Deepakfrtlsrsandptrchmcl Ltd — Q3 FY26
Deepak Fertilizers reported a challenging Q3 FY26 with consolidated revenue of ₹2,830 crore (+10% YoY) but EBITDA fell 27% YoY to ₹353 crore and PAT dropped 34% to ₹141 crore.
bearish
high
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.
73%Questions answered1Evaded / deflected11Questions auditedMixedNumbers vs filing
Partial answer
High priority
Impact of new TAN and ammonia projects on India demand-supply and savings from LNG contract.
Asked by Nirj Mana, White Pine Investment
Management gave qualitative guidance but declined to quantify savings from LNG contract or exact break-even improvement.
no specific savings number givenrefused to give exact break-even reduction
Read the exchange
Question
can you give us some color on the new upcoming tan and ammonia projects and any impact that can have on our India's demand supply equation... how much can be the savings from the LG long-term contract once they start
Tarun Sina (President)
demand growth in India for tan products is likely to be in the range of 6% CAGR over next 5-6 years... imports close to 4 lakh tons will slowly reduce... break even currently around 430-440 will come down substantially... double digit reduction in percent terms
Answered
High priority
Reason behind IPA price volatility and outlook for the full year.
Asked by Shabbam Tasman, Asid Kotija family office
Management provided specific price decline percentage and clear outlook on recovery timeline.
Read the exchange
Question
I wanted to understand the reason behind price volatility and what is your outlook for the IPA business for a whole year.
Tarun Sina (President)
price reduction in this year is almost around 22-23%... driven by softer prices of acetone and imports... we don't see immediate quick turnaround of IPA prices happening in a quarter or two
Evasive
Medium priority
Customer concentration risk in TAN business.
Asked by Shabbam Tasman, Asid Kotija family office
Management refused to disclose customer concentration, only gave market share.
declined to share customer concentration data
Read the exchange
Question
how much revenue comes from around top five or top three players in the tan business. How much concentration risk are we having that segment?
Tarun Sina (President)
we don't share customer wise profiling of tan business... our market share is almost around 40%... any customer you talk about in tan business we are supplying to them
Partial answer
High priority
Impact of Chinese exports and new domestic capacity on TAN demand-supply.
Asked by Pratush Kamill, Ingred Equities
Management gave qualitative rebuttal but did not provide concrete data to counter analyst's specific numbers.
no specific demand growth numbers for TANdeferred to long-term view
Read the exchange
Question
China increase in export of ammonium nitrate... domestic demand has shrunk... additional 500 KTP supply by Chambal and GNFC... how do you come across that problem?
Shailesh Mata (Chairman) and Tarun Sina (President)
need to see industry with longer horizon... coal demand will grow 4-5%... additional capacity ramp-up takes time... India may still be short supply... export quota may get removed eventually
Answered
High priority
Margin pressure in IPA due to cheaper acetone route and price decline.
Asked by Pratush Kamill, Ingred Equities
Management acknowledged the price decline and gave a clear outlook that recovery will take time.
Read the exchange
Question
prices have come down from 1 lakh 37,000 per ton to about 85-90,000 per ton... you face margin pressure... how do you see it ramping up?
Tarun Sina (President)
IPA prices broadly now at a level where it's flat for some time... cycle need to turn... will take some time... we ourselves are not saying IPA is getting corrected in one quarter
Answered
Medium priority
Strategy behind explosive manufacturer acquisition and DMSL demerger update.
Asked by Kushal Sha, Rachel Investor
Management clarified the acquisition status and provided strategy rationale; gave clear update on demerger.
Read the exchange
Question
strategy behind that acquisition... is it more of a production ramp up or technology gain... any update on deep mining solutions and deep fertilizers demerger?
Shailesh Mata (Chairman) and Tarun Sina (President)
we have not yet acquired the company... signed an agreement... purpose is to produce differentiated value adding products... demerger happened last year... listing timing yet to be decided
Answered
High priority
Reason for margin dip in fertilizer segment despite stable volume and higher realization.
Asked by Churak, keynote capitals
Management clearly attributed margin decline to raw material cost and product mix shift.
Read the exchange
Question
volume growth was stable... realization has improved... significant dip in margins... is this purely because of increase in price of phosphoric acid?
Tarun Sina (President)
raw material cost increases not compensated by subsidy... mix changed due to delayed rains... restricted ability to push value added products
Answered
Medium priority
Reason for IPA plant shutdown and impact of ammonia price increase on margins.
Asked by Churak, keynote capitals
Management explained shutdown reason and clarified margin dynamics between ammonia and TAN.
Read the exchange
Question
reason behind the plant shutdown... any increase in price of ammonia is beneficial for us... why margins significantly took a hit in chemical segments?
Tarun Sina (President)
annual planned maintenance... ammonia price increases get passed on with time lag... tan standalone margin impacted but combined with ammonia margin was same
Evasive
Low priority
Long-term target for B2C revenue share in mining chemicals.
Asked by Mkta Chandani, Aryan Capital
Management avoided giving a numerical target for B2C share, only qualitative growth commentary.
no specific long-term target given
Read the exchange
Question
B2C revenue share is stood at 15% this time... if you could just throw some light on long-term target
Tarun Sina (President)
downstream business of DMSL... growing in its own way... in absolute numbers it will be growing in line with market growth... acquisition in explosive is part of downstream journey
Partial answer
Medium priority
Drivers of increased trading revenue in fertilizer business and margin profile.
Asked by Shil Kumar Sha, Samia Capital
Management explained strategy but did not quantify margins on trading business.
no specific margin percentage given
Read the exchange
Question
trading business revenue has significantly increased... what is driving that... what type of margins do we make on this trading side?
Tarun Sina (President)
focus is to grow specialty and crop focus business... trading route to fulfill demand... specialty products have elevated margin profile... we maintain right margin profile even with trading
Answered
Medium priority
Forward integration into explosives and competition with existing players.
Asked by Dave Mata, individual investor
Management clearly differentiated their business model from competitors.
Read the exchange
Question
are we directly competing one of the largest mining explosive manufacturer in India?
Tarun Sina (President)
our business model is likely to be quite different... offering will be more outcome based, solution based rather than product sale based
Partial answer
High priority
Reason for change in ammonia break-even from $350 to $430-450.
Asked by Dave Mata, individual investor
Management explained reasons for change but did not provide updated break-even figure.
no specific new break-even number given
Read the exchange
Question
in previous call it was mentioned as $350... why is there so much difference?
Tarun Sina (President)
gas prices and GST reduction impact... incentive benefit itself from 9% to 2.5% is sizable... with new contract we see substantial gas price reduction bringing break-even down in double digit percentage
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Q3 consolidated operating revenues 2,830 cr, 10% YoY growth | ₹2,830 cr | ₹2,830 cr | Matches filing |
| YTD revenue 8,495 cr, up 12% YoY | ₹8,495 cr | ₹2,830 cr | Overstated vs filing |
| Q3 EBITDA 353 cr, 27% YoY decline | ₹353 cr | ₹353 cr | Matches filing |
| YTD EBITDA 1,330 cr, down 8% YoY | ₹1,330 cr | ₹353 cr | Overstated vs filing |
| Adjusted PAT Q3 141 cr, down 34% YoY | ₹141 cr | ₹141 cr | Matches filing |
| YTD PAT 599 cr, down 4% YoY | ₹599 cr | ₹141 cr | Overstated vs filing |
| CNB revenue grew 26% YoY in Q3 | 26% | 10% | Overstated vs filing |
| B2C segment 26% YoY growth in Q3 | 26% | 10% | Overstated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.