Paradeep Phosphates Q1 Beat Sparks Sector Rally; SEBI RA Vatsal Khemka Sees 12–15% Upside Potential

Paradeep Phosphates delivered a strong first-quarter performance, and it didn’t go unnoticed. The better-than-expected results sparked a 10% rally in the stock and across the broader fertilizer and chemical space. 

SEBI-registered analyst Vatsal Khemka said the quarter showed clear signs of demand revival in the fertilizer segment, and the numbers backed it up.

The company’s revenue rose 18.7% year-on-year to ₹6,151 crore, while net profit jumped 35% to ₹138 crore in Q1. Core profit was also up nearly 30% at ₹267 crore. 

Khemka pointed to a better product mix and improved cost control as key reasons for the improved margins this quarter.

The positive momentum spilled into the sector. Tata Chemicals surged nearly 6% intraday, and names like GNFC, Deepak Fertilisers, Chambal Fertilisers, and RCF saw strong interest as well. 

Khemka noted that the government’s agriculture push and hopes of a good monsoon are creating a supportive environment for fertilizer stocks.

On the charts, Khemka said Paradeep Phosphates is showing strong bullish structure, with volume confirmation backing the move. 

For swing traders, Khemka suggested keeping a stop-loss in the ₹213 region, while adding that the stock has the potential to rise another 12–15% if the momentum is sustained.

A long-term watchlist should include global urea and ammonia pricing trends along with crude-linked input cost movements and upcoming fertilizer subsidy information. According to Khemka, any change in these areas could quickly change sector sentiment.

On Stocktwits, retail sentiment for Paradeep Phosphates was ‘extremely bullish’ amid ‘extremely high’ message volume.

The stock has risen 89.8% so far in 2025.

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