Balaji Phosphates Ltd Management Discussions

Global Economic Outlook

Following an unprecedented series of shocks in the preceding years, global growth was stable yet

underwhelming through 2024 and was projected to remain so in the January 2025 World Economic Outlook (WEO) Update. However, the landscape has changed as governments around the world reorder policy priorities. Since the release of the January 2025 WEO Update, a series of new tariff measures by the United States and countermeasures by its trading partners have been announced and implemented, ending up in near-universal US tariffs on April 2 and bringing effective tariff rates to levels not seen in a century (Figure ES.1). This on its own is a major negative shock to growth. The unpredictability with which these measures have been unfolding also has a negative impact on economic activity and the outlook and, at the same time, makes it more difficult than usual to make assumptions that would constitute a basis for an internally consistent and timely set of projections.

Given the complexity and fluidity of the current moment, this report presents a "reference forecast" based on information available as of April 4, 2025 (including the April 2 tariffs and initial responses), in lieu of the usual baseline. This is complemented with a range of global growth forecasts, primarily under different trade policy assumptions.

The swift escalation of trade tensions and extremely high levels of policy uncertainty are expected to have a significant impact on global economic activity. Under the reference forecast that incorporates information as of April 4, global growth is projected to drop to 2.8 percent in 2025 and 3 percent in 2026 down from 3.3 percent for both years in the January 2025 WEO Update, corresponding to a cumulative downgrade of 0.8 percentage point, and much below the historical (2000-19) average of 3.7 percent.

Sources: US Bureau of the Census, Historical Statistics of the United States, 1789-1945; US International Trade Commission; and IMF staff calculations.

Note: The Jan. 20-Apr. 1 tariffs in 2025 include 20 percent tariffs on China; 25 percent tariffs on steel and aluminium; 25 percent tariffs on Mexico and Canada; and a 10 percent tariff on Canadian energy imports, A United States-Mexico-Canada Agreement (USMCA) carve out is assumed to halve the effective tariff increase for Canada and Mexico. The April 2 tariffs include auto sector tariffs and country-specific tariffs, applying exemptions provided in Annex II of the Executive Order per IMF staff judgment, The April 9 tariffs include an increase in the tariffs on China to 145 percent and a reduction in other country. Specific tariffs to 10 percent, It also includes exemptions on some electronic products announced on April 11. GATT General Agreement on Tariffs and Trade.

In the reference forecast, growth in advanced economies is projected to be 1.4 percent in 2025. Growth in the United States is expected to slow to 1.8 percent, a pace that is 0.9 percentage point lower relative to the projection in the January 2025 WEO Update, on account of greater policy uncertainty, trade tensions, and softer demand momentum, whereas growth in the euro area at 0.8 percent is expected to slow by 0.2 percentage point. In emerging market and developing economies, growth is expected to slow down to 3.7 percent in 2025 and 3.9 percent in 2026, with significant downgrades for countries affected most by recent trade measures, such as China. Global headline inflation is expected to decline at a pace that is slightly slower than what was expected in January, reaching 4.3 percent in 2025 and 3.6 percent in 2026, with notable upward revisions for advanced economies and slight downward revisions for emerging market and developing economies in 2025.

Intensifying downside risks dominate the outlook. Ratcheting up a trade war, along with even more elevated trade policy uncertainty, could further reduce near- and long-term growth, while eroded policy buffers weaken resilience to future shocks. Divergent and rapidly shifting policy stances or deteriorating sentiment could trigger additional repricing of assets beyond what took place after the announcement of sweeping US tariffs on April 2 and sharp adjustments in foreign exchange rates and capital flows, especially for economies already facing debt distress. Broader financial instability may ensue, including damage to the international monetary system. Demographic shifts and a shrinking foreign labour force may curb potential growth and threaten fiscal sustainability. The lingering effects of the recent cost-of-living crisis, coupled with depleted policy space and dim medium-term growth prospects, could reignite social unrest. The resilience shown by many large emerging market economies may be tested as servicing high debt levels becomes more challenging in unfavourable global financial conditions. More limited international development assistance may increase the pressure on low- income countries, pushing them deeper into debt or necessitating significant fiscal adjustments, with immediate consequences for growth and living standards. On the upside, a de-escalation from current tariff rates and new

agreements providing clarity and stability in trade policies could lift global growth.

The path forward demands clarity and coordination. Countries should work constructively to promote a stable and predictable trade environment, facilitate debt restructuring, and address shared challenges. At the same time, they should address domestic policy and structural imbalances, thereby ensuring their internal economic stability. This will help rebalance growth-inflation trade-offs, rebuild buffers, and reinvigorate medium-term growth prospects, as well as reduce global imbalances. The priority for central banks remains fine-tuning monetary policy stances to achieve their mandates and ensure price and financial stability in an environment with even more difficult trade-offs. Mitigating disruptive foreign exchange volatility may require targeted interventions, as outlined in the IMFs Integrated Policy Framework. Macroprudential tools should be activated as needed to contain the build-up of vulnerabilities and to provide support in case of stress events. Restoring fiscal space and putting public debt on a sustainable path remain an important priority, while meeting critical spending needs to ensure national and economic security. This requires credible medium-term fiscal consolidation plans. Structural reforms in labor, product, and financial markets would complement efforts to reduce debt and narrow cross-country disparities. As Chapter 2 explains, countries age structures are evolving at different rates, with important consequences for medium- term growth and external imbalances. In addition, as Chapter 3 documents, migration policy shifts in destination countries have sizable spillover effects, disproportionately affecting emerging market and developing economies. (Source: imf.org)

1. Indian Economic Outlook

Amidst elevated global trade uncertainty, the Indian economy remained resilient, registering the highest growth among the worlds major economies, with the latest estimates for Q4:2024-25 indicating a sharp pick-up in momentum.

Aggregate Demand

The provisional estimates (PE) of national income released by the National Statistical Office (NSO) on May 30, 2025 placed Indias real gross domestic product (GDP) growth at 6.5 per cent for 2024-25, same as the second advance estimates (SAE).

The dual engines of Indias growth-private final consumption expenditure (PFCE) and gross fixed capital formation (GFCF)-contributed 4 percentage points and 2.4 percentage points, respectively, to GDP growth.

Employment indicators in May 2025 present a mixed picture. As per monthly Periodic Labour Force Survey (PLFS), the all- India unemployment rate rose to 5.6 per cent in May from 5.1 per cent last month, with a sharper increase in rural visa-vis urban areas. Increase in unemployment was partly driven by seasonal agricultural patterns and extreme heat in some regions, limiting outdoor work. Organised job listings, as per the Naukri JobSpeak Index, moderated - dragged down by information technology (IT), retail, and banking and financial services - while sectors like insurance, real estate, oil and gas and emerging technologies recorded growth. However, the PMI employment diffusion indices signalled strong job creation in organised manufacturing and services, with 14 per cent of firms reporting increased payrolls.

High Frequency Indicators: Employee Growth Rate	Feb-25	Mar-25	Apr-25	May-25
Unemployment rate (PLFS: All-India)	-	-	5.1	5.6
Unemployment rate (PLFS: Rural)	-	-	4.5	5.1
Unemployment rate (PLFS: Urban)	-	-	6.5	6.9
Naukri Jobspeak Index	4.0	-1.5	8.9	0.3
EPFO Net pay roll addition	-14.2	1.2	-	-
PMI Employment: Manufacturing PMI	54.5	53.4	54.2	54.9
Employment: Services	56.2	52.5	53.9	57.1

Notes:

1. The y-o-y growth (in per cent) has been calculated for all indicators (except for PMI).

2. The heat map translates the data range for each indicator into a colour gradient scheme with red denoting the lowest values and green corresponding to the highest values of the respective data series.

3. Heat map is applied on data from April 2023 till May 2025, other than for EPFO Net Pay roll addition, where the data is till March 2025.

4. All PMI values are reported in index form. A PMI value >50 denote expansion; <50 denote contraction; and =50 denote no change. In the PMI heat maps, red denotes the lowest value, yellow denotes 50 (or the no change value), and green denotes the highest value in each of the PMI series.

5. All PLFS indicators are in Usual Status and for persons aged 15 years and above.

Sources: Ministry of Statistics and Program Implementation

(MoSPI), GoI; S&P Global; Employees Provident Fund Organisation

and Info edge.

The total expenditure of the union government registered a growth of 4.8 per cent in 2024-25 (PA) over 2023-24. As per cent of GDP, while revenue expenditure declined in 2024-25 (PA) vis-a-vis RE, capital expenditure remained broadly unchanged. The growth in interest payments moderated, while that of subsidy outgo saw a contraction during 202425 (PA) in line with RE. Furthermore, the ratio of revenue expenditure to capital outlay (RECO) declined to 4.2, lower than RE (from 4.4 in 2023-24), which bodes well for the quality of public expenditure. Central government finances for April 2025 indicated an improvement in GFD and RD - both in absolute terms and as per cent of BE - vis-a-vis the corresponding period of the previous year, aided by substantial growth in non-tax revenue, and non-debt capital receipts (including disinvestment receipts). While revenue expenditure recorded a contraction due to a decline in interest payments, capital outlay grew by 20.9 per cent. Consolidated state government finances for 2024-25 (PA) witnessed some deterioration. The consolidated GFD to gross state domestic product (GFD-GSDP) ratio of states rose in 2024-25 owing to a shortfall in tax revenue and lower grants from the centre. The moderation in revenue receipts outweighed the decline in revenue expenditure, leading to a widening of the revenue deficit.

Meanwhile, capital expenditure, as a per cent of GSDP, remained stable, aided by a significant yearend surge in most states. For 2025-26, states have budgeted a GFD-GDP ratio of 3.3 per cent, along with a rise in capital outlay to 3.0 per cent of GDP, reflecting a continued focus on enhancing the quality of expenditure within a calibrated fiscal path.

Key Fiscal Indicators: (percent of GDP/GSDP)

	2023-24	2024 25	2025-26
	Accounts	PA	BE
Revenue Receipts	13.3	12.4	14.4
Tax Revenue	10.4	10.0	11.1
Non-tax revenue	1.1	1.0	1.2
Grants from the centre	1.8	1.3	2.0
Revenue Expenditure	13.6	13.0	14.6
Capital Expenditure	2.7	2.7	3.2
Of which: Capital Outlay	2.5	2.4	3.0
Revenue Deficit	0.3	0.6	0.2
Gross Fiscal Deficit	3.0	3.2	3.3
Primary Deficit	1.3	1.7	1.5

(Source: RBI - State of the Economy)

2. Global Agriculture Outlook

Prices of several agricultural commodities have fallen in recent weeks, reflecting concerns about the impact on demand from rising trade tensions between major economies. Earlier, the World Banks agricultural commodity price index rose by 1 percent overall in 2025Q1 (q/q), driven by a 16 percent spike in beverage prices particularly cocoa and coffee which reached record highs due to weather- related shocks. The increase in beverage prices was partially offset by lower food and raw material prices. The agriculture price index is forecast to be broadly unchanged in 2025 (y/y), with declines in food and raw material prices of 7 percent and 2 percent, respectively, expected to offset a 20 percent increase in beverage prices. Next year, agricultural commodity prices are projected to decline by 3 percent. Risks to the forecasts are tilted to the downside and include weaker-than-expected economic growth, which would weigh on agricultural commodity demand. The imposition of restrictions on trade in agricultural commodities poses both downside and upside risks for different products, depending on the details of the measures and the affected markets. Another two-sided risk stems from biofuel policies. Upside risks for agricultural prices include extreme weather events.

Agricultural commodity prices rose by 1 percent in 2025Q1 (q/q), driven by a 16 percent surge in beverage prices. Raw material prices decreased by nearly 3 percent, while food prices declined by 2 percent. Among food groups, the overall drop was led by falling prices for oils and meals, as well as rice, due to ample global supplies. The agriculture price index is expected to be broadly stable in 2025, with declines in food and raw material prices offsetting increases in beverage prices. Food prices are projected to decline by 7 percent in 2025 (y/y), driven by weaker demand for grains as energy feedstocks and ample supplies, before stabilizing in 2026.

Figure 11.A. Agriculture Price Indexes US$ Indexes, 100=2010

Outlook

The World Banks food price index is projected to fall by 7 percent in 2025 (y/y) and edge down in 2026 (figure 11.E). All three components of the index are expected to decline in 2025 grains by 11 percent, and oils and meals, and other foods, by 7 percent and 5 percent, respectively. In 2026, all sub-components of the food index are expected to remain broadly stable (figure 11.F). The projected downturn in grain prices for 2025 is primarily driven by an expected 29 percent plunge in rice prices, reflecting ample supplies and the relaxation of export restrictions by India. Global rice production in 2024-25 is expected to increase by 2 percent, with production in India which accounts for about 40 percent of global exports forecast to rise by 5 percent. Rice prices are projected to be stable in 2026 as preliminary estimates for the 2025-26 season from the International Grains Council indicate that a small increase in global supply will be matched by a similar increase in consumption. Wheat prices are forecast to edge down in 2025-26, as downward demand pressure related to trade tensions is partially offset by tight supply conditions. Near record wheat production is expected to be narrowly outpaced by consumption, resulting in a decline in global stocks.

(Source: World Bank - Commodity Markets Outlook)

3. Global Fertilizers Outlook

After being relatively stable through most of 2024, the World Banks fertilizer price index rose by more than 6 percent in 2025Q1 (q/q) to a level about 11 percent higher than a year earlier. This increase was driven primarily by stronger demand for urea in the face of production shortfalls and export restrictions. Despite some trade restrictions, overall fertilizer supplies especially of phosphate and potash have broadly matched demand. The fertilizer price index is expected to increase 7 percent in 2025 as demand strengthens, before stabilizing in 2026. Prices are projected to stay above 2015-19 levels due to a combination of robust demand, higher input costs (especially natural gas), and continued export restrictions, particularly by China. A key upside risk is an increase in input costs, whereas a resumption of Chinese exports could cause prices to ease.

Nitrogen (urea) prices rose by more than 12 percent in 2025Q1 (q/q) to a level nearly 20 percent higher than a year earlier (figure 17.A). This increase reflects both demand and supply factors. On the demand side, purchases from Brazil and India strengthened in late 2024 and are expected to remain robust through the first half of this year. On the supply side, there have been production shortfalls, particularly in the Arab Republic of Egypt, where declining natural gas output has constrained nitrogen production. Global nitrogen supplies have also been affected by policy actions, especially a discretionary reduction in Chinas exports, which fell by more than 90 percent in 2024 (y/y). Additionally, rising input costs especially for natural gas have supported prices (figure 17.B). Higher urea prices pushed the affordability index (the ratio of urea to food prices) to a 16-month high in March (figure 17.C).

FIGURE 17

The fertilizer price index increased in 2025Q1, rising more than 10 percent from a year earlier, driven primarily by stronger demand for urea and rising input costs. Despite Chinas continuing restrictions on fertilizer exports, the global fertilizer market remains fairly well supplied, with affordability ratios much lower than their 2022-23 peaks. While prices are expected to be relatively stable through 2025 and 2026, key risks include rising input costs and trade barriers.

With market conditions expected to remain tight this year, urea prices are projected to increase by 15 percent in 2025 (y/y) before declining by 4 percent in 2026, as new capacity comes online in East Asia and the Middle East. There may also be a modest recovery in European production, following disruptions caused by the 2022 surge in natural gas prices and reduced natural gas flows from the Russian Federation. Key upside risks to this price forecast include a smaller-than- expected expansion of production capacity, potential trade restrictions imposed by major exporters, and higher-than- forecast natural gas prices. Over the longer term, the nitrogen fertilizer industry faces challenges related to its high carbon footprint, which may drive shifts in production and consumption toward alternatives.

DAP (diammonium phosphate) prices rose 5 percent in 2025Q1 (q/q), returning close to levels seen a year earlier. The increase partly reflects Chinas restrictions on phosphate exports and sanctions on Russia, which have disrupted global trade flows (figure 17.D). In 2024, Chinas phosphate exports fell by 10 percent from the previous year due to government measures aimed at keeping domestic prices low and ensuring phosphate availability for lithium iron phosphate batteries used in electric vehicles. As a result of higher DAP prices, the DAP affordability index (the price of DAP relative to food) has risen further. The impact is particularly evident in Europe, where higher-cost supplies from Morocco, Saudi Arabia, and the United States have replaced imports from China and Russia. DAP prices are forecast to rise by 6 percent in 2025 (y/y) before declining by 8 percent in 2026 as new production capacity comes online, easing supply conditions. The forecast assumes that Russias exports will continue to be diverted from Europe to Brazil and India. However, further trade restrictions, supply disruptions, or surging ammonia and natural gas prices could push DAP prices higher.

MOP (muriate of potash, or potassium chloride) prices rose by 12 percent in 2025Q1 (q/q), surpassing year-earlier levels by 8 percent. While MOP affordability (relative to food) has slightly deteriorated recently, over the last three quarters it has fluctuated at roughly pre-2020 levels. The market remains well supplied, as exports from Belarus and Russia have continued to grow despite sanctions on the former. Russian potash exports which are not subject to sanctions surged by 70 percent in 2024 from 2023. Both countries are seeking new markets, with Belarus increasingly routing exports through Russia, particularly to Asia, albeit at higher costs to the importers than under pre-2022 trade patterns. Meanwhile, Canadian exports have increasingly shifted toward Europe. MOP demand has gradually recovered from its sharp decline in 2022, nearly returning to pre-2022 levels. MOP prices are projected to rise by about 5 percent in 2025 (y/y) as demand continues to firm, before stabilizing in 2026. A key downside risk to the forecast is a faster-than expected expansion of Belarusian exports via alternative trade routes. In the longer term, the introduction of significant new production capacity, particularly in Canada, could exert downward pressure on prices.

4. Indian Agriculture Outlook

a. Global standing

- India ranks first in milk production and contributed 24% to global milk production, in 2021-22. It registered a 48.3% increase during the last 8 years from 2015-16 to 2022-23.

- India ranked third in global egg production and produced at least 138.38 billion nos. in 2022-23. Egg production is growing at the rate of 6.8% per annum.

- India is also the worlds second largest producer of food grains, fruits and vegetables and the second largest exporter of sugar.

- India is the third largest fish-producing country, accounting for 8% of the global fish production, and ranks second in aquaculture production.

b. Favourable Conditions

- India has access to several natural resources that provides it with a competitive advantage in the food processing sector. Due to its diverse agro-climatic conditions, it has a wide-ranging and large raw material base suitable for food processing industries.

c. Increasing farm mechanization

- Use of proper equipment can increase farm productivity by up to 30% and reduce the input cost by about 20%.

- Tractor accounts for most of the farm mechanisation in India. The country is also the largest market in the world for tractors.

d. Rising consumption expenditure

- The pandemic-induced lockdowns resulted in a sharp increase in the share of food in the total expenditure across rural and urban India for all income groups and castes and religions, but the intensity of shifts varied.

e. Record production of food grains

- The first advance estimate for FY25 indicated a food grain production of around 165 million metric tons. In FY24, India produced over 332 million metric tons of food grains.

- The total Kharif foodgrain production for 2024-25, according to the First Advance Estimates, is projected at 1647.05 Lakh Metric Tonnes (LMT), marking an increase of 89.37 LMT from the previous year and 124.59 LMT above the average Kharif foodgrain production.

Growth in agriculture

- In India, agriculture is the primary source of livelihood for ~55% of the population.

- At current prices, agriculture and allied sectors account for 18.3% of Indias GDP (2022-23).

- In the second quarter of the FY25, the agriculture sector recorded a growth rate of 3.5%.

- The Gross Value Added (GVA) of agriculture and related sectors has improved from 24.38% in FY15 to 30.23% in FY23, and with stable growth at around 5%, contributing 20% to the overall GVA, agriculture is expected to add 1% to GVA growth in future years.

- The agriculture sector in India has averaged a growth rate of 5% annually from FY17 to FY23, demonstrating resilience despite challenges.

- The improved performance is also demonstrated by a significant increase in agricultural exports, reaching Rs. 4.2 lakh crore (US$ 50.47 billion) in FY23, surpassing the previous years record.

- Between April 2000-September 2024, FDI in agriculture services stood at Rs. 27,007 crore (US$ 3.11 billion).

- According to Bain & Co., the Indian agricultural sector is predicted to increase to US$ 30-35 billion by 2025.

- In December 2023, NBCC signed an MoU with the National Cooperative Development Cooperation (NCDC) and NABARD for the construction of (1,469- grain storage units) the worlds largest grain storage plan in the cooperative sector.

- In January 2024, The Ministry of Food Processing Industries has approved the following under the corresponding component schemes of PMKSY: 41 Mega Food Parks, 399 Cold Chain projects, 76 Agro processing Clusters, 588 Food Processing Units, 61 Creation of Backward & Forward Linkages Projects, and 52 Operation Green projects.

5. Indian Fertilizer Outlook

Capacity additions in the fertiliser industry are expected to double in 2025-26 compared to the likely additions in 202425. They are expected to be the second-highest ever in the upcoming financial year. The increase in capacity additions in the last two years is on the back of increasing demand for fertilisers. The industry is also adding new capacities to reduce import reliance.

Capacity additions in the fertiliser industry are expected to cross two million tonnes in 2025-26. The industry is expected to add about 1.1 million tonnes of capacity in 2024-25. In terms of cost, the industry is expected to commission about Rs.8 billion worth of projects in 2024-25. In the following

year, the industry is likely to commission projects worth Rs.171 billion.

Production of fertilisers surged from 38.6 million tonnes in 2011-12 to about 50.5 million tonnes in 2023-24. During the same period, imports increased from 18.1 million tonnes to 20.7 million tonnes. The growth in domestic output was achieved through high-capacity additions in the fertiliser industry. The outstanding capacity of the fertiliser industry increased from 42.1 million tonnes in 2011-12 to about 56.3 million tonnes in 2023-24. With the addition of an expected 1.1 million tonnes in 2024-25, the outstanding capacity of the industry is expected to touch 57.4 million tonnes in the ongoing financial year.

Of the 1.1 total capacities expected to be added in the current financial year, 93.2 per cent is likely to be added in the non-urea segment. Non-urea fertilisers consist of diammonium phosphate (DAP), muriate of potash (MOP), nitrogen, phosphorus and potassium (NPK) fertilisers, ammonium sulphate, ammonium nitrate and superphosphate (SSP).

Fertiliser manufacturers are expected to add about one million tonnes of non-urea capacity in 2024-25. The high capacity additions in the non-urea segment are likely due to the need to enhance the nutrition of the soil. A balanced usage of complex fertilisers is required to improve the yield of crops. The balanced nutrition of the soil is currently disrupted due to the overuse of urea in India. Urea is the most consumed fertiliser in India due to its low price. The ideal NPK ratio of Indian soil is 4:2:1. However, the all-India NPK use ratio stood at 10.9:4.4:1 in 2023-24, as per the Fertiliser Association of India.

Additionally, manufacturers are also increasing investments in the non-urea segment to reduce reliance on imports. Non

urea fertilisers are highly dependent on imports to meet domestic demand. India imports about 60 per cent of the DAP supply in the country. It imports about 23.6 per cent of the DAP traded globally, according to media reports. In the case of NPK fertilisers, about 15 per cent of the requirement is met through imports.

Recently, high reliance on imports led to a shortage of DAP in the country. Availability of DAP declined by 29.7 per cent year-on-year in the April-December 2024 period. This was mainly due to a 41.2 per cent decline in DAP imports during the first half of 2024-25. Geopolitical tensions and an export restriction from China led to a supply crisis. DAP imports from China declined by 76.7 per cent in the first six months of 2024-25. Therefore, manufacturers are encouraged to add capacities in India to reduce dependence on imports.

Capacities of about 0.45 million tonnes have already been added during the April-December 2024 period.

Indian Farmers Fertiliser Cooperative commissioned a urea plant in the June 2024 quarter. The 72.75 thousand-tonne urea plant was part of the companys Kalol Fertiliser Plant Modernisation/Expansion Project.

Bhilai Engineering Corporation also completed its plant expansion project of 140 thousand tonnes in the September 2024 quarter.

Rama Phosphates is scheduled to commission its Nardana (Dhule) SSP and Sulphuric Acid Manufacturing Plant Project in the March 2025 quarter. Under this project, the company will produce SSP granulated, SSP and NPK fertiliser. Each of these fertilisers will be produced at a capacity of 216 thousand tonnes.

Opportunities and Threats

Opportunities -

1. Rising Demand for Fertilizers and Phosphates: Indias agricultural sector continues to witness growth driven by population expansion, increasing food demand, and the need for improved agricultural productivity. This trend ensures a rising demand for fertilizers, including phosphates, presenting BPL with ample opportunities to increase production and market penetration.

2. Favourable Government Policies and Support: The Indian government has introduced several policies aimed at boosting agricultural inputs, including subsidies and incentives for fertilizer production under schemes like "Atmanirbhar Bharat" (Self-Reliant India). BPL stands to benefit from these policy tailwinds that encourage domestic production and reduce reliance on imports.

3. Potential for Product Diversification: BPL has significant opportunities to diversify its product range by introducing high-value chemical products and industrial phosphates, which can serve sectors like pharmaceuticals, food processing, and industrial manufacturing. Such diversification would open new revenue streams and reduce dependence on the agricultural sector alone.

4. Scope for Geographical Expansion: There is considerable potential for BPL to expand its operations to under-penetrated regions within India as well as tap international markets where demand for phosphate- based products is growing. Such expansion would enhance the companys market share and overall business resilience.

5. Adoption of Technological Advancements: Investing in modern manufacturing technologies and R&D can significantly improve BPLs production efficiencies, product quality, and environmental compliance.

Leveraging technology could also help in reducing production costs, thereby enhancing profitability.

Threats -

1. Regulatory and Environmental Compliance Risks: The chemical and fertilizers industry is subject to stringent environmental regulations. Any tightening of these regulations or the imposition of new environmental norms could lead to increased compliance costs and potentially impact production capabilities if immediate adjustments are not feasible.

2. Volatility in Raw Material Prices: The prices of essential raw materials such as phosphoric acid are subject to fluctuations driven by global commodity markets and supply constraints. Such price volatility can squeeze profit margins and create unpredictability in production planning and cost management.

3. Intensified Market Competition: BPL faces intense competition from both domestic and international players with larger capacities, deeper market reach, and stronger brand presence. This competitive pressure can affect pricing strategies and market share, especially in price-sensitive segments.

4. Agriculture-Linked Demand Dependency: A significant portion of BPLs revenue is derived from the agricultural sector. This makes the companys business vulnerable to factors like unpredictable monsoons, changes in cropping patterns, government policy shifts, and rural economic health, which directly influence fertilizer demand.

Company Overview

Balaji Phosphates Limited ("BPL") is a leading player in the phosphate manufacturing sector in India, with a legacy spanning nearly three decades. Established in 1996 as a private limited company, the firm transitioned to a public limited entity in 2023, marking a significant milestone in its corporate journey. Headquartered in Indore, Madhya Pradesh, BPL operates with a commitment to quality, sustainability, and innovation in the production of phosphate-based products.

The company is promoted by Mr. Alok Gupta and Mr. Mohit Airen, both seasoned professionals with extensive experience in the chemicals and fertilizers industry. Under their strategic guidance, BPL has established a strong operational foundation, built lasting client relationships, and consistently delivered financial growth.

Our Strengths

1. Established Track Record of Operations: Balaji Phosphates Limited boasts a rich legacy, having been incorporated in 1996. With almost three decades of operational history, the company has developed substantial expertise in the phosphates sector. This longstanding presence not only enhances its market credibility but also reflects a deep understanding of the industry dynamics and customer needs, enabling BPL to sustain and grow in a competitive landscape.

2. Experienced and Visionary Promoters: The Company is steered by its promoters, Mr. Alok Gupta and Mr. Mohit Airen, who possess significant experience and strategic insight into the fertilizers and chemical industry. Their leadership has been instrumental in charting the companys growth trajectory, guiding expansions, and ensuring operational excellence across its business verticals.

3. Diverse Product Portfolio: BPL offers a wide array of phosphate-based products that cater to multiple industries, including agriculture, chemicals, and industrial applications. This product diversification allows the company to serve varied customer requirements and reduces its dependence on any single product line, thereby ensuring revenue stability even if demand for specific products fluctuates.

4. Strategic Subsidiary to Enhance Capabilities: The

Companys subsidiary, Jyoti Weighing Systems Pvt. Ltd., adds strategic value to its overall business operations. This relationship not only diversifies BPLs portfolio but also presents opportunities for integrated solutions and cross-functional expertise, enhancing operational efficiencies and market offerings.

5. Strong Financial Performance and Stability: As

reflected in its restated financial statements, BPL has demonstrated consistent revenue growth, profitability, and financial stability. Such a robust financial position underpins the companys capacity to invest in new projects, technology upgrades, and geographical expansions, providing a solid foundation for future growth.

6. Focused Presence in Fertilizer Segment: Operating in the critical fertilizers and phosphates segment of the economy, BPL benefits from the consistent demand driven by Indias large agrarian sector. The companys focus on this essential sector ensures sustained business prospects supported by national priorities on agriculture productivity.

FINANCIAL PERFORMANCE Consolidated Balance Sheet Performance

(Rs in lakhs)

Particulars	As at March 31, 2025	As at March 31, 2024
Assets
Non-current assets
Property, Plant and Equipment	617.82	622.95
Capital work-in-progress	147.50	-
Financial Assets
Investments	539.18	539.18
Deferred Tax Assets (Net)	-	-
Other Financial Assets	33.45	33.45
Other Non-current Assets	1,025.30	37.80
Total Non-current assets	2,363.25	1,233.38
Current assets
Inventories	3,975.12	3,147.76
Financial Assets
Trade Receivables	4,469.03	3,105.16
Cash and Cash Equivalents	45.40	19.05
Other Balances with Banks	110.87	169.90
Loans	-	643.32
Other Financial Assets	906.93	230.52
Other Current Assets	564.75	299.26
Total current assets	10,072.10	7,614.97
TOTAL ASSETS	12,435.35	8,848.35
II EQUITY AND LIABILITIES
Equity
Equity Share Capital	2,377.71	1,783.71
Other Equity	5,626.29	1,716.53
Non-controlling interests	0.09	0.08
Total Equity	8,004.09	3,500.32
Liabilities
Non-current liabilities
Financial Liabilities
Borrowings	543.86	693.71
Provisions	4.98	3.13
Deferred Tax Liabilities (Net)	4.06	12.76
Total Non-current liabilities	552.90	709.60
Current liabilities
Financial Liabilities
Borrowings	2,583.39	2,628.38
Trade Payables
-Total outstanding dues of micro enterprises and small enterprises	219.85	66.05
-Total outstanding dues of creditors other than micro enterprises and small enterprises	497.05	912.11
Other Financial Liabilities	107.71	101.43
Other Current Liabilities	426.31	541.22
Provisions	1.34	176.12
Current Tax Liabilities (Net)	42.71	213.12
Total current liabilities	3,878.36	4,638.43
Total liabilities	4,431.26	5,348.03
TOTAL EQUITY AND LIABILITIES	12,435.35	8,848.35

Equity

The equity as of March 31, 2025, increased to -8,004.09 Lakhs from -3,500.32 Lakhs as of March 31, 2024.

Borrowings

Total Borrowings decreased to -3,127.25 Lakhs as on March 31, 2025 as compared to -3,317.09 Lakhs as on March 31, 2024. Debt to Equity

The debt-to-equity ratio has decreased to 0.39x as of March 31, 2025 as compared to 0.95x as of March 31, 2024.

Liquidity

Cash & Cash Equivalents stood at -45.40 Lakhs as of March 31, 2025 as compared to -19.05 Lakhs in the previous year. Consolidated Profit and Loss Statement Performance

(Rs in lakhs)

Particulars	As at March 31, 2025	As at March 31, 2024	& YoY%
INCOME
Revenue from Operations	12,651.58	15,154.63	-16.52%
Other Income	204.70	13.39	1428.31%
TOTAL INCOME	12,856.28	15,168.02	-15.24%
EXPENSES
a. Cost of Materials Consumed	8,244.13	10,770.14	-23.45%
b. Purchase of Traded Goods	0.00	106.34	-100.00%
c. Changes In Inventories of Finished goods and Work in Progress	132.63	-18.56	-814.60%
d. Employees benefits expenses	822.50	776.09	5.98%
e. Finance Cost	372.26	301.78	23.36%
f. Depreciation and amortization expenses	94.89	84.73	12.00%
g. Other Expenses	2,125.71	2,310.91	-8.01%
TOTAL EXPENSES	11,792.12	14,331.43	-17.72%
Profit / (Loss) before exceptional and extraordinary items and tax (I - II)	1064.16	836.59	27.20%
Exceptional Items
Profit/(Loss) before extraordinary items and tax (III - IV)	1064.16	836.59	27.20%
Extraordinary items
PROFIT BEFORE TAX (V - VI)	1064.16	836.59	27.20%
TAX EXPENSE
a. Current Tax	280.97	237.74	18.18%
b. Deferred Tax	-8.61	-5.19	65.74%
c. Excess/Short Provision of Earlier Year Tax	0.00	0.00
TOTAL TAX EXPENSE	272.36	232.55	17.12%
PROFIT AFTER TAX (VII - VIII)	791.80	604.04	31.08%

A. INCOME Total Income

Total income for the financial year ended March 31, 2025, stood at -12,856.28 Lakhs, reflecting a decline of 15.24% from -15,168.02 Lakhs in the previous year. This reduction was primarily on account of a significant decrease in revenue from operations, owing to lower demand for products in key segments, partially offset by a marginal rise in service-related income.

Revenue from Operations

Revenue from operations declined by 16.52% to -12,651.58 Lakhs in FY 2025 from -15,154.63 Lakhs in FY 2024. The decline was largely driven by a reduction in product sales, which may be attributed to subdued market demand, delayed orders from certain customers, and competitive pricing pressures. However, the Company witnessed a 16.59% increase in revenue from services, which demonstrates a gradual diversification in the business model and an encouraging trend in value-added offerings.

Other Income

Other income surged by 1,428.31% to -204.70 Lakhs in FY 2025 from -13.39 Lakhs in FY 2024. The sharp increase is primarily due to the write-back of liabilities no longer required, reflecting improved operational clarity.

B. EXPENSES Total Expenses

Total expenses decreased by 17.72% to -11,792.12 Lakhs in FY 2025 from -14,331.43 Lakhs in FY 2024. The decline is mainly attributable to reduced raw material consumption, absence of traded goods purchases, and a general reduction in operating costs, reflecting improved cost optimization efforts across the board.

Cost of Materials Consumed

Cost of materials consumed dropped by 23.45% to -8,244.13 Lakhs in FY 2025 from -10,770.14 Lakhs in FY 2024. The decrease correlates with lower production volumes and improved inventory planning, resulting in a reduced requirement for raw material procurement during the year.

Purchase of Traded Goods

There were no purchases of traded goods during FY 2025, compared to -106.34 Lakhs in FY 2024. This indicates a strategic shift towards focusing on in-house manufactured products and minimizing reliance on third-party trading activities.

Change in Inventories of Finished Goods and Work-in-Progress

Inventory change stood at -132.63 Lakhs in FY 2025 compared to -(18.56) Lakhs in FY 2024, representing a shift of 814.60%. The increase reflects higher unsold inventory due to a slowdown in dispatches and potential delays in customer off-take near the year- end.

Employee Benefits Expense

Employee benefit expenses increased by 5.98% to -822.50 Lakhs in FY 2025 from -776.09 Lakhs in FY 2024. This rise is primarily due to annual increments, enhanced employee welfare measures, and on boarding of select skilled personnel in line with operational requirements.

Finance Costs

Finance costs increased by 23.36% to -372.26 Lakhs in Financial Year ended March 31, 2025, from -301.78 Lakhs in Financial Year ended March 31, 2024.

Depreciation and Amortization Expenses

Depreciation and amortization expenses increased by 12.00% to -94.89 Lakhs in FY 2025 from -84.73 Lakhs in FY 2024. This is due to capitalization of new assets acquired during the year and full-year depreciation impact of assets commissioned in the previous year.

Other Expenses

Other expenses declined by 8.01% to -2,125.71 Lakhs in FY 2025 from -2,310.91 Lakhs in FY 2024. This was primarily due to a reduction in power and fuel costs, as the Company adopted energy-efficient practices and benefited from lower input prices during the year.

C. PROFIT AND TAXATION Profit before Tax

Despite the fall in revenue, profit before tax improved by 27.20% to -1,064.16 Lakhs in FY 2025 from -836.59 Lakhs in FY 2024. This improvement reflects better cost control, enhanced operational efficiencies, and higher contributions from service income and other non-core revenue streams.

Tax Expenses

In line with higher profits, the current tax expense increased by 17.12% to -272.36 Lakhs in FY 2025 from -232.55 Lakhs in FY 2024. The deferred tax expense also marginally increased, indicating the timing differences arising from depreciation and other accounting adjustments.

Profit After Tax

For the reasons discussed above, we recorded an increase of 31.08% in profit after tax from -604.04 Lakhs in Financial Year ended March 31, 2024, to -791.80 Lakhs in Financial Year ended March 31, 2025.

Ratio Analysis (Consolidated)

Particulars	FY 2024-25	FY 2023-24
Profitability Ratios
EBITDA Margin	10.45%	7.89%
EBIT Margin	9.74%	7.42%
Net Profit Margin	6.29%	3.99%
Growth Ratios
Revenue from Operations	-16.52%	4.58%
EBITDA	9.25%	3.64%
EBIT	9.48%	3.90%
Net Profit	31.08%	-0.77%
Liquidity Ratio (Times)
Current Ratio	2.60x	1.65x
Return Ratios
Return on Equity	9.89%	17.25%
Return on Capital Employed	14.39%	26.72%
Solvency Ratios (Times)
Interest Coverage Ratio	3.6x	4.0x
Debt to Equity	0.39x	0.95x

PROFITABILITY RATIOS

Overall profitability ratios have shown notable improvement during the year. EBITDA Margin increased from 7.89% in FY 2023-24 to 10.45% in FY 2024-25, and EBIT Margin also rose from 7.42% to 9.74%. Net Profit Margin improved from 3.99% to 6.29%. This significant enhancement reflects better cost optimization, higher contribution from services, and improved operational efficiency, despite a reduction in overall revenue. The focus on margin-accretive segments and improved internal controls contributed to the strengthening of margins.

GROWTH RATIOS

Though revenue from operations declined by 16.52%, key profit metrics showed strong growth. EBITDA grew by 9.25% in FY 202425 compared to 3.64% in the previous year, while EBIT increased to 9.48% from 3.90%. Most notably, Net Profit showed a strong turnaround, growing by 31.08% as against a contraction of -0.77% in the prior year. This growth was largely driven by efficient expense management, higher service revenue, improved realizations, and reduced material costs, as discussed earlier.

LIQUIDITY RATIOS

The Current Ratio improved from 1.65x in FY 2023-24 to 2.60x in FY 2024-25. This indicates a stronger liquidity position and the Companys enhanced ability to meet short-term obligations. The improvement reflects efficient working capital management, timely collection of receivables, and prudent control over current liabilities.

RETURN RATIOS

Return ratios declined during the year, with Return on Equity reducing from 17.25% to 9.89% and Return on Capital Employed falling from 26.72% to 14.39%. This decline is primarily due to the decrease in revenue and the impact of higher base capital

employed during the year. However, the Company continued to maintain a healthy profitability level, and the returns are expected to improve going forward as the benefits of operational efficiency and new business strategies materialize.

SOLVENCY RATIOS

The Interest Coverage Ratio declined slightly from 4.0x in FY 2023-24 to 3.6x in FY 2024-25, mainly due to an increase in finance costs. However, the ratio still indicates a comfortable position with respect to interest servicing ability. The Debt-to-Equity Ratio decreased from 0.95x to 0.39x, reflecting significant deleveraging and improved financial stability. This reduction is a result of repayment of borrowings and efficient capital structuring, which strengthens the balance sheet and reduces long-term financial risk.

Consolidated Cash Flow Statement

Particulars	As at March 31, 2025	As at March 31, 2024
Net Cash from/(used in) Operating Activities(A)	(3,644.19)	285.31
Net Cash from/(used in) Investing Activities(B)	525.37	(806.62)
Net Cash from/(used in) Financing Activities(C)	3,145.15	388.83
Net increase/decrease in cash (D=A+B+C)	26.32	(132.48)
Cash and Cash Equivalents at the beginning (E)	19.03	151.51
Cash and Cash Equivalents at the end (F=D+E)	45.36	19.03

CHANGES IN OPERATING CASH FLOW

In Fiscal 2025, net cash from operating activities was - (3,644.19) lakhs. Profit before tax was - 1,064.14 lakhs and adjustments to reconcile profit before tax to operating profit before working capital changes primarily consisted of depreciation and amortization of - 94.89 lakhs and Interest and Finance Cost of -372.26 Lakhs. The main working capital adjustments in year ended March 31, 2025 included increase in Inventories of - 827.36 Lakhs, Increase in Trade Receivables of - 1,377.65 Lakhs, decrease in Other Current Assets of - 265.49 Lakhs, decrease in Trade Payables of - 117.01, increase in other current liabilities - 114.91 Lakhs and decrease in short term provisions of -174.72 Lakhs.

CHANGES IN INVESTING CASH FLOW

Net cash used from investing activities was -525.37 lakh in the year ended March 31, 2025, primarily on account of purchase of fixed assets aggregating to -379.17 Lakhs, Increase in proceeds from sale of property, plant equipment -141.91 Lakhs and decrease in term deposits of - 59.02 Lakhs and decrease in loans of -643.32 Lakhs

CHANGES IN FINANCING CASH FLOW

Net cash from financing activities was - 3,145.16 Lakhs in the year ended March 31, 2025, on account of decrease in borrowing s of - 194.84 Lakhs, proceeds from Issue of Shares of -4,158.00, payment towards share issue expenses of -445.74 Lakhs and interest paid of -372.26 Lakhs.

Standalone Balance Sheet Performance

(Rs in lakhs)

Particulars	As at March 31, 2025	As at March 31, 2024
Assets
Non-current assets
Property, Plant and Equipment	562.94	589.51
Capital work-in-progress	147.50	-
Financial Assets
Investments	790.12	790.12
Other Financial Assets	33.45	33.45
Other Non-current Assets	1,025.30	37.80
Total Non-current assets	2,559.31	1,450.88
Current assets
Inventories	3,459.54	2,797.88
Financial Assets
Trade Receivables	4,191.30	2,844.09
Cash and Cash Equivalents	30.48	6.92
Other Balances with Banks	47.45	112.45
Loans	12.76	643.32
Other Financial Assets	882.75	210.93
Other Current Assets	424.02	226.64
Total current assets	9,048.30	6,842.23
TOTAL ASSETS	11,607.61	8,293.11
II EQUITY AND LIABILITIES
Equity
Equity Share Capital	2,377.71	1,783.71
Other Equity	5,414.80	1,566.84
Total Equity	7,792.51	3,350.55
Liabilities
Non-current liabilities
Financial Liabilities
Borrowings	543.86	677.06
Provisions	4.98	3.13
Deferred Tax Liabilities (Net)	10.20	19.34
Total Non-current liabilities	559.04	699.53
Current liabilities
Financial Liabilities
Borrowings	2,249.10	2,594.04
Trade Payables
-Total outstanding dues of micro enterprises and small enterprises	162.59	33.20
-Total outstanding dues of creditors other than micro enterprises and small enterprises	475.17	823.60
Other Financial Liabilities	41.72	16.33
Other Current Liabilities	285.72	393.16
Provisions	1.34	176.12
Current Tax Liabilities (Net)	40.42	206.58
Total current liabilities	3,256.06	4,243.03
Total liabilities	3,815.10	4,942.56
TOTAL EQUITY AND LIABILITIES	11,607.61	8,293.11

Equity

The equity as of March 31, 2025, increased to -7,792.51 Lakhs from -3,350.55 Lakhs as of March 31, 2024.

Borrowings

Total Borrowings decreased to -2,792.96 Lakhs as on March 31, 2025 as compared to -3,271.1 Lakhs as on March 31, 2024.

Debt to Equity

The debt-to-equity ratio has increased to 0.36x as of March 31, 2025 as compared to 0.98x as of March 31, 2024.

Liquidity

Cash & Cash Equivalents stood at -30.48 Lakhs as of March 31, 2025 as compared to -6.92 Lakhs in the previous year. Standalone Profit and Loss Statement Performance

(Rs in lakhs)

Particulars	As at March 31, 2025	As at March 31, 2024	& YoY%
INCOME
Revenue from Operations	9,871.75	11,818.40	-16.47%
Other Income	200.33	8.69	2205.21%
TOTAL INCOME	10,072.08	11,827.09	-14.84%
EXPENSES
a. Cost of Materials Consumed	6,458.33	8,640.34	-25.25%
b. Purchase of Traded Goods	0.00	0.00	-
c. Changes In Inventories of Finished goods and Work in Progress	248.56	(20.86)	-1291.54%
d. Employees benefits expenses	283.81	145.04	95.67%
e. Finance Cost	358.32	296.50	20.85%
f. Depreciation and amortization expenses	89.58	81.88	9.41%
g. Other Expenses	1,655.11	1,960.19	-15.56%
TOTAL EXPENSES	9,093.71	11,103.09	-18.10%
Profit / (Loss) before exceptional and extraordinary items and tax (I - II)	978.37	724.00	35.13%
Exceptional Items
Profit/(Loss) before extraordinary items and tax (III - IV)	978.37	724.00	35.13%
Extraordinary items
PROFIT BEFORE TAX (V - VI)	978.37	724.00	35.13%
TAX EXPENSE
a. Current Tax	257.43	210.81	22.12%
b. Deferred Tax	(9.05)	(6.89)	31.37%
c. Excess/Short Provision of Earlier Year Tax	-	-
TOTAL TAX EXPENSE	248.38	203.92	21.81%
PROFIT AFTER TAX (VII - VIII)	729.99	520.08	40.36%

A. INCOME Total Income

Total income for the financial year ended March 31, 2025, stood at -10,072.08 Lakhs, a decline of 14.84% compared to -11,827.09 Lakhs in the previous year. This reduction is primarily attributable to a significant drop in revenue from operations, reflecting lower demand and a strategic recalibration in core product offerings.

Revenue from Operations

Revenue from operations decreased by 16.47% to -9,871.75 Lakhs in FY 2025, from -11,818.40 Lakhs in FY 2024. The decline is primarily on account of a fall in the sale of products, reflecting both volume and pricing pressures in the market. However, FY 2025

marked the Companys initial foray into the service domain, contributing -30.52 Lakhs, showcasing the beginning of diversification in revenue streams.

Other Income

Other income increased sharply by 2,205.21%, rising to -200.33 Lakhs in FY 2025 from -8.69 Lakhs in FY 2024. This exceptional increase is mainly due to the write-back of liabilities no longer required, amounting to -144.25 Lakhs, coupled with interest income of -46.20 Lakhs. This reflects prudent financial management and better treasury efficiency.

B. EXPENSES Total Expenses

Total expenses stood at -9,093.71 Lakhs in FY 2025, down 18.10% from -11,103.09 Lakhs in FY 2024. This decline was driven primarily by lower raw material consumption and a focused reduction in controllable costs.

Cost of Materials Consumed

The cost of materials consumed declined significantly by 25.25% to -6,458.33 Lakhs in FY 2025 from -8,640.34 Lakhs in FY 2024. This decrease was mainly due to lower opening stock levels and reduced raw material procurement, aligned with the Companys conservative production approach and demand moderation.

Change in Inventories of Finished Goods and Work-in-Progress

The inventory adjustment amounted to -248.56 Lakhs in FY 2025, compared to -(20.86) Lakhs in FY 2024 representing a swing of 1,291.54%. This was primarily due to a drop in finished goods and work-in-progress, indicating reduced inventory accumulation in light of lower sales volumes.

Employee Benefits Expense

Employee benefits expenses nearly doubled, increasing by 95.67% to -283.81 Lakhs in FY 2025 from -145.04 Lakhs in FY 2024. This increase was primarily on account of recruitment of additional personnel and increased salary payouts to align with industry benchmarks and future capacity planning.

Finance Costs

Finance costs increased by 20.85% to -358.32 Lakhs in Financial Year ended March 31, 2025, from -296.50 Lakhs in Financial Year ended March 31, 2024.

Depreciation and Amortization Expenses

Depreciation and amortization expense increased by 9.41% to -89.58 Lakhs in FY 2025 from -81.88 Lakhs in FY 2024. The increase reflects the capitalization of new assets and the full-year depreciation impact of prior capital investments.

Other Expenses

Other expenses stood at -1,655.11 Lakhs in FY 2025, a reduction of 15.56% compared to -1,960.19 Lakhs in FY 2024. The reduction is mainly attributed to cost-saving measures across power and fuel, handling and distribution, and repair and maintenance of machinery.

C. PROFIT AND TAXATION Profit before Tax

Profit before tax increased by 35.13%, rising to -978.37 Lakhs in FY 2025 from -724.00 Lakhs in FY 2024. The growth in profitability, despite lower revenue, reflects the Companys effective cost control, operational efficiency, and contribution from non-core income.

Tax Expenses

Corresponding to the increase in profit before tax, current tax expense rose by 22.12% to -257.43 Lakhs in FY 2025, from -210.81 Lakhs in FY 2024. Deferred tax stood at -(9.05) Lakhs as against -(6.89) Lakhs in the previous year, driven by adjustments for temporary timing differences.

Profit After Tax

As a result of the factors outlined above, profit after tax increased by 40.36% to -729.99 Lakhs in FY 2025 from -520.08 Lakhs in FY 2024. This growth reflects the Companys ability to enhance bottom-line performance through focused cost containment and prudent financial practices, even in a year of declining revenue.

Ratio Analysis (Standalone)

Particulars	FY 2024-25	FY 2023-24
Profitability Ratios
EBITDA Margin	12.42%	9.25%
EBIT Margin	13.54%	8.63%
Net Profit Margin	7.39%	4.40%
Growth Ratios
Total Revenue	-14.84%	146.03%
EBITDA	12.09%	62.19%
EBIT	30.98%	60.31%
Net Profit	40.36%	61.89%
Liquidity Ratio (Times)
Current Ratio	8.99	1.61
Return Ratios
Return on Equity	13.10%	22.44%
Return on Capital Employed	12.61%	15.41%
Solvency Ratios (Times)
Interest Coverage Ratio	3.73	1.41
Debt to Equity	0.36	0.98

PROFITABILITY RATIOS

Profitability ratios have improved across all fronts during the year, reflecting operational efficiency and tighter cost control. The EBITDA Margin increased from 9.25% in FY 2023-24 to 12.42% in FY 2024-25, and the EBIT Margin improved significantly from 8.63% to 13.54%. Net Profit Margin rose from 4.40% to 7.39%. These improvements indicate enhanced profitability due to a sharper focus on high-margin activities, disciplined cost management, and reduced dependency on traded goods.

GROWTH RATIOS

While Total Revenue declined by 14.84% in FY 2024-25 due to lower sales volumes, the Company continued to show positive growth in profitability parameters. EBITDA grew by 12.09%, reflecting stronger control over raw material and operational costs. EBIT increased by 30.98%, and Net Profit showed a substantial rise of 40.36%, driven by improved cost structures, higher non operating income, and a favorable shift in revenue mix. These growth trends demonstrate the Companys resilience and margin- focused strategy even during a top-line decline.

LIQUIDITY RATIOS

The Current Ratio witnessed a sharp improvement, rising from 1.61x in FY 2023-24 to 8.99x in FY 2024-25. This indicates the Companys significantly enhanced ability to meet its short-term obligations. The improvement is attributed to better working capital management, strong cash inflows, reduced short-term borrowings, and higher current asset balances. The sharp increase showcases financial prudence and surplus liquidity cushioning.

RETURN RATIOS

Return ratios have slightly moderated during the year due to the decline in total revenue. Return on Equity (ROE) fell from 22.44% to 13.10%, and Return on Capital Employed (ROCE) declined from 15.41% to 12.61%. The contraction in return ratios is a result of a higher equity and capital base during the year, even though absolute profits increased. The management believes these ratios are expected to improve as the Company continues to scale operations and deploy capital more effectively.

SOLVENCY RATIOS

The Interest Coverage Ratio increased significantly from 1.41x in FY 2023-24 to 3.73x in FY 2024-25, reflecting stronger earnings before interest and better debt servicing capacity. The Debt-to-Equity Ratio reduced from 0.98x to 0.36x, indicating a substantial decline in leverage levels. This improvement demonstrates prudent financial management and a conscious effort to deleverage the balance sheet. The Company remains committed to maintaining a healthy capital structure while funding growth through internal accruals.

Consolidated Cash Flow Statement

Particulars	As at March 31, 2025	As at March 31, 2024
Net Cash from/(used in) Operating Activities(A)	(3,311.08)	271.05
Net Cash from/(used in) Investing Activities(B)	428.98	(753.83)
Net Cash from/(used in) Financing Activities(C)	2,905.66	410.00
Net increase/decrease in cash (D=A+B+C)	23.56	(72.78)
Cash and Cash Equivalents at the beginning (E)	6.92	79.70
Cash and Cash Equivalents at the end (F=D+E)	30.48	6.92

CHANGES IN OPERATING CASH FLOW

In Fiscal 2025, net cash from operating activities was - (3,311.08) lakhs. Profit before tax was - 978.37 lakhs and adjustments to reconcile profit before tax to operating profit before working capital changes primarily consisted of depreciation and amortization of - 89.58 lakhs and Interest and Finance Cost of - 358.32 Lakhs. The main working capital adjustments in year ended March 31, 2025 included increase in Inventories of - 661.66 Lakhs, Increase in Trade Receivables of - 1,360.82 Lakhs, Increase in Other Current Assets of - 197.38 Lakhs, decrease in Trade Payables of - 74.79, increase in other current liabilities - 107.44 Lakhs and decrease in short term provisions of - 174.72 Lakhs.

CHANGES IN INVESTING CASH FLOW

Net cash used from investing activities was - 428.98 lakh in the year ended March 31, 2025, primarily on account of purchase of fixed assets aggregating to - 210.50 Lakhs, decrease in term deposits of -65.00 Lakhs, decrease in loans of -630.56 Lakhs and interest received of - 56.08 Lakhs.

CHANGES IN FINANCING CASH FLOW

Net cash generated from financing activities was -2,905.66 Lakhs in the year ended March 31, 2025, on account of decrease in Short term borrowings of - 478.15 Lakhs, proceeds from issue of shares of -4,158.00 Lakhs, payment towards share issue expenses of -328.45 Lakhs and interest paid of -328.45 Lakhs.

Segment-wise or Product-wise Performance

Balaji Phosphates Limited is primarily engaged in the business of manufacturing and supplying phosphate-based products that cater to various sectors including agriculture, chemicals, and industrial applications. The Companys operations are integrated, and its performance is evaluated on an overall basis rather than being segmented by specific products. Given the nature of the industry and the product application, the Company does not have distinct segmental reporting. All products contribute collectively to the Companys financial performance, and profitability varies depending on market dynamics, raw material availability, and operational efficiencies.

Risk and Concerns

The management of BPL remains vigilant in identifying, monitoring, and mitigating potential risks that could impact the Companys operations and financial health. Risks are systematically classified based on their potential impact and probability of occurrence, and appropriate strategies are adopted to counter them. Operating within the chemical and fertilizer industry, BPL faces certain inherent risks including dependency on agricultural demand, price volatility of raw materials like phosphoric acid, stringent environmental regulations, and market competition. The Company actively monitors both external and internal environments to mitigate these risks and integrates risk assessments into its strategic decision-making processes to safeguard stakeholder interests.

Internal Control System and Adequacy

BPL has established a robust internal control framework designed to safeguard its assets against loss, unauthorized use,

or disposition. The system ensures that all transactions are properly authorized, recorded, and reported in compliance with statutory and regulatory requirements. The Audit Committee of the Company plays a proactive role in overseeing financial reporting processes and internal controls. Additionally, BPLs management team comprises skilled professionals who ensure quality assurance from raw material procurement to final product delivery, thereby reinforcing the Companys reputation for product excellence in the market.

Human Resource Development

At Balaji Phosphates Limited, human capital is recognized as a pivotal asset. The Company is committed to fostering a work environment that promotes employee growth, skill enhancement, and performance excellence. BPL emphasizes talent acquisition, retention, and continuous development through structured performance evaluations, rewards, and a constructive work culture. The organization believes in empowering its workforce to drive innovation and operational efficiency. As of March 31, 2025, the Company employed 000 permanent employees, reflecting its investment in a stable and skilled workforce.

Cautionary Statement

Certain statements in this report relating to the Companys objectives, expectations, and forecasts are forward-looking in nature and subject to risks and uncertainties. Actual outcomes may differ materially from those anticipated due to factors such as economic conditions, market dynamics, raw material pricing, regulatory changes, government policies, and other unforeseen circumstances. The Company disclaims any obligation to publicly update or revise any forward-looking statements based on future events or developments.