Paradeep Phosphates Q2 FY27 Profit Drops 65% YoY

Board approves September-quarter results

Paradeep Phosphates Limited approved its unaudited standalone and consolidated financial results for the quarter and half-year ended September 30, 2026. The Board of Directors considered the results at its meeting on October 29, 2026. The decision followed a recommendation from the company’s Audit Committee, which met on the same day. The company also attached the limited review report issued by its auditors. The announcement confirms the formal release of the Q2 FY27 financial statements after the trading window was closed from October 1 until 48 hours after the results declaration.

Consolidated profit declines despite revenue growth

Consolidated net profit for Q2 FY27 fell 65% year-on-year to ₹121.01 crore, compared with ₹341.94 crore in Q2 FY26. Revenue from operations increased 7.2% to ₹7,364.06 crore from ₹6,872.20 crore a year earlier. The revenue increase indicates continued demand across the company’s phosphatic fertiliser grades. However, the gain in revenue did not translate into higher quarterly profit. The reported result shows that costs and specific charges had a material effect on profitability during the period.

Sequential revenue rises from the June quarter

Revenue from operations rose 20.2% from ₹6,124.25 crore in Q1 FY27 to ₹7,364.06 crore in Q2 FY27. This was a substantial sequential increase in the company’s top line. Total expenses also rose to ₹7,217.64 crore in Q2 from ₹5,641.40 crore in the preceding quarter. The higher expense base narrowed the room available for profit after tax. The company’s Q1 FY27 standalone result had reported net profit of ₹392.60 crore and revenue of ₹6,124 crore.

Inventory write-down affects quarterly earnings

The Q2 result included an inventory write-down of ₹59.98 crore. This item was cited as a factor weighing on quarterly profit. Inventory valuation can affect reported earnings even when revenue from operations increases. In this case, the charge came alongside higher total expenses in the September quarter. The available financial update does not provide a further break-up of the write-down or a separate estimate of its impact on operating margins.

Half-year profit is lower than last year

For the six months ended September 30, 2026, Paradeep Phosphates reported consolidated net profit of ₹513.55 crore. This was 22% lower than ₹658.69 crore reported in the corresponding period of the previous year. A separate result update cited H1 FY27 net profit of ₹513.61 crore. Both figures point to a half-year profit of about ₹514 crore and a decline from the prior-year period. Investors should refer to the attached unaudited financial statements for the company’s final reported presentation.

Key financial figures

Operating cash flow remains negative in H1

The financial update reported H1 FY27 operating cash flow of negative ₹2,314.68 crore. Operating cash flow measures cash generated or used by normal business operations. A negative figure during the half year is relevant for investors assessing working-capital needs and cash conversion. The supplied information does not specify the individual components behind the negative operating cash flow. It should therefore be considered alongside the detailed half-year financial statements and notes.

Market and industry context

The revenue performance comes after a strong Q1 FY27, when the company reported revenue of ₹6,124 crore, up 63% year-on-year. The September-quarter top line was also above the June-quarter level. But Q2 profitability shows that revenue growth alone did not offset rising expenses and the inventory write-down. The available data also states that Paradeep Phosphates’ revenue is forecast to grow 6.0% annually on average over the next two years, compared with a 12% forecast for India’s chemicals industry. This is an external forecast and not company guidance.

Expansion projects remain part of the background

Earlier disclosures referred to two planned capacity expansion projects. These included a ₹2,450 crore integrated granulation plant at Paradeep and a ₹1,150 crore phosphoric sulphuric acid plant at Mangalore. The projects were stated to have a completion timeline of 2.5 years. The company had said the expansion was expected to enhance operating capability and reduce import dependency. No new progress update on these projects was included in the supplied Q2 FY27 results information.

What investors should monitor next

The Q2 FY27 release provides confirmed figures for higher revenue, lower profit, increased expenses, an inventory write-down and negative half-year operating cash flow. The detailed unaudited statements and auditor’s limited review report are available with the company’s filing. Future disclosures on costs, inventory, cash flow and the stated expansion projects will provide further context on operating performance. Paradeep Phosphates has completed the Board approval process for the September-quarter and half-year results, with the next scheduled financial update to determine how these factors develop.