Ladies and gentlemen, good day and welcome to the Paradeep Phosphates Limited Q1 FY26 Earnings Conference Call hosted by Antique Stock Broking Limited. As a reminder, all participant lines will be in 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 and then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Riju Dalvi from Antique Stock Broking Limited. Thank you, and over to you, sir. Thank you. Good morning, everyone. On behalf of Antique Stock Broking, a warm welcome to all the participants on the call for Paradeep Phosphates. Today, from the management side, we have Mr. Rajeev Nambiar, Chief Operating Officer, Mr. Harshdeep Singh, Chief Commercial Officer, Mr. Bijoy Kumar Biswal, Chief Financial Officer, Mr. Alok Saxena, Head of Corporate Finance, and Mr. Susnato Lahiri, JGM: Strategy, IR, and ESG on the call. Without any further ado, I would like to hand over the call to Mr. Nambiar for his opening remarks, after which we will open the floor for Q&A. Thank you, and over to you, sir. Thank you. Thank you, Riju. Good morning, everyone, and welcome to Paradeep Phosphates Q1 FY26 earnings conference call. Thank you for joining us today and for your continued interest in Paradeep Phosphates. I trust you have reviewed our earnings presentations and press releases, which are also available on our website and with the stock exchanges. The fertilizer sector began FY26 on a solid footing, supported by favorable monsoon patterns, healthy reservoir levels, and government initiatives to promote soil health and balanced nutrient applications. With this backdrop, Paradeep Phosphates delivered a strong start to the fiscal year through operational discipline and execution strength, capitalizing on sustained demand for phosphatic fertilizers. For first quarter, revenue from operations rose 58% YoY to INR 3,754 crores. In EBITDA, including other income, nearly doubled to INR 493 crores, while profit before tax increased to INR 342 crores. Profit after tax reached a level of INR 256 crores, driven by higher production and sales volumes, strong sales velocity, and improved product mix, backward integration, and strategic sourcing. Operationally— Ladies and gentlemen, the line for the management has been disconnected. Please be on hold while we reconnect them. Thank you. Ladies and gentlemen, the line for the management has been reconnected. Please go ahead, sir. Yeah. Operationally, we produced 6.64 lakh tons of finished fertilizers, up 23% year-on-year, and achieved primary sales of 7.42 lakh tons, a 34% increase over the same period last year. Our product portfolio included diverse NPK grades, in addition to DAP. Our flagship N20 grade maintained strong momentum, delivering sales of 2.24 lakh tons. We also sold nearly 7 lakh bottles of our indigenously developed biogenic nanofertilizers during the quarter, underscoring their role in enhancing nutrient absorption and improving farm yield. On the intermediary front, phosphoric acid production grew 22% year-on-year to 113,000 tons, while sulfuric acid output increased 30% to 283,000 tons, further strengthening our integrated operations. We maintained a healthy net debt-to-equity ratio of 0.77 times, continued to operate with a lean cash conversion cycle, and leveraged our supply relationship and captive infrastructure to secure raw materials at competitive costs despite elevated input prices. Progress on our strategic growth projects also continued as planned. The sulfuric acid capacity expansion from 1.39 million tons per annum to 2 million tons is on schedule for commissioning by the third quarter of this fiscal year. The phosphoric acid expansion, which will raise capacity from 0.5 million- 0.7 million tons per annum, is progressing well and is expected to be completed within the next two years. Additionally, our proposed merger with Mangalore Chemicals and Fertilizers, which received shareholder approval in June, is advancing through the final stages of the NCLT process. Upon completion, this will enhance our scale and market reach. We intend to announce our further CapEx and growth plans following the conclusion of the merger process. Looking ahead, we remain confident of sustaining our momentum through FY26, supported by above-normal monsoon forecasts, stable subsidy disbursements, and increasing demand for value-added and soil-specific fertilizers. With our integrated supply chain, flexible production capabilities, pan-India distribution network, and established brand equity, Paradeep Phosphates is well-positioned to deliver consistent growth and long-term value for all the stakeholders. Thank you once again for joining us today and for your continued trust in Paradeep Phosphates. I will now be happy to take your questions. Thank you. Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Prashant Biyani from Elara Capital. Please go ahead. Yeah, thank you for the opportunity. Sir, congratulations on great financial performance. While you have mentioned in the opening remark, but if you can elaborate further as to what drove this extraordinary growth in EBITDA. Thank you, Prashant. I think if you look at it, actually, our production volumes jumped up and our early onset of monsoons, which has actually aided in terms of increased sales volume. If you look at it, we have an increase of sales volume plus 30% compared to year-on-year. The product mix also helped us in terms of optimizing whatever resources we have in terms of converting to EBITDA levels. Our backward integration programs, which are going on so well. Phosphoric acid, 0.5 million, we could actually completely make the target clear, and the further expansions also will drive our future things. Sure. Sir, between the three levers of high volume growth, backward integration benefit, and maybe some inventory gains, how was the contribution of all three? Prashant, just good morning. This is Harshdeep here. So if you look at it predominantly, the volume growth of 34% significantly contributed to the growth in the revenues and the bottom line. The further thing was, even with the combination of what Rajeev was saying, the benefit because of backward integration and the market realization stayed in line with the market requirement, we could take realistic pricing for our NPK grades, which resulted in a revenue growth higher than the volume growth. So that's what helped us really get good EBITDA in Q1 Sir, how much price increase have you taken? Currently, like the complex fertilizers, like 10-26-26, they've been in the range of INR 1,850-INR 1,900 a bag. If you remember, they used to be earlier capped at around INR 1,470 a bag. Right. Okay. And, sir, Paradeep's view is very well respected within the government circle. So what would be your view as a company on the trajectory of subsidy for H2? Prashant, we can't comment on this right now. We will have to wait till we have the government notification out. Okay. And Prashant, you are familiar with the process which the government follows, okay? They typically tend to look at the cost curve from January to June, okay? And that should be in the right direction. That's how we look at it. Yeah. And just adding, I think we have been getting good revenue support, and we feel that that will continue for the benefit. Sure. Okay. I'll jump back to the queue. I have some more questions. Thank you. Thank you. Thank you very much. The next question is from the line of Ahmed Madha from Unifi Capital. Please go ahead. Thanks for the opportunity, and congratulations on great execution and financial performance. Sir, I have three questions. First, to start with, in terms of understanding the strategy behind the floor, I can see the traded volumes this quarter have been much lower, while we have manufactured a decent amount of DAP. So in terms of changing the mix, in terms of increasing DAP trading and manufacturing more NPK, what is the thinking behind the entire product mix and mix between the trading manufacturing, and also any thoughts on trading more TSP as well as DAP? Yeah. Good morning, Harshdeep here. See, the strategy is to maximize the NPKs, that is, as far as manufacturing strategy is concerned and we are moving well in that respect. Our Q1 growth for NPKs has been 48% compared to the regular portfolio growth of 35%, so that direction we continue that. Trading, we are going to look at supporting the market strategically, and we will be doing both DAP and TSP in the Q2 because arrivals would happen but the objective will be to do profitable trading volumes so that's how our overall core strategy is. Got it, sir. My second question is on the increasing RM prices. The sulfur prices have been up materially, and same as with phosphatic prices. I'm not sure how the rock prices are moving for you guys, considering you have long-term contracts. But do you see any material change in profitability margins for the balance of Kharif season? I understand you answered to Prashant that you cannot comment for the next subsidy because the subsidy has to be announced, but for the balance of the Kharif season, do you see any major risk in terms of margins? These prices have been actually going up, and we see some of the area now a little softening. Maybe I think it is a certain area it is picked out, but I think sulfur, it is showing some little softening. Other things remain still on the growing side only. But I think counter this, if you look at it, actually, our operation efficiency has actually been quite stronger, actually. And in Q2, probably Q1, we have taken most of the shutdowns and other things. Q2, in terms of operation efficiency, ability to produce should be much better than Q1. On verall, if you look at it, the early monsoons and availability of more crop area, all those things basically facilitate our Q2. But there is definitely the RM prices are a concern for all of us, but we'll see what best can be done, actually, to mitigate this. Okay. Got it. My third question is on the inventory channel positioning. So can you give some broad numbers? What was the channel inventory as of Q1 end, which is June 2025, and comparable numbers for Q4 2025 and Q1 2025, which is March 2025 and June 2024? That will be very helpful. Bijoy, can you take this one? Yeah. Hi. Good morning. This is Bijoy Biswal from PPL. So the inventory level has decreased because of the stock we have purchased towards the fag end of this quarter. The inventory level, if we compare to 31st March 2025, so this has gone up. So this is around INR 1,000 crores gone up. E ven the subsidy receivable also has gone up. So that is mainly on account of the POS, which has been accumulated, and we will get the liquidity index c oming this Kharif season. But this inventory level, yeah, it has gone up. Can you quantify what? I'll just clarify on the quantified value, Harshdeep here. So if you look at the last quarter, across trade and primary stocks, we were almost 10.9 lakh metric tons, which has come down to 7.2 lakh metric tons as of 30th June 2025. So the company stocks, the primary stocks are down from 1.4 lakh metric tons to 80,000 metric tons. T he trade stocks are down from 9.5 lakh metric tons to 6.4 lakh metric tons. So overall, trade stocks compared to last year, same level, 30th June, they are on the lower side. Got it, sir. Thank you very much. Thank you very much. Ladies and gentlemen, please limit to two questions per participant and rejoin the queue for the follow-up question. Thank you. The next question is from the line of Pratik Oza from Systematix. Please go ahead. Yeah, hi sir. Thanks for the opportunity. Just one question on the PPT. So on page number 7, it is shown that N20 sales have grown at 45% YoY. And on page 11, it is mentioned that N20 sales grew by 89% YoY. So which figure is correct? Yeah. See, the sales of N20 are 2.24 lakh metric tons, okay? And last year's sales was 1.55 lakh metric tons. There's a 45% growth in primary sales with last year. Okay. You mentioned on the initial level, it's mentioned N20 sales grow by 89%. No, I think we can have Sam corrected it. It is 45%. But in terms of the overall N20 portfolio, it's about 60% of the entire product mix. Thank you. Thank you. The next question is from the line of Puran Mangilal Dhak from Aurel Capital Services. Please go ahead. Congratulations, sir. And thank you for giving me the opportunity. I just wanted to understand the unit economics of phosphoric acid production for the Paradeep. So just three questions. What is the conversion ratio for phosphoric acid? That is phosphate rock to phosphoric acid, sulfuric acid to phosphoric acid, and sulfur to sulfuric acid? Am I audible, sir? Can youn repeat? Okay. So I had three questions. First is phosphate rock to phosphoric acid, sulfuric acid to phosphoric acid, and third one is sulfur to sulfuric acid for the Paradeep. For sulfuric acid, the conversion rate for a ton of sulfuric acid, we consume 3.2-3.5 metric tons of rock. And with regard to sulfuric acid to sulfur, it is one third of the sulfuric acid production we consume as a rock. Sorry to interrupt. Mr. Puran, your— Hello. Sir, the audio from the management line seems to be distant. Can you come closer to the device? Can you hear me? Hello. Sir, it's very distant. Can you hear me now? Yes, sir. Yeah. So I am saying f or each ton of phosphoric acid, we consume 3.2-3.5 tons of rock. And sulfuric acid to sulfur, it is 1/3. So for each ton of sulfuric acid, we consume 1/3 ton of sulfur. And what was the l ast question? Sulfur to sulfuric acid. Sulfur to sulfuric acid. You're definitely saying that for each sulfuric acid, we consume 1/3 of the sulfur. Okay. And what is the sulfuric acid to phosphoric acid? How much we require sulfuric acid for phosphoric acid production? 3.2 times of the phosphoric acid. For each ton of phosphoric acid, we require 3.2-3.5 tons of sulfuric acid. Okay. Thank you. Thank you so much. Thank you so much, sir. Thank you. The next question is from the line of S. Ramesh from Nirmal Bang Equities. Please go ahead. Thank you and good afternoon and congratulations on a spectacular set of results. So if you look at the current quarter and the remaining months, how should we see the performance? Will we be able to maintain the EBITDA per ton and improve that based on the backward integration benefits, particularly in phosphoric acid where the contract prices have gone up? No, I can put this term this way that right now for this quarter, we have a little bit higher EBITDA per ton. But going forward, as per our guidance, it will be around INR 5,000 per metric ton of in around that. That will be the EBITDA what we'll be maintaining for the rest of the quarter. We always believe that the sustainable EBITDA number that we have for a company like us with the kind of backward integration that we have is around 5,000. And we continue to maintain that view. But directionally, with the kind of operational reliability improvements that we have embarked on, the kind of backward integration that we are doing and the market interventions that we are doing, obviously, we would like— Directionally, we are in the right direction. But the sustainable number, as we speak today, is around 5,000. Yeah. In Q1, what would be the benefit from the backward integration if we can quantify per ton? It'll be difficult for us to quantify. As we mentioned earlier, it's a combination of three, four factors driven by higher realizations, higher volumes of production and sales, as well as backward integration. But we won't be able to give you a quantified number for backward integration. If you look at the longer term, big picture, sulfuric acid expansion, phosphoric acid expansion, once everything is done, what is the benefit you expect from these projects in terms of backward integration? Can you— In the long term, in the long term, you should assume that whenever the backward integration gets into the picture, there is always a $150 captive advantage with always imported phosphatic per ton. So that will reflect into your EBITDA improvement. That is taking both sulfuric acid, phosphoric acid, and the benefit of steam. Everything put together, right? Yeah. So just one last thought. So if you look at your overall balance sheet, what is the kind of increase in working capital, and what is the kind of movement in debt you expect this year and next year? I'll tell you that this year, the working capital is similar to the last year, the 31st March closing. It has not gone high. And this long term, we have got around INR 1,000 crore, we'll be maintaining that one, provided whatever we repay and new loan we take. But our guidance is that it will be around INR 1,000 crore. So this current trend in interest rate interest cost reduction, that will be sustained or reducing any risk of that interest cost going above the next two years? No, I think we have got this reduction of the repo rate and all things has really impacted positively. And as and when there will be reduction by the RBI, we will negotiate with the banks and get this rate reduced. So we are quite hopeful that in case there is any reduction by the RBI, that benefit will accrue to us. Thank you very much, and I'll join the queue. Wish you all the best. Yeah. Thank you. Thank you. The next question is from the line of Krishan Parwani from JM Financial. Please go ahead. Yeah. Hi, sir. Congrats on a good set of numbers. And thanks for taking my question. Firstly, can you please highlight the MRP and subsidy realization of DAP and N20 in Q1 FY26 and July 2025 again? During this quarter, we have the subsidy realized of around INR 1,500 crore and market sales of around INR 2,000 crore, which is what we have always told. Everything has been converted, the subsidy and the realized sales. Okay. Just to add to your specific point on the MRPs, the MRP for DAP currently is INR 1,350 a bag. TSP is INR 1,300 a bag. And for the NPKs, the range is from INR 1,400- INR 1,915 a bag. So depending on the grades that we're doing. We maintain leadership as far as market is concerned on the price realization. And on the follow-up on that, how much per bag MRP you have taken increased from the last quarter? Yeah. So specific grade, if you look at it, for example, NPKs, N10, N12, the average per bag realization was INR 1,470 a bag. Currently, it is around INR 1,850-INR 1,900 a bag. Okay. And that continues in July also? Yes. Continue means it's a part of the process. We review our cost curve and we look at what's the best from the market optimization point of view. So that's how we manage. So we already clarified the guidance on the EBITDA. So that's what the intention is to maintain that, grow that. Okay. And government isn't stopping you from taking MRP increase? Because I think— For NPKs, the DoF policy is clear on the NPKs. On the DAP and TSP, they expect us to keep the MRP as per the guidance. However, for NPKs, there is no restriction from the government. Okay. Secondly, we have reported INR 6.5 per ton of KG EBITDA while our targeted EBITDA, I think you already stated around INR 5 a KG or let's say INR 5,000 per ton. So is it fair to say that there has been kind of an inverting gain of INR 120-150 crore during the quarter, taking incremental INR 1.5 per KG for 7.5 less than sales volume? That's not the way to kind of capture that. It's a combination of factors. That's what we have clarified. So the current financial situation's volatility needs to be kept in mind. That I understand. But could you quantify the inventory gain we could have had in Q1? No, I'm just clarifying before we quantify that. See, the product mix did not have any traded volumes. So once the traded volumes set in, there is some normalization of the EBITDA which happens. And Q1 was pure manufacturing volumes. So that's how you look at the delivery today. Okay, and lastly, you were running at almost 95% utilization in Q1 So sorry to interrupt, but I request you to rejoin the queue for the follow-up question. Okay. No problem. Thank you. Thank you. The next question is from the line of Dhruv Muchhal from HDFC AMC. Please go ahead. Yes, sir. Thank you so much. Sir, one data point in case I missed earlier is what is the subsidy outstanding for the quarter end? The subsidy outstanding is INR 2,200 crores. 2,200 crores. And sir, is it possible to share what was the volumes with the dealers or distributors as of the end of last quarter, I mean Q4, inventory of your products with the dealers at the end of Q4? volume sold to wholesalers and retailers was 6.7 lakh metric tons. That's straight total volume 9.5 lakh metric tons. Wholesalers plus retailers. This year, the inventory is lower, and it is around 6.4 lakh metric tons. Sorry, sir, your voice was breaking. Last quarter was and this quarter is? Last quarter was around 9.5 lakh metric tons. And this quarter is 6.5 lakh metric tons. 6.5 lakh metric tons. This is the inventory with dealers, distributors, everyone in the system y ou have product with? This does not include the primary inventory which the company holds, which is also lower compared to the last quarter, so that's around 18,000 tons this quarter end. All right. Perfect. This is helpful, sir. Thank you so much and all the best. Thank you. The next question is from the line of Mr. Riju Dalvi. Please go ahead. Hi, sir. Congrats on a great set of numbers. So in terms of some bookkeeping questions, so how much we make in terms of EBITDA per ton for the DAP this year? Sorry, this quarter. So generally, we don't give a guidance or we don't say that what is that per ton of product-wise. What we get this quarter, we have around EBITDA of around INR 6,600 per metric ton on overall basis. Understood, sir, and in terms of we have seen some increase in the RM prices from Q4, so if you could share some kind of a view about the inventory gain that we have reported this quarter, if it is possible. Can you repeat the question again? So what's the inventory gain in Q1 if you could quantify that? So, Riju, we have regarding the subsidy impact, already that has been factored in 31st March 2023, sorry, 31st March 2023. So that impact has already been considered. And what about the we have been taken this inventory at cost? Now that has been realized because of the MRP increase. We can quantify that. Understood, sir. And regarding the CapEx projects that we have, so in PPT page 11, we have mentioned that the upcoming phosphoric acid backward integration, so that will be beyond the Paradip site. So can we assume that the Paradip site is 100% backward integrated and the upcoming capacities will support the Goa plant in terms of backward integration? So far, whatever we announced, basically, it is for Paradip only. So you can take it as the backward integration is now concentrated on Paradip. As we said earlier, that after the ongoing merger process of MCFL is closed, then we will get into more detailing of the next investment plan. But as of now, the 0.5-0.7 expansion is coming for Paradip. Yeah. So that is for Paradip. But in the PPT, we have mentioned that this will support beyond the Paradip plant or Paradip site. Riju, if you look at— Correct. See, whatever excess phosphatic out of this 2 lakh metric ton what we are increasing, if that is available, then definitely that will support this our Goa plant or Mangalore plant going forward. Okay. Okay. Understood, sir. So with the current capacities in terms of phosphatic and the sulfur to sulfuric acid, for the Paradip plant, we have 1.8 million metric ton of capacity. So how much that plant is backward integrated? Is it 80%, 90%, or 100% if you could quantify that? Right. Yeah. On a thumb rule. 95% we are backward integrated. Okay. on a rule of thumb basis, typically, 30% of the capacity should be backward integrated. Right now, we are kind of, as the CFO mentioned, we are about 95% on. Once we reach 7 lakh tons, we will actually be in excess of 100%. And that incremental can be then transferred to the other site that we have. Okay. Okay. Understood. Understood. Yeah. And one last question. So yesterday, MCFL announced some kind of a CapEx, roughly around 6% kind of a CapEx for the NPK integrated with this phosphoric acid capacity expansion. So if you could highlight something like this new CapEx that announced by the MCFL. So will this be a standalone CapEx for MCFL or post-merger we'll have a combined capacity addition for MCFL and Paradip site? Riju, this is on a note that it's improper for us to actually comment on MCFL currently. But once the merger is done, actually, we'll definitely get back to you. Understood, sir. Understood. Yeah. Thank you for answering all my questions. Thank you. The next question is from the line of Vignesh Iyer from Sequent Investments. Please go ahead. Thank you for the opportunity, sir, and congratulations on great set of numbers. S o t wo questions from my side. My first question would be procurement of sulfur, is it more like a yearly contract that is set? And is there a pattern of revision of prices when it comes to that? And second question is on procurement of DAP. I mean, there is clearly some shortfall in DAP as per the industry commentary, right? Mainly because of import from China, so wanted to understand what is our strategy and where are the other sources we are looking to procure that DAP for trading? Regarding sulfur, the contract is a yearly basis, long-term contract. In case there is any shortfall, we go and we purchase the spot market based on this price, viability, and other things. But regarding DAP, I think Harshde ep can tell regarding the DAP procurement. Yeah. See, the DAP, typically, what we are doing currently, we are buying dominantly from OCP as a part of a long-term contract. And that is driven by a formula pricing for both DAP and TSP. Sir, the pricing of sulfur, I mean, it is a long-term contract, but is there a reset on pricing every 15 days or every month? Yes. So this follows, this price is a long-term price declared as an international market. So even though the quantity is a long-term contract, it is for the quantity assurance. S o just to clarify, most of the long-term contracts are governed by a formula. And every formula is actually linked to the current market dynamics. So as and when there is a swing upward or downward on the prices internationally in the commodity markets, we kind of, that will reflect on our pricing. Right. Just one last question to this. So would it be fair to assume that since the spread has improved between sulfuric and sulfur, we might see some gains coming to us in Q2? No, the gains have already been coming. If you look at the prices, the spread has actually been there for the last few quarters. So we are realizing the prices. And as and when the spread kind of improves or reduces, we will stand to kind of gain accordingly. Great, sir. Thank you. Thank you, sir, and all the best for the rest of the year. Thank you. The next question is from the line of Somil Shah from Paras Investments. Please go ahead. Hi, sir. [audio distortion]. Most of my questions were a nswered. Is there anyone— Sorry to interrupt. Mr. Somil, your voice is breaking. Okay. Okay. Can you hear me now? It's still breaking. Hello? Can you hear me? Yes. Yeah. So, most of my questions were answered. I just had one data grabbi ng question. I needed some clarity on the both major shareholding category. Sorry. Your voice is not clear. Hello? Somil, your voice is breaking again. Oh, okay. So no, maybe some network issue. Can you hear me now? Yeah. Yeah. Yes, sir. So I just needed some clarity on the shareholding in promoter category. So for notification, it will be 58.64% held by the promoters. Is my understanding right? So after the merger, the controlling entity of PPL, which is Zuari Maroc Phosphates Limited, will hold more than 51%. Okay, and the rest will be by Zuari Agro Chemicals and others? Yes. That together will be around 7%. So you're right. 58% will be the collective promoter holding after the merger. Okay, and ZMPPL will be 50-50, post-merger. Yes It will continue that way. Yes. Okay. Okay. So the control will be ZMPPL. Okay. Right. Understood. That's it from my side. Thank you and all the best. Thank you. The next question is from the line of Shaurya Punyani from Arjav Partners. Please go ahead. Hi. Am I audible? Hello. Yeah. Go ahead. Shaurya, go ahead, please. I think this year, the Q1 was very good in terms of volume. So what kind of growth can we expect in terms of volume? No. See, this past quarter, we sold around 7 lakh tons. I think by the year end, we'll have what we projected, million tons in. That will be the product that we'll be selling in manufacturing as well as trading product. So your voice broke. Can you repeat? So we are saying we have established capacity of 2.7-2.8 million tons. And we expect to deliver those volumes. 2.7-2.8 million. So we are targeting about 3.1 million tons. And this should actually include a bit of trading as well. And once the MCFL merger is complete, that will kind of get us another additionally 7 lakh tons. Post-merge. Okay. 7 lakhs. Okay, sir. And sir, at what utilization are we operating? Can you repeat it? We are close to 100% utilization at the moment, and we will try to maintain this kind of utilization levels throughout FY26. Okay, sir. Thank you, sir. Thank you. The next question is from the line of Sandeep Mukherjee from SKP Securities Limited. Please go ahead. Hello. Yes. Thanks for taking my question. Can you share the CU volume and EBITDA pattern for Paradip and Goa separately for the NPKs? So, generally, what we have already mentioned that we don't give these numbers on a unit basis. So, as a whole, company as a whole, what is reflected is around INR 6,600 on the overall product for this quarter. And the volume what we sold is around 7.4 lakh ton. All right, sir. Sir, my next question is, how are you seeing the TSP as a substitute to D AP? And what are the challenges of this product? Ritu, we are positioning TSP as a powerful phosphate fertilizer with 46% P. We have found good traction. We have been doing a lot of groundwork in terms of promoting it among the farmers. We see a good acceptance happening with farmers where the awareness level is high, like potato farmers in Punjab, soybean farmers in Madhya Pradesh, and Maharashtra. The product has been introduced in almost 10 states currently. It's a product which is gaining acceptance. However, based on the soil and the crop, part of the nitrogen could be supplemented by the farmer. We see it as a good, powerful phosphate fertilizer. From a sustainability dimension, also, it's something which is good because you're preventing overuse of nitrogen. Sir, are you producing this manufacturing product? No, we're currently importing the product from OCP Morocco. Okay. Okay. Thank you, sir. Thank you very much. Thank you. The next question is from the line of Manish Mahawar from Antique Stock Broking. Please go ahead. Yes, sir. A couple of questions. One, in terms of phosphatic and DAP and the rock value chain, right? It is a couple of quarters we are seeing the phosphatic and DAP prices are going up. It's been, I think, five or six quarters. However, rock prices are still at a lower level. So any specific reason rock prices are not going up in tandem with the phosphatic and DAP? Because historically, if you look at the cycle last 15- 20 years, right, the rock price always follows phosphatic and DAP. Any specific reason this time it's not following? Yeah. No, just to kind of give you a clarity here, see, while rock prices will follow the overall direction as far as phosphates is concerned, but there is not a one-to-one correlation. See, DAP is a purely demand kind of supply-linked commodity. And currently, because the inventory levels in the country are low, so you're finding typically the prices have moved up significantly. However, rock, the sources are multiple, and the import pattern is different. There are not too many players buying rock today. With DAP, which everybody wants to build up the inventory to ensure that the farmers get the availability of the material. And this year, China has not been on the supplier side as far as DAP is concerned, which has pushed up the prices. Right. But what you're talking about, it's more of an Indian situation, right? Globally, I think DAP and phosphatic prices are still up. So basically, rock has to follow the prices, right? Yeah, so it will— Yeah. It's like that only. The pace will not be the same as with the finished product. Okay. Understood. And phosphatic price, I understand, for Q2 is around $1250 or maybe $1260, right, sir, dollars for an Indian contract price? 1260. Okay. And so are we or the industry taking price hikes in DAP and NPK to offset this? No. And DAP is covered under this price regime. That's why there is no increase of MRP in DAP. But in case of other NPKs, it is free from this price regulation. So we have increased the price. The MRP has been increased compared to last quarter. That was 1st June, right? Last price hike was 1st June, what I understand, right? Or after that, we have increased also in NPK? No. During this quarter, this has been increased. Okay. In July month, you're talking about, right? How much was the quantum for this MRP hike in NPK in July month? I think we have clarified the overall price hike for the NPKs. See, what was there last year was around INR 1,470 a bag, and over a period of time, gradually, we currently are average ranges between INR 1,400- INR 1,900 per bag, depending on the product, basically. So N20 has a different price, N10, N12 has a different price, so there is a significant increase that we've taken in line with our RM increase. Okay. Just giving an example, N20, what was the price maybe that we have taken? Current MRP is around INR 1,400 a bag. Okay? Last year, depending on different price points, it was prevailing between INR 1,200- INR 1,300 a bag. N10 was INR 1,470 a bag. Currently, N10 price is around INR 1,900 a bag. Okay. Understood. And maybe two bookkeeping questions, sir. I think you have said in the call, I think inventory at a dealer and wholesaler or retailer level is 6.4 lakhs for us by the end of this quarter, right? Can you break it up in terms of DAP and NPK? We can do that, but there are a number of grades of NPK, so I'll give you that as an overall. The total NPK total number you can highlight. Yeah. So currently, the trade inventory for DAP overall is around a lakh ton, a lakh 3,000 ton. Okay? Okay. Combined sales would be around 4.35, 4.3 lakh metric tons, approximately. Understood. And second question, in terms of gross debt and net debt number by end of June. Yeah. So the gross debt is the short-term debt is close to about INR 4,000 crores. Long-term is very minimal, about INR 500 crores, because there aren't too many CapEx projects, new projects running at the moment. In terms of net debt, I think we are doing a net debt- to- equity ratio of 0.77 with INR 1,200 crores of cash at hand. It's around INR 2,800 crores roughly is the net debt number by end of June, right? Yes. Okay. Sure. Thanks very much and all the best. Yes. It's approximately INR 3,300 crores. You can take that. Thank you. The next question is from the line of Yatharth from IGE india. Please go ahead. Hi, sir. Congratulations on the result, firstly. Just wanted to ask a small question regarding Nano DAP fertilizers. How do you see Nano DAP fertilizers going ahead in the market in the next three to four years compared to NPK? Good afternoon. See, we are finding quite a good acceptance for our nano product. Okay? Our nano product is a biogenically done nano. And we are seeing the farmers getting a good result with that. Current volumes have grown in the Q1 significantly. We see a good traction building up for nano DAP. However, we have to see it in the context. It is not a replacement for the existing DAP or NPKs. It's a partial supplementation of the kind of current phosphate application, which happens through the nano DAP. And good thing about our nano DAP is that it got nitrogen also as a built-in this thing. And we see a good response from the farmers and good acceptance. Okay. Thank you so much, sir. Thank you. The next question is from the line of Amit Agicha from HG H awa. Please go ahead. Yeah. Good afternoon, sir. Thank you for the opportunity. Sir, could you give insights into the order book visibility or the demand pipeline for the rest of FY26? No, that's what we showed— Before I'm just taking this, in terms of the overall guidance, I think we have already indicated that we would be doing 3.1 million tons plus in line with our by-state numbers. The demand is strong. We are finding good traction for the farmers' sales as well as phosphates are concerned. And Q2 also should be strong because this is a strong consumption quarter. And we maintain the guidance as far as overall volume of 3.1 million tons plus is concerned for the whole of the year. The second question was, with government subsidy rising, how much of your revenue is exposed to delayed subsidy payments? See, currently, we are finding that the payments from the government are happening quite on a timely basis linked to the phosphates. And as long as the farmer's sales are happening on time, we are getting a good cash flow as far as subsidies concerned. So currently, there are no constraints in terms of getting the receivables from the government. So the subsidy receivable days are pretty much under 50, actually, for us. Under 50? Under 50, and the trade receivables are under 17. No, sir. Subsidy receivables are a little bit higher because of the phosphatic accumulation. So as of this quarter, the subsidy receivable days is around 100 days, and trade receivables are around 30 days. Okay. Thank you, sir. All the best for the future. Thank you. The next question is from the line of Ritik Shravak from Nirmal Bang Securities. Please go ahead. Yeah. Hi, sir. Good afternoon. Congratulations on a good set of numbers. I just want to ask one question. How much of additional phosphoric acid from expansion will reduce the import? And how much will it add to fertilizer volumes? No, it depends on the season. We are adding another 2 lakh ton, and it depends on the type of NPK and this product we are going to take. I think mostly we'll be doing N20. And where the requirement is for. Sir, sorry to interrupt, but the audio for the management seems to be distanced. Can you come a little closer? Can you hear me now? Yes, sir. No, what I'm saying that this two lakh ton of this phosphatic what we'll be adding, that will be consumed for the NPK product. And it depends on how much percentage of what the NPK we are making. And now, if you look at mostly, we'll be doing N20 product. So this will give two lakh ton, means it will give around nine lakh ton of N20, which can be produced. Okay, sir. Thank you. The next question is from the line of Ajit Sethi from Eiko Quantum Solutions. Please go ahead. Thanks for the opportunity. I just need some clarification. Sir, can we produce fertilizer using smelter-grade sulfur? The reason for asking this question is because the sulfur which came out from smelter is of low purity as compared to the sulfur which came out from refining crude or natural gas. Normally, we prefer actually the refinery grade because of purity to avoid most of the operational-related issues. Thank you. Okay. So next question is, going forward, many of the global refineries will be closing down. So do we see any shortage of sulfur going forward? Not really. In fact, our procurement team is working in terms of mapping all the resources, and since we have got a lot of long-term contracts, we don't see any problem in terms of the availability of sulfur. Thank you. Okay. Thank you, sir. Thank you. The next question is from the line of Prashant Biyani from Elara Capital. Please go ahead. Yeah. Thank you for the opportunity again. So, sir, in the RM price chart that you have shared in the PPT, rock and sulfur price movement is difficult to assess because of high index value of P- acid. Can you spell out rock phosphate value in that chart for Q1 and Q4, what we have seen last year? No, I can take the call. This rock phosphate price in Q4, it was around $200. Now, I think similar tons it is there in Q1 of this year also. So there is not much change in Q4 and Q1. How was it for sulfuric acid? Yeah. Acid actually moved up from, say, about $100 levels in Q4 to current levels of about $130 odd. Okay. And, sir, how much was the subsidy received in Q1? About INR 1,477 crores. INR 1,500 crores. Okay. And, sir, lastly, Harshdeep sir, what was the trade inventory in Q1 last year? Trade inventory in Q1 last year we were discussing was around 9.5 lakh metric tons total. That was for Q4, right? No, I'm talking of 30th June 2024. Okay. Then how much was it for Q4? I can, Prashant, share with you the numbers, the 31st of March number, right? Yeah. You can get back to me. Yeah. Just we have compared the quarter to quarter. Quarter to quarter, like I clarified, from 9.5 lakh, we are currently down to 6.4- 6.5 lakh metric tons. So that way, the absolute inventory in the trade has come down because of good onset of monsoon season. So that's a very, very positive thing that helps the cash flow both on the market front and as far as the subsidy realization. Yeah. Sir, one last question on the, I mean, the fundamentals of phosphate. DAP, because of government regulation, prices are not able to increase. And on NPK, we are increasing the price, but by their very nature, the price difference between DAP and NPK is increasing. So the balanced nutrition concept, isn't it going for a toss, and will the market accept such kind of price increase? So, Prashant, what you're saying is absolutely right. What is important is for us to promote balanced nutrition. And in line with our motto of healthier soils, healthier people, our focus is to promote complex fertilizers, which have a combination of nitrogen, phosphorus, and potassium. And wherever farmers are buying, let's say, a standalone DAP or urea, we would also be promoting that they use specialty nutrient as well as potassium as a nutrient. But our focus remains on promoting a combination of nutrients, that is NPK. However, there would be a certain set of farmers who still would want DAP, and there we promote them to use potassium. But you're right, there is a distortion which happens in the market because of a cap on the prices as far as DAP is concerned. Sir, this is acceptable right now, buying NPK even at higher prices? Yeah. Yeah. So if you look at the overall trend, Prashant, that I'm talking of as an industry, you look at the NPK growth which has happened. For the Q1, the NPK growth has been almost 34%, right? And the DAP is down by around -19%. So partly, it is linked to the supply-side issues also. However, what is important is that you are finding farmers getting a good acceptance for the NPKs. Sure, sir. Thank you so much. Thank you. The next question is from the line of Gagan Thareja from ASK Investment Managers. Please go ahead. Yeah. Good afternoon, sir. I hope I'm audible. So the first question from my side is on your capacity expansion plan. You are at 100% utilization currently. Can you lay out the expansion plan for FY26, FY27, and FY28? There's a lot of plans that are going on. I think we will be able to announce it once the MCFL merger goes on. Currently, the expansion in terms of backward integration is rock solid. 1,500 tons sulfuric acid plant is expected to get commissioned in Q3 beginning, and the phosphoric acid capacity is by September 2026, so that gives us enough leverage in terms of managing the cost, and additional PA will definitely get converted into other products. So, I mean, when you get into the next financial year, given the current status, is it reasonable to infer that you will have further benefits from backward integration? But in terms of output of final tonnage, it may not grow. You may choose to vary the mix basis market and basis backward integration. Is that how it will play out? There are a lot of operational-related we may not be announcing currently, big CapEx as of now in terms of capacity expansion, but there are a lot of operational CapEx. We'll also take the expansion plans on a routine basis, which goes on, but we'll definitely announce the bigger plans once the MCFL merger is done. Right. And can you possibly also enumerate scenarios from the MCFL acquisition, and over what time can you realize that? Yeah. So a couple of pointers here. In terms of the synergies on the revenue side, of course, that gives us access to markets, imported markets down south. And also in terms of the product mix rationalization, we can do a lot with the existing size that we have in both Goa and Paradip. And on the cost side, of course, the Mangalore asset can get benefit to the economy of scale and scope, procuring from the kind of partners that we have been procuring. So there are very strong synergies on both revenue and the cost side. Is it possible to enumerate the number and the time frame over which you can achieve that number? See, we are in the last stages of the regulatory process, so it should happen anytime now. You can maybe just kind of keep looking at the website for the update. In terms of numbers, it's a listed entity, so I'm sure you can do the math very easily. Okay. Fine. Fine. And you indicated 6,600 kind of EBITDA per ton for the quarter. Is it possible to, if not enumerate, give us some flavor of how it would work out for Paradip versus Goa? No, we are not giving any unit-wise guidance, to be very frank. We work at a company basis, company level. All the numbers are company level. Having said that, in fact, we will try to kind of a number better than 5,000, which has been the guidance, a little on the conservative side for us. Right. And is the gross debt expected to go up further in the coming year? And to what extent, I mean, at what level do you intend to sort of cap the gross debt? See, debt is largely a function of the price of the raw materials because if you look at the total debt composition, it's largely the working capital debt, and that's a function of the raw material prices, so depending upon how the RM prices move, the debt will kind of improve or decrease, but more or less, we believe that it should be near about this level. Okay. Even if you announce further capacity expansion, you don't believe. So that is separate. That is separate. We would not like to cross the bridge at the moment. Let us complete the merger, and we'll announce the larger plans. Thank you. I'll get back in the Q&A. Thank you. Ladies and gentlemen, we'll take this as the last question for today. I would now like to hand the conference over to the management for closing comments. Thank you, everyone, for taking the time to join us today and for your continued trust in our journey. Should you have any further questions, please feel free to reach out to our investor relations team. Thank you again. Thank you very much, sir. On behalf of Antique Stock Broking Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you. Thank you