- Deepak Nitrite shares surged 9.41% after Q2 net profit more than tripled year-on-year
- Consolidated net profit rose to Rs 397.7 crore versus Rs 118.7 crore last year same quarter
- Phenolics business revenue grew 72% with EBIT up 256%, driving overall strong performance
Deepak Nitrite shares were buzzing in trade on Friday, rising as much as 9.41% to hit an intraday high of Rs 1,616.65 apiece, after the chemical manufacturer reported a stellar set of September quarter results, with net profit more than tripling year-on-year and operating margins nearly doubling.
At 9:42 am, Deepak Nitrite shares were trading 3.29% higher at Rs 1,526.15 apiece. In comparison, BSE Sensex was trading 0.36% higher at 74,415 levels.
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The company's consolidated net profit surged to Rs 397.7 crore in Q2 FY27, compared with Rs 118.7 crore in the corresponding quarter last year. Revenue from operations jumped 61.8% year-on-year to Rs 3,076 crore from Rs 1,902 crore.
Operating performance also witnessed a sharp improvement, with earnings before interest, taxes, depreciation and amortisation (EBITDA) rising to Rs 626.8 crore from Rs 204.3 crore, marking a growth of nearly 207%.
EBITDA margin expanded to 20.4% from 10.7% in the year-ago quarter.
What Drove Deepak Nitrite's Strong Q2 Performance?
The company's Phenolics business emerged as the biggest growth driver, delivering its best-ever quarterly performance.
Revenue from the segment increased 72% year-on-year to Rs 2,291 crore, while earnings before interest and tax (EBIT) surged 256% to Rs 515 crore.
Deepak Nitrite attributed the strong performance to disruptions in imports, elevated international freight costs and tighter domestic product availability, which improved the competitiveness of locally manufactured products.
Proactive sourcing of raw materials and timely procurement interventions also helped the company maintain uninterrupted plant operations, achieve full volume fulfilment and benefit from firm realisations and healthy domestic spreads.
Meanwhile, the Advanced Intermediates segment reported 38% revenue growth during the quarter. However, profitability remained under pressure due to aggressive global pricing, elevated raw material and energy costs, higher export freight expenses and deferred demand in certain agrochemical applications.
What Is Deepak Nitrite's Outlook?
The company said it expects favourable conditions in the Phenolics business to continue in the foreseeable future, supported by its domestic market position, operating efficiencies and downstream portfolio expansion.
In Advanced Intermediates, improving demand visibility, moderation in customer inventory destocking and the commercialisation of specialty and downstream products are expected to support growth.
Chairman and Managing Director Deepak C. Mehta said the group is also progressing towards indigenous polycarbonate resin production, targeted for the close of FY30, as it looks to capitalise on India's growing demand from electronics manufacturing, automobiles and electric mobility.
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