Deepak Nitrite Limited has informed the Exchange about Transcript
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Deepak Nitrite filed the transcript of its Q1 FY26 earnings call held on August 14, 2025. Consolidated revenue came in at INR 1,897 crore, down 7% quarter-on-quarter, but EBITDA rose 11% sequentially to INR 197 crore with margins expanding about 100 basis points to 10%, helped by better Phenolics pricing and cost optimization. PBT grew 17% sequentially to INR 138 crore (excluding INR 17 crore of government incentives). The Advanced Intermediates segment remained weak due to subdued agrochemical demand and Chinese oversupply (EBIT margin 6%), while the Phenolics segment was resilient with EBIT up 29%. Management highlighted commissioning of nitric acid (end of Q2 FY26), MIBK/MIBC (next quarter), a INR 220 crore specialty fluorochemicals plant (Jan–Mar 2026), and a 165,000 MT integrated polycarbonate project targeting commercial operations by December 2027. Capex plan of about INR 10,000 crore over three years was reiterated, with a payback of 5–5.5 years and 16–18% IRR for the polycarbonate chain.
The transcript provides a constructive near-term outlook with margin recovery driven by nitric acid and new product ramp-ups from Q3 FY26 onwards, supporting the stock. However, persistent agrochemical demand softness, low U.S. exposure cushioning tariff risk, and execution risks on the large multi-year capex program are key watchpoints for shareholders.