Rama Phosphates Shares Fall 8% Despite Delivering 285% PAT Increase YoY in Q4 FY26

Synopsis: Posting its highest-ever annual revenue of Rs. 893 crore in FY26, Rama Phosphates has delivered a sharp recovery across financial metrics  EBITDA up 89 percent, PBT up 175 percent, and PAT more than tripling from the prior year powered by a chemicals business that doubled its revenue and a soya segment that swung from operating losses to profit, even as the Dhule greenfield project faces a further timeline push to Q2 FY27.

Strong across-the-board numbers have brought a Mumbai-headquartered fertilizer and specialty chemicals manufacturer into focus, after it released its Q4 and full-year FY26 investor presentation to stock exchanges on May 18, 2026. The results mark the company’s highest-ever annual revenue, with all headline profit metrics recovering sharply from what was a loss year in FY24.

With a market capitalisation of approximately Rs. 424.18 crore, the shares of Rama Phosphates Limited were trading at Rs. 119.87, down 7.93 percent from its previous close of Rs.130.2. The stock trades at a P/E of 8.74 on trailing earnings.

FY26 Financial Performance

Revenue from operations reached Rs. 89,304 lakh (approximately Rs. 893 crore) in FY26, up 20 percent from Rs. 74,369 lakh in FY25, and the highest in the company’s four-decade history. EBITDA rose 89 percent year-on-year. Profit before tax climbed to Rs. 7,031 lakh from Rs. 2,556 lakh a 175 percent increase while profit after tax expanded 285 percent and EPS rose 286 percent.

The recovery carries more weight when viewed against the FY24 base. In that year, PBT had fallen to a loss of Rs. 4,121 lakh, dragged by an adverse sulphur-price environment and weak operating leverage. The swing to Rs. 7,031 lakh in FY26 reflects both a favourable commodity cycle in chemicals and the operational leverage that comes with running fertilizer plants at higher utilisation. The company describes FY26 as its second-highest PBT year on record.

Segment Performance

The chemicals division posted the strongest growth of the three segments. Revenue doubled to Rs. 20,300 lakh from Rs. 10,344 lakh in FY25, with sulphuric acid and oleum realisations rising in tandem with sulphur prices, which the company notes reached the highest level in their historical range during the year. The division’s share of total revenue rose from roughly 14 percent to 23 percent, a shift that matters because chemicals carry better margins than subsidised fertilizer sales.

The fertilizer division, which remains the largest revenue contributor at roughly 72 percent of the total, grew 15 percent to Rs. 64,203 lakh. An offtake agreement with Hindustan Urvarak & Rasayan Limited (HURL) covering 1 lakh MT supported volumes, with material dispatches executed during FY26. The Nimbahera lease was also extended for a further five years, ensuring continuity at that unit.

The soya segment moved in a different direction on the revenue line, declining from Rs. 8,129 lakh to Rs. 4,802 lakh. The operating picture, however, improved considerably and segment PBDIT swung from a loss of Rs. 137 lakh to a profit of Rs. 260 lakh. The lower revenue reflects reduced crushing volumes rather than any structural problem; margin management and operational efficiency improved sufficiently to convert a loss-making unit into a profitable one.

Expansion Pipeline and Dhule Delay

The Dhule greenfield complex is the company’s most consequential capex project. As of the Q4 FY26 presentation, trial production of the SSP plant at Dhule is now expected to begin by Q2 FY27. Earlier guidance had pointed to Q4 FY26 commencement. The company cites technology redesign for a higher-capacity plant, the addition of new lines (MgSO₄, PDM, and Urea SSP), adverse weather, procurement delays, and labour shortages as contributing factors. This is a project that has seen multiple timeline revisions, and investors tracking the company should treat Q2 FY27 as the current working estimate rather than a committed date.

Capital expenditure of Rs. 44.75 crore has been incurred at Dhule through Q4 FY26. Of this, Rs. 5.47 crore was funded through a term loan; the rest came from internal accruals. Across eight years, the company has deployed Rs. 14,468 lakh in total capex  96 percent of which was internally funded. That capital discipline is notable for a company of this scale, and has kept the balance sheet relatively light on debt even through an active expansion phase.

The Udaipur unit is separately undergoing an SSP capacity expansion of 50,000 MTPA, which will lift that facility’s output to 3,00,000 MTPA and take the company’s total SSP capacity to 9,64,000 MTPA  positioning it as the third-largest SSP manufacturer in India by installed capacity.

Business Overview

Incorporated in 1984, Rama Phosphates Limited manufactures fertilizers (principally SSP), sulphuric acid, oleum, micro-nutrients, LABSA, and soya-based edible oil products. Operations span manufacturing plants at Indore, Udaipur, Pune, and Nimbahera, supported by a distribution network of over 2,000 wholesalers and 9,000-plus retailers.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Rama Phosphates Shares Fall 8% Despite Delivering 285% PAT Increase YoY in Q4 FY26 appeared first on Trade Brains.