1. At a Glance
Rama Phosphates is back from the financial graveyard. Q1 FY26 profit? Up 854%. Yes, you read that right. But before you scream multibagger, remember — this company’s margins have whiplash, and FY24 was uglier than your CA final results.
2. Introduction with Hook
Imagine a rollercoaster, blindfolded, during a thunderstorm. That’s Rama Phosphates’ financial journey. From -₹30 Cr in Q3 FY24 to ₹16 Cr profit in Q1 FY26. Either someone changed the management, or they found a miracle crop that prints money.
- Q1 FY26 PAT: ₹16 Cr
- TTM Profit Growth: 194%
- CMP: ₹162, P/E: 20.8x
3. Business Model (WTF Do They Even Do?)
They manufacture fertilizers, chemicals, and oil — it’s like a thali where every item fights for attention.
- Fertilizers: Zinacated & Boronated SSP, NPK, micronutrients
- Chemicals: Sulphuric Acid, Oleum, LABSA
- Edible Oils: Soybean crushing, refined oil, lecithin
Basically, they’re doing everything except printing wedding cards — though with their diversification, that might be next.
4. Financials Overview
Here’s where things get spicy.
| Metric | Value |
|---|---|
| Revenue (TTM) | ₹780 Cr |
| EBITDA | ₹64 Cr |
| Net Profit | ₹28 Cr |
| ROCE | 7.81% |
| ROE | 3.77% |
| OPM (Q1 FY26) | 14% |
FY24 was chaos. FY25 started redemption. FY26 Q1 is sugarcane-level sweet.
5. Valuation
At a P/E of 20.8x, the market thinks they’ve turned over a new leaf (literally and financially).
Fair Value Range:
| Method | Fair Value |
|---|---|
| P/E (12–16x) | ₹94 – ₹125 |
| EV/EBITDA (6–8x) | ₹110 – ₹145 |
CMP of ₹162? You’re paying ahead for FY27 dreams. Tread with fertilizer-proof boots.
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 PAT up 854% — growth so explosive, it should be regulated.
- Dhule Project got EC approval — trial production to begin Q4 FY26.
- FY24 Horror Show — ₹-31 Cr loss to ₹16 Cr Q1 FY26. Turnaround of the year?
- Edible Oil Biz silently recovering — maybe the oil didn’t slip after all.
This company has more turnarounds than Bigg Boss contestants.
7. Balance Sheet
| Item | FY25 |
|---|---|
| Equity Capital | ₹18 Cr |
| Reserves | ₹354 Cr |
| Borrowings | ₹126 Cr |
| Total Liabilities | ₹634 Cr |
| Net Worth | ₹372 Cr |
Debt is manageable. Balance sheet is tighter than an auditor’s signature budget.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Flow |
|---|---|---|---|---|
| FY23 | -₹36 Cr | -₹8 Cr | ₹45 Cr | ₹0 Cr |
| FY24 | -₹5 Cr | -₹12 Cr | ₹16 Cr | ₹-1 Cr |
| FY25 | ₹40 Cr | -₹4 Cr | -₹36 Cr | ₹0 Cr |
Positive cash flow from ops finally! But don’t party yet — FCF still volatile like market sentiment after a Fed speech.
9. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROCE | 7.81% |
| ROE | 3.77% |
| D/E | 0.34x |
| PAT Margin | 3.6% |
| P/E | 20.8x |
Ratios scream “improving” but haven’t reached “sexy” yet.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹875 Cr | ₹73 Cr | ₹41 Cr |
| FY24 | ₹603 Cr | ₹-21 Cr | ₹-31 Cr |
| FY25 | ₹744 Cr | ₹44 Cr | ₹14 Cr |
FY24 was red ink. FY25 wiped some of it. FY26 Q1? A Michelin star appetizer. Let’s see the entrée.
11. Peer Comparison
| Company | Rev (Cr) | PAT (Cr) | P/E | ROCE |
|---|---|---|---|---|
| Coromandel | ₹24,085 | ₹1,720 | 40x | 23.2% |
| Chambal | ₹16,646 | ₹1,649 | 13.6x | 27.9% |
| Paradeep | ₹13,820 | ₹552 | 29.6x | 13.9% |
| Rama Phos | ₹780 | ₹28 | 20.8x | 7.8% |
In this table, Rama is clearly the school kid trying to sit at the cool kids’ table — but it’s bringing a better tiffin now.
12. Miscellaneous – Shareholding, Promoters
| Category | Jun 2025 |
|---|---|
| Promoters | 75.00% |
| FIIs | 0.08% |
| DIIs | 0.03% |
| Public | 24.89% |
Promoters aren’t blinking. Public is hanging around. FIIs are still “just looking.” Classic small cap dance.
13. EduInvesting Verdict™
Rama Phosphates pulled a Lazarus in Q1 FY26. Is this a one-time rain-fed rally or sustained performance? Jury’s out.
Financials are improving, project pipeline is solid, and they’re no longer leaking losses. But don’t forget FY24 pain — memory is fertilizer for caution.
Green shoots spotted. But don’t toss your money like urea from a tractor.
Metadata:
Written by EduInvesting Team | July 23, 2025
Tags: Rama Phosphates, Fertilizer Stocks, SSP, Q1 FY26, EduInvesting Premium
