q3 FY ’25 was another good quarter with a robust production, primary sales and post-sales growth leading to improved revenue quality. Our focus on value-added NPK fertilizers remains consistent and we produce seven unique NPK grades in addition to DAP, ensuring greater flexibility to meet the farmers’ needs. In Q3 FY ’25, the production rose by 25% year-on-year to 6,75,808 metric ton, while the sales surged 47% year-on-year to 870,586 metric ton. For the first-nine months, production reached 1.91 million metric ton, up 4% year-on-year with sales climbing 13% year-on-year to 2.29 million metric tons. We’ve also seen strong market traction with our newly-launched triple super phosphate. Our Biogenic nanofertilizers continues a good performance with sales surpassing 1.4 million bottles in the nine-month period with zipmide production hitting an all-time high of 36,000 metric ton during this period, reinforcing our commitment to circular economy and sustainable ESG practices. Our backward integration front, our sulfuric acid capacity expansion from 1.3 million tonnes per annum to 2 million tons per annum remains on-track for completion by Q3 FY ’26, supporting our phosphate acid integration strategy. Additionally, we completed the first phase of our energy initiative at the Goa plant, which is expected to yield efficiency gains and cost-savings in the coming quarters. Coming to the financial performance, Q3 FY ’25 income from operations stood at INR4,105 crores, marking a 58% year-on-year growth with EBITDA at INR372 crores and an EBITDA margin of 9%. PAT for the quarter came in at INR159 crores, up 47% year-on-year with PAT margin of 4%. For the nine-month period, income from operations totaled INR10,326 crores with EBITDA of INR978 crores, reflecting a 9.4% margin for the period in that — for the period. PAT for the period stood at INR392 crores with a PAT margin of 3.8%. So EBITDA was at 978% with reflecting a 9.4% margin and PAT was at INR392 crores. The performance reflects our efficient raw-material sourcing, our strong backward integration, diverse product mix, extensive distribution network and relationships with channel partners and farmers. Favorable rainfall, stable reserve oil levels, lower-than-normal fertilizer inventory ahead of Rabi, continued garment support have all contributed positively to demand. Looking ahead, we remain focused on optimizing our fertilizer mix, managing new material, managing the raw-material price fluctuations and driving operational excellence. With strong fundamentals in-place, we are well-positioned to deliver positive finish to FY 2025. With that, I would now like to open the floor to questions. Over to you.
Questions and Answers:
Operator
Thank you very much. We will now begin with the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press R&2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants, you may press star and one to ask a question the first question is from the line of Prashant Biyani from Elara Securities. Please go-ahead.
Prashant Biyani
Sir, thank you for the opportunity and congratulations on good set of numbers. Sir, we have committed INR4,000 crore of CapEx in Udissa. Can you share some details on project-wise breakup and timeline of investment for each of them. Am I audible?
Operator
Yes, you’re audible. MR. Krishnan, can you hear us? MR. Krishn, can you hear us?
N. Suresh Krishnan
Yes.
Operator
Go-ahead, sir.
N. Suresh Krishnan
Yeah hello.
Alok Saxena
Prashant, let me let me take this. So out-of-the INR4,000 crore investment, what we are envisaging is a INR3,000 crore investments will be on the fertilizer operations, which includes phosphoric acid, sulfuric acid and the downstream granulation unit. And the balanced INR1,000 crores is estimated to be around green space, which includes green ammonia or our technical grade or merchant gate phosphoric acid. So these are the kind of investments that we have indicated to the government of Odissa. Having said these, these numbers are preliminary in nature and we’ll have to do a detailed a project feasibility analysis before we get into the project mode.
Prashant Biyani
Okay. And sir, on MCFL con-call, management has told that post-merger, we may plan some investments in Morocco as well. So can you highlight some details on the Morocco investment plan of ours and timeline for the same again?
Alok Saxena
No, I think we are still —
N. Suresh Krishnan
Yeah. I look good. Yeah.
Alok Saxena
So we are still in a discussion phase. I think we’ll get back to the audience for today’s call at the right stage once we have taken the proposal at the Board level.
Prashant Biyani
And sir, on the merger with MCFL, when can we expect the approvals from?
Alok Saxena
So Prashant, as you know that in November, we called up for the Board meeting wherein the modified scheme was submitted and the file is now being reviewed by. Hopefully, we are all expecting SEBI approval to come through shortly. And once that is there, then we’ll have to go to the NCLT procedures.
Prashant Biyani
So then the merged financials can come in at the earliest by from when?
Alok Saxena
Yeah. So in the scheme, we have said that the merger once contemplated will be effective from April ’24. So that’s the provision we have made in the scheme and there is a 12 month window that is available from the data filing of NCLT. So in case we are able to file the NCLT by this March, then obviously, we can take the benefit of April ’24 as envisage in the scheme, but that will be effective only after getting the NCLT approval.
Prashant Biyani
Okay. And sir, last — according to your last quarter presentation, rock price — average rock price in general was around $188 and sulfuric acid at 98. For this quarter, how much could both these be for rock and sulfuric acid?
N. Suresh Krishnan
Well, when it comes to rock, it’s a — it’s a formula that really works for us and it’s predicated to the going rate for phosphoric athle in India. So as you know that we have actually corrected our close to $1,060 phosphoric acid price, which is going to be 1,055. So rock levels are going to be pretty similar to what we saw last year. It’s not going to be a major change. And sulfuric acid is purely market-driven. And so it’s — it’s a dynamic situation, but I don’t see a phosphoric acid, phosphoric phosphate drop price change in a big way going-forward this quarter.
Prashant Biyani
Sir, just for the ease of convenience, would you be able to share the phosphoric acid price, average price for Q3?
N. Suresh Krishnan
Currently, the phosphuric acid price for this quarter is $1,055 per metric ton, which is the astric acid that we get.
Prashant Biyani
I’m sorry, I meant sulfuric acid.
N. Suresh Krishnan
Sulfuric acid, we don’t buy too many. Viswal, you want to share some number you can. Because we are a manufacturer of sulfuric acid-based on sulfur being available. We purchase sulfur. The sulfur rates are in-between $100 and $10, $110 yes.
Prashant Biyani
Okay.
N. Suresh Krishnan
So the purchase rates have been $110, that’s good. But that is we buy as and when we have a deed, otherwise we normally manufacture sulfuric acid.
Prashant Biyani
Okay. Sir, for the quarter, how much subsidy have we received and how much is spending? Yeah.
Bijoy Kumar Biswal
Yeah. No, we have received around INR1,750 crore of subsidy for this quarter and what is spending is around INR2,200 crores. Sorry, INR1,700 crores.
Prashant Biyani
Right. And sir, what would be the gross and net-debt for the quarter?
N. Suresh Krishnan
Yeah, this one you can respond. Yeah.
Bijoy Kumar Biswal
Okay. So we have got a gross debt of around INR4,000 crores, but after removing the cash, it will be around INR2,600 crores.
Operator
Thank you. Prashant, I’ll request to come back for a follow-up question. Yeah. Thank you. Next question is from the line of S. Ramesh from Nirmal Bang. Please go-ahead.
S. Ramesh
Hello, can you hear me?
Operator
Yes, sir, you’re audible.
S. Ramesh
Yeah. Thank you very much for the call and congratulations on your good results. So while your commentary is positive and results are good, the one thing that I’m curious about is the margins are down in percentage without taking anything away from your percentage growth. So what is the reason for this decline in margin? Is it just a function of the increase in the top-line? Or and secondly, in terms of benefit from the captive sulfuric acid and phosphoric acid manufacture, what would be the impact this quarter in terms of dollar per ton or percentage and how do you see that improving once your entire integration project is completed with the expansion of the phosoric acid plant?
N. Suresh Krishnan
Well, when you look at this financial year, maybe one, I think first and foremost, what we need to understand is that we’ve been affected by primarily three factors. The first factor is currency. The second factor is the global commodity prices for raw-material, which have been there. The third factor is the way the prices are more in Indian market for the finished goods. So if you look at the 3rd-quarter for us, we’ve had a contraction of margin, which has come in and it’s largely to do with DAP. You see, it is important to understand that we have a good amount of DAP in our manufactured portfolio and which is also a product that is there as part of a larger revenue mix for us. And DAP is one-product wherein we’ve not — we are seeing a contraction right through and the strange thing about DAP, which we are seeing today is the raw-material prices have gone up, the currency is weakening. However, the affordability of the farmer has been good. So this in our view is not a good situation to be in. What it does to the farm economy is that the utility — the balanced fertilization that we all look at might just get disturbed if this kind of a trend continues. So in our view, the DAP margins will expand or will have to get corrected and the correction can come two-ways. One is a commodity prices correcting itself or the overall revenue mix that we’ll get-in terms of the revenue from the marketplace and the revenue from the government for this particular product will have to kind of change to correct this. So I think the DAP change is something important to watch out and it should happen from April 1, 2025.
S. Ramesh
Okay. And the other question on the value capture on captive and, how much would that
N. Suresh Krishnan
Continues that continues if the domestic value capture for making phosphoric acid between what we can import and what we do, we’ve always maintained that there’s about a INR10,000 margin that we can get. This actually has been expanding with currency today. So it could be going up to INR12,000 and at times even to go to INR14,000. So that value capture goes on. And as far as sulfuric acid is concerned, it’s slightly more muted because of sulfur prices, so maybe about around INR2,000 a metric ton.
S. Ramesh
Okay. So that means once your sulfuric acid project is executed and your phosphoric acid plant is in-full production, you’ll get this benefit based on the. So when do we expect the full benefit from 4th-quarter of FY ’26 or first-half of FY ’27?
N. Suresh Krishnan
Well, you look at it, it, the phosphoric acid capacity has been completed, so we’re getting the benefit of it today. But the key thing that we’re not getting the full benefit in the phosphoric acid is because we still import a part of the sulfuric acid which we require. So this increase in capacity by about 0.6 million tons is what we’re expecting to do today. It’s going to be there in the — in Q3 of 2026, next year. By about October, September, October will be ready. So the second-half of next financial year, you will see the full benefit flowing in.
S. Ramesh
Thank you for that. So one last thought. So if you’re looking at your current net-debt and the cash flows in future, now that you have possibly coming to the end of your current capex, any further thoughts in terms of capex for the next two, three years?
N. Suresh Krishnan
No, I think I would like to state this as a benefit of everyone. We’re running a net-worth of close to about INR3,900 crores and our long-term debt is about INR600 crores to INR650 crores to date. And we have always maintained that we would like to keep our long-term debt within the range, maybe a 0.3% to 0.35% of the 0.34 of the overall debt worth that we have. So we will — we are planning our projects-based on that. So we — we will be careful in terms of capital allocation when it comes to it and we will look at projects-based on this kind of a debt flexibility that we have. So today, the key project that we are following-up besides the sulfuric acid project is the expansion of phosphoric acid from 5 lakhs to 7 lakh tons, which we announced in the last Board meeting. So that is one capex that we’re doing, which is going to make a material change to us and that will be available in the year 2000, it will not be now it will be middle of 2026 is when it will get streamlined for us. Along with that, the other major thing that we’re doing is the energy optimization, reducing the carbon footprint in Goa, when we expect that the — we will modernize our compressors in our fertilizer complex. So that project is going to be taken-up in December of 2025. So between ’25 and ’26 and these are all finance projects. So there is no new thing to be done here. So these are projects which are going to finally add value and give the positive support to the growth in EBITDA for us.
S. Ramesh
If I may just get two more thoughts on you. One is, in terms of this capex for this year, next year, what was the number three? And second thing is on the energy efficiency project, what is the benefit you expect, say, in terms of per ton and when would that go through into your numbers?
N. Suresh Krishnan
If you look at it as far as the project is concerned, the residual project that we need to finish in the sulfuric acid side will still cost us about INR200 crores to INR250 crores. That’s be the residual capex we will have there. And when it comes to the other — the project, which is the new phosphoric acid capacity from 5 lakh to 7 lakh tons is going to be roughly about INR240 crores to INR50 crores. So these are the two in the INR400 cro Inded crores investment that is going on at this point of time. And these are investment with high — high numbers of our return on capital employed. Coming to the energy efficiency side, we are planning that we are — we are planned to incur close to about INR180 crores on energy efficiency. The idea here being this project of INR180 crores should at least give us 25% return on capital employed. So that’s a return that we are expecting to get from this project.
S. Ramesh
Thanks. Okay. Thanks a lot and congratulations once again and wish you all best. Good morning
N. Suresh Krishnan
Yeah.
Operator
Thank you. Next question is from the line of Bhavia Shah from 3A Financial Service. Please go-ahead.
Unidentified Participant
Hello. Congratulations for the great result. Am I audible?
N. Suresh Krishnan
Yeah.
Unidentified Participant
So, sir, my question is in the recent financial budget, FY ’25 government has reduced allocation for the fertilizer subsidy to INR1.67 lakh crore from FY ’24 of INR1.88 lakh crore. So. So our company could have some negative or positive impact of this subsidy.
N. Suresh Krishnan
Well, coming back to the subsidy allocation with does, I think it’s an adequate subsidy we have provided for is normally an estimate based on the current trends that they get to see. So if you look at it today from a budget estimate to a budget estimate, there is a marginal improvement. But from the revised estimate of last year to the current budget estimate, you may see some kind of a small reduction which is there. But it — but I think we see this as a comfortable position going-forward, you know. And typically government makes an assessment of all this in the first-nine months. And if there isn’t — if there is no geopolitical issue that you get to see, then you might get to see fertilizer prices in a more stable — stable range and these numbers will come good.
Unidentified Participant
Okay.
Operator
Pave Shah, sorry to interrupt you. There’s a lot of airy sound coming while you are speaking. Can you keep the microphone little away from your mouth, please?
Unidentified Participant
Okay. Sorry for the interruption. Thank you for addressing the query.
Operator
Thank you very much. Next question is from the line of from Antique Stock Broking. Please go-ahead.
Viju
Yeah. Thanks for the opportunity. Sir, my question regarding the current budget. Government has reduced subsidy — sorry, not subsidy government has reduced the import duty on phosphoric acid from 20% to 7.5%. So how that will impact our earnings or like our company in terms of profitability?,
N. Suresh Krishnan
You want to respond to this?
Bijoy Kumar Biswal
Yeah. So phosphoric acid, I don’t think there is any decrease in the rate.
N. Suresh Krishnan
Phosphoric acid is 5% for 5% to 4% for the fertilizer use.
Viju
No, sir, if you look at the budget document, so there was a reduction in duty. So 20% to 7.5%. So is that our same grade or like
N. Suresh Krishnan
This is nothing to do with fertilized grade.
Bijoy Kumar Biswal
No, this is not the same grade. What do we import? Right now, what do we import is around 5%. So this is I think on the manufactured phos acid, which is used for the food segments. What we produce is a fertilizer grade phosphoric acid, which we import from and all.
Viju
Okay. But sir, we import rock phosphate like — so if we — if we are importing lock phosphate and if phosphoric acid prices are going down, imported prices, then we might have negative impact in terms of EBITDA per tons. Okay. So that I wanted to understand
Alok Saxena
This phosphoric acid what you’re talking is something different. What we import the custom duty is 5%, right?
Operator
Okay, okay. Understood. Understood.
Alok Saxena
So that is maybe the food grade in our phosphoric acid.
Operator
Understood, sir.
Alok Saxena
Impact this import of the phosphoric acid for the fertilizer grade.
Viju
Okay. Understood, sir. Thanks for the clarification. And second question was in terms of sulfuric acid capacity addition that you have announced last year, 0.6 million tonnes. So like that is on-track or like how it is?
N. Suresh Krishnan
Yes, we can.
Viju
Yes, so this is this will lead to commission by end of this financial year.
Bijoy Kumar Biswal
So this is expected to commission by September as committed to the Board and I think it is on-track and we don’t see any uncertainty in that.
Viju
Okay, understood. Thanks. Thanks for the clarification, sir.
Operator
Thank you. Next question is from the line of Vignesh from Sequen Investments. Please go-ahead.
Vignesh Iyer
Hello, sir. Yeah, thank you for the opportunity. Sir, my first question is on the backward integration part. I wanted to know what is the total savings that we did due to the backward integration of sulfuric acid and phosphoric acid in Q3 — Q3 as well as nine months. If you could give us a number for that
N. Suresh Krishnan
Well, our capacity of phosphoric acid has about increase by about roughly we’ve increased our capacity by 600 tonnes per day, which is per day. That’s a capacity increase that we’ve done and that reflects into about 18,000 tonnes per month. So in a quarter, we get about 50,000 to 60,000 tonnes more. So that has an impact of close to about INR50 crores in overall mix and the benefit of phosphoric acid can merge into that benefit and that’s what we get. And this is a difference between the phosphoric acid that we would have imported in case we have not increased our capacities.
Vignesh Iyer
Okay. And once — so if I understand it right, I mean, this quarter we have seen some increase in sulfuric acid prices has been reported. And also our — one of our peer who is also backward integrated in this, you know, they saved quite a lot of amount. So is, I mean the margins, if I have to compare not on a percentage basis, but on absolute basis has seen a very good improvement on Y-o-Y basis. Would it be correct to say that this primarily is due to the backward integration that the margins.
N. Suresh Krishnan
The backward integration is what is playing up for sure, yeah. Because the MRPs haven’t changed very much. So
Vignesh Iyer
Got it.
N. Suresh Krishnan
Because the quarter doesn’t change very much. So it is the backward integration that is playing up for the margins.
Vignesh Iyer
Yeah. So because the trend of sulfuric acids in Flash 4, 51 seems to be more on upwards that.
N. Suresh Krishnan
Currently, I mean we — I mean, we have only a 1.3 million ton capacity. So once the new capacity comes in, I’m sure we’ll gain from there also here.
Vignesh Iyer
Okay. And just one more question on my side. I understand new capacities coming in-quarter three FY ’26. On a normalized basis, what would be the kind of EBITDA margin we can see once all our backward integration kicks-in for a full-year basis, actually.
N. Suresh Krishnan
We have always said that for an integrated plant with introducing newer grades and more soil-specific grades. The range that we’ve said is about INR4,500 to 5,000. But I believe that once the backward integration for us across the site, I mean the overall requirement of phosphoric acid and sulfuric acid gets back to us, then we should obviously be pushing ourselves into a range of 5,500 per metric ton and above year.
Vignesh Iyer
Okay. Okay. Sir, just one last question from my side. So as of nine months FY ’25, I see we are — our utilization is somewhere hovering around 83%, 84%. Can we expect us to close somewhat about this level for FY ’25? And can we see the sales trend picking-up going-in quarter contract.
N. Suresh Krishnan
Harshy, would you like to on this?
Harshdeep Singh
Yes, sir, I’ll clarify. Yeah, just to share with you, the sales, if you look at it for the current quarter, we’ve grown by 47%, coupled by both the plants optimally supplying and also supported by the new products that previously that we open the market. And we see that growth continued coupled with full capacity utilization and the traded volume.
Operator
Thank you very much. Vignesh, I’ll request you to come back for a follow-up question, please. Thank you. Next question is from the line of Aman Jain from Arihant Capital. Please go-ahead.
Aman Jain
Hello. Yeah, am I audible?
N. Suresh Krishnan
Yeah.
Aman Jain
Yeah. Yes, sir. Thank you for the opportunity. Sir, just wanted to understand, so we have launched a new product nano DAP in nanofertilizers. So sir, what is the total capacity that we have for this product and what — have we begun the commercial sales for it? And what is the overall market outlook for the product in the long-term? Thank you.
N. Suresh Krishnan
I’ll ask my colleague, to respond..
Harshdeep Singh
Good morning. So see, the first and foremost thing, I think that I stated with you, we have almost touched 1.4 million lakh nano bottle sales of December, through December. And the way we look at it is to kind of establish the benefit and we see a healthy 25% to 30% growth being driven into the next year also. We have a capacity which is around 2.5 million bottles, that’s 25 lakh bottles. And we have the capacity to also further expand this, because that’s how we’re planning it out. And I think the first thing is, you’ll be happy to note that we have a unique product, which is what we call a biogenic nano and we are getting a very good response, especially for our. So — and we’ve got a very good growth in the current year. Thank you.
Aman Jain
Understood, sir. Sir, just sir, 2.5 million is the total capacity for nano and nanourea or just nanourea, which we
N. Suresh Krishnan
Both put together is fungible.
Aman Jain
So this capacity is flexible. So depending upon the market requirement, you can interchange between the two products. Us and we have the ability to expand it.
N. Suresh Krishnan
Hello hi
Operator
Hello,
Harshdeep Singh
Yeah. Yeah, does that — am I audible?
N. Suresh Krishnan
Yes, yes.
Aman Jain
Yes, sir. Yeah, I’m done with my question, sir. Thank you.
Operator
Thank you so much. Next question is from the line of Dhruv Machal from HDFC Asset Management. Please go-ahead.
Dhruv Muchhal
Yes, sir. Thank you so much. Sir, this quarter in terms of demand in segment seems very strong. But if I look at the production numbers for the complex fertilizers, 0.6 million tons that you have done for the quarter and a simple annualization takes me to about 2.3 million, 2.4 million ton annualized complex production volumes. This is against a capacity of 2.6. So I’m just trying to understand, is this a reasonable utilization level in terms of an annualized run-rate or can we go higher than this?
N. Suresh Krishnan
Well, in terms of Group, in terms of capacity utilization, what we had to keep in mind is that the capacity of the plant depends on the kind of grades that we make. There are grades which are volume drivers, but there are grades where the volumes are less. So the kind of grades that we have made, I think we have achieved good capacity utilization this year. And you’re right that we have an ability to go up to 2.6 2.6% and that’s what we will try and that will come up only when the grades like 106 26 come back-in a bigger way in the manufactured segment.
Dhruv Muchhal
It’s because I’m just trying to understand this time you’ve done a lot of trading volumes. So there was probably an ability to optimize your production according to your requirement — the best of your requirement.
N. Suresh Krishnan
Yes.
Dhruv Muchhal
So hence the extrapolation from these quarter numbers. So I’m just trying to understand, is that the right extrapolation or there is some more potential?
N. Suresh Krishnan
No, what you’re saying is that we are currently based on the quarter number extrapolation leaves us at about 2 million to 2.4 million tons of fertilizer annually, which is a fair number, but our ability is to go between 2.4 and 2.6. Why is only 2.4 is that we did not do the volume driver in terms of N10 as a manufactured product. Had we done that, you would have seen a far more production year. That’s the only thing. Otherwise, a fair thing. And let me tell you, this quarter the imports were not the most exact thing for us to do. So that’s also an important thing to keep in mind. So we did some imports all right, but those imports were only to supplement the needs of our channel rather than so much from the profitability angle there.
Dhruv Muchhal
Got it. And sir, the second question was more on the structure of the market. We are seeing that for you also and it seems also true for the industry that the NPKs are growing much stronger than the DAP. And some of this could probably be because of the shortage of DAP. But just excluding the shortage portion, I’m not sure how we can, but is there a structural shift towards NPK that we are seeing for the farmers for the benefits that they get from NPA.
N. Suresh Krishnan
It’s an it’s an interesting question. And I think my straightforward response is yes. I mean I think can show some more details on this.
Harshdeep Singh
Yeah. So I think a lot of effort has gone in by us, especially in terms of promoting balanced systems and there is a higher awareness amongst customers in terms of adopting the because they’re getting better results. So especially if you look at the category product which we also drive-in the product fall 2013, so this has got sulfur along with nitrogen phosphorus. You’re seeing a very good growth in this particular segment of MPK. Then the unique product from Goa, which only we manufacture is, so balance fertilizer. So we are seeing a greater adoption by farmers for the balance inflation. Of course, like what you rightly said, partly because of availability that also has played a role. But if you look at our organization PPL, our growth rate has been much higher as far as the farmer sales is concerned for NPK. Like we grew by our farmer sales of NPKs by 48%, while the industry grew by 30%. So there is a lot of effort which is going on in terms of promoting NPK with the farmers.
Dhruv Muchhal
Yeah. So the idea was because this has come along with the DA shortage. So you — but the trend towards NPK is very strong. So just was trying to understand how structural this is, can this continue probably?
N. Suresh Krishnan
No, I think I think you — so it’s important for you to realize one thing when we talk about DAP shortage, I think DAP needs a price correction. That’s our strong view. And when the DAP price correction comes in, everything will fall in-place. And so that is the first important point that we have. And the second thing is for two consecutive years, we are seeing that some of the large — larger DAP consuming markets have taken — taken on — taken at NPKs, the consumption have been there. So when you see a farmer going through three, four seasons of a new product and he comes back to buy the same product again, that is necessarily a shift that you’re seeing. You know, and that shift is positive. So the current situation of DFE while it is in my view is not the best situation to be in terms of promoting balanced fertilization, but it is certainly given some trends which in the long-term can be beneficial.
Dhruv Muchhal
Got it. Perfect, sir. Great, sir. Thank you so much and all the best. Thanks.
Operator
Thank you. Next question is from the line of Krishnan Parwani from JM Financial. Please go-ahead.
Krishan Parwani
Thank you. Thank you for taking my questions. Firstly, on this additional DAP subsidy, INR3,500 to INR500 per ton. How much have you received in this quarter?
N. Suresh Krishnan
Yeah. This value would —
Bijoy Kumar Biswal
No, we have this subsidy whatever DBD is raised, we have received up to-end of this end. So only December is pending. Now out of INR3,500, I think so-far we have raised INR3,000 based on the notificate sir. So whatever has been raised up to December has been — up to November has been paid by the government.
Krishan Parwani
So essentially that INR500 per ton was pending for the last quarter and it is pending for this quarter as well. So the remaining amount could come through in the subsequent quarters. Is that the understanding?
Bijoy Kumar Biswal
Yeah.
Krishan Parwani
Okay. Fair enough. And secondly, were there any inventory losses during the quarter? Yeah.
Bijoy Kumar Biswal
Sorry,
N. Suresh Krishnan
No.
Krishan Parwani
No, okay. So
Bijoy Kumar Biswal
Nothing.
Krishan Parwani
Okay. And on the — I think I think I was mentioning, when can we expect that DAP/MRP division given ammonia prices have moved up and probably resulted in a slight contraction in our gross profit. So when do you expect that?
N. Suresh Krishnan
Well, I think as far as DAP is concerned, as I said earlier, we got to close wait-and-see the subsidy announcement that NBA’s announcement by the government effective 1st of April 2025. I think that will set the tone on the tone for it.
Krishan Parwani
Understood. Well, not it. And just a last bet on your trading volume. So what was your per ton EBITDA margin on trading volumes in this quarter and last quarter?
N. Suresh Krishnan
Yeah, this one you want to provide
Bijoy Kumar Biswal
EBITDA for the trading will be around INR2,000
Krishan Parwani
This quarter in the last quarter as well?
Bijoy Kumar Biswal
Yes
Krishan Parwani
Okay. And just one small clarification. Can you share the trading volumes for 3Q FY ’24 and 4Q FY ’24, if you have that handy.
Bijoy Kumar Biswal
So we’ll ask another to say you separately.
Krishan Parwani
No problem. No problem. That’s all from my side. Thank you for patiently answering my questions and wish you all the best.
N. Suresh Krishnan
Yeah.
Operator
Thank you. Next question is from the line of Prashant Biyani from Elara Securities. Please go-ahead.
Prashant Biyani
Yeah. Thank you for the opportunity again. Sir, if I heard Mr Biswal correctly, we have claimed only 3,000 out of 3,500 of incremental subsidy from on TAP. If that is correct, why is it so that we haven’t claimed the entire 3,500 yet?
N. Suresh Krishnan
Well, as per the notification, government said they will pay 3,000 and the 500 will be paid at the end-of-the year-after the — after the audited details are given to them. So we have gone by that.
Prashant Biyani
Is that typically when does the audit get complete?
N. Suresh Krishnan
But typically, we’ll have to provide them already till the end-of-the year, so we’ll be doing it in the month of April.
Prashant Biyani
Okay. And sir, some update on where we are on widening our distribution reach, how are things panning out there?
N. Suresh Krishnan
The distribution reach for us as soon as North is concerned, I think it has come up well. I think we have we are from Eastern UP, we are into Western UP, we are in — we are reached to Haryana and we continue to be there in Punjab and we have we have consolidated ourselves in Karnataka very well now right across. And then the next round of, I would say, a change in drug reach will come post the merger, you know, and we expect that to happen next year.
Prashant Biyani
Okay. And if Mr Biswal can share the POS sales volume for Q3?
N. Suresh Krishnan
Yeah, certainly.
Bijoy Kumar Biswal
I just wanted to share you the numbers of what sales for the quarter was 10.54 lakh metric ton versus last year of 6.4 lakh metric ton. We had a 55% growth in sales in Q2.
Prashant Biyani
Okay. Thank you, sir.
Bijoy Kumar Biswal
Second set 1 million ton plus sales
Prashant Biyani
Right okay, sir. Thanks.
Operator
Thank you. Next question is from the line of Dhruv Muchal from HDFC Asset Management. Please go-ahead.
Dhruv Muchhal
Thank you, sir for the follow-up. Sir, just a quick one is the DAP subsidy is INR3,500. We are billing 3,000, but in terms of accounting, what are we doing? Are we accounting for INR3,000 or 3,500?
N. Suresh Krishnan
It’s currently 3,000.
Bijoy Kumar Biswal
So you have accounted 3,000 only.
Dhruv Muchhal
Okay. So there is a 500 gap which you are not accounting for, which will be accounted for only once it is probably received or confirmed by the government. But are you that subsidy is a
Bijoy Kumar Biswal
Subsidy over and over the prevailing rates.
Dhruv Muchhal
Yeah, that is in your view, is that available or how should we think of it?
Bijoy Kumar Biswal
That’s very much available. Do we have to provide the audited based on audited account, the account finalization, you know we have to book that one at the end-of-the year. So as per the notification, we have booked INR3,000, the balance INR500 will booked in the coming quarter.
Dhruv Muchhal
Sure, sir. Perfect. Makes sense. Thank you.. Thank you.
Operator
Thank you. Next question is from the line of Vignesh from Sequent Investments. Please go-ahead.
Vignesh Iyer
Hello. Thank you for the opportunity again. Sir, I couldn’t get the clarification the first time or not. So I was just wondering, will the sales velocity continue in the quarter-four of this year? And what would be like the full-year sales volume growth if I have to compare it with FY ’24?
N. Suresh Krishnan
The 4th-quarter is not a season sale, you know. And by the time we come to mid of February, the season ends all over India. So you normally don’t see a big growth in the 4th-quarter, but — but obviously, the kind of momentum that you’ve got in growth in sales over the first 3/4 and the kind of number that we’re going to get. You will see that continuing in FY next year also. Like we are nearly going to be hitting closer to a 2.9 million to 3 million tonne mark that we had in mind in terms of overall sale. So I think that’s — that would be a significant milestone for us.
Vignesh Iyer
Okay. But if I’m — if I’m right, our three months — nine months FY ’25, the volume is around 23 lakhs, right? And you’re saying you around 29 lakh.
N. Suresh Krishnan
So something around that. That’s what you see. That’s the kind of material that will be available and — but it’s an off-season. So you have to be careful in terms of what kind of — what kind of sales or demand that you get to see in the field, yeah. Yeah.
Vignesh Iyer
And so — and a similar number when it comes to FY ’26, just that with a better margin profile due to our backward integration, right?
N. Suresh Krishnan
So we believe that in FY ’26, I think now we are coming closer to that 3 million target that we are in mind as per the the way we are today.
Vignesh Iyer
Got it. Got it, sir. Yeah, that’s all from my side and all the best.
N. Suresh Krishnan
Thank you.
Operator
Thank you. A reminder to all the participants, you may press RN1 to ask a question next question is from the line of Hari Kumar, Individual Investor. Please go-ahead.
Unidentified Participant
But regarding this government support from this currency depreciation and increase in rock price, what is the support from the government, sir? As per point,
N. Suresh Krishnan
Government doesn’t directly intervene in these subjects. Only thing they do is the current prices of international prices and currency is factored into whenever you announce the NBS rates for — for the season, which is from 1st of April 2025. So we will get to see whenever they announce the next round of rates for NBS maybe end of February or end of March.
Unidentified Participant
Okay. Thank you.
Operator
Thank you very much. Next follow-up question is from the line of S. Ramesh from Nirmal Bang. Please go-ahead.
S. Ramesh
Thank you very much for the follow-up. So if you look at the base you already achieved for this year FY ’25 and year-to-date, what is the kind of volume growth you’re expecting point-of-sale of our NPK DAP fertilizers next year?
N. Suresh Krishnan
I think we’re doing well as far as cost as cost is concerned and the kind of levels that we have, the ideal situation would be that we are able to do nine months or 10 months of primary sale that we end-up doing that gets converted to cost sale and trying to restrict the non-cost component to two to three months at year.
S. Ramesh
So would that be in that range of maybe 3% to 5% or I’m asking this because this base is very-high. So in terms of sales,
N. Suresh Krishnan
I think we will continue with this base. This base will be continued and why is this base good today? This is good today because of the robust demand that we’ve seen in the pharma level right through. And the reservoir levels have been good and there have been a good agriculture activity that we’ve seen. So if this continues, this sale should not be should not be a for us at all for sure. And we believe that this will — this will — these trends will be maintained..
S. Ramesh
So on the nano DAP side,, what’s the percentage margin you are earning now and what is — what is the kind of revenue charge you ask you?
Operator
People are not able to hear your question completely. Can you repeat your question one second, please?
S. Ramesh
Can you hear me now?
Operator
Yes.
S. Ramesh
Yeah. So on the nano fertilizer sales, if you can give us any share of revenue for year-to-date and what is the percentage margin? And what is the kind of growth you can expect in this over the next two, three years?
N. Suresh Krishnan
Let me tell you, I mean, these are early days as far as Nano is concerned. So I think the revenue details, I’m sure can share that with you. And profitability is not something that is something that is very significant at this point of time. I mean, we would be kind of look at about 10% to 15% margin and because a lot of developable activity, promotional activity is involved for Nano.
S. Ramesh
And what would be the growth rate likely over the next two, three years?
N. Suresh Krishnan
Growth can be quite significant. I mean, when you’re looking at, at say capacity available because of 2.5 million tonnes, I think we should be — I mean, ideally speaking, at the end of this year, what we should see going-forward would be a maybe a substantial 40% growth from where we are today.
S. Ramesh
Thank you very much and wish you all the best.
N. Suresh Krishnan
Yeah.
Operator
Thank you very much. As there are no further questions, I will now hand the conference over to the management for closing comments.
N. Suresh Krishnan
Thank you. Yeah, thank you. Thank you all for joining the call today. And should you have any further questions, please don’t hesitate to reach-out to our IR team and thank you and have a good day.
Operator
Thank you very much. On behalf of Antique Stock Broking Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.
Bijoy Kumar Biswal
Thank you.
Harshdeep Singh
Thank you