Rama Phosphates September profit rises to Rs 19.17 crore

Rama Phosphates Limited reported net profit of Rs 19.17 crore for the quarter ended 30 September 2026, up from Rs 17.28 crore a year earlier, as revenue from operations increased to Rs 295.51 crore from Rs 245.66 crore. The Fertilizers, Micro Nutrients & Chemicals business accounted for Rs 294.27 crore of quarterly revenue.

How did Rama Phosphates perform in the September 2026 quarter?

Rama Phosphates increased September-quarter revenue, profit before tax and net profit from a year earlier. Revenue from operations rose by Rs 49.85 crore to Rs 295.51 crore, while total income, including Rs 22.78 lakh of other income, reached Rs 295.74 crore. Profit before tax was Rs 26.24 crore, compared with Rs 22.90 crore in the quarter ended 30 September 2025, with no exceptional or extraordinary items reported in either period.

Rama Phosphates also recorded a sequential rise from the quarter ended 30 June 2026, when revenue was Rs 224.80 crore and profit before tax was Rs 22.81 crore. Net profit increased from Rs 17.06 crore in the June quarter. Finance cost in the September 2026 quarter was Rs 3.92 crore, higher than Rs 2.21 crore a year earlier but slightly lower than Rs 4.05 crore in the immediately preceding quarter.

Which business drove Rama Phosphates' quarterly sales growth?

Rama Phosphates' Fertilizers, Micro Nutrients & Chemicals segment drove the increase, reporting revenue of Rs 294.27 crore for the September 2026 quarter against Rs 245.61 crore a year earlier. Its segment result, defined as profit after depreciation but before interest and taxation, rose to Rs 32.58 crore from Rs 27.65 crore. The company states that this segment includes non-subsidised fertilizers.

Rama Phosphates' Soya/Agri segment reported Rs 12.45 lakh of revenue, compared with Rs 4.93 lakh in the September 2025 quarter. The segment recorded a loss of Rs 27.76 lakh, which was narrower than the Rs 57.98 lakh loss a year earlier. The contrast between the two businesses means the fertilizer, micronutrient and chemicals segment supplied virtually all reported quarterly sales and segment earnings.

The fertilizer-related segment had assets of Rs 751.66 crore at 30 September 2026, compared with Rs 607.22 crore a year earlier. Its liabilities increased to Rs 294.92 crore from Rs 204.78 crore over the same period. Total segment assets were Rs 787.84 crore, including Rs 25.76 crore in Soya/Agri assets and Rs 10.43 crore of unallocable assets.

What do Rama Phosphates' half-year earnings show?

Rama Phosphates reported revenue from operations of Rs 520.31 crore for the half year ended 30 September 2026, compared with Rs 435.97 crore in the prior-year half year. Profit before tax increased to Rs 49.05 crore from Rs 44.36 crore, while net profit rose to Rs 36.23 crore from Rs 33.32 crore. The half-year result combines the quarters ended June and September 2026.

Material consumption was Rs 359.76 crore in the 2026 half year, compared with Rs 258.44 crore a year earlier. Purchase of stock in trade increased to Rs 12.78 crore from Rs 5.58 crore, and finance cost rose to Rs 7.98 crore from Rs 5.73 crore. Depreciation and amortisation, however, declined to Rs 3.60 crore from Rs 3.95 crore.

Rama Phosphates reported total comprehensive income of Rs 36.06 crore for the six months ended 30 September 2026, compared with Rs 33.12 crore a year earlier. Other comprehensive expense, net of tax, was Rs 16.78 lakh, against Rs 19.21 lakh in the prior-year period. Basic and diluted earnings per share, not annualised, were Rs 10.24, compared with Rs 9.42 in the comparable half year.

Why did Rama Phosphates report negative operating cash flow?

Rama Phosphates used Rs 19.15 crore in operating activities during the half year ended 30 September 2026, versus cash generated of Rs 32.40 crore in the corresponding 2025 period. Operating profit before working-capital changes was Rs 60.20 crore, but working-capital movements absorbed Rs 77.93 crore. Direct taxes paid added an outflow of Rs 1.42 crore.

Government subsidies receivable increased by Rs 18.95 crore and trade receivables increased by Rs 12.36 crore in the half-year cash-flow statement. Other current assets rose by Rs 17.12 crore, while trade payables declined by Rs 28.86 crore. These movements accompanied the reported rise in half-year revenue to Rs 520.31 crore.

Rama Phosphates used Rs 22.18 crore in investing activities, compared with Rs 3.14 crore in the prior-year half year. Purchases of property, plant and equipment, including capital work in progress, were Rs 22.52 crore, partly offset by Rs 1.75 crore of capital subsidy. Capital work in progress stood at Rs 69.48 crore on 30 September 2026, up from Rs 47.52 crore at 31 March 2026.

How did Rama Phosphates' borrowings and balance sheet change?

Rama Phosphates generated Rs 41.32 crore from financing activities in the half year ended 30 September 2026, whereas it used Rs 29.36 crore in the prior-year period. Net short-term borrowings increased by Rs 35.70 crore and net long-term borrowings increased by Rs 14.79 crore. Interest paid was Rs 7.92 crore, compared with Rs 5.59 crore in the corresponding half year.

Current borrowings were Rs 167.42 crore at 30 September 2026, compared with Rs 131.73 crore at 31 March 2026. Non-current borrowings increased to Rs 20.26 crore from Rs 5.48 crore. Total equity rose to Rs 458.31 crore from Rs 422.47 crore, while total liabilities were Rs 329.53 crore, compared with Rs 296.75 crore at the March 2026 year-end.

Rama Phosphates held Rs 158.08 crore of government subsidies receivable on 30 September 2026, compared with Rs 139.13 crore on 31 March 2026. Trade receivables were Rs 84.40 crore, up from Rs 71.69 crore. Cash and cash equivalents were Rs 13.55 lakh at 30 September 2026, versus Rs 15.45 lakh at the beginning of the half year.

What is the status of Rama Phosphates' Nardana facility?

Rama Phosphates commenced trial production of Single Super Phosphate, or SSP, fertilizer at its Phase I greenfield facility in Nardana, Dhule on 11 November 2026. Management said full-scale commercial production is expected shortly after the required statutory approvals. Following the start of operations, aggregate SSP capacity stood at 9.14 lakh metric tonnes per annum, or MTPA.

Rama Phosphates said Phase II activities at Nardana have started. The Ministry of Environment, Forest and Climate Change has granted standard terms of reference for a proposed expansion, while the final environmental-clearance process remains underway. The proposed aggregate annual capacities include 3 lakh tonnes of SSP and urea-SSP complex, 1.80 lakh tonnes of complex fertilizers, and 1.44 lakh tonnes of 25% phosphoric acid.

Conclusion

Rama Phosphates reported higher September-quarter and half-year earnings as the Fertilizers, Micro Nutrients & Chemicals segment lifted sales to Rs 294.27 crore in the quarter. The results also show that higher activity coincided with Rs 19.15 crore of operating cash outflow, rising subsidy and trade receivables, Rs 22.52 crore of capital expenditure, and increased short-term and long-term borrowings.

The next item to watch is the timing of statutory approvals needed for full-scale commercial production at Nardana after trial production began on 11 November 2026. Management has also begun Phase II work, while final environmental clearance for the proposed expansion is still in process.