Deepak Fertilisers & Petrochemicals Corp Ltd Q2 FY26 Concall Decoded: “Margins Took a Fertiliser Dip, But the Soil’s Still Fertile”

1. Opening Hook

So, global tariffs, monsoon tantrums, and Trump’s tweets — sounds like a recipe for chaos, right? Yet Deepak Fertilisers somehow managed to grow the crop, even if the soil was a bit soggy. Management swears by “resilience,” investors call it “just another volatile quarter.” Between rising mining demand and moody IPA prices, the company’s Q2 felt like juggling chemicals blindfolded. But wait — LNG contracts, Australian takeovers, and shiny new plants are in the pipeline. This isn’t your usual fertilizer story — there’s fire, gas, and global politics in the mix. 🌾

(Keep reading — it gets explosive, quite literally.)

2. At a Glance

• Revenue up 9% YoY:CFO calls it “resilience,” not a miracle — we’ll take his word.
• EBITDA at ₹464 Cr (flat-ish):Profit growth doing the limbo, but still above ground.
• PAT steady at ₹214 Cr:Investors yawned, management smiled politely.
• Margins slipped to 15% (from 18%):Blame IPA and Ammonia — the usual suspects.
• TAN volume up 29%:Mining boom meets chemical zeal.
• Crop Nutrition up 54%:Farmers clearly liked the new “crop-specific” cocktails.
• Net Debt/EBITDA 1.74x:Borrowing modestly to keep the dream alive.
• Stock reaction:Traders fertilised optimism, ignored the fine print.

3. Management’s Key Commentary

“Q2 results indicate a bit of tough going with margins dropping from 18% to 15%.”(Translation: We hit a pothole but didn’t crash — please notice the car’s still moving.)

“Crop Nutrition grew 54%, TAN volumes 29%, and overall revenue up 9%.”(Translation: Two segments are running marathons while IPA is still stretching.)

“IPA and Ammonia were hit; we’re awaiting trade realignments.”(Translation: We’re waiting for the global economy to stop misbehaving.)

“Platinum Blasting Services acquisition strengthens our mining footprint.”(Translation: We bought an Aussie company — now we can blow things up globally.) 💣

“TAN project 87% complete, Nitric Acid 70%; on track for FY26-end commissioning.”(Translation: The engineers haven’t gone on strike yet — we’re optimistic.)

“Our LNG deal with Equinor will kick in mid-next year.”(Translation: We’re finally locking in cheaper gas — and fewer panic attacks.)

“Focus on value-added products continues.”(Translation: Commodity margins bore us; we’re trying to sound premium.) 😏

4. Numbers