Deepak Nitrite profit jumps to 397.7 crore rupees as revenue grows 61.8%
Key Facts
Deepak Nitrite reported consolidated net profit of 397.7 crore rupees in the second quarter of fiscal 2027, compared with 118.7 crore rupees in the same period a year earlier, according to NDTV Profit coverage. The jump coincided with a 61.8% year-on-year increase in revenue from operations to 3,076 crore rupees, from 1,902 crore rupees. The coverage said the phenol segment recorded its strongest quarterly performance, leading the improvement in the company’s results. Earnings before interest, tax, depreciation and amortisation rose to 626.8 crore rupees from 204.3 crore rupees, an increase of about 207%. The margin on these earnings also widened to 20.4% from 10.7% a year earlier, signaling improved profitability alongside revenue growth.
The phenol segment was the leading driver of the results, with revenue up 72% year on year to 2,291 crore rupees. The segment’s earnings before interest and tax rose 256% to 515 crore rupees, according to figures reported by NDTV Profit. The company attributed the strong performance to import disruptions, higher international freight costs and limited local product availability. These conditions helped strengthen the competitiveness of domestically manufactured products, according to the coverage’s account of the company’s remarks. The figures show the segment’s contribution to the improvement in group profit, alongside growth in its business volume.
The coverage said advance procurement of raw materials and timely intervention in purchasing helped keep plants operating without interruption. It added that this enabled the company to meet volumes in full and benefit from favorable realizations and healthy domestic spreads. In the advanced intermediates segment, revenue rose 38% during the quarter, but sales growth did not translate into a comparable improvement in profitability. The segment’s profitability was affected by global pricing pressure and higher raw material, energy and export freight costs. Deferred demand in some agrochemical applications also weighed on its performance, according to the coverage.
The company linked its outlook for the phenol segment to the continuation of favorable conditions in the foreseeable future. It said its position in the domestic market, operating efficiency and breadth of end products support this outlook. For the advanced intermediates segment, the company expected growth to be supported by improved demand visibility and a moderation in customer inventory destocking. It also said the commercialization of specialty and end products would support the segment’s activity. These expectations remain tied to the factors identified by the company in NDTV Profit coverage.
In its expansion plans, the company targeted starting domestic production of polycarbonate resin by the end of fiscal 2030, according to Chairman and Managing Director Deepak C. Mehta. The target sets a specific timeline for one of the company’s industrial projects, as quarterly results showed differing performance between its phenol and advanced intermediates segments. In trading, the stock closed at 1,476.40 rupees in the October 29 session, down 0.81% from the previous session, according to Investing.com data. The stock had risen 3.97% on October 28, after falling 0.76% on October 27. The previous sessions’ moves came ahead of the results reported by NDTV Profit.