DEEPAKNTR - Deepak Nitrite
📢 Recent Corporate Announcements
Deepak Nitrite's wholly-owned subsidiary, Deepak Phenolics Limited (DPL), has invested ₹100 Crores into another subsidiary, Deepak Chem Tech Limited (DCTL). The investment was executed through the allotment of 1 crore 9% Optionally Convertible Redeemable Preference Shares (OCRPS) at par value. This capital infusion is designed to strengthen DCTL's capital base and fund ongoing project expenses. DCTL is currently scaling its fluorination plant operations and pursuing multiple projects across Gujarat.
- Deepak Phenolics Limited invested ₹100 Crores in Deepak Chem Tech Limited via 9% OCRPS.
- DCTL's turnover increased significantly from ₹0.86 Crores in FY24 to ₹9.43 Crores in FY25.
- The funds are earmarked for project expenses and general corporate purposes within the fluorination segment.
- Deepak Nitrite continues to maintain 100% indirect control over DCTL's preference share capital.
- DCTL operates a state-of-the-art fluorination plant and is expanding its footprint in Gujarat.
Deepak Nitrite Limited has announced its participation in the IIFL 17th Entrepreneurial India Conference 2026, scheduled for February 26, 2026, in Mumbai. The company's management representatives will engage in both one-on-one and group meetings with institutional investors and analysts. The company has explicitly stated that no unpublished price sensitive information (UPSI) will be shared during these interactions. This disclosure is a routine filing under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
- Participation in the IIFL 17th Entrepreneurial India Conference 2026 on February 26, 2026.
- The event will take place in Mumbai and involve one-on-one and group meetings.
- Management representatives will interact with analysts and institutional investors.
- No unpublished price sensitive information (UPSI) or new presentations will be shared.
- The schedule of the event is subject to change based on management availability.
Deepak Nitrite reported a steady Q3 FY26 with consolidated revenue rising 3% YoY to ₹1,983 crore, driven by higher volumes despite global pricing pressures. EBITDA increased 16% YoY to ₹219 crore, with margins improving to 11% due to operational efficiencies and vertical integration. While the Phenolics segment saw a 20% YoY EBIT growth, the Advanced Intermediates segment faced margin compression from aggressive Chinese competition. The company is nearing the commissioning of its MIBK/MIBC project and is progressing on its transformational polycarbonate plant.
- Consolidated Q3 revenue reached ₹1,983 crore, up 3% YoY, with EBITDA rising 16% to ₹219 crore.
- Phenolics segment EBIT grew 20% YoY to ₹145 crore, while Advanced Intermediates revenue rose 18% to ₹652 crore.
- Commissioned new nitric acid and nitration plants, completing vertical integration for the ammonia-to-amines value chain.
- MIBK/MIBC project targeted for commissioning in Q4 FY26; Polycarbonate project funding is in final stages.
- Maintained a strong balance sheet with a net worth of ₹5,651 crore and a consolidated ROCE of 15%.
Deepak Nitrite Limited has informed the exchanges that the audio recording of its Q3 and 9M FY 2026 earnings conference call is now available. The call was conducted on February 13, 2026, following the announcement of the company's financial results. This disclosure is a mandatory compliance requirement under Regulation 30 of SEBI (LODR) Regulations, 2015. Investors can access the recording on the company's website to gain deeper insights into management commentary and business outlook.
- Audio recording of Q3 & 9M FY 2026 earnings call held on February 13, 2026, is now public.
- The recording is hosted on the company's official website under the financial results section.
- Submission is made in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
- Provides a platform for investors to review management's detailed responses to analyst queries.
Deepak Nitrite reported a resilient Q3 FY26 with consolidated revenue of ₹1,983 crore, a 3% YoY increase, and EBITDA growth of 16% YoY to ₹219 crore. The Phenolics segment drove profitability with a 20% YoY EBIT increase to ₹145 crore, while Advanced Intermediates faced pricing pressure from Chinese dumping despite 18% revenue growth. A significant regulatory tailwind emerged as the US removed a 45.16% Anti-Dumping Duty on the company's Sodium Nitrite exports. The company is also advancing its 165,000 MT Polycarbonate project and expects MIBK/MIBC commissioning in Q4 FY26.
- Q3 FY26 Revenue rose 3% YoY to ₹1,983 crore, while EBITDA increased 16% YoY to ₹219 crore.
- US Department of Commerce removed 45.16% Anti-Dumping Duty on Sodium Nitrite exports effective January 2026.
- Phenolics segment EBIT grew 20% YoY to ₹145 crore supported by higher volumes and operating efficiencies.
- Completed vertical integration across the ammonia-nitration-amines chain with new Nitric Acid plant commissioning.
- MIBK/MIBC project targeted for Q4 FY26 commissioning; Polycarbonate plant relocation from Germany is on schedule.
Deepak Nitrite reported a marginal 3.7% YoY growth in consolidated revenue to ₹1,975 Cr for Q3 FY26, while consolidated net profit remained nearly flat at ₹100 Cr. The standalone business saw strong revenue growth of 25.7% YoY but suffered a significant profit decline due to an exceptional provision of ₹10.51 Cr for new labor codes and higher material costs. The Phenolics segment, a major contributor, saw a slight revenue dip but maintained steady segment results. Overall 9-month performance remains under pressure with a 33% decline in consolidated net profit compared to the previous year.
- Consolidated Revenue from operations grew 3.7% YoY to ₹1,974.97 Cr from ₹1,903.40 Cr.
- Consolidated Net Profit stood at ₹99.82 Cr, up marginally from ₹98.13 Cr in the same quarter last year.
- Exceptional item of ₹12.84 Cr (Consolidated) recognized due to the implementation of New Labour Codes.
- Advanced Intermediates segment revenue increased to ₹652.45 Cr from ₹551.69 Cr YoY.
- 9-month consolidated PAT fell to ₹330.83 Cr from ₹494.85 Cr in the prior year period.
Deepak Nitrite Limited has updated its internal Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information (UPSI) effective February 12, 2026. The amendment incorporates recent changes to SEBI (Prohibition of Insider Trading) Regulations to ensure timely and uniform dissemination of price-sensitive data. The code defines 17 specific categories of UPSI, including financial results, dividends, and significant business expansions. This update strengthens the company's governance framework regarding the handling of sensitive information.
- Board of Directors reviewed and amended the Fair Disclosure Code on February 12, 2026.
- UPSI definition expanded to cover 17 specific categories including forensic audits and ESG rating changes.
- Company Secretary designated as Chief Investor Relations Officer (CIRO) for managing stock exchange disclosures.
- Mandatory maintenance of a structured digital database with audit trails to track UPSI recipients.
- Protocol established for sharing UPSI for 'legitimate purposes' with partners, lenders, and advisors.
Deepak Nitrite Limited has announced its earnings conference call to discuss financial results for the quarter and nine months ended December 31, 2025. The call is scheduled for February 13, 2026, at 3:00 PM IST and will be hosted by IIFL Capital. Senior leadership, including the CEO and CFO, will be available to provide insights into the company's performance. This is a standard procedure following the end of the reporting period.
- Conference call for Q3 & 9M FY26 results set for February 13, 2026, at 3:00 PM IST.
- Management participants include CEO Maulik Mehta and Group CFO Sanjay Upadhyay.
- The call will be hosted by IIFL Capital with universal dial-in numbers +91 22 6280 1259.
- Discussion will focus on financial performance for the period ending December 31, 2025.
Deepak Phenolics Limited (DPL), a wholly owned subsidiary of Deepak Nitrite, has invested ₹80 Crores into another subsidiary, Deepak Chem Tech Limited (DCTL). The investment was executed through the allotment of 80,00,000 9% Optionally Convertible Redeemable Preference Shares (OCRPS) at ₹100 each. This internal capital infusion is designed to strengthen DCTL's capital base and fund its ongoing project expenses, particularly for its Fluorination plant. DCTL is showing early growth signs, with turnover rising from ₹0.86 Crores in FY24 to ₹9.43 Crores in FY25.
- Allotment of 80,00,000 9% OCRPS at par, aggregating to ₹80 Crores
- DCTL turnover grew significantly to ₹9.43 Crores in FY 2024-25 from ₹0.86 Crores in FY 2023-24
- Funds earmarked for DCTL's state-of-the-art Fluorination plant and other Gujarat-based projects
- Deepak Nitrite maintains 100% control over both subsidiaries involved in the transaction
- DCTL's total paid-up capital prior to this allotment stood at ₹1,919.50 Crores
Deepak Nitrite's wholly-owned subsidiary, Deepak Chem Tech Limited, has successfully commissioned its Nitration and 2nd Hydrogenation Plant at Dahej, Gujarat. The project involved a total capital expenditure of approximately ₹85 Crores as of the commissioning date on January 19, 2026. This expansion is expected to enhance the company's chemical processing capabilities and downstream integration. The timely commissioning of this facility reflects the company's focus on scaling its specialty chemicals portfolio.
- Commissioning of Nitration and 2nd Hydrogenation Plant at Dahej, Dist. Bharuch, Gujarat.
- Total capital expenditure incurred for the project is approximately ₹85 Crores.
- The facility is operated by Deepak Chem Tech Limited, a material wholly-owned subsidiary.
- The plant was officially commissioned on January 19, 2026.
Deepak Nitrite's wholly-owned subsidiary, Deepak Chem Tech Limited (DCTL), has issued 68,00,000 9% Optionally Convertible Redeemable Preference Shares (OCRPS) to another subsidiary, Deepak Phenolics Limited (DPL). The total infusion amounts to ₹68 Crores and is intended to strengthen DCTL's capital base and fund ongoing project expenses. DCTL is currently operating a fluorination plant and pursuing various projects in Gujarat, showing significant turnover growth from ₹0.86 Crores in FY24 to ₹9.43 Crores in FY25. This internal reallocation of funds highlights the group's focus on scaling its specialized chemical subsidiaries.
- DCTL issued 68 lakh OCRPS at ₹100 each, aggregating to a ₹68 Crore investment from DPL.
- The funds will support DCTL's fluorination plant operations and general corporate purposes.
- DCTL's turnover increased significantly to ₹9.43 Crores in FY 2024-25 from ₹0.86 Crores in the previous year.
- The transaction is an internal related-party arrangement conducted at arm's length, maintaining 100% parent control.
- The investment follows DCTL's existing paid-up capital base of ₹1,851.50 Crores prior to this allotment.
Deepak Nitrite has received favorable rulings from the Chief Controlling Revenue Authority (CCRA) regarding historical stamp duty disputes dating back to 2014. The CCRA has completely cancelled a previous demand of ₹21.5 lakh, which included a penalty. Furthermore, a larger demand of ₹86.6 lakh has been remanded back to the Deputy Collector for reassessment, providing the company an opportunity to present further evidence. While these legal developments are positive, the total financial amount involved is immaterial relative to the company's overall scale.
- CCRA cancelled a stamp duty demand of ₹21,00,000 and a penalty of ₹50,000.
- A separate demand of ₹86,10,000 and a ₹50,000 penalty have been remanded for reassessment.
- The disputes relate to memorandum entries for loan facilities executed in May and October 2014.
- The company successfully contested the 2024 orders through the CCRA appeal process.
Deepak Nitrite Limited has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by MUFG Intime India Private Limited, confirms that all dematerialization requests for the quarter ended December 31, 2025, were processed within prescribed timelines. It further verifies that physical certificates were mutilated and cancelled, and the depositories' names were updated in the register of members. This is a standard procedural filing required by all listed Indian companies to ensure the integrity of electronic shareholding records.
- Compliance certificate submitted for the quarter ended December 31, 2025
- Confirmation provided by Registrar and Share Transfer Agent, MUFG Intime India Private Limited
- Verification that dematerialized securities are listed on the relevant stock exchanges
- Confirmation of timely mutilation and cancellation of physical share certificates after verification
Deepak Nitrite Limited has announced the closure of its trading window for designated persons starting January 1, 2026. This action is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the company's financial results for the quarter and nine months ending December 31, 2025. The window will remain closed until 48 hours after the unaudited standalone and consolidated financial results are declared. This is a standard regulatory procedure and does not reflect any change in the company's business operations or fundamentals.
- Trading window closure effective from Thursday, January 1, 2026.
- Closure pertains to the financial results for the quarter and nine months ending December 31, 2025.
- Trading restriction applies to all Designated Persons and their immediate relatives.
- Window will reopen 48 hours after the official declaration of financial results.
- Compliance with SEBI (Prohibition of Insider Trading) Regulations and NSE circulars.
Deepak Nitrite's wholly-owned subsidiary, Deepak Chem Tech Limited (DCTL), has issued 45,00,000 9% Optionally Convertible Redeemable Preference Shares (OCRPS) at ₹100 each. The total allotment of ₹45 Crores was made to Deepak Phenolics Limited (DPL), another wholly-owned subsidiary of the company. The infusion is intended to strengthen DCTL's capital base and support ongoing project expenses for its fluorination plant and other sites in Gujarat. This internal transaction maintains the parent company's 100% indirect ownership of DCTL.
- Allotment of 45,00,000 9% Optionally Convertible Redeemable Preference Shares (OCRPS) at ₹100 each.
- Total transaction value of ₹45 Crores as an internal capital infusion from Deepak Phenolics Limited.
- DCTL's turnover grew significantly to ₹9.43 Crores in FY 2024-25 from ₹0.86 Crores in FY 2023-24.
- Funds will be utilized for project expenses and general corporate purposes related to DCTL's fluorination business.
Financial Performance
Revenue Growth by Segment
In FY 2024-25, the Phenolics segment (DPL) grew 16% YoY to reach INR 5,805 Cr, driven by strong demand for Phenol and Acetone. The Advanced Intermediates (AI) segment recorded revenue of INR 2,527 Cr. In Q2 FY26, Phenolics revenue grew 2% sequentially to INR 1,333 Cr, while AI revenue stood at INR 588 Cr.
Geographic Revenue Split
For FY 2024-25, the revenue mix was 84% Domestic (INR 6,923 Cr) and 16% Exports (INR 1,359 Cr). In Q2 FY26, the domestic share increased slightly to 86% (INR 1,632 Cr) with exports at 14% (INR 270 Cr).
Profitability Margins
Consolidated PAT for FY 2024-25 was INR 697 Cr with a PBT of INR 953 Cr. In Q2 FY26, PAT stood at INR 119 Cr (up 6% QoQ) and PBT at INR 163 Cr (up 5% QoQ). Profitability is being supported by efficiency gains despite global pricing volatility.
EBITDA Margin
Consolidated EBITDA margin for FY 2024-25 was 14% (INR 1,176 Cr). In H1 FY26, margins compressed to 11% (INR 438 Cr) due to external headwinds. However, Q2 FY26 saw a sequential improvement of 100 basis points to 12% (INR 224 Cr) as pricing trends stabilized.
Capital Expenditure
The company is executing sizeable capex through Deepak Chem Tech Limited (DCTL), including India's first integrated polycarbonate project and a mega complex. As of March 31, 2025, the company maintained a resilient position with gross debt of INR 1,170 Cr and cash/liquid investments of INR 900 Cr to fund these initiatives.
Credit Rating & Borrowing
ICRA reaffirmed ratings at [ICRA]AA/A1+ but revised the outlook from Positive to Stable in August 2025 due to large-scale capex. The company maintains low leverage with a net debt of only INR 256 Cr as of March 2025.
Operational Drivers
Raw Materials
Key feedstocks include Benzene, Propylene, and Ammonia (implied by Phenol/Nitrite production). Long-term feedstock arrangements for gas are secured with Petronet LNG.
Import Sources
Sourced both domestically and internationally; specific countries are not listed, but the company is actively pursuing import substitution under 'Atmanirbhar Bharat' to reduce reliance on Asian imports.
Key Suppliers
Petronet LNG is a primary strategic supplier for long-term feedstock arrangements.
Capacity Expansion
Expanding into downstream products like MIBK, MIBC, and Polycarbonate. The AI segment is undergoing both brownfield and greenfield expansions via DCTL to deepen integration.
Raw Material Costs
Raw material costs were impacted by global pricing volatility and supply chain disruptions. The company uses vertical integration (backward and forward) to mitigate these costs, achieving significant savings.
Manufacturing Efficiency
Consolidated ROCE is reported at 14%. Efficiency gains in the Phenolics segment helped maintain steady performance despite a 16% revenue increase in a volatile pricing environment.
Strategic Growth
Expected Growth Rate
8.60%
Growth Strategy
Growth will be driven by the 'China+1' strategy, a mega-investment in an integrated Polycarbonate project, and the operationalization of downstream products like MIBK and MIBC. The company is also focusing on CDMO and CMO partnerships to attract global players.
Products & Services
Phenol, Acetone, Isopropyl Alcohol (IPA), Sodium Nitrite, Sodium Nitrate, Nitric Acid, MIBK, MIBC, and Polycarbonate (planned).
Brand Portfolio
Deepak Nitrite, Deepak Phenolics (DPL), Deepak Chem Tech (DCTL).
New Products/Services
Launching MIBK (Methyl Isobutyl Ketone) and MIBC (Methyl Isobutyl Carbinol) in upcoming quarters, alongside the landmark Polycarbonate project.
Market Expansion
Expanding geographical footprint and tapping into emerging applications in construction, homecare, textiles, and pigments.
Market Share & Ranking
DNL holds a leading market position in most of its products (Sodium Nitrite/Nitrate) domestically and globally. It recently expanded market share in the Phenolics segment.
Strategic Alliances
Strategic partnerships in the CDMO and CMO space are being attracted by the group's reinforced brand value and HSE practices.
External Factors
Industry Trends
The industry is shifting toward cost optimization, decarbonization, and 'China+1' sourcing. DNL is positioning itself as a reliable alternative to Chinese suppliers.
Competitive Landscape
Faces intense competition from Asian producers (particularly China) who are pushing excess capacity into the Indian market at low prices.
Competitive Moat
Moat is built on high vertical integration, a 50-year track record, and being the first in India to produce certain integrated products like Polycarbonate, which creates high entry barriers.
Macro Economic Sensitivity
Sensitive to global chemical industry cycles; the global market is expected to grow from $5.61 trillion in 2024 to $8.58 trillion by 2029.
Consumer Behavior
Increased demand for sustainable and reliably sourced chemicals is driving global giants toward DNL's diversified portfolio.
Geopolitical Risks
Impacted by U.S. tariffs, geopolitical tensions affecting supply chains, and economic slowdowns in the EU and China.
Regulatory & Governance
Industry Regulations
Operations are aligned with 'Atmanirbhar Bharat' and national priorities for self-reliance in critical chemicals.
Environmental Compliance
Investing in renewable energy (60-70% target) and digital transformation to reduce emission scores and improve HSE (Health, Safety, and Environment) standards.
Risk Analysis
Key Uncertainties
Severe contraction in operating margins due to capacity buildup in China and economic distress in large consuming centers like the EU zone.
Geographic Concentration Risk
84% of revenue is concentrated in the Indian domestic market, making it vulnerable to local dumping by international players.
Third Party Dependencies
Partly insulated in the AI segment due to assured access to key raw materials, but dependent on Petronet LNG for long-term feedstock.
Technology Obsolescence Risk
Mitigated by strategic investments in automation, debottlenecking, and digital transformation.
Credit & Counterparty Risk
Receivables quality is supported by enduring customer relationships with global giants and a strong consolidated financial profile.