Deepak Fertilisers And Petrochemicals (DEEPAKFERT) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 operating revenue rose 10% year-over-year to ₹2,830 Cr, with EBITDA down 27% and PAT down 34–44% due to margin pressures, higher raw material costs, and weather disruptions.

• Year-to-date FY26 revenue grew 12% to ₹8,495 Cr, driven by crop nutrition and bulk businesses, while adjusted PAT declined 4–10% due to a one-time tax credit in the previous year.

• The company is transitioning from commodity to specialty products, with specialty and Croptek contributing 33% of Crop Nutrition revenue YTD.

• Unaudited standalone and consolidated financial results for Q3 and nine months ended 31 December 2025 were approved and released.

• Permanent closure and dismantling of a 300 TPD Methanol Plant at K1 Unit, non-operational since August 2021, was approved.

Financial highlights

• Q3 FY26 consolidated operating revenue was INR 2,830 crore, up 10% year-over-year, led by crop nutrition and bulk (CNB) business.

• Q3 EBITDA was INR 353 crore, down 27% year-over-year, mainly due to higher raw material costs and weaker IPA and nitric acid realizations.

• Q3 PAT was INR 141 crore, down 34% year-over-year; YTD PAT was INR 599 crore, down 4% year-over-year.

• Q3 FY26 EBITDA margin dropped to 12% from 19% a year ago; PAT margin fell to 4.9% from 9.8%.

• Capital expenditure for FY26 totaled ₹1,495 Cr, supporting ongoing expansion projects.

Outlook and guidance

• Mining activity and demand for technical ammonium nitrate (TAN) and nitric acid are expected to recover as weather normalizes.

• Rabi season is anticipated to be strong, supporting crop nutrition and fertilizer business.

• Major projects (Gopalpur TAN and Dahej acid) are nearing completion and expected to contribute to earnings from Q1 FY27.

• LNG contract with Equinor will provide significant gas cost savings and improve ammonia business margins.

• Industrial Chemicals expects soft to stable prices for Nitric Acid and continued weakness in IPA due to market oversupply.