Indian PhosphateNSE:IPHL -1.52%18 ROA % is 5.21% as of Sep. 2025, which is 35% below its 10-year median of 8.07. GuruFocus rates NSE:IPHL with a GF Score™ of 18/100. The stock has 3 warning signs investors should review. Among 1,614 Chemicals companies, Indian Phosphate ranks better than 62.7% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Indian Phosphate's annualizedNet Income for the quarter that ended in Sep. 2025 was ₹166 Mil.
Indian Phosphate's average Total Assets over the quarter that ended in Sep. 2025 was ₹3,184 Mil. Therefore, Indian Phosphate's annualized ROA % for the quarter that ended in Sep. 2025 was 5.21%.
The historical rank and industry rank for Indian Phosphate's ROA % or its related term are showing as below:
NSE:IPHL'
s ROA % Range Over the Past 10 Years
Min: 3.19 Med: 8.07 Max: 18.9
Current: 4.43
During the past 5 years, Indian Phosphate's highest ROA % was 18.90%. The lowest was 3.19%. And the median was 8.07%.
NSE:IPHL's ROA % is ranked better than 62.7% of 1614
companies
in the Chemicals industry
Industry Median: 2.9
vs NSE:IPHL: 4.43
Indian Phosphate (NSE:IPHL) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is two times the semi-annual (Sep. 2025) net income data. The Revenue data used here is two times the semi-annual (Sep. 2025) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Indian Phosphate ROA % Related Terms
Indian Phosphate ROA % Historical Data
* Premium members only.
The historical data trend for Indian Phosphate's ROA % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Specialty Chemicals subindustry, Indian Phosphate's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Indian Phosphate ROA % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Indian Phosphate's ROA % distribution charts can be found below:
* The bar in red indicates where Indian Phosphate's ROA % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Sep. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Indian Phosphate (NSE:IPHL) has a ROA % of 5.21% as of Sep. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Indian Phosphate and its competitors. This is 35% below median its historical median of 8.07. Over the past decade, Indian Phosphate's ROA % has ranged from 3.19 to 18.90. According to the industry distribution chart, Indian Phosphate ranks #602 out of 1614 companies in the Chemicals industry, placing it in the top 37.3%.
Is Indian Phosphate's ROA % too high?
Indian Phosphate's current ROA % of 5.21% is 35% below median its 10-year median of 8.07. Over the past 10 years, this metric has ranged from a low of 3.19 to a high of 18.90. The Chemicals industry median ROA % is 2.90. Indian Phosphate's value of 5.21% is 79.7% above this industry median. Based on the distribution chart, Indian Phosphate ranks #602 out of 1614 companies in the Chemicals industry, which is above the industry midpoint. Overall, Indian Phosphate has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Indian Phosphate's ROA % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Indian Phosphate ranks #602 out of 1614 companies for ROA %. This puts Indian Phosphate in the upper half of its industry. The industry median ROA % is 2.90. Indian Phosphate's value of 5.21% is 79.7% above this benchmark. Historically, Indian Phosphate's own ROA % has ranged from 3.19 to 18.90 over the past decade. While the company's 10-year median is 8.07 vs. the industry median of 2.90, Indian Phosphate has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Chemicals company?
The median ROA % among Chemicals companies is 2.90, based on 1,614 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Indian Phosphate's current ROA % of 5.21% is 79.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Indian Phosphate and its competitors. For the Chemicals industry, the median ROA % is 2.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Indian Phosphate's current ROA % is 5.21%, which is 35% below median its own 10-year median of 8.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Indian Phosphate stock overvalued right now?
Indian Phosphate (NSE:IPHL) has a current ROA % of 5.21%. The current ROA % is 5.21%, which is 35% below median its 10-year median of 8.07 and 79.7% above the Chemicals industry median of 2.90. Indian Phosphate's overall GF Score™ is 18/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Indian Phosphate (NSE:IPHL), the current ROA % is 5.21% as of Sep. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Indian Phosphate Ltd is involved in the production of Linear Alkylbenzene Sulphonic Acid (LABSA) 90%, an anionic surfactant used in the formulation of various detergent products such as powders, cakes, toilet cleaners, and liquid detergents. The company is also involved in manufacturing Single Super Phosphate (SSP) fertilizer and Granules Single Super Phosphate (GSSP). The business comprises the manufacture, purchase, and sale of Fertilizers and chemicals. The company generates the majority of its revenue from the Chemical Division.
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