Revenue and Profitability Trends
Over the six-year period ending March 2025, Paradeep Phosphates’ net sales exhibited a robust upward trend, rising from ₹4,192.87 crores in fiscal 2020 to ₹13,820.21 crores in fiscal 2025. This growth reflects a compound expansion driven by increased market demand and operational scale. The total operating income mirrored this pattern, with no other operating income reported, indicating core business activities as the primary revenue source.
Operating profit before depreciation, interest, and tax (PBDIT) excluding other income showed a steady increase, reaching ₹1,462.35 crores in fiscal 2025 from ₹459.75 crores in fiscal 2020. Including other income, operating profit rose to ₹1,610.39 crores in the latest fiscal year, more than tripling since 2020. However, the operating profit margin fluctuated, peaking near 11% in 2020 and 2025, but dipping to around 5.6% in 2024, reflecting variable cost pressures and market conditions.
Profit before tax (PBT) saw a remarkable surge in fiscal 2025 to ₹4,053.84 crores, a significant jump from ₹230.39 crores in 2020, driven by improved operational efficiencies and other income. Despite this, profit after tax (PAT) showed more moderate growth, reaching ₹662.85 crores in 2025, influenced by tax expenses and interest costs. The consolidated net profit followed a similar trajectory, with a notable increase to ₹551.79 crores in 2025 from ₹193.22 crores in 2020.
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Cost Structure and Margins
The company’s raw material costs have scaled in line with revenue, increasing from ₹2,210.14 crores in 2020 to ₹8,660.41 crores in 2025. Purchase of finished goods also rose substantially, indicating a growing reliance on external inputs. Manufacturing expenses were introduced in fiscal 2025 at ₹1,680.90 crores, reflecting expanded production activities. Employee costs increased steadily but remained a relatively small portion of total expenditure.
Other expenses showed volatility, peaking above ₹1,700 crores in 2023 and 2024 before dropping sharply to ₹194.85 crores in 2025, which contributed to improved profitability. The total expenditure excluding depreciation rose consistently, but the company managed to maintain a positive operating profit margin, underscoring effective cost management despite rising input costs.
Balance Sheet and Financial Position
Paradeep Phosphates’ balance sheet strengthened considerably over the period. Shareholder’s funds expanded from ₹1,603.53 crores in 2020 to ₹4,076.88 crores in 2025, supported by growing reserves and equity capital. The book value per share improved from ₹27.87 to ₹50, signalling enhanced net asset value for shareholders.
Total liabilities increased in tandem with business growth, reaching ₹11,146.33 crores in 2025 from ₹5,010.32 crores in 2020. Long-term borrowings rose moderately, while short-term borrowings more than doubled, reflecting increased working capital requirements. Despite this, net current assets improved, indicating better liquidity management.
On the asset side, net block value more than doubled to ₹3,333.11 crores by 2025, reflecting ongoing capital investments. Capital work in progress also increased, signalling continued expansion. Current assets grew substantially, with cash and bank balances surging to ₹903.79 crores in 2025 from a modest ₹5.82 crores in 2020, enhancing the company’s liquidity profile.
Cash Flow Analysis
Cash flow from operating activities remained positive in most years, with ₹1,386 crores generated in 2025, demonstrating strong cash generation capability. However, fiscal 2023 saw a significant negative operating cash flow, attributed to working capital changes. Investing activities consistently reflected cash outflows due to capital expenditure, while financing activities varied, including a large inflow in 2023 and outflows in other years.
The net cash inflow in 2025 was ₹783 crores, a marked improvement over previous years, contributing to a closing cash balance of ₹873 crores. This robust cash position supports the company’s operational and expansion needs.
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Summary of Historical Performance
In summary, Paradeep Phosphates has exhibited strong revenue growth and improved profitability over the past six years, despite some fluctuations in margins and cash flow. The company’s expanding asset base and shareholder equity reflect ongoing investments and financial strengthening. While debt levels have increased, the firm maintains a healthy liquidity position supported by rising cash reserves and positive operating cash flows in recent years.
Investors analysing Paradeep Phosphates should note the company’s ability to scale operations while managing costs effectively, alongside its commitment to capital expenditure for future growth. The historical data suggests a resilient business model with potential for sustained expansion in the fertiliser and chemicals sector.
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