Deepakfrtlsrsandptrchmcl Ltd — Q2 FY26
Deepak Fertilizers reported Q2 FY26 revenue of ₹3,600 crore, up 9% YoY, driven by strong volume growth in TAN (29% YoY) and crop nutrition (54% YoY).
neutral
medium
Financial stats pending filing verification
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
63%Questions answered3Evaded / deflected12Questions audited
Partial answer
Medium priority
What is the situation in the IPA market?
Asked by Shabha, Asive Kocha family office
Management gave qualitative context but no quantitative impact or timeline.
no specific numbersvague timeline
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Question
What is the situation right now with the market? If you can elaborate.
Subhash (Management)
couple of things which are in progress when it comes to IPA market. One there are few sanctions... a lot of this disturbance is actually led by tariff which US Trump has announced... we expect it to be back in business in coming quarters.
Answered
High priority
Expected utilization for new plant in FY27 and FY28?
Asked by Shabha, Asive Kocha family office
Management provided specific utilization percentages for both years.
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Question
We are expecting commissioning MQ4 FI26. So how much utilization are we expecting for FI27 and FI28?
Subhash (Management)
normally the way we expect FI27 we expect around 70% capacity utilization and FI28 will be 80% plus.
Evasive
High priority
How much will gross margins expand in FY27 from lower gas integration?
Asked by Vira Mahadevia, Maloney
Management acknowledged the question but refused to quantify margin expansion.
no number givendeferred to later
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Question
With the lower gas integration into the manufacturing next year, how much do we expect gross margins to expand by in FY27?
Subhash (Management)
we expect the gas prices will come down. Now in terms of margin expansions let's wait for some more time. We still not gone and then communicated but the cost saving is material in nature.
Answered
Medium priority
Will cash flows be used to delever after capex completion?
Asked by Vira Mahadevia, Maloney
Management confirmed deleveraging absent new capex.
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Question
Once this capex underway is completed, is there any other capex planned or will cash flows from FY27 be used to delever the balance sheet?
Subhash (Management)
at this point of time we are reaching towards completion of that capex cycle... there will be some cooling period... If there's nothing else then definitely this will delever our balance sheet more and more.
Deflected
Medium priority
Impact of India-China/Russia fertilizer import talks on company?
Asked by Arman, Blue Sky Fintech
Management avoided discussing potential impact of imports, instead highlighting differentiation.
reframed to product differentiationno direct impact assessment
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Question
How's the overall broader scenario you are seeing for our company? If these talks go through, what kind of outlook you could estimate?
Subhash (Management)
our entire focus is on value added product... we are creating our own niche space... we don't have a fertilizers which is readily comparable in the market.
Partial answer
Medium priority
Cost competitiveness vs Russian ammonia nitrate?
Asked by Arman, Blue Sky Fintech
Management discussed the situation but did not provide cost competitiveness numbers.
no cost comparison given
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Question
What is our reality now? In covid time we had a large impact. What is our cost competitive level vs Russia?
Tarun (Management)
the only business which does get impacted through material coming from Russia is the MSL business... that has been a little bit controlled over the last 6 months... things are normalized.
Answered
High priority
Capacity increase from ammonia plant shutdown in Q4?
Asked by Adar Shen, individual investor
Management gave a specific percentage increase.
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Question
How much capacity can be increased for this plant in Q4?
Subhash (Management)
we are expecting around 10% increase in capacity in this shutdown.
Evasive
Medium priority
How much urea exported under export quota so far?
Asked by Adar Shen, individual investor
Management did not provide a quantitative export figure.
no specific volume given
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Question
Urea export quota. How much we have exported till now?
Tarun (Management)
we have exported reasonable quantities as we used to do in the past... in Q2... we are very hopeful that in Q3 it will be a higher volume compared to Q2.
Answered
Medium priority
Why gap between CWIP and total capex for upcoming plants?
Asked by publisher, individual investor
Management explained the reason for the gap.
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Question
CWIP till now has been around 2200 crores... why is there a gap between CWIP and the total capex?
Subhash (Management)
it's a phasing of payment... we expect capex to get staggered even after commissioning.
Answered
High priority
Cash flow spend in FY26, FY27 and peak debt estimate?
Asked by publisher, individual investor
Management provided peak debt figure and spending phasing.
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Question
On a cash flow basis, how much do we plan to spend in FI26 and FI27 and what do you estimate to be the peak debt?
Subhash (Management)
we shared with the street our peak debt to go up to 4,500. That's what we expect towards end of this year. Some 10 to 15% will remain pending.
Partial answer
High priority
Impact of GST cut on state incentives for ammonia plant?
Asked by Ranjit, Capital
Management discussed the issue but did not quantify the impact on returns.
no quantified impact on returns
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Question
With the GST been cut, how are we viewing this and how should one view returns on this plant?
Subhash (Management)
the GSP rate cut has impacted the incentives... the incentive is much lower... we are representing government... we are ensuring our internal actions make us efficient.
Answered
High priority
Peak utilization timeline and ROC for new plants?
Asked by Bwati, Asph Capital
Management provided specific timeline and ROC expectation.
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Question
What is the peak effect we can expect from these two plants and by when can we reach peak utilization? What kind of ROC do we see?
Subhash (Management)
3 year is normal time to reach normal capacity utilization... FI29 is the year when things will be realized... ROC we are expecting 20% plus.