RAMAPHO - Rama Phosphates

📊 NSE: RAMAPHO 🏢 Fertilizers 📅 Last Updated: 12/14/2025 11:35

💰 Financial Performance

Revenue Growth by Segment

Revenue for Q2 FY26 reached INR 245.66 Cr, a significant increase from the full-year FY25 revenue of INR 209.46 Cr. Historical revenue grew 22.1% from FY24 (INR 171.45 Cr) to FY25 (INR 209.46 Cr). Segment-specific growth percentages are not disclosed, but the company is expanding its P&K, organic, and bio-fertilizer portfolios.

Geographic Revenue Split

Not disclosed in available documents, though the company is actively expanding its market reach in Northern and Western India to diversify its geographic footprint.

Profitability Margins

Net Profit Margin improved significantly as PAT for Q2 FY26 reached INR 17.28 Cr, which is 461% higher than the total PAT for the entire FY25 (INR 3.08 Cr). The company reported a 'strong surge across all margins' driven by operational efficiency.

EBITDA Margin

EBITDA witnessed a 'strong rise' in Q2 FY26 due to operational efficiency and the import of MOP. Specific EBITDA margin percentages were not disclosed, but PBT increased threefold year-on-year.

Capital Expenditure

Not disclosed in available documents, though the company is investing in R&D and technology to drive growth.

Credit Rating & Borrowing

As of March 11, 2025, ICRA assigned a long-term rating of [ICRA]A- with a Negative outlook for INR 88 Cr in limits and a short-term rating of [ICRA]A2+ for INR 48 Cr in limits. Total rated limits are INR 136 Cr.

⚙️ Operational Drivers

Raw Materials

Key raw materials include Rock Phosphate, Sulphur, and Muriate of Potash (MOP). Specific cost percentages for each are not disclosed.

Import Sources

MOP is imported to drive top-line and bottom-line performance. Rock Phosphate is also imported, with yearly contracts used to mitigate USD fluctuation risks.

Capacity Expansion

The company renewed an SSP contract with Hindustan Urvarak & Rasayan Limited (HURL) for approximately 1 lakh MT for FY26, reinforcing revenue stability.

Raw Material Costs

Raw material costs are subject to price volatility, particularly for Rock Phosphate and Sulphur. The company uses yearly contracts for Rock Phosphate to protect against a 15-20% potential impact from USD fluctuations.

Manufacturing Efficiency

Operational efficiency led to a strong EBITDA rise in Q2 FY26. Specific capacity utilization percentages are not disclosed, though the industry faces pressure from lower capacity utilization.

📈 Strategic Growth

Expected Growth Rate

22%

Growth Strategy

The company aims to become a INR 1,500 Cr turnover entity by diversifying its agriculture portfolio (organic, water-soluble, and bio-fertilizers), expanding digital reach for precision farming, and leveraging strategic contracts like the 1 lakh MT SSP deal with HURL.

Products & Services

Single Super Phosphate (SSP) fertilizer, P&K fertilizers, organic fertilizers, water-soluble fertilizers, and bio-fertilizers.

Brand Portfolio

Rama

New Products/Services

Recently launched products in the P&K and bio-fertilizer segments received a 'tremendous market response,' contributing to record-breaking Q2 FY26 earnings.

Market Expansion

Targeting expansion in Northern and Western India to increase market share in the P&K segment.

Strategic Alliances

Strategic contract with Hindustan Urvarak & Rasayan Limited (HURL) for SSP supply.

🌍 External Factors

Industry Trends

The industry is shifting toward precision farming and digital reach. The fertilizer sector is currently growing but faces input cost volatility and regulatory shifts regarding subsidies.

Competitive Landscape

Faces strict competition due to lower industry-wide capacity utilization and pricing pressure from larger players.

Competitive Moat

The company maintains a moat through a 75% stable promoter holding and a diversified product portfolio that reduces reliance on traditional SSP fertilizers. These advantages are sustainable as long as R&D and market expansion continue.

Macro Economic Sensitivity

Highly sensitive to Government fertilizer subsidy policies and USD exchange rate fluctuations due to import dependency.

Consumer Behavior

Farmers are increasingly adopting precision farming and digital tools, prompting the company to expand its digital reach.

Geopolitical Risks

Dependency on imported Rock Phosphate and MOP exposes the company to trade barriers and international supply chain disruptions.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by SEBI (SBEB & SE) Regulations for ESOPs and Government subsidy norms for the fertilizer sector. The company follows Ind-AS 102 for share-based payments.