Paradeep Phosphates profit slips despite 34.57% revenue growth
Costs outpaced sales growth, while higher interest and depreciation offset a lower tax rate; operating margin recovered 1.19 percentage points sequentially.
Filed 17 Jun 2026, 14:20 IST · Paradeep Phosphates Ltd (PARADEEP)
Key takeaways
- Revenue grew +34.57% YoY, but costs grew faster at +35.35%, narrowing operating margin by 0.52 percentage points to 9.41%.
- Net profit fell -2.77% YoY despite a 5.19 percentage-point lower tax rate, as interest rose +51.47% and depreciation increased +99.29%.
- The stock rose +4.11% on the reaction day, below the 6.09% median absolute move after the past eight results.
Price around the results
Revenue growth did not translate into higher profit
On a consolidated basis, Q4FY26 revenue grew +34.57% YoY, but expenses grew faster at +35.35%, so operating profit increased only +27.48%. This pushed operating margin down by 0.52 percentage points to 9.41%. Profit before tax declined -9.32% as interest rose +51.47% and depreciation increased +99.29%.
Tax relief softened the pressure on net profit
The tax rate fell by 5.19 percentage points YoY, limiting the decline in net profit to -2.77% despite the fall in pre-tax profit. Other income accounted for 20.64% of pre-tax profit, making reported earnings partly dependent on non-operating contribution. Sequentially, interest still rose +22.96%, even as revenue fell -18.21% and expenses fell faster at -19.27%.
Margin recovered sequentially but remains below its FY26 peak
The faster sequential reduction in expenses lifted operating margin by 1.19 percentage points from 8.22% in Q3FY26. That recovery does not reverse the decline from 12.41% in Q1FY26 to 9.41% in Q4FY26. At 9.41%, Paradeep Phosphates was 9.36 percentage points below the 18.77% median operating margin for 51 reported Commodities peers, ranking seventh from the bottom.
The market response was positive but within its usual range
The stock gained +4.11% on the reaction day and was up +1.13% after five sessions, while the 30-session return was +11.03%. The initial move was smaller than the 6.09% median absolute move across the past eight results, when the stock rose four times and fell four times.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹4,702 cr | ₹5,749 cr | -18.21% | +34.57% |
| Other income | ₹42 cr | ₹-10 cr | — | -0.97% |
| Expenses | ₹4,260 cr | ₹5,276 cr | -19.27% | +35.35% |
| Operating profit | ₹442 cr | ₹472 cr | -6.36% | +27.48% |
| Operating margin (%) | 9.41% | 8.22% | — | — |
| Interest | ₹156 cr | ₹127 cr | +22.96% | +51.47% |
| Depreciation | ₹126 cr | ₹102 cr | +23.60% | +99.29% |
| Profit before tax | ₹202 cr | ₹233 cr | -13.37% | -9.32% |
| Tax | ₹47 cr | ₹51 cr | -9.24% | -25.99% |
| Net profit | ₹156 cr | ₹182 cr | -14.53% | -2.77% |
| EPS (₹) | ₹1.50 | ₹1.75 | -14.29% | -23.47% |
Operating margin of 9.41% compares with a Commodities sector median of 18.77% across 51 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +4.11% | +5.94% |
| Next session | +2.94% | — |
| 5 sessions | +1.13% | +1.96% |
| 15 sessions | +3.00% | — |
| 30 sessions | +11.03% | — |
Volume on the results session was 7.05× its 20-day average.
What to watch
- Whether operating margin holds above 9.41% after the sequential recovery.
- Whether interest growth eases from +51.47% YoY.
- Whether revenue momentum recovers from the -18.21% sequential decline.