Deepak Nitrite Q2 FY27 results: net profit ₹397.68 crore vs ₹118.75 crore, revenue up 61.8%

How did Deepak Nitrite perform in Q2 FY27?

Deepak Nitrite reported consolidated revenue of ₹3,076 crore in Q2 FY27, up ₹1,174 crore or 61.8% from Q2 FY26 and ₹498.77 crore or 19.4% from Q1 FY27. Total income was ₹3,092.66 crore. EBITDA increased to ₹626.85 crore from ₹204.27 crore a year earlier, and the margin widened to 20.4% from 10.7%.

Profit before tax rose to ₹542.70 crore from ₹163.03 crore in Q2 FY26 and ₹467.63 crore in Q1 FY27. After tax of ₹145.02 crore, Deepak Nitrite reported a net profit of ₹397.68 crore, against ₹118.75 crore a year earlier and ₹345.01 crore in the previous quarter. Basic EPS was ₹29.16, compared with ₹8.71 and ₹25.3, respectively.

On the standalone basis, Q2 FY27 revenue was ₹812.23 crore, up 31.9%, while profit after tax was ₹143.73 crore against ₹111.65 crore in Q2 FY26. The standalone basic EPS was ₹10.54, compared with ₹8.19 in the year-ago quarter and ₹4.74 in Q1 FY27.

What changed in Deepak Nitrite's costs and profit?

Total expenses rose ₹791.15 crore or 45.0% from Q2 FY26 to ₹2,549.96 crore. Cost of materials increased by ₹592.43 crore, employee cost by ₹27.86 crore, finance costs by ₹21.20 crore, depreciation by ₹18.05 crore and other expenses by ₹96.71 crore. Other income declined by ₹3.66 crore, from ₹19.95 crore to ₹16.29 crore, and there was no exceptional item.

Tax expense increased by ₹100.74 crore from ₹44.28 crore in Q2 FY26 to ₹145.02 crore. Despite the higher cost lines and tax, profit before tax rose by ₹379.67 crore to ₹542.70 crore and net profit increased by ₹278.93 crore to ₹397.68 crore. The filing did not provide a separate explanation for the movements in each expense line.

Against Q1 FY27, total expenses rose ₹425.98 crore, led by a ₹254.93 crore increase in cost of materials and a ₹26.82 crore increase in other expenses. Other income increased by ₹2.28 crore, while tax rose by ₹22.40 crore; net profit increased by ₹52.67 crore to ₹397.68 crore.

How did the first half of FY27 go?

For H1 FY27, Deepak Nitrite reported revenue of ₹5,653.97 crore, total income of ₹5,684.27 crore, profit before tax of ₹1,010.33 crore and net profit of ₹742.69 crore. Basic EPS was ₹54.45 for the first half.

Revenue increased by ₹1,862.2 crore or 49.1% from H1 FY26, while total income rose ₹1,847.99 crore or 48.2%. Profit before tax increased by ₹692.56 crore or 217.9%, net profit rose by ₹511.68 crore or 221.5%, and basic EPS increased by ₹37.51 or 221.4% from ₹16.94.

What do the balance sheet and cash flow show?

As on 30 September 2026, total assets were ₹9,813.51 crore, compared with ₹8,680.68 crore as on 31 March 2026. Total equity increased to ₹6,521.09 crore from ₹5,869.28 crore, while borrowings rose to ₹1,657.06 crore from ₹1,527.82 crore. Cash and cash equivalents declined to ₹15.94 crore from ₹243.14 crore.

Inventories increased to ₹935.62 crore from ₹862.3 crore, trade receivables to ₹1,959.2 crore from ₹1,505.56 crore and trade payables to ₹809.89 crore from ₹534.11 crore. The company did not provide a balance-sheet bridge explaining these movements in the cited filing.

H1 FY27 operating cash flow was ₹650.9 crore, compared with ₹204.03 crore in H1 FY26. Investing cash flow was negative ₹864.13 crore against negative ₹214.67 crore, financing cash flow was negative ₹13.99 crore against negative ₹146.34 crore, and capital expenditure was ₹723.77 crore against ₹662.03 crore.

How has Deepak Nitrite done over the last 8 quarters?

Revenue and profit both moved higher over the latest reported quarters. Revenue reached ₹3,076.37 crore in Q2 FY27, above ₹2,577.6 crore in Q1 FY27, while net profit rose to ₹397.68 crore from ₹345.01 crore. Revenue has increased year on year in each of the last two quarters, and profit has increased year on year in each of the last four quarters.

The EBITDA margin peaked at 21.0% in Q1 FY27 and eased to 20.4% in Q2 FY27, after reaching 10.7% in Q2 FY26. Net profit bottomed at ₹98.13 crore in Q3 FY25 and reached its highest reported level in the latest quarter. Q2 FY27 revenue of ₹3,076.37 crore was also the highest in the trend.

Which businesses drove the quarter?

Phenolics was the larger reported segment in Q2 FY27. Revenue was ₹2,291.09 crore, up 71.8% from ₹1,333.46 crore in Q2 FY26, while EBIT rose to ₹515.43 crore from ₹144.78 crore. The segment margin was 22.5%.

Advanced Intermediates reported revenue of ₹810.82 crore, up 37.9% from ₹587.84 crore in the year-ago quarter. EBIT increased to ₹48.76 crore from ₹22.97 crore, and the segment margin was 6.0%. The company said the segment prioritised higher volumes and customer acquisition, while competitive pricing and elevated operating costs affected profitability.

What else did the company announce?

The board approved the standalone and consolidated unaudited financial results for the quarter and half year ended 30 September 2026 at its meeting on 29 October 2026. The company also filed the Q2 and H1 FY27 results presentation on 29 October, describing the quarter’s profit increase and continued pressure on Advanced Intermediates margins.

The cited same-day filings did not announce a dividend, fund raise or appointment. A separate BSE filing dated 15 October 2026 had earlier notified the board meeting to consider the standalone and consolidated unaudited results for the quarter and half year ended 30 September 2026.

What did Deepak Nitrite's management say?

Management said Advanced Intermediates EBIT is expected at about ₹240 crore in FY27 and roughly ₹400–420 crore in FY28 at steady-state utilisation, with a target margin of approximately 14–15%. Q3 FY27 margin is expected between Q1 and Q2, closer to Q1, while Q4 FY27 is expected to be better than Q3. Phenolics profitability was expected to continue in Q3 FY27 on improved feedstock placement and winter throughput.

Management said upstream Advanced Intermediates assets exceeded 100% utilisation from September 2026. Polycarbonate resin remains targeted for FY29, with the fully integrated asset targeted for FY30. The company also expects a further ₹800–900 crore of cash-flow capex in H2 FY27, following approximately ₹700 crore in H1.

Maulik Mehta said the main investment focus would be the polycarbonate facility, while planned investment in the Advanced Intermediates business would be marginal. The four-year growth programme totals ₹11,700 crore, with only about ₹50 crore of equity funding remaining.

Management identified global chemical volatility, feedstock price and availability, duties, logistics, freight, variable customer volumes and the ramp-up of new assets as risks. It also cited polycarbonate execution risk connected with relocation, feedstock timing and upstream integration. No separate analyst concerns were listed in the available record.

How did Deepak Nitrite shares react?

After the filing appeared, the stock fell 2.0% within 5 minutes, 2.3% within 15 minutes and 3.6% within 30 minutes. It closed 3.3% higher on the reaction day from the previous close of ₹1,472, and by the next day’s close it was up 3.6% from that pre-results close.

On the reaction day, the median move across the other Specialty Chemicals stocks was negative 2.0%, while the Nifty Smallcap 250 fell 2.0%. Deepak Nitrite therefore moved 5.2 percentage points above the industry median; by the next day’s close, the stock was 3.6 percentage points above the industry median of 0.0%.

Earlier reaction-day moves were mixed. They ranged from a fall of 15.5% on 13 February 2025 to a rise of 5.0% on 13 November 2024. The most recent prior reaction, on 4 August 2026, was 0.3% higher.

How did other Specialty Chemicals companies do?

A total of 48 Specialty Chemicals companies were compared for the quarter. Their median revenue growth was 27.8%, and 39 peers reported higher profit; profit was compared for 44 peers.

Among the other companies with comparable revenue growth, 39 grew more slowly than Deepak Nitrite and 9 grew faster than Deepak Nitrite. Deepak Nitrite’s Q2 FY27 consolidated revenue growth was 61.8%.