Rama Phosphates’ fertilizer unit drives first-half growth

Rama Phosphates Limited, referred to here as Rama Phosphates, reported Rs 515.50 crore of revenue and Rs 61.26 crore of segment profit from fertilisers, micro nutrients and chemicals in the half year ended September 30, 2026, driving growth while soya-agri revenue fell to Rs 4.81 crore and its loss narrowed to Rs 55.94 lakh.

Which segment drove Rama Phosphates’ first-half growth?

Rama Phosphates’ fertilisers, micro nutrients and chemicals segment drove first-half growth, with revenue rising to Rs 515.50 crore in the half year ended September 30, 2026 from Rs 422.01 crore a year earlier. The increase of Rs 93.49 crore was substantially larger than the company’s overall revenue increase of Rs 84.34 crore, as soya-agri revenue declined over the same comparison.

The segment accounted for about 99% of Rama Phosphates’ Rs 520.31 crore net sales and income from operations in the reported half year. Its Rs 61.26 crore segment result, defined by the company as profit before interest and tax without central administrative costs, finance cost and other income, was up from Rs 55.19 crore in the prior-year half.

Rama Phosphates identifies two operating segments under Indian Accounting Standard 108, or Ind AS 108: fertilisers, micro nutrients and chemicals, and soya-agri. The filing says the fertiliser segment includes non-subsidised fertilisers, while the Chief Operating Decision Maker evaluates performance and allocates resources using segment performance indicators.

How did the soya-agri business perform in the first half?

Rama Phosphates’ soya-agri revenue contracted to Rs 4.81 crore in the half year ended September 30, 2026 from Rs 13.96 crore in the previous-year period. The Rs 9.15 crore decline meant soya-agri represented less than 1% of reported first-half revenue, compared with roughly 3% a year earlier.

The business nevertheless reduced its segment loss to Rs 55.94 lakh from Rs 85.83 lakh. This Rs 29.89 lakh narrowing occurred despite lower sales, but the segment remained loss-making on the company’s stated measure of profit or loss after depreciation and before interest and taxation.

In the September 2026 quarter alone, soya-agri revenue was Rs 1.25 crore, down from Rs 3.57 crore in the June 2026 quarter but above Rs 4.93 lakh in the September 2025 quarter. Its quarterly loss was Rs 27.76 lakh, broadly unchanged from a Rs 28.18 lakh loss in June 2026 and narrower than the Rs 37.98 lakh loss a year earlier.

What changed in Rama Phosphates’ quarterly segment performance?

Rama Phosphates’ fertiliser segment revenue increased to Rs 294.27 crore in the quarter ended September 30, 2026 from Rs 221.23 crore in the preceding June quarter and Rs 245.61 crore a year earlier. The segment result rose to Rs 32.58 crore from Rs 28.67 crore in June and Rs 27.65 crore in September 2025.

At company level, revenue from operations was Rs 295.51 crore in the September quarter, compared with Rs 224.80 crore in June and Rs 245.66 crore a year earlier. Profit before tax was Rs 26.24 crore, up from Rs 22.81 crore in June and Rs 22.90 crore a year earlier, after interest of Rs 3.92 crore and other unallocable net expenses of Rs 2.14 crore.

The contribution pattern shows the main difference between the segments. Fertiliser revenue increased by Rs 73.04 crore sequentially, while soya-agri revenue fell by Rs 2.32 crore. The filing does not give sales volumes, pricing, crop conditions or product-level reasons for either movement, so the disclosed figures establish the direction of change but not its operational cause.

How did segment assets and liabilities change?

Rama Phosphates’ fertiliser segment assets increased to Rs 751.66 crore as of September 30, 2026 from Rs 672.85 crore at March 31, 2026 and Rs 607.22 crore a year earlier. Soya-agri assets were Rs 25.76 crore, down from Rs 33.33 crore at March 31, 2026 but above Rs 23.96 crore a year earlier.

Fertiliser segment liabilities were Rs 294.92 crore at September 30, compared with Rs 355.09 crore at March 31 and Rs 204.78 crore a year earlier. Soya-agri liabilities declined to Rs 2.98 crore from Rs 16.63 crore at the March year-end and Rs 13.37 crore a year earlier, while unallocable liabilities were Rs 31.63 crore.

Total capital employed, calculated in the filing as segment assets less segment liabilities, was Rs 458.31 crore at September 30, 2026, versus Rs 422.47 crore at March 31, 2026. The fertiliser business therefore remained the principal operating segment both in first-half revenue and in the disclosed asset base of Rs 751.66 crore.

What expansion is planned for the fertiliser business?

Rama Phosphates said it commenced trial production of Single Super Phosphate, or SSP, fertiliser on November 11, 2026 under Phase I of its greenfield facility at the MIDC Industrial Area in Nardana, Dhule, Maharashtra. Management said actual full-scale commercial production is expected shortly after required statutory approvals are received.

With the new facility’s operations commencing, Rama Phosphates said its aggregate SSP production capacity stands at 9.14 lakh metric tonnes per annum, or MTPA. The company also said Phase II activities have started, although the filing does not disclose Phase II capacity, capital expenditure, commissioning timing or anticipated revenue contribution.

The first-half balance sheet recorded capital work in progress of Rs 69.48 crore as of September 30, 2026, compared with Rs 47.53 crore at March 31, 2026. The cash-flow statement reported purchases of property, plant and equipment including capital work in progress of Rs 22.32 crore during the half year, against Rs 5.62 crore in the prior-year half.

Conclusion

The disclosed segment data show that Rama Phosphates’ first-half expansion came from fertilisers, micro nutrients and chemicals: segment revenue rose by Rs 93.49 crore and segment profit increased by Rs 6.07 crore. Soya-agri moved in the opposite direction on revenue, declining by Rs 9.15 crore, although its loss narrowed by Rs 29.89 lakh.

The next operating milestone is full-scale commercial production from the Nardana SSP facility after statutory approvals, alongside the start of Phase II activities. Investors can also watch whether the 9.14 lakh MTPA aggregate SSP capacity is reflected in later segment revenue and profit, and the board’s recommended interim dividend of Rs 0.50 per equity share.