1. At a Glance
Deepak Nitrite (DNL) kicked off FY26 with mixed notes — revenue down12.8% YoYat ₹1,890 crore, PAT down44.6% YoYto ₹112 crore. Margins took a hit as thePhenolics segmentstayed strong butAdvanced Intermediatescontinued to face global demand softness. Management is still on a multi-year capex spree, betting ₹14,000+ crore on new capacity — includingIndia’s first large-scale polycarbonate resins plant.
2. Introduction
Founded in 1970, Deepak Nitrite is one of India’s fastest-growing chemical intermediates producers with32+ productsacross two big buckets:
- Phenolics– Phenol, Acetone, Cumene, IPA, AMS.
- Advanced Intermediates– Nitrites, Nitro Toluidines, Xylidines, Oximes, DASDA, OBAs.
It’s India’slargest phenol/acetone player(50%+ market share) and a global top-3 in several intermediates.
3. Business Mix – What They Actually Sell
Phenolics (70% of 9M FY25 revenue)
- 50%+ India market share in phenol & acetone.
- Used in laminates, pharma, adhesives, auto.
- FY25 saw 21% YoY growth in 9M, Q1 FY26 volumes stable.
Advanced Intermediates (30%)
- Largest sodium nitrite/nitrate producer in India.
- Top-3 globally in xylidines & oximes.
- 9M FY25 revenue fell 9% YoY due to destocking abroad.
Geography: 84% domestic, 16% exports (FY25).
4. Q1 FY26 Financial Snapshot
| Metric | Q1 FY26 (₹ Cr) | Q1 FY25 (₹ Cr) | Q4 FY25 (₹ Cr) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 1,890 | 2,168 | 2,180 | -12.83% | -13.30% |
| EBITDA | 190 | 309 | 317 | -38.51% | -40.06% |
| EBITDA Margin | 10% | 14% | 15% | -400 bps | -500 bps |
| PAT | 112 | 203 | 202 | -44.63% | -44.55% |
| EPS (₹) | 8.23 | 14.85 | 14.84 | -44.56% | -44.55% |
Commentary:Margins are at decade-lows for DNL’s post-2018 phenolics era. Soft phenol spreads and weaker intermediates pricing dragged results.
5. Balance Sheet Health
| Metric (₹ Cr) | FY25 |
|---|---|
| Net Worth | 5,388 |
| Borrowings | 1,267 |
| D/E Ratio | 0.23 |
Leverage is up from FY23’s near debt-free state due to capex, but still conservative.
6. Capex Pipeline – Big Bets
- MIBK/MIBC Project– H1 FY26 start.
- Nitration/Hydrogenation– H2 FY25 start.
- Acetophenone– H1 FY26 start.
- Nitric Acid– Q4 FY25 completion.
- Polycarbonate Resins– ₹5,000 Cr via WOS Deepak Chem Tech; assets acquired from Trinseo, to be India’s first major PC
