Deepak Fertilisers And Petrochemicals (DEEPAKFERT) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 consolidated revenue grew 9% YoY to ₹3,006 Cr, with PAT flat at ₹214 Cr; H1 FY26 revenue rose 13% YoY to ₹5,665 Cr and PAT increased 11% to ₹458 Cr.

• Mining Chemicals (TAN) and Crop Nutrition businesses outperformed, while Ammonia and IPA segments faced headwinds from global volatility.

• Specialty products now make up 28% of Crop Nutrition revenue, with Croptek volumes up 54% YoY.

• Strategic acquisition of Platinum Blasting Services in Australia completed, strengthening mining solutions and forward integration.

• Strategic capex projects and transition from commodity to specialty products are progressing, supporting future growth.

Financial highlights

• Q2 FY26 operating revenue: ₹3,006 Cr (up 9% YoY); H1 FY26: ₹5,665 Cr (up 13% YoY).

• Q2 FY26 EBITDA: ₹464 Cr (down 6% YoY); H1 FY26: ₹977 Cr (up 2% YoY); Q2 EBITDA margin declined to 15% from 18% YoY.

• Q2 FY26 PAT: ₹214 Cr (flat YoY); H1 FY26 PAT: ₹458 Cr (up 11% YoY); PAT margin for Q2 at 7.1%.

• Net debt increased by ₹97 Cr in H1 FY26 despite ₹870 Cr capex; net debt/EBITDA at 1.74x, net debt/equity at 0.48x as of Sep 2025.

• Five-year revenue CAGR at 15%, EBITDA CAGR at 19%, and PAT CAGR at 23%.

Outlook and guidance

• Robust Rabi season demand expected for crop nutrition due to favorable monsoon and reservoir levels.

• TAN and Nitric Acid projects on track for commissioning by end of FY26; capacity utilization expected at 70% in FY27 and 80%+ in FY28.

• New LNG contract from May 2026 anticipated to reduce gas costs and improve ammonia margins.

• Margins expected to return to 18%-20% for FY26; FY27 seen as a stepping stone year with new capacities.

• IPA and Ammonia segments anticipate near-term recovery as prices stabilize and operational efficiencies improve.