Deepak Nitrite (DEEPAKNTR) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenue grew 3% year-over-year to INR 1,983 crore, with EBITDA up 16% year-over-year to INR 219 crore, demonstrating resilience amid global pricing pressures and competition, especially from China.

• Nine-month FY26 revenue reached INR 5,820 crore, with EBITDA at INR 658 crore and PAT at INR 331 crore, reflecting margin compression due to pricing challenges and one-off pre-commissioning costs.

• Domestic revenue mix remained strong at 83%, with exports at 17%, highlighting resilience in the domestic market and ongoing global expansion.

• Strategic integration of new capacities, including Nitric Acid, nitration, and hydrogenation plants, completed vertical integration and improved raw material security.

• Operational agility, disciplined value creation, and improved working capital efficiency supported performance, with strong contributions from the Phenolics segment.

Financial highlights

• Q3 FY26 consolidated revenue: INR 1,983 crore (up 3% YoY); EBITDA: INR 219 crore (up 16% YoY); EBITDA margin improved to 11% from 10% YoY.

• Q3 FY26 PAT was INR 100 crore, up 2% YoY but down 16% sequentially; PBT for Q3: INR 151 crore, including a one-time exceptional provision of INR 12.84 crore under new labor codes.

• Nine-month FY26 consolidated revenue: INR 5,820 crore; EBITDA: INR 658 crore; PAT: INR 331 crore.

• Finance costs for Q3: INR 11 crore; depreciation and amortization: INR 58 crore, reflecting new asset capitalization; finance costs increased 39% sequentially.

• Consolidated ROCE at 15%, indicating strong capital efficiency.

Outlook and guidance

• Q4 FY26 expected to show improved margins and performance as integration of Nitric Acid and other assets is fully realized.

• New product launches in mining chemicals, flame retardants, personal care, flavors, fragrances, and polymers are expected to contribute to revenue in the coming months.

• Prioritizing new product introductions and geographic expansion, especially in Fluorination, Nitration, Nitrite, and Amines.

• Ongoing focus on operational excellence, ramp-up of new capacities, and specialty product expansion.

• Cautious optimism due to ongoing global volatility, but positive on India’s growth and new trade agreements.