Thanks, Nirav. Hello, everyone.

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

Rajeev Nambiar, Joint MD and CEO; Mr. Harshdeep Singh, President and 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 will open the floor for Q&A.

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

Thank you, Manish. Am I audible properly?

Okay. Good morning, everyone, and welcome to Paradeep Phosphates Limited's earning call for the quarter ended March and the financial year 2026.

I appreciate your time and interest in our company. I trust you have seen our earnings and presentations and press release, which have been circulated and are available on our websites and stock exchange.

Let me give you an overview of the our business. I'm happy to report that PPL has once again delivered a robust financial and operational performance and best-in-class EBITDA per ton.

Many congratulations to all of you. In the financial year 2026, revenue from operation increased by 29% YoY to ₹21,826 crores, EBITDA rose up by 32% to ₹2,259 crore, profit before tax increased by 46% year year over year to ₹1,328, and the profit after tax stood at ₹1,000 crores, up by 62%.

For the quarter ended March, the company reported total revenue of ₹4,702 crores with an EBITDA of ₹484 crores, with the PBT stood at ₹202 crores and the profit after tax at ₹161 crore. Production volumes grew by 8% year-over-year, and it stood at 36.66 lakh metric ton, achieving almost 100% capacity utilization of our existing capacities, reflecting our continued endeavor for manufacturing excellence.

Sales volume rose up to 42 lakh, 42.1 lakh metric ton with a 10% YoY. Growth was led by strong performance in value-added NPK grades.

NPK as a category, including TSP, grew by 22% to 24.64 lakh tons. Despite global uncertainty and volatility in key raw material availability and as well as pricing, along with the INR depreciation, PPL has been able to deliver a consistent robust performance through high operational agility, integrated operation, and supply chain sourcing efficiencies.

Let me also give you an overview related to the key projects we have completed in the financial year 2026. During the year, we commissioned our sulfuric acid plant at Paradeep, 0.5 million ton capacity, and at Mangalore, 0.1 million ton capacity, thereby increasing our sulfuric acid capacity at company level by 0.6 million ton annually, an increase of 45% of the total capacity.

The benefit of incremental sulfuric acid capacity commissioned this year will be available to us in financial year 2027 and will aid in improving our quality of earnings further. One more important project at Goa, we have completed our energy efficiency project, and the improved energy benefits have started coming as we speak now.

Our plan to double the phos acid capacity from 0.5 million ton to 1 million ton is on track, and directionally we endeavor to make all our sites 100% backward integrated in phos phosphoric acid. The phase one of this expansion, that is from 0.5 million to 0.7 at Paradeep is underway and is expected to be commissioned by financial year 2027.

Sustainability remains core to our operations, and during the year, we achieved S&P Global ESG score of 76 and ranked top 2% in the global chemical sector. Through our expanded distribution and digital outreach, we are now engaging with over 15 million farmers across 18 states, supported by more than a lakh retailers and 6,800 dealers, and a strong on-the-ground advisory network.

In summary, PPL remains committed for strategic growth and expansion, build economies of scale, and deepen our market presence. Let me also give you an outlook for the future.

Looking ahead, we remain optimistic about the fertilizer demand, continued government thrust on soil health, and rising shift towards balanced and specialized nutrient application. However, we remain in the challenging time amidst the Middle East situation, and we have seen spurt in key raw materials, particularly ammonia and sulfur.

As you are aware, Middle East contributes significant significantly to raw materials, particularly ammonia and sulfur, which is almost like 70%, 75%, and most of the shipments across the Strait of Hormuz. While industry stock remains balanced at this point, industry is making concerted efforts, and empowered committee comprising of government and industry officials have been working in close coordination to ensure fertilizer production and raw material sourcing planning.

Thanking you all of you once again, and I now open the floor for questions. Thank you.

Am I audible, first of all?

Yeah. Can you be a little louder?

Yeah. Thank you so much for taking our question.

My first question is regarding the operating cash flow, which is negative this year, around negative ₹1,000 crores. That was largely driven by the increase in the inventory and receivables, right?

Could you help me understand the key reasons behind it and whether this should normalize going forward?

Bijoy, you will take that?

Hi. Thanks for the question.

Yes, now we are quite mindful of that. There is a negative operating cash flow.

This is mainly on account of the increase in the inventory and increase in the trade receivables and subsidy. This increase in inventory is mainly to accommodate this increase of the raw material prices, which is going to unfold in this Q1 of 26-27.

That's a strategic call that we hold this additional inventory of around 30-odd days. This subsidy receivable is mainly on account of the increase of the DAP prices, DAP subsidy, and other things which came towards the end of the period.

All these things, whatever is there, that will get unwound in this Q1, and we'll definitely reap the benefit of this stock holding and this subsidy receivable in Q1.

Right. Sir.

My other question is regarding the sulfur prices, which was still higher. Sir, what could you give the guidance about that for the future?

I think last con-call, you also said that you're sourcing domestically from the IOC and MRPL, which is in Mangalore. Can you also say something about that, please?

Sulfur prices remain under stress actually for past few months, and we expect actually unless the Hormuz situation de-escalates, there won't be a major impact which is coming and supporting us. As you said, actually we are taking out 100% of this sulfur requirement from MRPL from Mangalore, even with the increased capacity.

The recent 300 tons plant we commissioned is currently running at almost 400 tons. The Paradeep, almost 20%, 30% of the sulfur requirement comes from the IOC Paradeep.

Put together, domestically we are poised towards a comfort position, but yes, internationally we remain under stressed condition for sulfur.

Right. My last question is regarding the future guidance if you can give.

You're increasing a share in getting higher-margin NPK fertilizers, right? Of course, the backward integration as well.

In the medium-term trajectory, what could be the EBITDA per ton? For this FY26, FY26 was around 5,100 per ton, right?

What could be the guidance on that, sir?

Currently, yes, the spread was 5,300, I think. As we deepen the backward integration across phos acid and sulfuric acid, the spread is going to increase, but we'll also have to take care of the global situation that is in place.

It will be hard for us to give you a specific number for FY27, but given the supply chain linkages and the backward integration that we have, the backward integration benefit should flow in FY27.

Got it. Okay.

That's all from my side.

Thank you for the opportunity. Sir, how are you placed with regard to raw material availability for Q1?

How much of your requirement you have already bought pre-war and how much are you having to buy at higher prices, which are prevailing right now?

Prashant, we remain optimistic for the Q1 because we have covered most of the Q1. Q2 the situation is unfolding.

It will be a little difficult for us to give a direct answer for the rest of beyond Q1 actually.

Prashant, I think industry is actively engaging with government on this aspect, particularly for Q2, and almost in daily discussions being discussed with Secretary, Fertilizers and MDs of the major companies. I think all the stakeholders are involved, and we should get some clarity very soon.

As far as Mr. Nambiar said, Q1 is adequately covered.

For Q2, the company as well as the industry is working with the government to have more visibility.

Sure. Mr.

Nambiar, can you share some update on our capex which is underway across granulation, phos acid, and sulfuric acid?

Sulfuric acid, if you look at it actually, two projects we completed last year, that 0.5 and 0.1, 0.6 altogether. The next sulfuric acid project is actually we are in the stage where the commercial offers are coming now.

We should be able to take a call in terms of our proposed 3,000 tons per day sulfuric acid within this quarter actually. Phos acid also, it will be coupled with both together.

In spite of all this challenges coming on the global scenario, our commitment for our capex remains same.

Currently, it would be in design stage or we have finalized vendors for construction?

We are in the finalizing stage for the vendors actually. We have almost received the quotes, and there is a separate team working on it.

How much would be the capex for FY27 that we are planning?

Normal capex will be around 600 crore, which the financial closure has been done. This is normal capex, and something of all this major projects also outflow will be included there.

Yes. Prashant, just for FY27, the major projects that we expect to close this year will be expansion of phos acid from 0.5 million ton to 0.7.

There's an incremental 200,000 tons of phos acid that is expected in FY27. Key other project is some debottlenecking at Paradeep unit.

These are the incremental, I would say, the cash flows that you expect to receive from the projects that is getting completed. All other major capexes, as we have said earlier, is likely to be done by FY28 and FY29.

Sure. I'll rejoin the queue.

Hello, hi. Few questions.

First one is regarding the Goa plant energy efficiency. The Goa plant energy efficiency project that we have completed in Q4 or in the Q3?

Can you repeat the question?

The Goa plant energy efficiency project, so that we have completed in Q4 or earlier Q4?

No, no, this Q4. Q4.

We have we have taken a shutdown actually in the month of February and completed in the last week of April.

Understood. Sir, I think as per your earlier guidance, I think 6.4 to 6.1 Gcal kind of energy efficiency that will be in Goa plant.

With that, how much EBITDA per ton improvement that we can expect from going forward?

Look, the guidance what we have given that, from 6.4 to 6.1, that energy efficiency will accrue to us. In current gas price scenario, it will be around ₹1,000 to ₹1,200 per ton of urea at EBITDA level.

Understood. Sir, in terms of the MCFL urea plant, I think there was some policy issues due to which we were expecting that EBITDA per ton to be lowered.

If you could indicate the EBITDA per ton for the MCFL plant as of now, maybe in the H2 of '26?

No, look, earlier to this policy changed, there is a reduction in this norm, benchmark energy norm from 7.3 to 6.5. That impacted the EBITDA by around ₹3,000 per ton.

Current level, it will be around ₹6,000, ₹6 to ₹6,500. This is the scenario as of now.

Just to add, there was no policy change. That was an incentive given because we switched over from naphtha to gas, and that has expired.

As far as policy change, it was an investment benefit that was accrued to us for a period of year which has done. There is no major policy shift as far as that is concerned.

Okay.

The margin that we used to get roughly around ₹6,000 a ton for the MCFL urea, so that we are getting till now, right?

Yes, and it is also a function of the global gas prices. The margins in urea is a function of the global gas prices.

That's it. Also sir, we have expanded sulfuric acid capacity at the MCFL plant.

I think that might help in terms of getting the higher margins for the urea plant because of the power generation from the sulfuric acid plant. How we can look at that scenario in '27?

We are expecting actually we will be using the steam from the sulfuric acid plant to the other one, almost ₹1,000 per ton could be the impact which is on a favorable side.

Understood. Sir, one last question in terms of the overall capacity utilization for the Goa plant for this year and for the MCFL plant for this year for the NPK and for the urea and the non-urea, both, if you could bifurcate those two numbers for the FY26?

No, we have produced around 4 lakh ton of urea at Goa and around 7 lakh ton of NPK. In Mangalore, similar, 4 lakh ton of urea and 3 and 1/2 lakh ton of NPK.

Both the plants have actually completed the RAC quantity. Afterwards only we went for the Goa energy saving project.

In terms of NPK actually, Goa is almost 0.7 to 0.8 in between, and Mangalore is almost at full capacity of 1.4. Put together, both the plants are run wonderfully well in terms of capacity utilization.

Understood, sir. Sir, one last thing, I think earlier you have mentioned the debottlenecking of granulation capacity at the Odisha plant, roughly around 2 lakh ton.

That might come in FY27, is that correct understanding?

It will be in 2027. This current year it will come.

Okay. The incremental volume that can we expect from this year or maybe from the next year?

You should expect this in second half, the incremental volumes coming into the company.

Thank you. Thanks for clarifying all the questions, sir.

Thanks, all the best.

Just a couple of questions. First is if I look at Q4 and for the year gone by, what will be the EBITDA per ton on the manufactured volumes DAP, NPK?

We give as a product blended margin, EBITDA margin, that is around 5,700. For the Q4, it is 5,700.

The whole year, it is a 5,300.

For the manufacturing business, any indication you can give, how much would that be?

See, we give it at a blended company level, and obviously traded products will be at a lower number.

This will be purely the DAP, NPK business, right, not the urea piece?

This is at a company level, it includes everything.

All put together.

Okay. Second question is now what is the current level of backward integration for sulfuric acid and the phos acid we have, and once the expansion of phos acid and other initiatives, what will be the backward integration a year, two down the line?

Paradeep is around 80% to 90%.

Paradeep is almost fully integrated actually. Paradeep expansion which is coming from 0.5 to 0.7 should cover most of the other two units' requirement of phos acid also.

For sulfuric acid, sir, are we...

No, sulfuric acid for phos acid is 100% backward integrated. If you take of N20 product, then there will be some requirement.

You have to import around 10%. In Mangalore, it is 100% backward integrated, sulfuric acid.

Okay. Just one last question.

Now the subsidy rates are out by the government with the way the key raw material prices are behaving right now. How should one understand spreads for us in the first half?

Do you think there's more flexibility in terms of adjusting the market prices to cover for the raw material under-recovery or where does the larger focus lie? Any color you can give?

Just to share with you, we retain our price leadership as far as market is concerned. We've taken a price increase in NPK.

However, we're also working very closely with the government because the entire price increase cannot be passed on to the customers also because the sulfur and ammonia prices are extremely high in the current situation. We expect the government also to be equally supportive on that.

At the same time, we're also having a strategy where there's clarity on margin like focusing on products like DAP, which also ensures that we maintain our overall profitability. That's how we're doing it, but in terms of NPKs, we are a leader in the market in terms of our market realization also.

Understood, sir. Generally, there's no issue in the availability of raw material, it's just the prices are at abnormal levels.

In terms of Kharif, you're well covered in the supplies?

Kharif, I think we are quite confident and optimistic about it. We are making our endeavor to see actually for future tie-ups happen faster.

Understood, sir. I'll come back in queue.

Thank you.

Thank you for giving me an opportunity, sir. Sir, if I am correct, as per the presentation shown on the BSE India on your website.

Hello, can you hear, sir?

Yeah. We can hear you.

Go ahead.

Yeah. Sir, the EBITDA margin for the full year was 8.4?

Am I right?

8.4 what?

Percentage. EBITDA margin shown for the '26 financial year.

Or was it 10.03? 10.3?

EBITDA margin is 11% for the year.

11%? 11% for the year.

Can we expect, sir, because the conditions are not good geopolitically, can we expect for '25 for '27 EBITDA margin 10%?

See, I think the percentage is not the right metric for us as an industry. We evaluate the industry as EBITDA per ton.

I think the right metric for us is to look at as EBITDA per ton. Given the situation we are in today of the Middle East, we will not be able to give you a right EBITDA per ton at this moment of time, but I think with the kind of supply-side linkages that we have and the marketplace penetration we have, we should be able to end the year with a good margins.

Revenue expectation for '27?

What is that?

Revenue expectation for '27.

We will still hold ourselves because let things settle, then we will come back actually. Situation is quite volatile and, see, our endeavor is to get the raw materials to produce.

If we are able to do that, then definitely we'll see a growth.

See, just to kind of give you a perspective from the market side, see, we had opening stocks, we have had a good visibility on Kharif. We will continue to maintain our leadership.

Hopefully, by another 2 to 3 months, we should get clarity on the Rabi supply chain. We are very confident as far as market leadership is concerned.

Don't see any concern, except for an unexceptional situations where the value chain is impacted.

Yeah. Thank you.

Yes, sir, thank you for taking my question, sir. Sir, my first question is what was the N20 volume in the total NPK mix for Q4 and FY26?

Good morning. N20 volume what we did was 14.5 lakh metric ton, okay, and we grew almost 9% over last year.

We are among the top two, three companies today in the NPK volumes.

Sir, for N20, this is for N20, sir?

This was for N20, what I'm talking of, 14.5 lakh metric ton.

Sir. For traded products, what were the volumes for TSP, DAP, and MOP, sir?

TSP was around 2.8 lakh metric ton, and DAP was around another 2.2 lakh metric ton. Overall import portfolio was around 0.6 million tons.

0.6 million tons. Sir.

What was the gas cost, sir, for the quarter?

Around $14 $14 for MMBtu.

What is the current gas cost, sir?

It has slightly moved up. It is now around $18 to $19 because of this disturbance in the supply.

I can tell you that this entire urea energy cost is a pass-through. Whatever the increase in the gas cost, that will be pass-through.

That will not impact this bottom line of the urea.

In fact, it is helpful because what urea play is the energy efficiency.

Yeah. Yes.

Out of the new project cost, sir, that ₹3,600 crore, what was your spend in FY26 and what is your planning for FY27 spend?

FY26 actually, most of things were in the engineering stage actually. The actual capex will start happening '27, and we expect ₹600 crore will be spent in '27.

Yes, thank you.

Thanks for the opportunity. You made few remarks around government support and your communication with government.

Can you elaborate a bit? What sort of measures you're expecting?

Is it certain kind of an ad-hoc subsidy increases or support in some other form? If you can just expand on it, how you are looking at things as of today.

I'm asking this question considering the subsidy hike for the season has been just 10% while the raw material prices are up significantly. Yeah.

Good morning to you. See, just to kind of give you an overview, government's policy as far as DAP and TSP is concerned, government has a clear advantage, disadvantage as a policy, which factors in the increase in the import prices and the price of the product.

To that extent, DAP gets, as I said, and your bottom line gets kind of adjusted positively with any price change. We're also working closely with the government as far as the sulfur and ammonia raw material prices are concerned.

That's how we look at it.

In terms of availability, you don't see any challenge even if you're to buy at current prices for quarter two?

The way we're looking at it is, see, it's not that there is no challenge. We have ensured that more or less we covered our Q1 and we're securing our Q2.

You understand there is a lot of sulfur which flows through the Gulf of Hormuz, okay? While we're equally balanced because a lot of our sulfur is sourced from the refineries within India, there's a good balance.

Hopefully, if the situation resolves within the next few weeks, then I think the value chain should be streamlined. That's how we look at it.

To add on to that, we are now more focusing on low sulfur grade products, which is increasing DAP and other things where there is a clarity of that policy. We are trying to minimize our sulfur requirement.

Sure. Thank you so much.

Hello, everyone. Firstly, congratulations, sir, on a wonderful set of results.

Sir, I think you covered the point on the inventory increase that we have done that deliberately for, let's say, meeting Q1. Can you tell how much inventory additional we are keeping a stock of as against to what we would do on a normal year?

No, this stock increase in raw material stage, around another 30 days. It is there, to take care of this production for the Q1.

In fact, that will benefit us looking at this upward movement of the raw material prices. Yeah.

Got it. Okay.

On a balance sheet side to also, I think for us the total gross debt have increased to 6,800. As you mentioned, a large part of this is again subsidy receivable that's has to happen.

Do you think that, let's say, barring Q1, we could have a problem in the timing of the subsidy and that could lead us to raising a possibility of short-term working capital? Because the government is already...

Actually, our working capital limit, we have adequate limit, which we have got it. Only thing is that the money what is stuck in this subsidy and inventory, that will wind up in this quarter.

I don't see that this level goes up beyond from here. In all probability, it should come down.

Once this POS sale happen, then the subsidy start flowing and this inventory goes out, the main consumption happens in June and July. All this will definitely reduce this borrowing level, what are the working capital borrowing level, that will reduce.

Got it. In terms of the NPK leadership that we have established, sir, we are almost growing on a company level almost as 22% among the top three companies.

Do you think that, I think in the last call also, you have mentioned that abhi bhi 50% of the market is still NPK, but that bhi bada hai 40, 45%. Do you see that push by the government also happening, and you also seeing an increase in farming adopting to nitrogen NPK products?

See,

good morning. There are two dimensions.

First is on the leadership. Just to give you a perspective, let's say the industry growth of NPK standalone this year was -1%, and your company grew by 10%.

In a situation where there was de-growth, we grew. If you include the TSP plus NPK, the industry growth was around 1.6%, we grew by 15%.

That's the direction that we've consciously taken to provide balanced nutrition. That's a long-term strategy we continue to build up.

However, in the current year, you could have a mixed this thing because of constraints of sulfur and other products. The strategy might be more tilted to ensure that the phos and nitrogen also is secured, there's a food security is maintained.

You

will see a government putting a lot of emphasis on urea and DAP. Of course, complexes, it continues, but be conscious of the fact that the complexes for the farmer today are priced quite higher compared to the DAP and TSP.

If the prices are higher in this current phase, do you think farmers would want to switch to a NPK kind of product? I can understand the nutrient balance that they would want to have, but...

No, see, it's a natural preference. The first preference for a farmer would be to typically go for products like urea and DAP, okay, so that's what would happen.

Like I was sharing with you, with the last year also, with the industry where in NPK the industry didn't grow, but we grew by more than 10%. From that perspective, once you convey the benefits of the balanced nutrition to the farmer, you will see an uptake happening.

In the current situation with the too much of variance between the NPK price and DAP, you would see a balanced kind of growth in both the segments. The overall phosphatic segment remains strong.

That's how I look at it.

Sure.

Good morning. Hello, am I audible?

Yes, go ahead. Go ahead, please.

Sir, the line for the participant dropped. Ladies and gentlemen, you may press * and 1 to ask a question.

Sir, how much is the phos acid volume for Q4 as well as for FY26?

No, we produce around 1.25 lakh metric ton in Q4, and year-on-year basis, ₹5

lakh 1,000. 5 lakh plus.

For sulfuric acid for Q4 and full year?

Altogether, the whole year was 1.75 actually, okay. We produced around 1.8 million...

1.75 actually. Sir,

for Q4?

Just a second, ha?

Yes.

For Q4, this was 4 lakh 10,000.

Sir, how much is the subsidy that we received in Q4, and how much is the outstanding right now?

We have received in Q4 ₹2,600-odd crores, and the subsidy is 3,000 One second. ₹3,800 crore.

3,800.

Of all, that in of channel stock.

Right. Mr.

Harshdeep, out of the total trading volume for Q4, how much is DAP and TSP?

DAP and TSP?

Yeah.

Right. DAP was 2.2 million tons...

No,

that is for full year.

Okay. Quarter to quarter also we'll share you the number.

Just give me a minute. Q4 DAP imported was 0.3 million tons, and TSP was 0.4 million tons for the Q4, yeah.

3 lakh and 4 lakh tons.

3 lakh and 4 lakh.

Yeah, 0.3 and 0.4 million, yeah. That's for Q4.

Yes, okay.

No, 0.3 lakh and 0.4 lakh metric ton.

Okay, 30,000 and 40,000.

30,000 and 40,000, yeah.

Sir, how much is the POS stock at the end of Q4 for DAP and NPK?

Total stock is around 8 lakh 30,000. You want to understand the DAP stock?

No, for total phosphatic, DAP plus NPK.

DAP at the end was 1.28 lakh metric ton, and NPK was around 6 lakh metric ton, 5.95.

Okay. Thank you so much.

Sure. Sir, is there any production guidance that we can currently factor in at this time of the year?

Can you repeat it?

Production guidance. Of

any production guidance that we can give at this time of the year? I know there's uncertainty, but regards let's say first quarter and then probably something for the year?

Basically, there are two anxieties is coming. One is ammonia side, second is in terms of the sulfur and sulfuric acid.

The production volumes remains almost like steady to large extent, at least 70% to 80% for us in the Q1. We are just slightly shifting some these two intensive products, ammonia-intensive as well as from the sulfur-intensive products, and wherever the policy clarity exist.

In terms of the running of the plants actually, all the three plants are running. To large extent actually, we are covered till end of June.

We don't find major anxieties, but since we produce around five to six different kinds of products, we have access actually whichever is suiting to the market as well as in terms of the policy clarity.

All the three plants are operating, we can say, above 90%?

Not exactly. You can say around 80%.

Okay. This is primarily because of the raw material constraints?

Yes.

Okay. Got it.

Sir, the price of DAP that we're seeing at current rates, I think this has happened before also in our previous year where we deliberately reduced the volumes of DAP or trading. If you see the prices elevated, let's say, at a similar level for the next couple of quarters, do you think this is a deliberate step that we are going to again take?

No,

see, we're not getting into the deliberate step. The way we look at it is the government has put kind of a structure

where

we are doing our buying as a industry consortium, okay? There has been a very transparent and effective process as a country that we've done so that instead of people taking spot positions individually, okay, we have kind of asked the people to quote, and we've got the L1 prices discovered.

You're right, these are exceptionally high prices, both for urea and DAP. However, the view from the government side is that it is important that the farmers get their phosphatics and nitrogen for the cropping season.

That's how we look at it, and it is important that we maintain a certain strategic inventory as a country so that we are in a better bargaining position as we go into the subsequent season. That strengthens our position that way.

Okay. The two tenders that India Potash did, I think at those elevated prices, that was a industry-level procurement that was done, right?

It is not IPL's tender alone, it is IPL on behalf of a consortium of five, six companies, okay, the large phosphatic company. We are a part of that, and we had a good offer availability, and we have only picked up the quantity that L1 prices.

Got it.

Okay. Sir, I think in a capex plan that also that we have, I think debottlenecking would almost contribute to us 0.3 million tons.

I think you already mentioned that 0.2 is something we're targeting for this year, I'm assuming that 0.1 will be targeted for FY28?

Yes.

That will again be at the Paradeep plant?

Yes.

Partly it could be coming from Mangalore, but both the units will have some growth coming out.

Okay. Got it.

Just one last question to add on. Sir, this is an if scenario, but considering that we have now seen an import duty increase or some deliberate steps that government is having to take to reduce the impact that it is having, do you think that if this situation is elevated and there are steps that since you're having continued discussions with the industry, is there a possibility that fertilizer subsidies could get delayed at these elevated prices?

No, see, look, this ammonia and sulfur prices, there is no custom duty increase. In fact, very recently.

With this, now the Kharif is coming in and the type of stock built up and the sales consumption is happening, we don't see that the subsidy will be delayed. As of now, what we've had, we have got the subsidy up to April end.

With the kind of discussions that are happening on daily basis with the government and industry, government is very protective of the industry because they believe that manufacturing has to go to ensure food security. There's no reason for us to have subsidy be delayed.

It is adequately budgeted. They have budget support for the subsidy, we don't see any reason for delay in the subsidy.

Am I audible?

Yes, yes.

I just wanted to know how much percentage of your raw materials are imported, in terms of sulfur etc.?

It's not very clear.

What percentage of raw materials are imported, right?

Correct. How much percentage of your raw materials are currently imported, Strait of Hormuz?

See, we get almost entire thing of ammonia imported earlier from Strait of Hormuz, now it has been shifted to East Coast. We are getting mostly now from this Southeast Asian countries, this ammonia.

As well as sulfur is concerned, yes, it was through Strait of Hormuz, now that is also impacted. If you see, to a large extent actually diversification happened in ammonia.

Sulfur remains a critical resource for us actually to bother us. I'm sure actually the kind of tie-ups our industry as well as government is supporting us to make, we will see at least better days to coming.

Just to kind of update you, one is the sourcing of sulfur that we do within the country, so that partially supplements. For the finished fertilizers, there is a consortium which is working also on sulfur and ammonia, securing sulfur and ammonia in a transparent way.

You already declared that as an industry, and we're hopeful of securing that. Rather one of the vessels that we got secured for sulfur came via Strait of Hormuz.

Okay. Considering the, commissioning of the sulfuric plant, I mean how much margin margin expansion are we looking at, I mean after getting the, if we see the the war situation getting settled?

No,

the delta between the import sulfuric acid and indigenous sulfuric acid around ₹3,000. It depends on that what price you are sourcing this sulfur.

At this current level, it will be reduced and it will be at around ₹1,500, ₹2,000 level of delta.

Hi, sir. Hope I'm audible.

Sir, as you earlier said that in our Goa plant, urea plant was taken under maintenance shutdown due to energy efficiency. How much was the volume impacted, or if you could indicate the production volume for this quarter for the Goa urea plant?

Overall, if you look at it the whole year actually, we will be completing RAC, okay, because anyway, around 30, 35 days are always kept on shutdowns of annual shutdowns. That we have consumed actually.

We don't see any decrease in volume on a yearly basis.

This year we have done 4 lakh ton, and now with the policy support, the new change in the policy come, we can do up to 4.5 lakh ton at Goa.

Going forward, we can do 4 and 1/2 lakh ton kind of a volume, right?

Yeah.

Understood. Sir, for the MCFL, you said that our production volume for the urea was somewhere around 4 4 lakh ton for the MCFL, is that correct understanding?

Yes. Yes.

Yeah. With that number, was there any dip in the urea production volume in the MCFL for 4Q?

The MCFL continue to run. We have taken the shutdown last October, November.

If there is a supportive policy, we can still produce more than that, more than 4 lakh. Okay.

Okay. For the H2, if you could indicate the production volume of urea at MCFL plant, that will be helpful.

H2, if you look at it, our overall RAC is around 4 lakhs. If the supportive policy come, it can go up to 4.4 to 4.5.

We will share that specific number.

We took a month shutdown last year for annual maintenance, yeah.

Yeah. No, sir, my question was that in 3Q and 4Q, how much was the production volume for MCFL urea plant?

Riju, we'll get back to you separately on that. I think we don't give you a plant-wise...

Plant-wise. ...separately.

Yeah. Sir.

No problem. Thank you.

Is that last question?

Thank you. Thank you.

On behalf of the management team, PPL, we thank you for taking time to join our earnings call and a lot of interesting questions from you. Should you have any further questions, please reach out to us, our investor relation team.

Thank you once again, and have a good morning and afternoon. Thank you.