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ICRA Upgrades Rama Phosphates' Rating Outlook
27 Dec, 2025
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.
Despite these positive developments, the ratings acknowledge inherent risks such as volatility in raw material prices like rock phosphate and sulphuric acid, and foreign exchange rate fluctuations. The company's profitability is also subject to regulatory risks concerning government fertilizer subsidies and potential impacts from the soya oil division's subdued performance.
