Why did ICRA change Rama Phosphates' outlook?

ICRA revised Rama Phosphates' outlook to stable due to improved operating performance and profitability, supported by favorable subsidy rates and sulphuric acid sales.

What is Rama Phosphates' expansion plan?

Rama Phosphates is commissioning a new SSP plant in Dhule by March 2026 and plans to add sulphuric acid manufacturing capacity at the same location by FY2027.

What are the risks for Rama Phosphates?

Risks include volatility in raw material prices, foreign exchange rates, and regulatory changes concerning fertilizer subsidies.

Home / Business and Economy / ICRA Upgrades Rama Phosphates' Rating Outlook

ICRA Upgrades Rama Phosphates' Rating Outlook

27 Dec, 2025

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Summary

ICRA revises Rama Phosphates' outlook to stable from negative.
Improved operating performance driven by subsidy rates and higher prices.
New Dhule plant expected to boost revenue from FY2027 onwards.

Rama Phosphates has received a positive rating revision from ICRA, with its outlook updated to 'stable' from 'negative', while the existing rating of '[ICRA] A-' has been reaffirmed. This upgrade reflects an improved credit profile, driven by enhanced operating performance in FY2025 and the first half of FY2026. Favorable subsidy rates and retail prices for single super phosphate (SSP), coupled with a significant profit increase from sulphuric acid sales due to domestic market constraints, have underpinned this development.

The commissioning of the new Dhule plant in March 2026 is poised to expand SSP capacity by 0.22 MMT, projecting revenue growth from FY2027. Furthermore, plans are underway to establish a 90,000 MT sulphuric acid manufacturing capacity at Dhule by FY2027, with a capital outlay of Rs 30 crore. ICRA anticipates that Rama Phosphates will maintain a stable credit profile despite these capital expenditures.