Paradeep Phosphates Ltd (NSE: PARADEEP) Q4 2025 Earnings Call dated May. 08, 2025
Corporate Participants:
Rajeev Nambiar — Chief Operating Officer
Unidentified Speaker
Analysts:
Manish Mahawar — Analyst
Rishi Kothari — Analyst
Jignesh Kamani — Analyst
Ahmed Madha — Analyst
Riju Dalui — Analyst
Vignesh Iyer — Analyst
Dhruv Muchhal — Analyst
Aayush Jha — Analyst
Krishan Parwani — Analyst
Sophiya Masta — Analyst
Sandeep Mukherjee — Analyst
Rohit Nagraj — Analyst
Shubro — Analyst
Presentation:
Operator
Good day and ladies and gentlemen, good day, and welcome to the Paradi Limited Q4 FY ’25 Earnings Con Call hosted by Antique 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, sir.
Manish Mahawar — Analyst
Thank you. Thank you, Navier. On behalf of Antique Stock Broking, warm welcome to all the participants on the call of Paradi. Today, we have Mr Rajiv Nambia, Chief Operating Officer; Mr Harshitik Singh, Chief Commercial Officer; Mr Vijay Kumar Viswal; CFO, Mr Alok, Head, Corporate Finance; and Mr Lahiri, Strategy, II ESG on the call.
Without further ado, I would like to hand over the call to Mr Nambia for opening remarks, post which we will open the floor for Q&A. Thank you. Over to you, Mr Nambia.
Rajeev Nambiar — Chief Operating Officer
Good morning, Manish. Thank you for the call and good morning, everyone and warmly welcome you to the Phosphates Q4 as well as financial year 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 had a chance to go through them.
FY ’25 has been a truly transformational year for the company, marked by healthy profitability, improved operational efficiency and significant strategic progress. On the financial front for FY ’25, the company posted a very healthy 452 percentage year-on-year surge in profit-after-tax, powered by highest-ever fertilizer sale of 3.03 million tonnes. Revenue from operations stood at INR13,880 crore, registering a 19% growth over the previous year. EBITDA rose sharply to INR1,367 crore, up by 91 percentage year-on-year, while the profit before-tax increased by INR434 percentage to INR752 crores. In Q4 alone, revenue grew by 56% to INR3,494 crores with EBITDA doubling to INR389 crores and PBD raising nearly eightfold to INR223 crores. In-line with our dividend policy, the Board has recommended a dividend of INR1 per equity share on the face value of INR10 for the financial year 2025.
Over the past four years, PPL has demonstrated industry-leading growth across fertilizer production, sales volume, market-share and key financial metrics, including revenue, EBITDA and PAT. The successful execution of key capex proposals is now yielding the visible cash-flow benefits. On the operational front, the company reported production volume of 2.63 million tons and primarily the sale of primary sale of 3.03 million tonnes for the full-year, reflecting year-on-year growth of 14% and 20% respectively.
PPL served over 9.5 million farmers across 15 Indian states through a wide network of more than 95,000 retail points. Our product basket includes nine diverse crop and soil-specific NPK grades with N20 sales crossing a record 1.06 million tonnes for the first time. Our share of NPK in the product mix has steadily increased over the last two years, reinforcing our of balanced fertilization for the soil. We produced 4.86 lakh tons of phosphoric acid during the year, making a 30% year-on-year increase while the sulfuric acid production stood nearly 1.3 million tonnes.
PPL also achieved record cost sales maintaining high sales velocity, which led to improved receivables and better working capital efficiency. We continued our innovation-led offerings, selling 1.66 million bottles of nano fertilizer and receiving a strong market response for our recently introduced TSC product with sales of nearly 1.5 lakh ton during the year. We maintained a sharp focus on strategic sourcing and supply-chain agility, leveraging a long-term supply relationship and robust on-site storage infrastructure to navigate raw-material price volatility during the year. The company ended FY ’25 with a net debt-to-equity ratio of 0.78, marking a 28% reduction over the previous year, along with improved net-debt per ton of sales. These operational efficiencies translated into healthy free-cash flow generation, post working capital and capex.
On the ESG front, PPL achieved a significant milestone by make being ranked among the top two percentage globally in the chemical sector by S&P Global as a part of the 2024 Corporate Sustainability Assessments, which forms the basis of the Dow Jones Sustainability Index. This recognition underscores our growing leadership in sustainability and our continued focus on embedding ESG into every layer of strategy and operations. Our strategic roadmap anchored in three core pillars. They are scale in operation, backward integration and product innovation.
The ongoing merger with MCFL is expected to enhance our overall sales volume by approximately 23 percentage, taking them to 3.7 million tonnes. This will also enable deeper penetration into key southern markets and provide opportunities to sell and upsell as well as cross-sell. In parallel, we have been investing in backward integration with an aim of enhancing our margins. The expansion of sulfuric acid capability to 1.9 million tonnes at our site is progressing well and is expected to be commissioned by Q3 of this year.
Additionally, our plans to augment phosphoric acid capacity to 0.7 million tons from the current 15 have commenced and we expect completion within two years. These expansions will help us achieve greater self-reliance and long-term sustainability operations. On the product innovation front, we were the first to introduce the triple superphosphate and biogenic nanofertilize in the country, both of which saw healthy sales in FY ’25. Our focus going-forward remains on developing differentiated low-carbon products tailored to soil and crop-specific needs, aligning with both farmer expectations and the environmental goals.
Overall, FY ’25 has been a defining year for the phosphate. We have strengthened our market position, delivered strong financials and built a resilient and agile operating model. I want to thank our employees, channel partners, customers and all stakeholders for their continued trust and support. We look-forward to building on this momentum and delivering a greater value in the years to come
Thank you, and I now look-forward to 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 their Touchstone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles you. The first question is from the line of Sirishi Kothari from Investments. Please go-ahead.
Rishi Kothari
Hello. Yeah, thank you so much for the opportunity and congratulations on good set of numbers. Also, I have couple of questions. First, regarding the product margins that we are sustaining. So of course, it was the effect of backward integration that we are eventually incorporating the company. So these margins will be sustainable for next two to three years, how that we are looking at? And will it be simple that range or will it increase eventually?
Unidentified Speaker
Related to the margin, so I think yeah. Yeah. Regarding this, this backward integration and the impact on the margin. This is what on account of this process integration of from 5 lakh 3 lakh to 5 lakh crores. So that will be continued and it will be sustained. Apart from that, whatever the things we are doing which is in pipeline, this new sulfuric acid which is going to stream by 3rd-quarter three, that will also add to the — that will also impact the margin profit positively.
Rishi Kothari
So what are margins that we have for EBITDA as well as PAT, that will be sustainable or rather increase as and then the bank verification by Q3 FY ’26, right?
Unidentified Speaker
Yeah. We expect it to improve.
Rishi Kothari
Okay, okay. Okay. So in terms of demand front, if I say, what exactly is the scenario in the — I know that we are more focused with the rural part of India to increase the demand from?
Unidentified Speaker
So the demand outlook remains very, very strong. If you see the current forecast for the monsoon, it’s expected to be around 103% to 104% of the long period average, which augurs well for the Indian economy and Indian farmers. The farmers are getting good price for their produce, which also augurs well for a strong demand in the year ahead. Yeah. Thank you.
Rishi Kothari
Okay. So in terms of the growth rate for top-line for next two, three years, what exactly do we have to target for next years?
Unidentified Speaker
So in terms of top-line, we actually did a record sales of 3 million tonnes for the first time. We’re looking at organically having a 5% increment this particular year, plus MCFL when it gets added on that kind of add-on another 23% 24%. So net-net, we’re looking at north of 3.7 million tons this year.
Rishi Kothari
In terms of growth in terms of numbers, if I say that would be around mid-teens of growth 15% to 17%?
Unidentified Speaker
About 23%, little more than that?
Rishi Kothari
Okay next two to three years. It’s all because of the increase in backward indication and the production that we are looking at…
Unidentified Speaker
In terms of — for FY ’26. If we were wrong on FY ’26, what 20%.
Rishi Kothari
Okay. Interesting. Got it. Got it. Thanks for the update.
Operator
Thank you. Participants who wish to ask questions may press star in one at this time. Next question is from the line of Jignesh Kamani from Nippon AMC. Please go-ahead.
Jignesh Kamani
Yes, hi. Hi, team. Congratulations for a good set of numbers. And just on the DAP side, I think government announced additional of around INR3,50 last year and we book, I think INR3,000 out of INR3,500 for the nine months. So just want to check-in the 4th-quarter head we book additional amount for the entire year and what is the quantum?
Unidentified Speaker
See the policy says that INR3,500, but whatever has been paid that has been booked and this INR500 has not been booked. So that will be — as well as and when this will be declared, then it will be booked.
Jignesh Kamani
So in 4th-quarter, there was no incremental benefit which we booked. It was a pure you can see profitability which was there.
Unidentified Speaker
Yes. Yeah.
Jignesh Kamani
Understood. And with the revised subsidiary on the trading — DFP import trading, is there any margin now because earlier there was no much margin left and hence there was a shortage of DAP so just address that.
Unidentified Speaker
Yes, see, currently government policy the way they have announced, it’s going to be a positive margin on the trading. So they have given an indication for that in the subsea policy. So that’s very, very positive actually.
Jignesh Kamani
So what happened last year you said that there was shortage of DAP. So that’s why 10% of the NPK was pretty good, which now is easily available DUP, are you seeing some moderation in the NPK growth rate or some of the farmer who has compulsory shifted from DAP to NPK might reverse?
Unidentified Speaker
Correct. So there are two factors. See, one is the NPK growth, which is driven by a fundamental awareness for the balanced nutrition, which is what is actually helping us to grow the NPK portfolio and the industry also to grow that. Of course, there was a constraint of a DAP and which limited the DAP sales as far as the concerned. We see basically a steady growth for NPK still continuing, but there is still room for balance attrition as we move forward. However, DAP availability, if it’s better, we can expect a marginal growth there also. And we are trying to position innovative offering, which is TSP, which is 46% peak and that basically creates value for the farmer because you prevent overuse of nitrogen basically through TSP.
Jignesh Kamani
So despite a healthy availability of DFP, TSP and NPA growth will remain reasonably good, right, for this year?
Unidentified Speaker
Yes. Yes, yes.
Jignesh Kamani
And last one, have you finalized the fine print of INR4,000 crore capex MAU with government?
Unidentified Speaker
Yeah. So on the of a few years, that will be done in a phased manner. So right now we are taking this expansion of phosphoric acid and the acid and this dry system and all those things that is the pipeline. So once that is get completed, then we’ll go to the next level of expansion. So that is pretty much the five-level.
Jignesh Kamani
Sure. Okay. Thanks a lot and all the best. Thank you.
Operator
Thank you. Next question is from the line of Ehud Madha from Unifi Capital. Please go-ahead.
Ahmed Madha
Yeah, thanks for the opportunity and congratulations on good set of numbers. Just to understand Q4 number, with the change in subsidiary rates per, is there any change in the major inventory gains for us in Q4? And if yes, can you please quantify it?
Unidentified Speaker
No, there is this, I think on. We have this Q4 this — what are the subsidies there now from the Kharif, the new subsidy has been notified, rate has been notified. So due to that, whatever stock is that also has been properly taken care. That has been accounted for.
Ahmed Madha
Can you quantify that number?
Unidentified Speaker
So that you know, whatever as per this stock available and this thing is taken care, I think.
Ahmed Madha
Yeah. Got it. And in terms of working capital, are you seeing any challenges in terms of receivables from government? That’s my first question. And second part of the question is, if I compare our receivable days compared with other peers of us, be it in business or NTK business or relative receivable days look higher. So is there any sort of technical reason which I’m missing, which explains the higher receivable days relatively?
Unidentified Speaker
Just to kind of clarify, see, basically, we are trying to look at how we can drive improvement. So if you look at our performance vis-a-vis last year, the receivable days both from the market and the subduce receivables, there is a significant improvement which has happened. And that’s a direction which has been enabled well by a good market demand and good cash-flow from the government as well as the market. If you look at the trend, it’s very strongly positive for the current year.
Ahmed Madha
Okay. Got it. And in terms of inventory in the channel, can you give any comments how is the inventory in the channel by the end of March? And how do you see the placements for the next panning out?
Unidentified Speaker
So just to kind of tell you the channel inventories are at a very optimal level. If you look at the cost sales also the farmer sales, like where our primary sales was 3 million tons plus, the farmer sales also was 3 million tons plus. So we maintain consistent inventory level, which is a steady-state around 4 lakh metric ton, 3.5 to-4 lakh metric ton.
Ahmed Madha
Okay. Yeah, thank you so much.
Operator
Thank you. Next question is from the line of from Antique Stock Broking. Please go-ahead.
Riju Dalui
Sir, hi, thanks for the opportunity and congrats for a good set of numbers. Just a bookkeeping question, like how was the capacity addition at the Goa planned for the full-year.
Unidentified Speaker
Can you can you repeat the question? We couldn’t understand.
Riju Dalui
Like if you could tell us the Goa non-UV plant for the full-year?
Unidentified Speaker
That is actually an outstanding year actually last year, we almost touched the fullest capacity utilization. So that’s a good news for us for the last year. Yeah.
Riju Dalui
So it’s a 100% utilization is there for the non-India plant?
Unidentified Speaker
Yeah, it’s almost like the fullest utilization, one of the best utilization in the recent years.
Riju Dalui
Understood. And the other question is that like in FY ’25 for the full-year, we have seen strong volume growth in the manufacturing fertilizer side, right. So probably we are utilizing roughly around 85% of our total installed capacity is in the side. So if you could highlight like with the current capacity, how much we can incremental volumes we can sell into the market for next two years.
Unidentified Speaker
I think this year we have sold 3 million tons. You know, out of that this product manufactured is around 2.6. So we plan to grow around 5%, 5% to 700% as a — on a — this on an overall basis.
Riju Dalui
So we are saying that we might be utilized 95% of our total capacity in terms of manufacturing fertilizer.
Unidentified Speaker
Yeah, we are aiming for that actually. Yeah.
Riju Dalui
So with that, I think we might — if those are 100% level by FY ’28. So is there any plan to debottlene like our existing facility to improve the capacity?
Unidentified Speaker
Yeah, that is actually an ongoing project, it’s a smaller nature, it always goes along with the normal production. If you look at it to all the trains actually after this year shutdown, which is almost over, we expect gradually to come to the next level. So that debottlenecking is an ongoing job for us and that will definitely realize much better utilization for the equipments and overall equipment effectiveness.
Riju Dalui
Understood. And in terms of profitability, so in Q4 like we have registered one of the great EBITDA per ton and in terms of EBITDA margin, the margins were only the higher — like highest-ever in the last few quarters. So like was there any kind of inventory gain in terms of your side business, especially in the manufacturing fertile or the or DAP side.
Unidentified Speaker
Yeah, not this due to the NBS impact, notification, whatever you know this offsite that has been accounted for a policy.
Unidentified Speaker
Viju, it’s basically a function of multiple things. You know, backward integration is one, the right product mix is one wherein we have had more of NPKs. And of course, there have been some inventory as part of our channel inventory and that’s been accounted for as part of the NPS whatever was given out.
Riju Dalui
Understood. See, I just wanted to understand one thing is that like if you look at the RN prices, which are higher like — which are continually increasing for last couple of months, right? So was there any kind of inventory gain for this quarter and if you could quantify that gain?
Unidentified Speaker
No, we can’t quantify what we said that stock is there, that will be utilized in the process. So — and that will be accounted for in due course.
Riju Dalui
Okay, okay. Understood. And in terms of your growth in the Northern region or the northern market. So is there any kind of market-share gain that we have witnessed during the quarter?
Unidentified Speaker
So just to kind of see currently market-share not in the public domain, but at an overall level, if you look at it, we almost gained more than 1.5% of NPK market-share. Our — our growth of NPK portfolio as far as farmer sales were concerned was upward of 50%, whereas industry growth of 31%. And North remains to be a focus market for these are irrigated markets. And the way PPS portfolio is concerned, we are in a very balanced kind of volume contribution from North, East, West and South.
Riju Dalui
Okay, okay. Understood. And one last question in terms of your energy efficiency that you have mentioned in the PPT. So like how much you are going to spend there for the energy efficiency and what is the expected benefit in the EBITDA levels?
Unidentified Speaker
So this is Phase-2 energy efficiency level what we are now embarking. So that will be completed by Q4 this year, you know. And the capital outlay is around INR190 crores to INR200 crores.
Riju Dalui
Okay. And if a gain out of this investment?
Unidentified Speaker
No, it will be the payback, in terms of payback, I can tell that will be the four to five years.
Riju Dalui
Got it. Yes, thanks. That is all from my side. Thank you.
Operator
Thank you. Next question is from the line of Vignesh from Sequent Investments. Please go-ahead.
Vignesh Iyer
Sir, congratulations on excellent set of numbers and thank you for the opportunity. Sir, my first question would be to understand, sir, how heading towards season, I mean how has been the availability of that, especially if I — if you have to comment for the month of April?
And secondly, wanted to understand, can we see the velocity when it comes to NPK sales similar to what we are seeing in-quarter four going ahead as well?
Unidentified Speaker
So like when we discuss for the Kharif year, just two, three fundamentals. One is, I think first and foremost, which is a good monsoon. So the current forecast is very, very strong and positive, 103% to 104%. The reservoirs are carrying good water level, which also augurs well for the agriculture. In terms of the stock inventories as a country, the DEP inventory currently is a low and we maintain still a good stock of NPKs, basically which is available with the trade. We see a good demand in the Khari season and the DAP availability is going to be mixed basically in view of limited availability from China. However, the government policy has been very favorable and it supports that the customer requirements are met. So you are going to see a good demand for NPKs because of fundamental kind of demand from the customers and also good demand for DAP and new products like TSP. So it’s going to be good season ahead. DAP availability is going to be limited.
Vignesh Iyer
Okay. Okay. So can you quantify the inventory that we carry from March to April and total inventory in tonnes in Q4?
Unidentified Speaker
So basically for us, we will be having approximately 3.5 million to-4 million tons of — 44 lakh tons of stocks.
Vignesh Iyer
Okay. So I mean, considering we have almost done sales more than, I mean, capacity for obvious reason that we would have carried forward some inventory last year as well. Can we expect — I mean like a 3.3 lakh, 3.4 lakh ton type of volume number in FY ’26?
Unidentified Speaker
So we don’t give a forward-looking just thing. You should expect a good set of numbers. Like we have clarified, we are planning to augment our capacity. We also strategically do trading volumes based on driving profitable growth. And since we are carrying opening trade stocks, which is like a regular routine in nature, that augurs well for both season and the season ahead. So sales is going to be strong, that’s how we look at it.
Vignesh Iyer
Okay. Just one last question before I get back-in the queue. Wanted to understand how the surprises of sulfur and sulfuric acid that has panned out in-quarter four? And can you say if there is any meaningful change that we have seen in the month of April?
Unidentified Speaker
Yeah. So basically, we are seeing some sort of an uptake in various raw-material commodities. Also right now as we’re speaking, it’s about trading at about a $300 odd. Sulfuric acid is about a 125-ish. But given the fact we are — we have about 1.4 million tonnes of sulfuric acid captive capacity, we kind of stand to benefit by kind of procuring sulfur and making acid in-house.
Vignesh Iyer
So what were the prices in-quarter four? I mean for sulfur and sulfuric?
Unidentified Speaker
The quarter-four sulfur was about 190 odd. Sulfuri was about 10. These are the published numbers, not specific to our company, but generate numbers.
Vignesh Iyer
Got it. Got it, sir. Yeah, general trend of the price, I understood. Fine, I’ll get back-in the queue, sir. Thank you.
Operator
Thank you. Next question is from the line of Dhruv Muchal from SDFC Asset Management. Please go-ahead.
Dhruv Muchhal
Yes, sir. Thank you so much. Sir, it’s a repetition of the earlier question on the manufacturing capacity almost fully utilized. So as you may grow by 5%, next year, you will be about 90% capacity utilized on your manufacturing volumes. So just trying to understand how much more can you do from debottlenecking? And I mean, or when do you probably will have to go for the next phase of expansion? And how do you time it better?
Unidentified Speaker
Thank you, Dhruv. Actually capacity — last year witnessed actually one of the best capacity utilization of all the trains what we operate. This year actually like we said about debottleneck is an ongoing activity for us, at least 5% to 8% of the capacity we expect to come out-of-the debottleneck. And accordingly, there are a lot of other things happening paraly in terms of reliability improvement and the excellence in terms of manufacturing, in terms of improving capability of people. So this all should result actually — if you look at it actually 7% to 8% of the capacity should increase year-by year-by various means. And also once the backward integration projects are handy actually definitely we’ll be on the drawing board lot of other actions plans are already lined-up.
Dhruv Muchhal
Got it. I’m just wondering, would we — are we a bit late in terms of the announcement given that the demand is reasonably good? There is a — and also your capacities are fully utilized or there is a lot of scope from debottlenecking that you can drive for one, two years? Because I’m just wondering if you announce a capacity expansion even today for, it would take about one, two years probably for the phase to come up. So just trying to understand would this capacity continue to become a bottleneck for growth?
Unidentified Speaker
Yeah. So, if I may add actually the growth for parity over the last four years has been a mix of both organic as well as inorganic. So although we…
Dhruv Muchhal
Understand the inorganic — inorganic part will drive just from the organic segment.
Unidentified Speaker
So organic, in fact, you know, let the merger kind of get complete and then I think we should have very quick plans in terms of how to augment the capacity further. So you have to wait it out.
Unidentified Speaker
That’s, in-part, if you have got spare capacity of 1.5 lakh ton, which can take care of this whatever growth we are talking. So we can easily have 1.25 lakh to 2 lakh ton addition with doing no little whatever the debottlenecking we are doing. That is what we are right now doing.
Unidentified Speaker
And just to add, see, we’re also trying to augment the business growth through the traded volumes. However philosophy on-trade volume is to drive profitable growth. So — but we will be augmenting the market requirement through full capacity utilization as well as through traded volumes also and of course, the inorganic growth through integration.
Unidentified Speaker
Yeah. So just to give you a number, if you look at the overall market growth, this is about 5%, 6%, whereas PPL for the last four years have grown at a compounded rate of more than 15% and 16%. I think that kind of really — it’s a good number for us and we’ll announce what the plans once the merger is complete.
Dhruv Muchhal
Got it. Perfect. And is there also a scope from optimizing your portfolio further, for example, DAP this year, if I understand is about 30% of your overall mix manufacturing mix versus it was about 45% earlier. So can you trade more of DAP and produce more of NPK? Is. Is that a possibility to also drive volumes? So volumes?
Unidentified Speaker
So the way we look at it is, see, the product mix is a function of the market requirement, profitability and as well as optimal use of the RM materials available. So our focused path is to drive the NPK growth. However, in order to meet the customer requirement, we offer DAP, which is partially through the manufactured volume and we are also going-in for traded DAP to augment that.
Unidentified Speaker
So we do yes. If you look at it actually the last two years, it will be very clearly consulting towards the NPK volumes and that path is actually going to get strengthened in the coming years for sure.
Dhruv Muchhal
Got it. The second question is on the capex. If you can write for the capex for FY ’26.
Unidentified Speaker
So the project what we are now undergoing, we have got around rate of INR500 crores all put together. So out of that this — why I’m talking the cash outflows whatever we are going to invest. Okay. So in that energy efficiency what I told just sometime back, INR200 crore and for the P2O pipe or built from the capacity around INR100 crore and sulfuric acid, what we are increasing the capacity from INR5 lakh ton. This — for that, this is around INR100 crores what we will be spending. So balance has been spent. So this will be spent during this year.
Dhruv Muchhal
Got it. And sir, last question is on the DAP, the subsidy and the — some of the underrecoveries. I think in the last call, you had mentioned that at the end-of-the year, when the government looks at the auditor accounts, if there is any loss on DAP sales, that would be adjusted for and would be given to the companies, I mean, made good to the companies. So I’m just trying to verify, is that — does that still hold? And assuming you were to go to the government and claim for that under-recovery, how much that amount would be?
Unidentified Speaker
No, this — whatever has been notified by the government, based on that, we have been — we have claimed it and that has always all been accounted for. So nothing is — nothing is there which is not to be positively claimed.
Dhruv Muchhal
So except for the INR500, which you have not provided for the remaining everything else is claimed.
Unidentified Speaker
Yes, yes, yes.
Dhruv Muchhal
Okay. Perfect, sir. That makes helpful. Thank you so much and all the best.
Unidentified Speaker
Thank you.
Operator
Thank you. Next question is from the line of Ayush Jha from Sagun Capital. Please go-ahead.
Aayush Jha
Hello, am I audible?
Operator
Yeah, it is good.
Aayush Jha
No. Thank you for letting me ask questions, sir. Sir, my question is for the Goa plant, ammonia and urea. When the plant will start in 2023, I have seen there is a frequently breakdown of the plant. And if I the number, it’s around more than six and seven times the plant has breakdown and I have read that. So what’s the issue there and when we can see the stable of that plant, sir?
Unidentified Speaker
Okay. It is unfortunate we had multiple stoppages in the ammonia urea last year. If you look at it, actually, we have recovered from that and majority has come from basically the ammonia compressor side. And to remove all these things once for all, actually, by end of this year, actually, we’ll be replacing the critical ammonia compressors as a program address both reliability as well as the energy efficiency. And apart from that, there’s a lot of other investment we have done in terms of maintainability and reliability improvement. So we expect this year is going to be much better than last year. And just to add that in-spite of all exactly, we have crossed our RSE.
Unidentified Speaker
That assess capacity to what has been allocated to us with 4 lakh to have.
Aayush Jha
Okay, sir. And sir, my second question is around the merger of which are — which recently going to take place and is there any future guidance you want to give about that, sir?
Unidentified Speaker
No, sir, we have received the SEBI approval. We are with the bench. The shareholder meeting is being convened on 2nd of June. Once that is approved, then we’ll go to NCIT for the second motion. So all-in all, we expect that by — within next three to four months, we should be able to close the process.
Aayush Jha
Okay. Thank you soon, sir. That’s it from my side.
Operator
Thank you. Next question is from the line of Krishan Parwani from JM Financial. Please go-ahead.
Krishan Parwani
Yes. Hi, sir. Congratulations on very strong set of numbers. A couple from my side. First one clarification. I think on the — you mentioned about capacity. So probably about 1.5 lakh to 2 lakh tonnes. So by when can we expect that?
Unidentified Speaker
This is ongoing. This will get realized this current year itself.
Krishan Parwani
Okay. So basically your overall capacity like capacity could go from 2.6 to 2.8 by FY ’26, is that correct?
Unidentified Speaker
Yeah, yes.
Krishan Parwani
Okay. That’s fine. And for that, what was the capex that you did?
Unidentified Speaker
And not a major capex at least. There’s a lot of debottleneck which is taking both the revenue as well as smaller capex roads.
Krishan Parwani
Got it. And secondly on the overall volume, we’ve seen that volume has declined to 660 KTPA in F ’25, obviously because NPKs volume sold are higher. So what’s your aspiration for debt sales in F 26.
Unidentified Speaker
So we don’t give a forward guidance for a particular product. However, the intention is to overall grow the numbers and like what we said, around 5% to 7% will come from the inorganic and the further growth will come from the merger basically. And we’re also trying to drive traded volumes of DAP and TSP. So TSP is another product in the similar portfolio with 46% P, that’s how we try to meet the requirement. DAP will be done in-line with the market requirement. However, the intention is to kind of offer farmers a balanced portfolio of NPKs because that is much better for agriculture.
Krishan Parwani
Okay. And when you say 5% to 7%, I think that’s basically X of NCFL, correct?
Unidentified Speaker
Yes.
Krishan Parwani
Okay. Okay. Got it. And just a last bit. I know you don’t indicate this, but can you give some understanding about what’s your traded volume EBITDA like? I mean, what is your trading EBITDA like in FY ’25, if you could just give some indication.
Unidentified Speaker
So general traded volume, last year we have gone around 3.9.9 lakh ton, right, 4 lakh ton. So the EBITDA will be around INR200 to INR2,500 lower than the manufactured EBITDA level.
Krishan Parwani
Okay, so that’s more like INR2,000 give or take.
Unidentified Speaker
Yes.
Krishan Parwani
Okay. And last bit, what’s your subsidy outstanding currently?
Unidentified Speaker
Around INR1,900 crores.
Krishan Parwani
Okay. Fair enough, sir. Thank you for answering my questions. Wish you all the best. Thank you.
Unidentified Speaker
Thank you.
Operator
Thank you. Next question is from the line of Sofia Masta from Elara Securities. Please go-ahead.
Sophiya Masta
Oh, congratulations on a good set of numbers and thank you for the opportunity. I just would like to know that what are the kind of trading volumes that we expect in FY ’26, if you could give any guidance on that?
Unidentified Speaker
So like I think you clarified, we are not giving a forward guidance on the numbers ahead. We have indicated a growth of 5% to 7% on the overall portfolio and trading will be done to support the market requirement basically and as well as driving profitable growth. So it’s going to be — we’re going to be looking at DAP and. I would like not like to give standalone forward.
Sophiya Masta
Okay. And any of what are like a fixed capex plans for the coming year?
Unidentified Speaker
In terms of the decarbonization and carbon-neutral path there are big investment which is going to come in terms of energy improvements, especially in a Goa plant. And in Paradi plant actually is going to be backward integration of sulfuric acid as well as phosphoric acid and some debottleneck to increase the capacity of the current range.
Unidentified Speaker
Okay and it will be around 500.
Sophiya Masta
Okay, thank you.
Operator
Thank you. Next question is from the line of Sandeep Mukharji from SKP Securities Limited. Please go-ahead.
Sandeep Mukherjee
Yes, sir. Hi, thanks for taking my question Sir, I think that the NBA subsidies are revised. So any other products in Goa plant are you targeting like N10 or something?
Unidentified Speaker
Just to kind of share with you, see, our Goa remains a dedicated site for making NPK portfolio and one of our flagship products that we are trying to grow is 19. And of course, you know, we’ve got a strong portfolio of other NPKs like N10, N12 and 28. So go as a dedicated NPK side.
Sandeep Mukherjee
And your capex guidance of INR5,500 by FY ’27 remains intact. Sorry, your EBITDA per ton guidance of INR5,500 by FY ’27 is intact?
Unidentified Speaker
No, we — no, no, we continue to give guidance of INR4,500 to INR5,000 as sustainable EBITDA. And whatever expansion in EBITDA will happen, it will happen because of the backward integration project that we are undertaking. So to that effect, the EBITDA per ton increase, but the sustainable EBITDA per ton guidance continues to be to be INR4,500.
Sandeep Mukherjee
Okay, sir. Okay, sir. Thank you.
Operator
Thank you. Next question is from the line of Vignesh Ayer from Sequent Investments. Please go-ahead.
Vignesh Iyer
Yeah, yes, sir. Sir, my question is more on the other income side of it. Wanted to understand what is the income that we are deriving through, I mean on the other income side, we have been doing INR35 crore INR30 crores now consistently for the last two quarters. So the earlier the rate run-rate used to be between INR20 crores. So is it mainly treasury income or how risk?
Unidentified Speaker
Yeah. No, because this is mainly on account of the treasury income. And during this year, the cash-flow, the subsidy inflow at the trade collection is good. So what are the surplus we have put it in treasury, manage the treasury and that has yield this type of income.
Vignesh Iyer
Okay. And can we accept — I expect that the net-debt to equity to improve and to see more probably near 0.6.5 times in next two years.
Unidentified Speaker
But only with this type of what the backward integration and this EBITDA, you know margin, we are talking and the growth in the volume with the free-cash flow, we can expect that. We believe that we can be able to do that, achieve that.
Vignesh Iyer
Okay, sir. Got it. Got it, sir. Thank you.
Operator
Thank you. Next question is from the line of Manish Mahawar from Antique Stock Broking Limited. Please go-ahead.
Manish Mahawar
Yes, sir, just in terms of market, right, I think we are gaining share in terms of a North market, right? I just wanted to understand basically and we are growing NPK at a faster pace. So it’s a market in the North, which is more of a depth I think so heavy, right? It’s shifting towards the NPK at a much faster pace because our competitor is also highlighting the same thing. So just wanted to understand from the market perspective.
Unidentified Speaker
So just to share with you, we’ve been pioneers in driving the Northern market as a shift to NPKs is concerned, especially through our flagship grade 202013, which is nitrogen, phosphorus and sulfur. And we are seeing a good acceptance for that product happening across Punjab, Haryana, UP, Bihar, so which augurs well because the pharma instead of just putting one or two nutrients is getting a nutrition of nitrogen, phosphorus and sulfur and we also see a good scope for NPKs like 1230 to 16 to also grow in that geography.
Manish Mahawar
Okay. And — but the market side, it’s more of a shift is happening towards to NPK at a faster pace in these markets.
Unidentified Speaker
It is definitely happening, okay. And one of the key products which is going-in the put in the overall market is 2020, 0, 13. So out of almost the 1.4 million tons of NPKs, almost 7 million is approximately N20 million. So you can see a clear shift which is happening. And that is more dominant in the north because the South and West are already dominant NPK market NPK.
Manish Mahawar
Right. Okay. And these markets are within the 1,400 kilometer range of which is subsidy freight subsidiate, right, it’s or it is over and above that in terms of a reach perspective.
Unidentified Speaker
Yeah. So just to kind of give you kind of see the synergistic effect that we have that we’ve got Parajeep and Goa and we are able to serve the market-based on what is the most optimal thing from both the plants.
Manish Mahawar
Okay, understood. And in terms of second question, in terms of your EBITDA per ton, right, I think Alok has said stated in one of the answer, right, if INR4,500 per metric ton will be the sustainable number. And how basically the — my side is that next FY ’27, right, your energy efficiency in a Goa as well as our sulfuric acid plant will come, right? So this EBITDA per ton has to improve in FY ’27, right? ’26 maybe will be the operating leverage will play-out.
Unidentified Speaker
Yeah. So what Alok has told based on that, yeah, on a steady-state basis, we get 4,500. And on due to this all these backward integration and what are the cost-saving project we are doing, it will have a definitely positive impact on this — our product portfolio. But that also depends what is the international prices and all this thing, depending on all these things. But it will have a definitely good impact and a positive impact on our EBITDA in a bottom-line.
Unidentified Speaker
Actually, if you look at it now in terms of two, three actions, one is the scale in terms of the production as well as the total sailing and obviously the backward integration and energy good ones. These are the key things which are going to be playing out in the coming days against the risk involved in terms of the turbulence which happens. We are quite positive that actually we will derive much higher.
Manish Mahawar
Okay, understood. And two bookkeeping questions. One, in terms of subsidy, as you said, INR1,900 odd crores of a subsidy outstanding. Can you break it up into the due and non-due subsidy from the government?
Unidentified Speaker
So out of that, whatever due is around INR700 crores INR700 crores should be. And what is the pipeline now that cost is allowed to around INR200 crores.
Manish Mahawar
Okay, understood. And next one is interest cost basically, if you look at this year, right, we have closed at around INR360 odd crore of interest cost. How do we see this number will be the next year or maybe you can share the rate of interest — average rate of interest for us.
Unidentified Speaker
Okay. But do you think this overall interest outgo, which is last two years is in the same range of INR360 crores INR370 odd crores, right, will come down from these levels now as we have — we have good cash now.
Manish Mahawar
Okay, understood. Sure, sir. And that’s from my side. Thank you.
Operator
Thank you. Next question is from the line of Rohit Nagraj from B&K Securities. Please go-ahead.
Rohit Nagraj
Yeah. Thanks for the opportunity and congrats on good set of numbers. So first question is on the phosphoric acid. So currently we have 0.5 million tonnes of capacity. Are we currently using the entire phos acid for our fertilizers?
And the second question is the additional 0.2 million tons, 0.2 million tons which we are adding, that will be sufficient for how many years in terms of the growth that we are targeting. Thank you.
Unidentified Speaker
Yeah. So, hi, Rohit. First of all, I think there was a bit of confusion. So in terms of phos acid, we have 0.5 million tonnes as we speak and that is sufficient for the Paradeev site the incremental 0.2 million tonnes will be helping us to kind of support the other sites in addition to that’s one. In terms of the other intermediary which is sulfuric acid we are augmenting the capacity to 2 million tons which will kind of you know which is expected to complete in another four-five months that should kind of make Paradeep more than 100% backward integrated.
Rohit Nagraj
And second question in terms of the battery grade of assets. So any comments on that from your side? Thank you.
Unidentified Speaker
Rohit, as you would realize, we have quite a healthy level of free-cash on the balance sheet at the moment. We wanted to kind of complete the couple of important items at hand, namely the merger, the phos acid and the sulfuric acid. Post that, we’ll announce further plans in terms of utilization of the remaining free-cash.
Rohit Nagraj
So that’s helpful. Thanks a lot and all the best.
Operator
Thank you. Next question is from the line of Individual investor. Please go-ahead.
Shubro
Good afternoon, sir, and thanks for the opportunity. This INR3,500 additional subsidiary on DAP has been extended till the month of September. Is that correct?
Unidentified Speaker
Yes, up to September.
Unidentified Speaker
And regarding the balance 500, yes, regarding the balance 500 subsidy which is due by when do you think that it will be cleared?
Unidentified Speaker
No, that you know still not notified. You know the way it has to be, you know claimed and all things. So we are waiting for their. Once it comes, if you see once it’s, then we will do it.
Unidentified Speaker
So this would be the same for all the industry players on DAP, correct?
Unidentified Speaker
Yes, yes.
Unidentified Speaker
Because I ask this because government has extended this for another six months and previous deals are also not yet here when it will be paid out. So that’s the reason why I think.
Unidentified Speaker
No, your question is valid. This is — this 3,500 has been extended. But this last year they have — whatever they have paid 3,000, we have accounted for this whenever they notify the balance 500, that will be accounted.
Shubro
That’s it from my side, sir. Thank you.
Operator
Thank you. We take the last question from the line of Sofia Masta from Elara Securities. Please go-ahead.
Sophiya Masta
Hi, thank you so much for the opportunity once again. I just wanted to ask that how much capex have we already put into our sulfuric and phosphoric acid plants or respectively?
Unidentified Speaker
The pulsuric acid plant or whatever we are talking that 0.5 million ton. On that out of INR480 crores what is the capital outlook, we have already spent around INR300 odd crores. So that balance will be spent during this year. Hospital that 0.2 million what we are talking out of that, we have just started. We have spent around INR30 crore.
Sophiya Masta
Sorry?
Unidentified Speaker
We have spent around INR30 crores balance INR100 odd crore will be spent during this year.
Sophiya Masta
Okay. Thank you so much.
Operator
Thank you. I would now like to hand the conference over to the management for closing comments.
Rajeev Nambiar
Thank you. Thank you everyone for joining us today and for your continued trust and interest in our journey and the company. Should you have any further questions, please feel free-to reach-out to our Investor Relations team anytime. Thank you. Thank you all.
Unidentified Speaker
Thank you.
Unidentified Speaker
Thank you.
Unidentified Speaker
Thank you.
Operator
Thank you. 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