Paradeep Phosphates Limited (PARADEEP) Q3 2026 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to 3Q and 9-month FY26 Earnings Con Call of Paradig Phosphates Limited, hosted by Antics Rock Broking Limited. As a reminder, all participant clients will win the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now have the conference over to Mr. Manish Mahavad from Antic Stocks Broking Limited. Thank you, and over to you, sir.

Yeah, thank you. Good morning, everyone. I am pleased to host today's earning call of Parthic Posphate. We have leadership team represented by Mr. Rajiv Nambeya, COO, Mr. Harshadeep Singh, Chief Commercial Officer.

Thank you, Manish, and good morning, everyone, and a warm welcome to Parajee 4th Street, turning call for the quarter, ended December and the 9 months of 2020. I appreciate your time and interest in our company. I trust you have seen our earnings presentation and press release, which have been circulated and are available in our website and stock exchanges. Let me give you an overview of Q3 and the nine months completed FY2526. We have been quite consistent and robust for BPL, reflecting the strength of our operations and our resilience to navigate the global volatility. Happy to report that the production rose 13% year-over-year in Q3 to 1 million tons, and this is successively the second quarter we are doing a million ton production. Growth has led by the value-added NPK grade and NPK category, which has grown by 30% on YTD. For the last nine months, production and sales reached 2.86 and 3.37 million tons, up by 15% and 17% respectively. For the year-to-date, revenue grew by 34%, EBITDA by 45%, and PAP by 71% year-on-year. That was a reflection of both volume growth and quality of earnings. Let me also update you on some of the strategic progress. We have completed our fifth evaporator at Paradip facility, and which is in operation now. This is after the completion of the 1,500 tons of sulfuric acid plant, which is stable and it's the rated production capacity. And this evaporator is also going to help us in terms of strong phosphoric acid, which was actually a little bottleneck for us. Now we come back to the original state. And urea capacity, MCF, has also been expanded by around 30,000 tons per year on an annual basis in future years after the shutdown. Sulfuric acid plant at Mangalore, which is on 300 tons capacity, will be commissioned in the end of the quarter four of 25-26. An energy improvement project at Goa is also likely to be completed by the last quarter of this year. The force acid expansion from 0.5 million to 0.7 million is underway, and the increase in force acid will enable the company to meet substantial requirement of force acid at both Goa as well as Mangalue through the excess force acid at Paradis. Thus, directionally, we endeavor to make all our sites 100% backward integrated phosphoric acid units. This will significantly improve the quality of earnings per tonne at company level. Also, we are looking at B-bottom of Opportunity at Parajid to increase the granulation capacity from 1.8 million to 2 million tons. The benefits of these projects, as enumerated earlier, will likely give us incremental EBITDA for 2027. Our long-term and short-term credit rating has been upgraded to A-, and A1+, respectively, reflecting our strong, fundamental, and improved credit rating, which will help us to optimize our cost of capital for the capacity. We continue with our endeavor of offering farmers innovative products and helping to achieve balanced fertilization and optimizing the last-night delivery through digital interventions. Through our expanded distribution and digital outreach, we now engage with over 12 million farmers across 18 states, supported by more than a lakh retailers and 6,800 dealers, and a strong on-ground adversary network. Looking ahead, we remain optimistic about the fertilizer demand, continued government trust on soil health, and the rising shift toward balanced and specialized nutrient applications. However, we believe that the global uncertainty will remain, and the volatility in key raw material prices and the currency volatility will put pricing pressure in a short term. We continue to invest in our expansion plan as per the schedule, and we believe the expansion will enable us to increase our economies of scale and deepen our market presence. We continue to invest in achieving manufacturing excellence and AI-led manufacturing intervention for agility and sustainability being one of the core ethos of our operations. In summary, PPL remains focused to deliver consistent and operational resilience and continued endeavour for strategic growth and expansion. Thanking all of you, I now open the floor for questions.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touch screen telephone. If you wish to remove yourself from the question queue. You may press star N2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Sukrit D. Patil from iSight FinTrade Private Limited. Please go ahead.

Good morning, I have two questions. My first question is, just give me a moment, please. Yeah, my first question is, thank you for the detailed commentary. Would you take a step beyond what was covered in the opening remarks? Given the dependency on imported raw materials and the variability in demand across crop cycles, how does management think about balancing volume growth, product mix, and margin stability as conditions evolve? Looking ahead, what changes in farmer demand, input availability, or pricing dynamics would most influence our shift in this priority? That's my first question. I'll ask my second question after this.

Thank you. Thank you for the question. It's an important question actually. Even though the current condition is actually we are under a little pricing pressure, but a lot of optimization is going back in terms of the product. Profitability and the portfolios along with the manufacturing excellence actually we are driving there. So if you look at actually our basic volumes have been shifting from low profitability product to the higher profitable product which has been very consistently followed for this year. We can see the flagship product N20 has been actually moved quite faster and little pressure in terms of DAP profitability. So this is an ongoing thing actually to make sure that availability to the farmer is ensured. At the same time, our guided number, like we strongly believe actually the EBITDA guidance of minimum 4,500 to 5,000 is actually an achievable target for us. Even though offplayed with a little pressure in terms of the international volatility, but we are gauged up in terms of optimizing our product mix as well as the... The pricing of the raw materials.

Thank you. My second question to Mr. Vijay is, from a monitoring point of view, as raw material prices, subsidiary flows, and working capital cycles move through the year, what are the key internal indicators you track mostly closely

to anticipate pressure or improvement in margins

and cash flow before these show up on the balance sheet? I want to understand your point of view on this. Thank you.

Good, you know, in fact, this 34 December closing, we had little bit, you know, due to high raw metal prices, which has moved northward in terms of sulfur and ammonia. So the working capital, the borrowing has little bit due to higher investment in, you know, this inventory and, you know, debtors. But what do you understand that this is going to, you know, this is a position where we have taken consciously where this will get liquidated and we will have this, you know, getting back into that, you know, converted to cash. So I don't foresee that, you know, it will be going largely to impact our profitability. And this is well within the control and we will be able to sell through. Whatever the stock we are having and the data we are having, you know, I don't foresee any sort of challenge in meeting this requirement. And the company, our limits and everything is well managed and we have got enough limit to also see that, you know, we don't have any liquidity issue.

Thank you, and best of luck for the next quarter. Yeah, sorry? I said thank you, and best wishes for your next quarter. Okay, thank you. Thank you.

Thank you. The next question is from the line of Prashant Biyani from Ilara Security. Please go ahead.

Yeah, thank you for the opportunity. Mr. Nambir, what is your view on the next NBS subsidy revision? What should the trajectory be?

Prashant, if you see the NBS combination as well as the current pricing which has happened for the past six months, we expect NBS support could be crucial and it is going to happen for coming. It will be difficult to sell a number, but I think it will be very positive that's what our industry feel.

And Prashant, just to add, the government has put in a very robust process on the way they define it for the next season. And everything is being dispersed with the industry as a stakeholder team. And finally, we have seen that the last four or eight quarters, the subsidiary has been quite positive and supportive to the government. So we are sure that the government will continue in the same spirit. And that will not be a challenge for the next fiscal year.

Yeah, to add that, you know, the budget allocation of subsidy is quite good in this, you know, last budget. So, what was that, you know, what you see that there is an increase of around, you know, 5 to 7 percent in the budget allocation for the subsidy, and which will take care of this entire subsidy requirement for this 26-27, and generally government support in case there is a need. We are quite positive about that.

Sure. And sir, of the total capex of 3600 crores that we are doing, if I have to bifurcate product-wise, how much will be the capex for 1 million ton granulation and for 0.25 fos acid and 0.75 million ton sulfuric acid at Parajit.

This granulation will cost you around 800 crores. And the stand-alone phosphate of 300,000 will cost you another 800 to 900 crores. Including sulfuric acid?

No, just the phosphate and sulfuric acid, what we are planning at Paradeep that 0.3 million of phosphate and 1 million of sulfuric acid will cost around 1,500 crores.

Okay, out of 1,500, 800 could be for phos and remaining for sulfuric acid.

Yes. Yes.

Right. And sir, at MCFL site, what is the quantum of sulfuric acid capacity expansion?

It is 300 per day, which is almost nearing completion now.

Okay. Currently, we have got 100 metric tons per day, which is going to 400 metric tons per day. Right.

And, sir, regarding the energy efficiency project for the Goa site, sir, we, I think, last year only initiated or completed an energy efficient program. In this round of energy efficiency, how much is the quantum of benefit in terms of G-Cal per metric we are anticipating, and how much is the investment that we are planning?

Goa, actually, we are going to complete this energy efficiency program by end of this quarter, and which will reduce it by 0.3, actually, and that will release substantial amount, and we are expecting a supportive energy norms, new energy norms coming up, which is expected to get announced any time during this quarter.

And this will take down the energy consumption to what level?

Currently, we are at 6.4. We will come down to 6.1.

And what is the investment?

It will run to 1 and 20 crores.

Payback period?

It will be around 3 to 4 years.

Sorry to interrupt. Mr. Biani, please please join the key for more questions. Thank you. Before we take the next question, a reminder to all, if you wish to ask a question, please press star and 1. The next question is from the line of Preet Nagashit from WellspinVisit. Please go ahead. Mr. Nageshap, your line is unmuted. Please go ahead. As there is no response from the current participant, we will move on to our next participant. The next question is from the line of Shubhrao Tripathi from Krish Capital. Please go ahead.

Good morning, sir. Thanks for the opportunity. Firstly, resilient performance considering the selfer prices which have moved up so sharply. What would be the why-oh-why change of selfer for PPL compared to last year? Can you repeat the question? What was the year-over-year change of Sulphur price for ETN compared to last year?

Typically Sulphur used to hover around 150 to 200, now it has reached 540 to 550 now. So almost 4 and a half.

And all our sourcing is imported, or is there some sourcing from IOC Paradeg as well?

We do have, actually, sourcing of molten cell from IOC for Paradeg, as well as sourcing from MRPL for Mangalucynegas.

And my second question is regarding the, there was a recent news announcement regarding some agreement with KC, Solar Energy. For off-take of green ammonia at Paradeep site and Goa site. So, there is no announcement or any details shared in the presentation. Could you share some more light on how you plan to go about this?

This is a preliminary stage that, you know, as I know when it will unfold, you know, we'll share the details.

Basically, this is an off-take agreement we have to get with the techie. And we expect, actually, whenever SECI is ready, we will sign it, but as far as manufacturing and supply is concerned, it is for a third party.

Any technical timeline for this?

No, the agreement could be happening anytime soon, but in fact, the production and supply could be taking time.

So, maybe in next two to three years only? Yes, yes. Okay, that's it from my side, sir. Thank you. Thank you.

Thank you. The next question is from the line of Saumil Shah from Paris Investments. Please go ahead.

Yeah. Hi, sir. Good morning. I would like to know what is our net debt as on 31st December?

Net debt is around 5,450 crore as 31st December.

Okay, and what would be our subsidy receivable as on 31st December?

This debt is both, you know, working capital as a long-term debt, and subsidy receivable is around 3780 course.

Okay, okay. So normally in how much period we receive the subsidy? So, I mean, can you quantify approximately how much is due in the current quarter and how much is in the next year?

No, this is, you know, out of that, generally the subsidy is based on the poor sales, you know, these sales made to the farmer. So, what we are, you know, out of this 3780, whatever we are talking, this all, you know, based on this farmer sale, it will be receivable. You know, out of that, Around 1,000-2 is what already sales has happened, which is going to come, and balance quantity, whenever this farmer sale happens, that will be received.

Okay, so only 1,000 is already, I mean, 1,000 subsidy is already about, I mean, sold. So that 1,000 is receivable, the balance is not yet sold.

Sure. Yes, so typically we will have 2-3 weeks of subsidy outstanding at any given point of time.

Okay. Okay, okay. Understood. And can we know what was the EBITDA per turn for this quarter? What is the reason for dropping EBITDA per turn?

700 rupees per metric turn this quarter.

Sorry, I couldn't get that number.

4700 per metric turn.

Okay. Okay. And I think we were targeting about 5000 per metric turn for this year.

If you look at, you know, YTD basis, you know, we are already 5,400, sort of. So, yes, you know, the 5,000 is quite achievable on a yearly basis.

Okay, and how much of our prices is depending on natural gas prices?

Sorry?

How much of our raw material price is depending on natural gas prices? Because I think there is a huge...

No, it is not much because natural gas prices determine the urea price, which is a pass-through.

Okay. So we are not much affected with the natural gas prices, right?

Yes. Yes.

Okay, okay.

And if I, if I would know what is the problem?

Okay, Mr. Shah, please rejoin the queue for more questions.

No problem. I'll, I'll, I'll begin the queue. Thank you. Yes, thank you.

The next question is from the line of Varun Arora from AMK Global. Please go ahead.

Yeah, hi, sir. Thank you for the opportunity. Just to check one clarification I need on the avatar. So, your guidance on the avatar is what, basically, I missed that number. So, can you just say it again?

Can you repeat it?

You know, the question is, I, I, I, but you said the number on EBITDA, I didn't get that number. Can you just repeat it? Just a clarification, I need on this.

EBITDA number for this quarter is 4,700, and, you know, our guided number for the whole year basis is around 5,000 rupees for metric term. YTD number is 5,300. Right, yeah, YTD number is 5,300, you know, till December, and as a year, we say that, you know, it will be 5,000 rupees.

Okay. And what's your further guidance for FY27, if you can say, sir?

I think FY27, see, our endeavor is that, you know, we should have, you know, around 4,500 to 5,000 rupees. And it all depends on this NBS policy and, you know, this raw metal prices and how much you are able to pass on to the consumers, you know, this is the price. So, we are in the process, you know. It is, it's not, you know, maybe, but I was, it was that we should get around 5,000 rupees.

Okay, sir. And so on the debt side, so that's the approximate 5,400 crores debt right now, you're holding. So any, going forward, you know, any plan to reduce it or just, or if this is going to stagnant for some time, what's your, you know, plan for this?

It's an important thing for us to make sure that the debt is not crossed over. We are taking a lot of operational measures to see that the tighter control on the inventory managing, at the same time, availability is also ensured. So this should actually, in the coming quarter and subsequent quarters, it should actually soften down.

Okay, sir. Thank you so much, sir.

Thank you. The next question is from the line of Sandeep Mukherjee from SKP Securities Limited. Please go ahead.

Sir, thanks for taking my question.

Sorry to interrupt, Mr. Mukherjee. Can you please speak a little louder? We are unable to hear you.

Yes. Sir, thanks for taking my question. Sir, my question is, what was the gas cost and EBITDA per ton for Urea?

We are not able to hear you. Can you speak a little bit loudly?

Is it open now, sir? Am I audible? Better, better.

But be louder kindly.

Yes. So what was the gas cost and EBITDA for the urea?

Gas cost is around $12, but EBITDA is around 3,000 rupees.

And what is the short-term debt on the book, sir? For the nine months?

Short term, you know, if you talk of working capital, we have got around 4,200 crores. Long term is 1,235 crores.

Okay, okay, sir. And, sir, my last question is, like, what was the capex spent for the nine months?

You know, we have spent almost 450 crores in this nine months period.

Sir, one more question. Currently, we are operating more or less at the same MRP levels which were in Q2.

Just to share with you, the MRTs have been improved for the NPKs this year. Only product of the MRTs remains the same as UREA and DEP, where there is a kind of a guidance. Otherwise, for NPKs, we have been taking price changes from time to time. Okay, sir. That's it for my sake. Thank you.

Thank you. Ladies and gentlemen, the management line has been disconnected. Please hold while we get some reconnected. Ladies and gentlemen, thank you for being on hold. We have management connected now on the call. Over to you, sir.

Is there any more questions?

Yeah. We have next question from the line of Preet Nagashit from Wealth Invisory. Please go ahead.

Sure. So I wanted to understand, sir, the product mix that you employ. The reason I ask is that the government is trying to improve the access of SSP. And other products more and more. So what happens to the DAP that you make, and how do you see the product mix evolving for the next eventual year?

Very good morning to you. See, how the product mix is evolving is that actually our focus is on balanced nutrition. And we've been gradually going into a company which is more dominantly to an NPK portfolio. If you look at the portfolio of products, some of the products that we are doing, the Starship products that we have is 2020-013, which is what we call the captain, and that's how we run the current position. Then we have got 10-26-26, 12-32-16, and triple-19. That's the complete range of NPK. And in the portfolio of volume, if you look at it, almost more than And 45 to 50% is NPK mix. So, that's the direction. The other key direction that we're taking is promoting basically high-new to new efficient products like Nano. So, that's the other portfolio change that we're doing.

Okay. So, but how do you see the spanning out for DAP versus SSP? What is your view on that on the ground?

So, my view is, overall, I mean, the government also is trying to encourage balanced operation, and there is a shift happening towards the NPK. So, this year, if you look at the farmer consumption sales, there has been a kind of reduction in the DAP sales, but the farmer still keeps demanding DAP. So, there is a need for a greater awareness. So, as a category leader, that's what we're trying to do, that communicate to the farmers the benefits of the balanced use of nutrition and the shift happening towards the NPK category. If you look at the market also today, the NPK segment is today bigger than the DAP segment. But, yes, there is a segment almost 40-45% in the market which is still on DAP. And the other pioneering leadership step that we have done as TPL is that we are also encouraging the use of alternative DC, which is TFP, which has got 46% phosphorus, but you don't at least overuse nitrogen there. So, that's the shift that we are trying to also lead in the market.

So, this is when the availability of rock phosphate becomes important. So, how are you ensuring security for that?

So, how are you ensuring security? If you look at the value chain partnership that we have, you know, we have partnership with OCP in terms of securing our ROC. Value chain, which is the most important source as far as P2O5 is concerned. And for fresh products also for TSP and DAP, we have a strategic partnership with OCP and Nutricorps. So that's how we're trying to ensure. And as far as our own manufacturing is concerned, which is very robust, and we are one of the few companies which has a very, very robust portfolio of NPK products in the country. So that's what we are trying to do to ensure there is availability. And as you've seen a footprint, we have played in 18 states today in the country, and with a wide reach, almost covering 1 lakh retailers. Understood.

So if you add all this up, what kind of volume or top line guidance do you think can come into play for FY27?

So volume 3, if you look at it last year, we achieved 3 million ton, the thing, and this year the guidance is 4 million ton plus. So that's what we are basically gearing up for it. We have already done the S.O.N.C.H.

Okay, you mean for a 526 net? I was suggesting a 527 if you have any sense on that.

Yeah, so we normally don't give a guide for the next year, but we would be planning a robust growth for the next year. However, the overall objective would be to optimize basically and strengthen our NPK portfolio mix. So that's what we are getting up, and we will have a robust growth in the next year also. Wonderful. Thank you so much.

Thank you. The next question is from the line of Dhruv Machal from HDFC AMC. Please go ahead.

Yes, sir. Thank you so much. Sir, can you give the sulfuric acid and fossil acid production for the quarter? You typically give that in the presentation. I think this time it is.

I'll take it.

Sulturi received, we have produced 4.5 lakh metric ton for this quarter, and FOSS received around 1.45 lakh metric ton.

Thank you. The other question was on the inventory. Now, typically, what we see is, this is I'm looking at the change in inventory that you report in the P&L. Typically, we see a buildup in 1Q as the season longs and then a drawdown in the next two quarters. This time, the drawdown seems to have not happened as much. So, what is, I mean, just trying to understand what's leading to this.

You know, see, out of this increase in the, you know, inventory, mainly the increase in raw material. So, that is, that's a conscious decision that, you know, we have a price volatility as well as, you know, the root p depreciation keeping all in mind this, you know, there is an increase in the raw metal stock, which is definitely going to be utilized in this quarter, you know, upcoming quarter. And finished goods and traded goods, yeah, that is well within control. Generally, this December, a little bit, you know, inventory buildup happens, which get liquidated in starting from April onwards.

Got it. Sir, if it is possible, if you can suggest how much is the, in quantity terms, how much is the fertilizer inventory at the company level, finished goods inventory at the company level this year and, I mean, this summer and in last year.

We'll share with you the data separately.

Sure. Okay. And, sir, the other question was on the expansion, the P-acid and the sulfuric acid expansion that we are ongoing. Sir, what, I mean, I think you announced last quarter. So now, what days are we, have we done the equipment ordering? I think EC and FC, EC clearances already we have. Any progress that you can highlight in terms of equipment ordering, other stuff that you might have prepared?

So, both the unit, the acid plants, actually, the EC is available for Parajib, and for Mangalore, actually, we applied for the EC, and for the granulation unit, actually, the EC application is already on, and we are expected to go for the public hearing coming one or two months, and by August, September, we will get the EC clearance for the granulation expansion Parajib also. As far as the status is concerned, actually, all the key equipment manufacturers are already roped in, and the technical discussions are in the final stage, and once the parameters are frozen, actually, by end of March or April, we should be able to get the commercials finalized and get loaded. Got it.

Perfect. And, yeah, that's all. Thank you so much, and all the best. Thank you.

Thank you. The next question is from the line of Gagan Thareja from Grow Mutual Fund. Please go ahead.

Good morning.

I hope I'm ordering.

Can you be a little louder?

Yeah. The first question is on the phosphacid capacity addition of 0.2 mm TPA, which is stipulated for FY27. When exactly in FY27 will this be commissioned? Q2 October 27. And the 0.1 mm TPA Sulfuric Acid addition in the Mangalore site for FY27 will be again commissioned by N. That is this quarter.

Q4 of this year will commission that.

So Q4, there is, you see, if I go by your Q2 presentation, there is a 0.03 mm TPA sulfuric acid, which is addition, which is budgeted for FY26, which I think you mentioned, will get commissioned in Q4 of this year. But then there is another 0.1 mm TPA, which is budgeted for FY27. I was talking about that.

Yes, that is actually the brown-till expansion of the existing capacity. That technical negotiations are going on. Once they are clear about the equipment ordering, we should be able to finish that.

Right. And, sir, in FY26B sulfuric acid capacity at Parabit, as per this presentation, is indicated at 1.9 mm TPA. Just want to understand, this is, I think there was an addition run in FY26 in Parabit sulfuric acid. Can you tell me how much was this and when was it commissioned?

It is commissioned in the month of September end, and now stabilized. This is 1,500 tons per day plant. It has already reached the rated capacity and worked pretty well.

Okay. On an annual basis, how much would it be? You said 1,500 TPD. In MMTPA terms, that would be how much? I'm sorry, I'm able to understand.

Almost like 5.5 million.

So, 0.5 million out of the 1.9 happened? And in FOSS ACID, the 0.5 got commissioned fully by FI25 itself, and would be fully utilized?

Yes, it's done. It's also completed the rated outputs, and that's the thing we know we're going for expansion in two phases.

Okay. So, these sulfuric acid backward integrations that you have recently sort of commissioned, and the 0.2 million that you'll be commissioning next year in phosphorus acid, what sort of, you know, benefits in, you know, in EBITDA per ton terms could this, you know.

Typically, when you expand the phosphorus acid, the spirit is $150 per ton. So to that extent, the benefit will flow to the earning of the company for the next year. For the sulfuric acid, the main advantage is power, and also the netback, and that spread is typically $50.

Okay, and you're also doing some energy saving initiatives.

Sorry to interrupt, Gagan. Please, please join the queue for more questions.

All right. Thank you.

Thank you. Ladies and gentlemen, in order to ensure that the management will be able to address questions from all the participants in the conference, please limit your questions to two per participant. Should you have a follow-up question, please rejoin the queue. The next question is from the line of Titi Jain, an individual investor. Please go ahead.

Hi, very good morning.

Morning, morning.

Am I audible?

Yes.

So I wanted to check in terms of the tax expense in the quarter. Our current effective taxes in the quarter has been 20-21% while the same has been 28-27% in the last previous quarter. What is that big change that has resulted into a tax distinction?

Yeah, well, this is, you know, this tax impact is mainly on account of regular tax as well as defer tax. So, when we took over this mangrove plant, there is a valuation impact, you know, there is a timing difference, permanent difference. So, on account of that, you see this impact of the taxes. So, generally, it should be around 25%.

We are saying that just because of certain expenses wherein we are beneficially, the effective tax system has become 20% and this is sustainable ahead.

Yeah, see the timing difference and permanent difference on account of the deferred tax we get actualized. We will see that in and around 22 to 23 percent tax impact, tax expenses.

But the deferred tax has not changed. The deferred tax amount was 7 crore last year and 4 crore currently. There is an negligible impact because of the deferred tax.

Now, Katniss, then you please, you know, we'll respond to you specifically on this question.

Referring to the results, the previous quarter deferred tax charge was 7.67 crores, and the current deferred tax charge is 3.68 crores. So, there is a negligible gap because of the deferred tax change. There is a significant difference in the current tax.

Okay.

What is the reason for that change?

Why don't you send your query separately to the ID? We'll respond to that.

Okay.

Ms. Preeti, you want to ask more questions? That's all from my side. Thank you so much. Thank you. The next question is from the line of Jignesh Kamani from Nippon Mutual Fund. Please go ahead. Sorry to interrupt, Mr. Kamani. We are unable to hear you. There is a lot of background noise from your side. Can you please speak a little louder?

Yeah. So, at the major area plant, a high-year window will be over this much, right? So, just want to know, what will be the impact of the revenue or the profit tax? We can't hear you.

We will be loud.

Sorry, sir, but we are unable to hear you. Hello.

Can you please use your handset mode? Yeah, yeah, please go ahead.

Yeah, so in the mangrove area plant, I think five-year benefit of the energy efficiency over this much, I suppose. I just want to know what will be the EBITDA impact post-expiry of that energy efficiency in the mangrove area plant?

They don't care, make out what you're asking.

So, in Urea, we had a, in Mangalore, a Urea plant, we did an energy efficiency major capex, I think, for five years ago. So, we are enjoying the benefit of that, I can say, which is expiring this much, right? So, compatibility at the Urea plant will be reduced from this much onward. So, just want to know, what will be the impact on that?

Now, right now, this, the impact will be around 3,000 to 4,000 rupees per metric term. Or due to this energy impact, changes?

Fundamental.

One more thing, yeah, because the new sulfuric acid which is going to come by end of this march actually, the additional energy will be pumped back to the urea plant, where we will have a significant saving. So this could be not fully nullified, largely nullified.

Understood. Second thing on the CapEx, the current ordering of the equipment and the visibility, can you provide the separate commencement date for both Paradeep and the Mangalur style separately for both the granules and the background integration?

Paradeep is typically after ordering around 22 months, we are targeting a stretched one, and Mangalur will take a little more mainly because some configurations and special requirements for Mangalur is different than Paradeep. So, we can update you actually once the ordering is completed.

So, tentatively, Paralys will be around March 28th, and Menger will be around December 28th?

Could be, yeah.

Okay, thanks a lot.

Thank you. The next question is from the line of Dev Gulwani from Care PMS. Please go ahead.

Hi, thank you for the opportunity. So, company has recently done, will be doing the bottlenecking for backpack integration and expansion in sulfuric and phosphatic acid for F528 also. So, how much incremental EBITDA return we can expect for F527 and F528?

So, as we said earlier, the incremental EBITDA will come from the increased processor capacity. As we said, we will expand from 5 lakh to 7 lakh by Q2 of next year. So, to that extent, the incremental EBITDA flow will happen for the next year. Also, the energy efficiency projects, the evaporator that we enumerated in the opening call. So, all these projects will get us, you know, good incremental EBITDA for FY27.

And for FY28, after the 100% backward activation.

Yeah, so, directionally, the sustainable EBITDA per term that we give at 5,000 rupees now, with one site being 100% backward integrated. When all the sites get 100% backward integrated, and assuming that all other things remain same, the sustainable EBITDA per term is likely to improve by 30 to 35%.

Okay, thank you. And also in your speech, you mentioned that earning quality should improve going forward. Can you please elaborate?

That's what I said, 30 to 35 percent will improve when we have all the sites backward integrated.

Okay, thank you.

Thank you. The next question is from the line of Shubhra Drapati from Krish Capital. Please go ahead.

Sir, with regard to the upcoming NBS rate revision, so considering that sulfur prices have gone up by 3.5 to 4 times, but phosphorus acid has not really gone up that sharply, so will it have an adverse impact?

No, this, you know, we can't be specific about the per-turn rate, but, you know, what we can say that if you compare the last year budget allocation besides this year, you know, there is an increase of around 5 to 7 percent. So, keeping that in line, we expect that there will be some incremental, you know, increase in this per-turn NBS rate. So, but we have to wait for this 520 or the government notification, but, you know, there is a strong feeling that there is a increase in this, you know, NBS rate.

Sir, my question was mostly with regard to what has happened historically. The phosphor content, the phosphor rate has been increased in the past one year, but sulfur, they have not really increased that sharply.

And right now, just to verify, see, just here, the value chain for Sulphur has got impacted because of the current Ukraine-Russia situation. So there's a temporary effect which happened on a part of the supply chain for Sulphur. We expect that also to get normalized maybe another two months' time. That's the expectation. And swath acid value chain is a demand and supply primarily for the NPKs and MAPs, and that's the reason why typically you've not seen the similar kind of impact. But sulfur has kind of behaved abnormally. It's not the normal behavior for sulfur, and we expect that to get normalized.

Okay, thank you so much.

Thank you. The next question is from the line of Anik Mitra from Phenomix Solutions Private Limited. Please go ahead.

Am I audible, sir? Yes, sir, as we have found that NPK is contributing more in your total portfolio at this point in time, and I believe that that is the trend of the country that we are getting more inclined towards NPK than debt. So, you are backward integrating your DAP facilities. So, from that aspect, I understand that your facilities are fungible as well. Now, considering from that context, how significant it is backward integrating your DAP facilities, maybe you will be producing more, that will be quite normal, like that NPK will contribute more in your portfolio going forward as well.

No, so just to clarify, the expansion that we are doing is in the production of granulation, and that is totally fungible, okay? So the product mix is totally determined by the market requirement and the kind of drivers of profit and growth. So when we are saying we are expanding the granulation train in Paradis by a million tons, the product mix is going to be a combination of NPKs and that, But we can completely move on to complete NPK in that portfolio.

Sir, I was referring FOSS Asset, means you are backward integrating FOSS Asset that I was referring to.

Yes, so you are backward integrating FOSS Asset to kind of power all your granulation trays with a dominant NPK portfolio.

Okay, so, like, whatever the entire capacity you are planning to utilize in that, the similar kind of utilization will be there if you incline, like, if you start producing more NPK as well. Is my understanding correct?

Yeah, that is how we planned it out. That was the capacity expansion planned for phosphoric acid to power the complete ground nations. If you look at it, we are dominantly, Goa and Mangalore is already totally NPK. Okay. So, Parajit, we do a little bit of TADs. Okay.

Okay. And, sir, in terms of this phosphatid backward integration, you said 250, if I'm not wrong, you said USD 250 per metric ton will be the benefit. Am I...

Sorry to interrupt, Mr. Mitra. Please rejoin.

Yeah, I'll come back. I'll come back to the interview. Sir, please answer this question.

Mr. Mitra?

Yes, I asked the question.

Can you please repeat your question again?

Sir, I was referring that the fos acid benefits from the fos acid integration, backward integration. So, in US dollar, you said 250 per metric ton. Am I correct or I have missed something? You can take it as 150. Thank you.

Thank you. The next question is from the line of Nitin Kaushik from Afin Capital Private Limited. Please go ahead.

Good morning, sir. Thank you for the opportunity. My question is, after the merger with NTFL and with all these energies coming up, Also, the capacity expansion happening. Can you please write a song long-term EBITDA margin coming up? So, can we maintain about 10% mark going forward? By how much quantum would it increase?

Your voice is not very clear. Can you give it the question a little bit louder?

Hello, sir. Is it clear now?

Better, better now.

Oh, yes. Sir, my question was, after the murder with MCFL and with all this energy coming up, and all this capacity expansion happening, can you please guide us on long term EBITDA margin coming up? I was asking if we can maintain about 10% mark going forward, by how much quantum would it be?

Already we have this EBITDA margin, right now is 11%. So we will be maintaining that sort of margin.

Okay, sir.

Yes.

Sir, the second question was, can you please specify the amount of total CAPEX which would be incurred in FO26?

In 526, already we have spent around 450 crores, you know, 25-26. So, another 50 crores will be spent. So, for the year, we will be closing at 500 crores. And next year, you know, the budget is at, you know, our regular capex around, maintenance capex around 350 crores.

Okay, sir. Thank you, sir. Thank you.

Thank you. Okay.

Thank you. The next question is from the line of Prashant Payani from Ilara Securities. Please go ahead.

Yeah. Sir, thank you for the opportunity again. Sir, how much was the subsidy received in Q3 and how much is the gross debt?

No, we are seeing the speed of around 2,500 core in Q3. And the second part, gross debt. Gross debt is around 5,400 crores out of that netting of those investment.

Sir, any price hike have we taken in fertilizer, specifically in Q3?

We had taken Prashant, a price increase for the NPKs, primarily N10 and N12.

And how much?

So we had increased our MRP from around 1900 level to almost 2025, 2011.

Okay, and so lastly, how much is the current stock of DAP, NPK lying in the channel at the end of Q3?

Okay, so currently we have got DAP stocks which is approximately around 1,6000 as well as channel is concerned, and NPK stocks of 5,000,000.

TSP?

Sorry?

TSP.

We have got approximately 65,000 tons of PSP stock. Okay, sir.

Thank you so much.

Thank you. The next question is from the line of Gagan Thareja from Grom Mutual Fund. Please go ahead.

Thank you. My question is on the EBITDA. I think last quarter you indicated that with all these backward integration measures, next year you could incrementally add another 350-360 crores to your EBITDA, if I remember it correctly from your transcript. And, I mean, in the interim, some input prices have moved up sharply. So do we maintain that, you know, we can next year add that sort of a number to the EBITDA on this year's closing number?

I think we continue to say that all the incremental EBITDA from the backward integration that we have planned and the projects that we have completed will be in the line that we discussed last time, but obviously it is subject to the global price movements, and we'll see how the price movement stands out in next year.

Right. And given your capacity expansion plans, how should we think of your gross state movement from the current levels? How will it move going ahead?

Gross debt will be around 0.75 of the equity.

Of the equity. We will be maintaining that at that level. We don't want to leverage it further. So it will be hovering around the same round.

0.8.

Thank you, sir. Thanks for speaking.

Thank you. Ladies and gentlemen, we'll take that as a last question for today. I now hand the conference over to the management for closing remarks.

Thank you for taking the time to join our earning call by all the investing community. Should you have any further questions, please reach out to our investor relations team. Thank you once again, and have a good day. Thank you. Thank you.

Thank you very much. On behalf of Antics Rock Broking Limited, that concludes this conference. Thank you all for joining us today, and you may now disconnect your line.

Thank you. Thank you, Manu.