The NSE ticker PDP closed 14% lower on Friday after the company filed its Q2 results, making it the biggest loser on the Nifty 500 index.
The filing shows a ₹121 crore net profit, down 69% YoY from ₹393 crore, and an EBITDA of ₹413.4 crore, a 37% decline from ₹656.6 crore. The margin slid to 5.6% from 9.6% in the same quarter.
Revenue edged up 7.2% to ₹7,364 crore from ₹6,872 crore a year earlier, driven by a 32% jump in sulphuric acid output and a 7% rise in phosphoric acid production. The company has already begun the first phase of its phosphoric‑acid expansion, boosting capacity from 5 lakh to 7 lakh tonnes.
In parallel, Paradeep approved a ₹250 crore investment to establish an aluminium fluoride plant, a move that could diversify its product mix and hedge against volatility in fertiliser markets.
The company’s profitability has been squeezed by soaring raw‑material prices—sulphur, ammonia, and freight—alongside a softer NPK fertiliser demand and delays in subsidy collections. Analysts note that inventory levels remain high, which could further pressure margins if sales stay muted.
Looking ahead, the firm has not issued a formal guidance for the next quarter, but management is monitoring raw‑material cost trends and the pace of subsidy disbursement. Investors will watch the upcoming earnings call for any updates on the expansion projects and potential debt‑management plans.