Paradeep Phosphates bets ₹2.5b on aluminium fluoride plant after strong Q1 FY27

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Paradeep Phosphates Limited (PPL) is planning to invest INR 2.5 billion (USD 26.18 million) in the set-up of a greenfield aluminium fluoride (AlF₃) plant at its Paradeep complex worth. The project’s approval marks the company’s entry into industrial chemicals while strengthening value addition from existing operations.

The new facility, with a projected annual production capacity of 15,000 tonnes, will utilise hydrofluorosilicic acid (HFSA), a by-product generated during phosphoric acid production, to manufacture aluminium fluoride, a critical raw material used in aluminium smelting.

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By converting a low-value by-product into a high-value industrial chemical, the company aims to diversify its non-subsidy business, improve margins and enhance resource efficiency.

According to the company, the project will also strengthen its fluorine management capabilities and create a platform for future expansion into fluorine-based speciality chemicals, while supporting circular economy objectives through better by-product utilisation.

The Board of Directors approved the investment proposal during its meeting on July 28, 2026.

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Strong quarterly performance supports expansion

The strategic investment comes alongside a solid financial performance for the first quarter (Q1) of FY27, which reported year-on-year gains by wide margins in the corresponding quarter in FY26.

• Revenue from Operations – INR 61.24 billion (USD 641.31 million), up 36 per cent Y-o-Y from INR 45.04 billion (USD 471.59 million)
• EBITDA – INR 7.64 billion (USD 80 million), up 24 per cent Y-o-Y from INR 6.16 billion (USD 64.52 million)
• Consolidated net profit – INR 3.93 billion (USD 41.11 million), up 24 per cent Y-o-Y from INR 3.17 billion (USD 33.17 million)
• Sales volumes – 985,000 tonnes, up 4 per cent Y-o-Y from 947,000 tonnes

The company recognised an exceptional expense of INR 218 million (USD 2.28 million) related to the implementation of India’s four labour codes, following a reassessment of gratuity and leave liabilities.

PPL attributed its performance to efficient plant operations, agile sourcing of raw materials and an extensive pan-India distribution network despite volatility in raw material prices caused by the Middle East conflict.

Managing Director and CEO Suresh Krishnan stated, “PPL has once again demonstrated strong operational and financial performance for Q1 FY27, reflecting the strength of our integrated operations and our agility to navigate the global volatility.”

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