Deepak Nitrite Q2 FY2026 Results Show 39% YoY Profit Decline Amid Sector Headwinds; Sequential EBITDA Up 5% QoQ on Cost Optimization

Deepak Nitrite Q2 FY2026 Financial Performance

Deepak Nitrite Ltd (NSE: DEEPAKNTR) reported its Q2 FY26 (July–September 2025) results with a year-on-year decline in revenue and profit, reflecting challenging global conditions and pricing pressures in the Advanced Intermediates segment. However, the company showed sequential improvement in profitability, supported by cost optimization and improved contribution from the Phenolics business.

Stock Performance & Key Metrics

As of November 13, 2025:

• Current Price: ₹1,722
• Market Cap: ₹23,494 Crores
• Stock P/E: 44.2
• Industry P/E: 30.5
• Book Value: ₹404 per share
• Dividend Yield: 0.44%
• ROCE: 16.3%
• ROE: 13.4%
• Debt to Equity: 0.23
• Debt: ₹1,244 Crores
• Face Value: ₹2
• EPS: ₹39.0

Q2 FY2026 Financial Highlights

On a quarter-on-quarter basis, revenue remained broadly stable, while EBITDA improved by 5% and margins expanded by ~100 basis points, supported by operational efficiency and energy cost savings.

Performance Overview

Deepak Group delivered a resilient performance amid global headwinds. Sequentially, revenues were steady, but YoY comparisons reflected softer operating conditions.

• Phenolics Business: Registered higher volumes and improved contribution due to lower feedstock prices.
• Advanced Intermediates: Impacted by US tariff actions and influx of underpriced Chinese products, weighing on margins.
• Consolidated EBITDA: Up 5% QoQ to ₹224 Cr; EBITDA margin improved to 12%.
• Phenolics EBIT: Up 23% QoQ, offsetting weakness in intermediates.

Cost optimization measures across power, fuel, and overheads contributed to the sequential profitability improvement.

Management Commentary

> “The current global environment is marked by rising geopolitical tensions and trade barriers,” said Mr. Deepak C. Mehta, Chairman & Managing Director. > “Backward and forward integration have evolved from strategic options into operational necessities. Our India-centric, import-substitution-driven model and the new Deepak Research & Development Centre strengthen our long-term competitiveness.”

Mr. Mehta emphasized ongoing efforts to operationalize upstream projects like Nitric Acid and downstream products such as MIBK and MIBC, as well as expansions in Phenol, Acetone, and IPA capacities to achieve deeper integration.

Strategic Developments & Projects

• New R&D Centre at Savli, Vadodara, inaugurated on October 1, 2025, built with ₹100 Cr investment.
• Houses advanced chemistry labs, polymer R&D, and training facilities.
• Acid Unit and MIBK/MIBC Projects are progressing and expected to be operational by Q4 FY26.
• The company continues to focus on energy diversification, circularity, and operational excellence.

Outlook

While the global operating landscape remains volatile, H2 FY26 is expected to deliver better performance driven by:

• Commissioning of new capacities.
• Market seeding of new products and SKUs.
• Potential relief from US trade tariffs.

Deepak Nitrite remains focused on long-term competitiveness through integration, innovation, and sustainability, positioning itself as a key player in India’s chemical value chain.

About the Company

Deepak Nitrite Limited (DNL) is one of India’s leading chemical intermediates companies with a diversified product portfolio catering to pharmaceuticals, agrochemicals, dyes, plastics, and petrochemicals. Recognized globally as a responsible manufacturer and preferred supplier, DNL combines process innovation, technological expertise, and ethical governance to deliver sustained stakeholder value.

*For full results, refer to the official filing on BSE*

*Data as of November 13, 2025 | Results approved by Board of Directors on November 12, 2025*