Thank you. Good morning, everyone.

I am pleased to host today's earning call of Paradeep Phosphates. We have leadership team represented by Mr.

Rajeev Nambiar, COO, Mr. Harshdeep Singh, Chief Commercial Officer, Mr.

Bijoy Biswal, CFO, and Mr. Alok Saxena, Head Corporate Finance and IR, on the call.

Without further ado, I would like to hand over the call to Mr. Nambiar for opening comments, post which we'll open the floor for Q&A.

Thank you, and over to you, Rajeev, sir.

Thank you, Manish, and good morning, everyone, and a warm welcome to Paradeep Phosphates earning call for the quarter ended December and the nine months of 2026. 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 FY25-26.

We have been quite consistent and robust for PPL, reflecting the strength of our operations and our resilience to navigate the global volatility. Happy to report that the production rose 13% year-on-year in Q3 to 1 million tons.

This is successively the second quarter we are doing a million-ton production. Growth was 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 the PAT by 71% year-on-year, a true 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 Paradeep facility, and which is in operation now.

This is after the completion of the 1,500 tons of sulphuric acid plant, which is stable and reached the rated production capacity. This evaporator is also going to help us in terms of strong phosphoric acid, which was actually a little bottleneck for us.

Now we have come back to the original state. Urea capacity, MCFL, has also been expanded by around 30,000 tons per year on an annualized basis in Q3 for the shutdown.

Sulphuric acid plant at Mangalore, which is in 300 tons capacity, will be commissioned in the end of the quarter four of 25-26. Energy improvement project at Goa is also likely to be completed by the last quarter of this year.

The phos acid expansion from 0.5 million to 0.7 million is underway, and the increase in phos acid will enable the company to meet substantial requirement of phos acid at both Goa as well as Mangalore through the excess phos acid at Paradeep. Thus, directionally, we endeavor to make all our sites 100% backward integrated phosphoric acid units.

This will significantly improve the quality of earnings per ton at company level. Also, we are looking debottlenecking opportunity at Paradeep to increase the granulation capacity from 1.8 million to 2 million tons.

The benefits of these projects, as enumerated earlier, will likely to give an incremental EBITDA for 2027. Our long-term and short-term credit rating has been upgraded to AA- and A1+, respectively, reflecting our strong fundamentals and the improved credit rating, which will help us to optimize our cost of capital for the capexes.

We continue with our endeavor of offering farmers with innovative products and helping to achieve balanced fertilization and optimizing the last-mile 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 advisory network.

Looking ahead, we remain optimistic about the fertilizer demand, continued government thrust on soil health, and the rising shift towards 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 the short term.

We continue to invest in our expansion plans 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 endeavor for strategic growth and expansion. Thanking all of you, I now open the floor for questions.

Good morning to the team. I have two questions.

My first question is—just give me a moment, please. My first question is thank you for the detailed commentary.

I wanted to 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 a shift in these priorities? 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 portfolios along with the manufacturing excellence. Actually, we are driving that.

If you look at, actually, our basic volumes are being shifting from low-profitability product to the higher-profitability product, which has been very consistently followed for this year. We can see that our flagship product, N20, has been actually moved quite faster and a little pressure in terms of the DAP profitability.

This is an ongoing thing, actually, to make sure that availability to the farmer is ensured. At the same time, we strongly believe actually the EBITDA guidance of minimum ₹4,500 to ₹5,000 is actually an achievable target for us.

Even though off-late we're a little pressure in terms of the international volatility, but we are geared up in terms of optimizing our product mix as well as the pricing of the raw materials.

Thank you. My second question to Mr.

Bijoy is, looking 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. In fact, this 31st December closing, we had a little bit due to high raw material prices, which has moved northward in terms of sulphur and ammonia.

The borrowing has increased a little bit due to higher investment in this inventory and debtors. What we understand that this is a position what we have taken consciously where this will get liquidated and we will have this convert into cash.

I don't foresee that it will be going largely to impact our profitability. This is well within the control, and we will be able to sell through whatever stock we are having and the debtors we are having.

I don't foresee any sort of challenge in meeting this requirement. Our limits and all things is well-managed, and we have got enough limit to also see that 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.

Thanks a lot.

Thank you.

Yeah. Thank you for the opportunity.

Mr. Nambiar, what is your view on the next NBS subsidy revision?

What should the trajectory be?

Prashant, if you see the NBS formulation as well as the current pricing which has happened for the past six months, we expect actually NBS support to be crucial, and it is going to happen forthcoming. It'll be difficult to tell a number, but I think it will be very positive.

That's what our industry feels.

Prashant, just to add, government has put in a very robust process on the way they define NBS for the next season. Everything is being discussed with the industry as a stakeholder team.

Finally, we have seen that the last three last four or eight quarters, the subsidies has been quite positive and supportive to the government. We are sure that government will continue in the same spirit.

That will not be a challenge for the next fiscal year.

Prashant, to add that one, the budget allocation of subsidies is quite good in this last budget. What we see that there is an increase of around 5% to 7% in the budget allocation for the subsidy, and which will take care of this entire subsidy requirement for this 26-27.

Generally, government support in case there is a need. We are quite positive about that.

Sure. Sir, of the total capex of ₹3,600 crore that we are doing, if I have to bifurcate product-wise, how much would be the capex for 1-million-ton granulation and for 0.25 phos acid and 0.75 million ton sulphuric acid at Paradeep site?

Typically, the granulation will cost you around ₹800 crore. The standalone phos acid of 300,000 will cost you another ₹800 to ₹900 crore.

Including sulphuric acid?

The phos acid and sulphuric acid, what we are planning at Paradeep, that 0.3 million of phos acid and 1 million of sulphuric acid will cost around ₹1,500 crore.

Okay. Out of ₹1,500, ₹800 could be for phos and remaining for sulphuric acid.

Yes. Yes.

Right. Sir, at MCFL site, what is the quantum of sulphuric acid capacity expansion?

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

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

Right. Sir, regarding the energy efficiency project for the Goa site, sir, we I think last year only initiated or completed energy efficiency program.

In this round of energy efficiency, how much is the quantum of benefit in terms of Gcal per metric ton we are anticipating? 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 Gcal, actually. That will release substantial amount.

We are expecting new energy norms coming up, which is expected to get announced anytime during this quarter.

This will take down the energy consumption to what level?

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

What is the investment?

It's around ₹220 crore.

Payback period?

Could be around

three to four years.

Three to four years.

Okay. Sir, lastly—

Sure.

Good morning, sir. Thanks for the opportunity.

Firstly, resilient performance considering the sulphur prices which have moved up so sharply. What would be the YoY change of sulphur for PPL compared to last year?

Can you repeat the question?

What was the year-over-year change of sulphur price for PPL compared to last year?

Basically, sulphur used to hover around $150 to $200. Now it has reached $540 to

$550

now.

$550. Almost four

and a half times. Yeah.

All our sourcing is imported, or is there some sourcing from IOC Paradeep as well?

We do have, actually, sourcing of molten sulphur from IOC for Paradeep as well as sourcing from MRPL for Mangalore Chemicals, Mangalore site.

My second question is regarding there was recent news announcement regarding some agreement with SECI, Solar Energy, for offtake of green ammonia at Paradeep site and Goa site. 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 at preliminary stage that as and when it will unfold, we'll share the details.

Basically, this is an offtake agreement we are to get with SECI. We expect, actually, whenever SECI is ready, we will sign it.

As far as manufacturing and supplies concerned, it is for a third party.

Any tentative timeline for this, which can—

Nothing. The agreement could be happening anytime soon, but, in fact, the production and supply could be taking time.

Maybe next two to three years only.

Yes. Yes.

Okay. That's it from my side, sir.

Thank you.

Thank you.

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 on 31st December.

Okay. What would be our subsidy receivable as on 31st December?

This net debt is both working capital as a long-term debt, and subsidy receivable is around ₹3,780 crore.

Okay. Okay.

Normally in how much period we receive this subsidy? Can you quantify approx how much is due in the current quarter and how much is in the next year?

Out of that, generally the subsidy based on the POS sales, this sales made to the farmer. Out of this ₹3,700 ₹780 whatever we are talking, this all based on this farmer sale, it will be receivable.

Out of that, around ₹1,000 crore is what already sales has happened, which is going to come, and balance quantity once whenever this farmer sale happen, that will be receipt.

Okay. Only ₹1,000 is already ₹1,000 subsidy is already sold, so that ₹1,000 is receivable.

Other balance is not yet sold?

Typically we will have two to three weeks of subsidy outstanding at any given point of time.

Okay. Okay.

Understood. Can we know what was the EBITDA per ton for this quarter?

What is the reason for

drop in EBITDA margin? ₹4,700 per metric ton this quarter.

Sorry, I couldn't get that number.

₹4,700 per metric ton.

Okay. Okay.

I think we were targeting about ₹5,000 per metric ton for this year.

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

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 price determine the urea price, which is a pass-through.

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

Yes. Yes.

Okay. Okay.

If I may know what is the current—

No problem. I'll come back in the queue.

Thank you.

Thank you.

Yeah. Hi, sir.

Thank you for the opportunity. Just to check one clarification I need on the EBITDA.

Your guidance on EBITDA is what? Basically, I missed that number.

Can you just say it again?

Can you repeat it? The voice is not clear.

What 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 our guided number for the whole year basis is around ₹5,000 per metric ton. Right, yeah.

YTD number is ₹5,300 till December, and as a year, we say that it will be ₹5,000.

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

I think FY27, see, our endeavor is that we should have in around ₹4,500 to ₹5,000. It all depends on this NBS policy and this raw material prices and how much we are able to pass on to the consumers, this price.

We are in the process. Our endeavor is that we should get around ₹5,000.

Sir. Sir, on the debt side, so that's approximately ₹5,400 crore debt right now you're holding.

Going forward, any plan to reduce it or this will be going to stagnant for some time? What's your plan for this?

That's all.

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 management.

The same time, availability is also ensured. This should actually, in the coming quarter and subsequent quarters, it should actually soften down.

Sir. Okay.

Thank you so much, sir. Thank you.

Sir, thanks for taking my question. Sir, my—

Yes. Sir, thanks for taking my question.

Sir, my question is what was the gas cost and EBITDA per ton for urea?

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

What is the short-term debt on the book, sir, for the nine months?

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

Okay. Sir.

Sir, my last question is what was the capex spend for the nine-month? No,

we have spent almost ₹450 crore in this nine months period.

Okay. 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 MRPs have been improved for the NPKs this year. Only product where the MRPs remain the same is urea and DAP, where there is a kind of guidance.

Otherwise, for NPKs, we have been taking price changes from time to time.

Okay. Sir.

That's it from my side. Thank you.

Is there any more questions?

Sure. 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. What happens to the DAP that you make, and how do you see the product mix evolving for the next financial year?

Very good morning to you. See, how the product mix is evolving is directionally our focus is on balanced nutrition, and we have been gradually going into a company which is more predominantly into a NPK portfolio.

If you look at the portfolio of products, some of the products that we're doing, the flagship product that we have is 20:20:0:13, which is what we call the Captain, and that's where we done the current positioning. Then we have got 10:26:26, 12:32:16, and 19:19:19.

That's a complete range of NPK. In the portfolio of volume, if you look at it, almost more than 45% to 50% is NPK mix.

That's the direction. The other key direction that we're taking is promoting basically high-nutrient, new-extension products like Nano.

That's the other portfolio change that we're doing.

Okay. How do you see this panning out for DAP versus SSP?

What is your view on that on the ground?

My view is see, overall, the government also is trying to encourage balanced nutrition, and there is a shift happening towards the NPKs. This year, if you look at the farmer consumption sales, there has been a kind of a reduction in the DAP sales.

The farmer still keeps demanding DAP. There is a need for greater awareness.

As a category leader, that's what we're trying to do, that communicate to the farmers the benefits of the balanced user 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.

Yes, there is a segment, almost 40%, 45% of the market, which is still on DAP. The other pioneering leadership step that we've done as PPL is that we also encouraging the use of alternate to DAP, which is TSP, which has got 40 46% phosphorus, but you don't at least overuse nitrogen there.

That's the shift that we're trying to also lead in the market.

Sir, for this, then the availability of rock phosphate becomes important. How are you ensuring security for that?

How we are ensuring security is if you look at the value chain partnership that we have, we have partnership with OCP in terms of securing our rock value chain, which is the most important source as far as P2O5 is concerned. For finished products also, for TSP and DAP, we have a strategic partnership with OCP Nutricrops.

That's how we're trying to ensure. As far as our own manufacturing is concerned, which is very robust, and we're one of the few companies which has a very, very robust portfolio of NPK products in the country.

That's what we're trying to do to ensure there is a availability. As you've seen our footprint, we operate in 18 states today in the country and with a wide reach, almost covering 1 lakh retailers.

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

Volume, see, if you look at it, last year we achieved 3 million ton the thing, and this year the guidance is 4 million tons plus. That's what we are basically gearing up for it.

We have already done 3.38.

Okay. You mean for FY26 end.

I was suggesting FY27, if you have any sense on that.

We normally don't give a guidance for the next year. We would be planning a robust growth for the next year.

However, the overall objective would be to optimize basically our and strengthen our NPK portfolio mix. That's what we're gearing up, and we will have a robust growth in the next year also.

Fine, sir. Thank you so much.

Thank you.

Sir. Thank you so much.

Sir, can you give the sulphuric acid and phos acid production for the quarter? You typically give that during the presentation.

I think this time it was missing.

Sulphuric acid, we have produced 4.5 lakh metric ton for this quarter, and phos acid around 1.45 lakh metric ton.

Right. Thank you.

Sir, the other question was on the inventory. Now typically what we see is this I'm looking at the change in inventory that you report in the P&L.

Typically, we see a buildup in 1Q as the seasonal norms, and then a drawdown in the next two quarters. This time the drawdown seems to have not happened as much.

Just trying to understand what's leading to this?

See, out of this increase in the, inventory mainly the increase in raw material. That is that's a conscious decision that, we have a price volatility as well as, the rupee depreciation, keeping all this in mind, this there is an increase in the raw material stock, which is definitely going to be utilized in this quarter, in upcoming quarter.

Finished goods and traded goods, yeah, that is well within control. Generally, this December a little bit, inventory buildup happens, which gets 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 end, I mean December end and last December end?

We'll share with you that data separately.

Sure. Okay.

The other question was on the expansion, the P acid and the sulphuric acid expansion that we are ongoing. Sir, I think you announced last quarter.

Now what stage are we? Have we done the equipment ordering?

I think EC clearance is already we have. Any progress that you can highlight in terms of, I don't know, equipment ordering, other stuff that you might have prepared?

Both the unit, the acid plant, actually the EC is available for Paradeep. For Mangalore, actually, we have applied for the EC.

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. By August, September, we will get the EC clearance for the granulation expansion Paradeep also.

As far as the status is concerned, actually, all the key equipment manufacturers is already roped in, and the technical discussions are in the final stage. Once the parameters is frozen, by end of March, April, we should be able to get the commercials finalized and get

it ordered. Perfect.

That's all. Thank you so much, and all the best.

Thank you.

Good morning. I hope I'm audible.

Can you be a little louder?

Yeah. The first question is on the phos acid capacity addition of 0.2 MMTPA, which is stipulated for FY27.

When exactly in FY27 will this be commissioned?

Q2 of '27.

Q2. The 0.1 MMTPA sulphuric acid addition in the Mangalore site for FY27 will be again commissioned by when?

That is this quarter, actually. Q4 of this year, we'll commission that.

Sir, Q4 there is see, if I go by your Q2 presentation, there is a 0.03 MMTPA sulphuric acid which is addition which is budgeted for FY26, which I think you mentioned will get commissioned in Q4 of this year. Then there is another 0.1 MMTPA which is budgeted for FY27.

I was talking about that.

That is actually the brownfield expansion of the existing capacity. That technical negotiations are going on, actually.

Once we've clear about the equipment ordering, we should be able to finish that.

Right. Sir, in FY26 the sulphuric acid capacity at Paradeep as per this presentation is indicated at 1.9 MMTPA.

Just want to understand, I think there was an addition done in FY26 in Paradeep sulphuric 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 works pretty well.

Okay. On a 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 unable to understand. It's

almost like 5 lakh tons.

Right. So 0.5 million out of the 1.9 happened very recently.

Yes.

Okay. In phos acid, the 0.5 got commissioned fully by FY25 itself and would be fully utilized.

Yes. It's also completed the rated outputs, and that's the thing now we are going for expansion in two phases.

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

Typically, when you expand the phos acid, the spread is $150 per ton between a captive and imported phos acid. To that extent, the benefit will flow to the earning of the company for the next year.

For the sulphuric acid, the main advantage is power and also the netback, and that spread is typically $50.

Okay. You're also doing some energy saving initiatives.

All right. Thank you.

Hi. Very good

morning. Morning.

Morning.

Am I audible?

Yes.

Sir, wanted to check in terms of the tax expense in the quarter. Our current effective tax rate 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 differential?

Yeah. This tax impact is mainly on account of regular tax as well as deferred tax.

When we took over this Mangalore plant, there is a valuation impact, there is a timing difference, permanent difference, and on account of that, you see this impact in the taxes. Generally, it should be around 25%.

You are saying—

Sir, why it has reduced to 20% in the current quarter?

Sorry?

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

See, the timing difference and permanent difference on account of the deferred tax we get actualized, we'll see that in and around 22% to 23% tax impact, tax expenses.

The deferred tax has not changed. The deferred tax amount was ₹7 crore last year and ₹4 crore current year.

There is a negligible impact because of a deferred tax.

We'll respond to you specifically on this question.

Referring to the results, the previous quarter deferred tax charge was ₹7.67 crore, and the current deferred tax charge is ₹3.68 crore. 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.

Thank you.

Thank you.

Yeah. Hi.

Yeah. At the Mangalore urea plant, five-year window will be over this March, right?

Just want to know that what will be the profit and—

Can't hear you. Too loud.

Hello.

Am I audible

Yeah. In the Mangalore urea plant, I think five-year benefit of the energy efficiency will be over this March, I suppose.

Just want to know what will be the EBITDA impact post expiry of that energy efficiency on the Mangalore urea plant?

We can't make out what you're asking.

In Mangalore urea plant, we did a energy efficiency major capex, I think, for five year ago. We are enjoying the EBITDA benefit of that, I can say, which is expiring this March, right?

Profitability of the urea plant will be reduced from this March onward. Just want to know what will be the impact on that.

No, right now, the impact will be around ₹3 to ₹4,000 per metric ton due to this energy impact changes. One more thing is yeah, because the new sulphuric 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'll have a significant savings.

This could be not fully nullified, largely it will be nullified.

Understood. Second thing, on the capex part, the current ordering of the equipment and the visibility, can you provide the separate commissioning date for both Paradeep and the Mangalore site separately for both granulator and backward integration?

Paradeep is typically after ordering around 22 months. We are targeting a stretched one.

Mangalore will take little more, mainly because some configurations and special requirement for Mangalore is different than Paradeep. That we can update you, actually, once the ordering is completed.

Tentatively, Paradeep will be around March '28, and Mangalore will be around December '28?

That could be. Yeah.

Sure. Okay.

Thanks a lot.

Hi. Thank you for the opportunity.

Company will be doing debottlenecking for backward integration and expansion in sulphuric and phosphoric acid for FY28 also. How much incremental EBITDA per ton we can expect for FY27 and FY28?

As we said earlier, the incremental EBITDA will come from the increased phos acid capacity. As we said, we will expand from 5 lakh to 7 lakh by Q2 of next year.

To that extent, the incremental EBITDA flow will happen for next year. Also, the energy efficiency projects, the evaporator that we enumerated in the opening call.

All these projects will get us good incremental EBITDA for FY27.

For FY28, after the 100% backward integration?

Directionally, the sustainable EBITDA per ton that we give at ₹5,000 now with one site being 100% backward integrated, when all the sites get 100% backward integrated and assuming that all other things remain the same, the sustainable EBITDA per ton is likely to improve by 30% to 35%.

Okay. Thank you.

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% will improve when we have all the sites backward integrated.

Okay. Thank you.

Sir, with regard to the upcoming NBS rate revision, considering that sulphur prices have gone up by 3.5 to 4 times, but phos acid has not really gone up that sharply, will it have an adverse—

No. We can't be specific about the per-ton rate, but what we can say that if you compare the last year budget allocation vis-a-vis this year's, there is an increase of around 5% to 7%.

Keeping that in line, we expect that there will be subsequent increase in this per-ton NBS rate. We have to wait for this fine print or the government notification.

There is a strong feeling that there'll be increase in this NBS rate.

Sir, my question was mostly with regard to what has happened historically. The phosphor rate has been increased in the past 1 year, but sulphur, they have not really increased that sharply.

Right now— Tripathy,

see, this year the value chain for sulphur has got impacted because of the Ukraine-Russia situation. There is 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.

Phos acid value chain is a demand-supply primarily for the NPKs and MAP, and that's the reason why typically you've not seen the similar kind of impact. Sulphur has kind of behaved abnormally.

It's not the normal behavior for sulphur, and we expect that to get normalized.

Okay. Thank you so much.

Am I audible, sir?

Yes, yes.

Yeah. 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 DAP.

You are backward integrating your DAP facilities. 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, that DAP NPK will contribute more in your portfolio going forward as well.

No, just to clarify, the expansion that we are doing is in the production of granulation, and that is totally fungible. Okay.

The product mix is totally determined by the market requirement and the kind of drivers of profit and growth. When we are saying we're expanding the granulation train in Paradeep by a million ton, the product mix is going to be a combination of NPKs and DAP, but we can completely move on to complete NPKs in that portfolio.

Sir, I was referring phos acid. Means you are backward integrating phos acid, that I was referring to.

You backward integrating phos acid to kind of power all your granulation trains with a dominant NPK portfolio.

Okay. Whatever the entire capacity you are planning to utilize in DAP, the similar kind of utilization will be there if you start producing more NPK as well.

Is my understanding correct?

Yeah. That is how we planned it out, for.

That's how the capacity expansion plan for phosphoric acid to power the complete granulations. If you look at it, predominantly Goa and Mangalore is already totally NPKs.

Okay. Paradeep we do a little bit of DAP.

Okay. Sir, in terms of this phos acid backward integration, you said $250, if I'm not wrong, you said USD 250 per metric ton will be the benefit.

Am I— Sorry

Yeah. I'll come back to the end of queue.

Sir, please answer this question.

Yeah. I asked the question.

Sir, I was referring that the phos acid benefit from the phos acid backward integration, in US dollar, you said $250 per metric ton. Am I correct, or I have missed something?

You can take it as $150.

$150 per USD 150 per metric ton, right?

Correct. Yes.

Okay. Thank you so much.

Good morning, sir. Thank you for the opportunity.

My question is after the merger with MCFL and with all these energies coming up and also the capacity expansion happening, can you please guide us on long-term EBITDA margins coming up? Can we maintain about 10% mark going forward or by how much quantum would it increase?

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

Hello, sir. Is it clear now?

Better now.

Oh, yes. Sir, my question was, after the merger with MCFL and with all these synergies 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 or by how much quantum would it increase?

No, already we are here. This EBITDA margin right now is 11%.

We'll be maintaining that sort of margin.

Okay.

Yes. Yeah.

Sir, the second question was, can you please specify the amount of total capex which would be incurred in FY26? FY26

already we have spent around ₹450 crore, 25-26. Another ₹50 crore will be spent.

For the year, we'll be closing at ₹500 crore. Next year, the budget is that our maintenance capex around ₹350 crore.

Sir. Thank you, sir.

That's it from my side. Thank you.

Okay.

Yeah. Sir, thanks for the opportunity again.

Sir, how much was the subsidy received in Q3? How much is the gross debt?

We have received subsidy of around ₹2,500 crore in Q3. Second is

what? Gross debt.

Gross debt is around ₹5,000, ₹5,400 crore out of that, after netting of this investment.

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

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

How much?

We had increased our MRP from around 1,900 levels to almost 2,025, 2,007.

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

Currently, we have got DAP stocks which is approximately around 1,06,000 as far as channel is concerned, and NPK stocks of 1,25,000 tons.

TSP?

Sorry?

TSP.

TSP,

yes.

TSP, we have got approximately 65,000 tons of TSP stocks.

Sir. Thank you so much.

Thanks. 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 crore to your EBITDA, if I remember it correctly from your transcript. In the interim, some input prices have moved up sharply.

Do we maintain that 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. Obviously, it is subject to the global price movements.

We'll see how the price movements pans out in next year.

Right. Given your capacity expansion plans, how should we think of your gross debt movement from the current levels?

How will it move going ahead?

Gross debt will be around 0.75 of the

Of the equity. We will be maintaining that at that level.

We don't want to leverage it further. It will be hovering around the same round.

0.8 around.

Yeah.

Thank you, sir, and all the best to you. Thanks for taking the questions.

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. Thank you, Manish.

Thank you.