Deepak Fertilisers And Petrochemicals (DEEPAKFERT) Q3 24/25 earnings summary

Executive summary

• Q3FY25 revenue grew 39% YoY to INR 2,579 crore, EBITDA rose 72% to INR 486 crore, and net profit surged 318% to INR 253 crore, marking the highest quarterly EBITDA in five years.

• Strong volume growth across all product segments, driven by strategic alignment with India's growth sectors, operational excellence, and a shift from commodity to specialty products.

• Strategic drivers include backward integration, capacity expansion, transformation to specialty products, and corporate restructuring into focused business entities.

• Net debt to EBITDA improved to 1.68x from 2.66x in March 2024, reflecting a strengthened balance sheet.

• Board-approved demerger of Mining Chemicals and Fertiliser businesses completed in July 2024, enhancing business focus.

Financial highlights

• Q3FY25 operating revenue: INR 2,579 crore (up 39% YoY); nine-month revenue: INR 7,607 crore (up 15% YoY).

• Q3 EBITDA: INR 486 crore (up 72% YoY); nine-month EBITDA: INR 1,445 crore (up 70% YoY).

• Net profit for Q3: INR 253 crore (up 318% YoY); nine-month net profit: INR 667 crore (up 181% YoY).

• EBITDA margin expanded to 19% in Q3 (up 362 bps YoY); PAT margin at 10% (up 655 bps YoY).

• Net debt reduced to INR 3,245 crore; net debt/equity improved to 0.55x.

Outlook and guidance

• Demand for mining chemicals expected to strengthen in Q4, driven by peak season in coal, cement, and steel sectors.

• Nitric acid margins expected to remain stable; IPA margins likely to improve due to anti-dumping duties and narrowing spreads.

• Crop nutrition business growth to be sustained by favorable water conditions, above-normal monsoon, and product acceptance.

• New capacity expansions at Dahej and Gopalpur expected to go live in H2 FY26, with rapid ramp-up anticipated.

• Gas supply contract starting Q1 FY27 expected to reduce gas costs by over 20%.