Results - Analysis
Deepak Nitrite As on : 05-Aug-26  05:17

On consolidated basis

Quarter ended June 2026 compared with Quarter ended June 2025.

Net sales (including other operating income) of Deepak Nitrite has increased 36.39% to Rs 2577.6 crore.  Sales of Phenolics segment has gone up 36.13% to Rs 1,775.05 crore (accounting for 68.83% of total sales).  Sales of Advanced Intermediates segment has gone up 32.80% to Rs 803.85 crore (accounting for 31.17% of total sales).  Inter-segment sales came down from Rs 19.41 crore to Rs 1.30 crore.  

Profit before interest, tax and other unallocable items (PBIT) has jumped 216.06% to Rs 484.74 crore.  PBIT of Phenolics segment rose 254.33% to Rs 417.76 crore (accounting for 86.18% of total PBIT).  PBIT of Advanced Intermediates segment rose 88.84% to Rs 66.98 crore (accounting for 13.82% of total PBIT).  

PBIT margin of Phenolics segment rose from 9.04% to 23.54%.  PBIT margin of Advanced Intermediates segment rose from 5.86% to 8.33%.  Overall PBIT margin rose from 8.03% to 18.80%.  

Operating profit margin has jumped from 10.03% to 20.96%, leading to 184.97% rise in operating profit to Rs 540.19 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 69.18% to 61.02%.   Purchase of finished goods cost fell from 3.32% to 2.35%.   Employee cost decreased from 5.53% to 4.56%.   Other expenses fell from 12.12% to 11.23%.   Power and Oil fuel cost fell from 5.91% to 4.73%.   

Other income fell 42.96% to Rs 14.01 crore.  PBIDT rose 158.83% to Rs 554.2 crore.  Provision for interest rose 181.80% to Rs 22.91 crore.  

PBDT rose 157.92% to Rs 531.29 crore.  Provision for depreciation rose 24.21% to Rs 63.66 crore.  

Profit before tax grew 202.20% to Rs 467.63 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 122.62 crore, compared to Rs 42.49 crore.  Effective tax rate was 26.22% compared to 27.46%.

Net profit attributable to owners of the company increased 207.50% to Rs 345.02 crore.  

Promoters' stake was 49.34% as of 30 June 2026 ,compared to 49.28% as of 30 June 2025 .  

 

Full year results analysis.

Net sales (including other operating income) of Deepak Nitrite has declined 4.77% to Rs 7887.07 crore.  Sales of Phenolics segment has gone down 6.97% to Rs 5,400.68 crore (accounting for 67.90% of total sales).  Sales of Advanced Intermediates segment has gone up 1.03% to Rs 2,553.32 crore (accounting for 32.10% of total sales).  Inter-segment sales rose Rs 50.48 crore to Rs 66.93 crore.  

Profit before interest, tax and other unallocable items (PBIT) has slumped 16.39% to Rs 801.53 crore.  PBIT of Phenolics segment fell 11.29% to Rs 694.58 crore (accounting for 86.66% of total PBIT).  PBIT of Advanced Intermediates segment fell 39.13% to Rs 106.95 crore (accounting for 13.34% of total PBIT).  

PBIT margin of Phenolics segment fell from 13.49% to 12.86%.  PBIT margin of Advanced Intermediates segment fell from 6.95% to 4.19%.  Overall PBIT margin fell from 11.51% to 10.08%.  

Operating profit margin has declined from 13.18% to 12.43%, leading to 10.17% decline in operating profit to Rs 980.72 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 68.39% to 67.04%.   Purchase of finished goods cost rose from 1.58% to 3.45%.   Employee cost increased from 4.72% to 5.33%.   Other expenses fell from 12.16% to 11.84%.   Power and Oil fuel cost rose from 5.58% to 5.63%.   

Other income fell 28.61% to Rs 59.87 crore.  PBIDT fell 11.49% to Rs 1040.59 crore.  Provision for interest rose 67.35% to Rs 46.02 crore.  Loan funds rose to Rs 1,637.72 crore as of 31 March 2026 from Rs 1,267.01 crore as of 31 March 2025.  Inventories declined from Rs 926.40 crore as of 31 March 2025 to Rs 862.30 crore as of 31 March 2026.  Sundry debtors were higher at Rs 1,505.56 crore as of 31 March 2026 compared to Rs 1,273.81 crore as of 31 March 2025.  Cash and bank balance declined from Rs 406.56 crore as of 31 March 2025 to Rs 269.01 crore as of 31 March 2026.  Investments declined from Rs 510.89 crore as of 31 March 2025 to Rs 213.28 crore as of 31 March 2026.  

PBDT fell 13.37% to Rs 994.57 crore.  Provision for depreciation rose 14.98% to Rs 224.64 crore.  Fixed assets increased to Rs 5,038.12 crore as of 31 March 2026 from Rs 4,103.62 crore as of 31 March 2025.  Intangible assets increased from Rs 2.66 crore to Rs 59.61 crore.  

Profit before tax down 19.19% to Rs 769.93 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 206.43 crore, compared to Rs 255.38 crore.  Effective tax rate was 27.27% compared to 26.80%.

Net profit attributable to owners of the company decreased 21.04% to Rs 550.53 crore.  

Equity capital stood at Rs 27.28 crore as of 31 March 2026 to Rs 27.28 crore as of 31 March 2025.  Per share face Value remained same at Rs 2.00.  

Promoters' stake was 49.33% as of 31 March 2026 ,compared to 49.28% as of 31 March 2025 .  

Cash flow from operating activities decreased to Rs 538.95 crore for year ended March 2026 from Rs 624.70 crore for year ended March 2025.  Cash flow used in acquiring fixed assets during the year ended March 2026 stood at Rs 1,198.38 crore, compared to Rs 1,136.30 crore during the year ended March 2025.  

Management Commentary:

Commenting on the results, Deepak C Mehta said: The global chemical industry continues to undergo one of its most significant structural transformations in decades. Traditional supply chains are steadily giving way to more resilient, regionally diversified manufacturing ecosystems, with customers increasingly prioritising reliability, integration, technological capability and security of supply alongside cost competitiveness. While cyclical pricing pressures and geopolitical developments continue to influence near-term industry dynamics, they are also accelerating a broader realignment of global manufacturing. Companies with integrated operations, secure feedstock access, strong process capabilities and disciplined capital allocation are emerging as preferred long-term partners. India`s manufacturing ecosystem is well positioned to benefit from this transition, supported by increasing domestic value addition, import substitution initiatives and deeper engagement with trusted global partners.

Against this backdrop, Deepak Group delivered a strong start to FY2026-27 through disciplined execution and timely strategic interventions in an operating environment that remained far from straightforward. During the quarter, we proactively secured critical raw materials, diversified sourcing, strategically built inventories, leveraged domestic procurement, maintained uninterrupted plant operations despite global supply chain disruptions and capitalised on emerging demand opportunities across domestic and export markets. Coupled with improving product realisations, benefits of recent integration initiatives and continued focus on operational excellence, these actions enabled us to deliver robust growth in both revenues and profitability.

More importantly, the quarter reinforces that our long-term strategy is steadily translating into stronger structural advantages. The integration achieved across the ammonia'nitration'amines value chain, continued downstream expansion within Phenolics, long-term feedstock partnerships and sustained investments in innovation and advanced materials are progressively strengthening the quality and resilience of our earnings while reducing dependence on external supply chains. As we continue to deepen integration across multiple value chains, we are creating a business that is structurally more competitive, operationally more agile and better positioned to create sustainable value through industry cycles.

Encouragingly, we are seeing improving demand visibility across several product categories, supported by healthier customer enquiries in both domestic and export markets, expanding capacities, commercialisation of new products and gradually strengthening downstream demand. The first quarter witnessed extreme volatility in the business which is gradually settling down. In this era of global volatility, whosoever is agile to the dynamic situation, is expected to deliver good results. And now I am confident our team would continue taking proactive steps to maintain this growth traction while continuing to strengthen India`s role as a globally competitive manufacturing hub for chemicals, performance products and advanced materials.

Deepak Nitrite : Consolidated Results

Quarter ended Year ended Particulars 202606 202506 Var.(%) 202603 202503 Var.(%) Net Sales (including other operating income) 2,577.60 1,889.88 36.39 7,887.07 8,281.93 -4.77 OPM (%) 20.96 10.03 1,093 bps 12.43 13.18 -75 bps OP 540.19 189.56 184.97 980.72 1,091.76 -10.17 Other Inc. 14.01 24.56 -42.96 59.87 83.86 -28.61 PBIDT 554.20 214.12 158.83 1,040.59 1,175.62 -11.49 Interest 22.91 8.13 181.80 46.02 27.50 67.35 PBDT 531.29 205.99 157.92 994.57 1,148.12 -13.37 Depreciation 63.66 51.25 24.21 224.64 195.37 14.98 PBT 467.63 154.74 202.20 769.93 952.75 -19.19 Share of Profit/(Loss) from Associates 0 0 - 0 0 - PBT before EO 467.63 154.74 202.20 769.93 952.75 -19.19 EO Income 0 0 - -12.84 0 - PBT after EO 467.63 154.74 202.20 757.09 952.75 -20.54 Taxation 122.62 42.49 188.59 206.43 255.38 -19.17 PAT 345.01 112.25 207.36 550.66 697.37 -21.04 Minority Interest (MI) -0.01 0.05 LP 0.13 0.13 0 Net profit 345.02 112.2 207.50 550.53 697.24 -21.04 P/(L) from discontinued operations net of tax 0 0 - 0 0 - Net profit after discontinued operations 345.02 112.2 207.50 550.53 697.24 -21.04 EPS (Rs)* 25.30 8.23 207.50 41.05 51.12 -19.70 * EPS is on current equity of Rs 27.28 crore, Face value of Rs 2, Excluding extraordinary items. # EPS is not annualised bps : Basis points EO : Extraordinary items Figures in Rs crore Source: Capitaline Corporate Database

Deepak Nitrite : Consolidated Segment Results

Quarter ended Year ended % of (Total) 202606 202506 Var.(%) % of (Total) 202603 202503 Var.(%) Sales Bulk Chemicals & Commodities 0.00 0.00 0.00 - Fine & Speciality Chemicals 0.00 0.00 0.00 - Fluorescent Whitening Agent 0.00 0.00 0.00 - Phenolics 68.83 1,775.05 1,303.96 36.13 67.90 5,400.68 5,805.10 -6.97 Basic Chemicals 0.00 0.00 0.00 - Performance Products 0.00 0.00 0.00 - Advanced Intermediates 31.17 803.85 605.33 32.80 32.10 2,553.32 2,527.31 1.03 Total Reported Sales 100.00 2,578.90 1,909.29 35.07 100.00 7,954.00 8,332.41 -4.54 Less: Inter segment revenues   1.30 19.41 -93.30   66.93 50.48 32.59 Net Sales 100.00 2,577.60 1,889.88 36.39 100.00 7,887.07 8,281.93 -4.77 PBIT Bulk Chemicals & Commodities 0.00 0.00 0.00 - Fine & Speciality Chemicals 0.00 0.00 0.00 - Fluorescent Whitening Agent 0.00 0.00 0.00 - Phenolics 86.18 417.76 117.90 254.33 86.66 694.58 782.96 -11.29 Basic Chemicals 0.00 0.00 0.00 - Performance Products 0.00 0.00 0.00 - Advanced Intermediates 13.82 66.98 35.47 88.84 13.34 106.95 175.70 -39.13 Total PBIT 100.00 484.74 153.37 216.06 100.00 801.53 958.66 -16.39 Less : Interest 22.91 8.13 181.80 46.02 27.50 67.35 Add: Other un-allcoable 5.80 9.50 -38.95 1.58 21.59 -92.68 PBIT Margin(%) Bulk Chemicals & Commodities   0.00 0.00 0.00 Fine & Speciality Chemicals   0.00 0.00 0.00 Fluorescent Whitening Agent   0.00 0.00 0.00 Phenolics   23.54 9.04 1,449.34   12.86 13.49 -62.65 Basic Chemicals   0.00 0.00 0.00 Performance Products   0.00 0.00 0.00 Advanced Intermediates   8.33 5.86 247.28   4.19 6.95 -276.34 PBT 100.00 467.63 154.74 202.20 100.00 757.09 952.75 -20.54

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