Paradeep Phosphates Ltd. (PARADEEP) AI Stock Analysis

• Market Cap: ₹114.12B
• Dividend Yield: 0.62%
• Average Volume (3M): 980.97K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 0.32
• Revenue Growth: 64.80%
• EPS Growth: 151.92%
• Country: IN
• Employees: 2,398
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): 2.40
• Shares Outstanding: 1,037,969,000
• 10 Day Avg. Volume: 427,625
• 30 Day Avg. Volume: 980,974
• PEG Ratio: 0.04
• Price to Book (P/B): 2.21
• Price to Sales (P/S): 0.65
• P/FCF Ratio: 8.86
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 11.47
• Revenue Forecast (FY): ₹213.97B

• Rating: 67 Neutral
• Price Target: ₹119.00 ▼(-27.70% Downside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is driven primarily by improving financial performance (strong 2025 growth, margin recovery, and positive free cash flow) and supportive valuation (low P/E). This is tempered by weak technicals—price below key moving averages with negative MACD and oversold momentum—plus moderate leverage and historical cash-flow volatility.

Positive Factors

Revenue & Margin Recovery

The sharp revenue increase and margin recovery in 2025 reflect restored volume and/or pricing power and better cost management. This improvement is durable over months, indicating the company can convert higher sales into meaningful gross profit, underpinning sustainable operating performance.

Positive Free Cash Flow

A sizable positive free cash flow and strong operating cash flow relative to net income provide durable financial flexibility: ability to fund working capital, service or reduce debt, and invest in maintenance or growth capex without relying on external financing.

Distribution & Infrastructure Advantage

An established distribution network plus port-adjacent handling capability supports reliable inbound raw material logistics and access to export markets. This structural advantage lowers supply-chain friction and supports scale in manufacturing, trading and freight-sensitive fertilizer margins.

Negative Factors

Moderate Leverage

A D/E around 1.07 constrains financial flexibility and raises interest and refinancing exposure during cycles. While manageable now, sustained capital needs or margin pressure could amplify leverage risk, limiting the company's ability to fund expansion or absorb shocks without higher borrowing costs.

Historical Profit & Cash Volatility

The company’s prior negative gross profit and historic cash-flow swings show earnings and working-capital sensitivity to input costs and pricing. Even with 2025 recovery, such variability suggests margins and free cash flow may be cyclical and less predictable over medium term.

Policy & Input-Price Exposure

Dependence on nutrient-based subsidies and imported phosphoric acid, ammonia and freight exposes margins to policy timing, subsidy quantum and FX-driven input cost swings. These structural exposures can materially affect realized margins and collections over months.

Paradeep Phosphates Ltd. Business Overview & Revenue Model

Company Description

Paradeep Phosphates Limited engages in manufacturing, trading, distribution, and sale of complex fertilizers in India. The company offers Di-ammonium phosphate, NPK complex fertilizers, muriate of potash, zypmite, gypsum, industrial products, city compost, hydroflorosilicic acid, ammonia, micronutrient, and other materials. It also markets its by-products and phospho-gypsum for soil conditioners. The company's products are sold through dealers and retailers. Its formulated fertilizers are marketed under the Navratna and Jai Kisaan – Navratna brand names. The company was incorporated in 1981 and is based in Bengaluru, India. Paradeep Phosphates Limited is a subsidiary of Zuari Maroc Phosphates Limited.

How the Company Makes Money

Paradeep Phosphates Ltd. generates revenue primarily through the sale of its phosphatic fertilizers, which are essential for enhancing soil fertility and improving crop yields. The company's key revenue streams include direct sales to farmers, distribution through various retail channels, and partnerships with agricultural cooperatives and government agencies. Additionally, Paradeep benefits from the growing demand for fertilizers in India, driven by the country's agricultural sector. The company may also engage in export activities, further diversifying its revenue sources. Strategic collaborations with other agricultural entities and participation in government initiatives for enhancing agricultural productivity can also contribute significantly to its earnings.

Paradeep Phosphates Ltd. Financial Statement Overview

Summary

Strong recovery in 2025 with sharp revenue growth and improved gross and net margins, supported by positive free cash flow. Offsetting factors include prior negative gross profit (2024), cash-flow volatility in earlier years, and moderate leverage (debt-to-equity 1.07) that adds balance-sheet risk.

Income Statement

Paradeep Phosphates Ltd. shows a strong revenue growth trajectory, especially from 2024 to 2025, with a significant increase in revenue from 56.43 billion to 138.20 billion INR. The gross profit margin improved to 25.94% in 2025 from a negative position in 2024, indicating better cost management. Net profit margin also improved to 3.99% in 2025 from 1.77% in 2024. However, the company experienced a negative gross profit in 2024, which is a concern.

Balance Sheet

The company's balance sheet reflects a moderate level of leverage with a debt-to-equity ratio of 1.07 in 2025, which is manageable but noteworthy. Stockholders' equity has increased, indicating financial stability. The equity ratio at 36.57% suggests a solid financial base, though there is potential risk with the level of total debt.

Cash Flow

Cash flows have improved, with a positive free cash flow of 10.17 billion INR in 2025, up from a previous negative position. The operating cash flow to net income ratio is strong, indicating efficient cash generation relative to net income. The free cash flow growth rate is impressive, but past volatility, especially in 2023, is a concern.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	151.97B	138.20B	115.75B	133.41B	78.59B	51.65B
Gross Profit	39.13B	35.07B	24.99B	26.64B	15.36B	12.59B
EBITDA	16.34B	13.20B	7.31B	9.80B	7.67B	5.62B
Net Income	8.02B	5.52B	999.09M	3.04B	3.98B	2.23B
Balance Sheet
Total Assets	0.00	111.46B	96.61B	106.57B	79.28B	44.23B
Cash, Cash Equivalents and Short-Term Investments	11.73B	11.73B	907.18M	430.34M	11.48B	2.15B
Total Debt	0.00	43.58B	40.14B	46.48B	29.54B	12.51B
Total Liabilities	-40.77B	70.69B	60.97B	71.52B	57.03B	25.96B
Stockholders Equity	40.77B	40.77B	35.64B	35.05B	22.25B	18.28B
Cash Flow
Free Cash Flow	0.00	10.17B	10.25B	-28.13B	-6.64B	13.32B
Operating Cash Flow	0.00	13.86B	14.37B	-23.77B	-438.70M	15.01B
Investing Cash Flow	0.00	-5.97B	-3.67B	-4.19B	-10.99B	-2.89B
Financing Cash Flow	0.00	-63.90M	-10.22B	23.01B	15.89B	-11.24B

Paradeep Phosphates Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 164.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PARADEEP, the sentiment is Negative. The current price of 164.6 is above the 20-day moving average (MA) of 119.12, above the 50-day MA of 135.06, and below the 200-day MA of 167.12, indicating a bearish trend. The MACD of -6.71 indicates Positive momentum. The RSI at 27.97 is Positive, neither overbought nor oversold. The STOCH value of 8.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:PARADEEP.

Paradeep Phosphates Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GNFC	70 Outperform	₹63.55B	12.10	―	3.68%	-7.53%	42.74%
GSFC	68 Neutral	₹62.68B	11.49	―	2.80%	15.25%	26.49%
PARADEEP	67 Neutral	₹114.12B	23.48	―	0.62%	64.80%	151.92%
RCF	62 Neutral	₹63.00B	24.87	―	0.93%	-3.19%	59.25%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Paradeep Phosphates Ltd. Corporate Events

Paradeep Phosphates Reappoints MD & CEO, Adds Joint MD as Board Clears Q3 FY26 Results

Paradeep Phosphates Limited has approved its unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025, underscoring ongoing regulatory compliance and financial disclosure to the market. The board also cleared the re-appointment of N. Suresh Krishnan as Managing Director and CEO for a further three-year term from 16 February 2026, and the appointment of K. K. Rajeev Nambiar as Joint Managing Director and Key Managerial Personnel for three years from 1 April 2026, subject to shareholder approval, signaling continuity and strengthening of the company’s top leadership team as it pursues its strategic and operational objectives.

Paradeep Phosphates Reshapes Top Leadership, Clears Q3 FY26 Financials

Paradeep Phosphates Limited has announced board decisions from its 2 February 2026 meeting, including the approval of unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025. The board also approved the re-appointment of N. Suresh Krishnan as Managing Director and Key Managerial Personnel for a three-year term starting 16 February 2026, and the appointment of K. K. Rajeev Nambiar as Joint Managing Director and Key Managerial Personnel for three years from 1 April 2026, both subject to shareholder approval. The company confirmed that neither executive is debarred by securities regulators, underscoring governance compliance and signalling continuity and strengthening of its top leadership as it executes its strategic and operational plans.

Paradeep Phosphates Schedules Q3 FY26 Post-Results Investor Call

Paradeep Phosphates Limited has announced that it will hold a post-results conference call for analysts and investors on February 4, 2026, at 11:00 a.m. IST to discuss its third quarter and nine-month financial performance for FY26. The call, hosted by Antique Stock Broking Limited, will feature the company’s top management, including the managing director and key operational and financial executives, signalling an effort to maintain active engagement with the investment community and provide greater transparency around its business performance and outlook.

Paradeep Phosphates Faces Customs Seizure of Imported Urea Used for NPK Production

Paradeep Phosphates Ltd. has disclosed that the Customs Department has issued a seizure memo covering 25,000 metric tonnes of technical grade urea, valued at about Rs 103.30 crore, imported for use as a raw material in its NPK fertiliser production at its Goa plant. The seizure follows customs testing that found the biuret content in the imported urea exceeded permissible limits, with authorities alleging violations of a DGFT notification, the Foreign Trade Policy and the Customs Act; the company disputes the testing methodology, is seeking provisional release of the goods for captive use, has requested retesting under the relevant Indian Standard, and currently does not expect a material impact on its financials or operations, though the development underscores regulatory and supply-chain risks for stakeholders.

Paradeep Phosphates Files SEBI Dematerialisation Compliance Certificate for December Quarter

Paradeep Phosphates Limited has submitted a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended December 31, 2025, confirming adherence to regulatory requirements related to dematerialisation of its securities. Its share transfer agent, MUFG Intime India Private Limited, certified that all securities received for dematerialisation during the quarter were duly processed, listed on the relevant stock exchanges, and that physical certificates were mutilated, cancelled, and the depositories recorded as registered owners within prescribed timelines, underscoring the company’s ongoing compliance with securities handling and listing norms.

Paradeep Phosphates Publishes Postal Ballot and E-Voting Notice in Newspapers

Paradeep Phosphates Limited has announced that it has published a newspaper advertisement regarding a postal ballot notice and related e-voting information in two newspapers, Business Line (all editions) and Samaja. The move indicates the company is initiating a shareholder approval process through remote e-voting in compliance with applicable provisions of the Companies Act and securities listing regulations, underscoring its adherence to regulatory norms and its engagement with investors on corporate decisions requiring shareholder consent.