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Deepak Nitrite Limited — Q2 FY26
Deepak Nitrite reported Q2 FY26 consolidated revenue of ₹1,922 crore (flat QoQ) and EBITDA of ₹224 crore (+5% QoQ), with EBITDA margin improving 100bps to 12%.
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Deepak Nitrite reported Q2 FY26 consolidated revenue of ₹1,922 crore (flat QoQ) and EBITDA of ₹224 crore (+5% QoQ), with EBITDA margin improving 100bps to 12%. The phenolics segment drove performance with record isopropyl alcohol production, while advanced intermediates faced headwinds from Chinese dumping and US tariff uncertainty, with agrochemical intermediates volumes near zero. Management expects H2 improvement from agrochemical demand recovery, commissioning of upstream assets (nitric acid, MIBK/MIBC) by Q4, and new product launches from the R&D center. The polycarbonate project remains on track for March 2028. Key risk: sustained dumping from China could further pressure advanced intermediates margins.
दीपक नाइट्राइट ने दूसरी तिमाही में 1,922 करोड़ रुपये की कमाई की, जो पिछली तिमाही के बराबर है। कंपनी ने 224 करोड़ रुपये का परिचालन लाभ कमाया, जो 5% ज्यादा है। मुनाफा बढ़ने से मार्जिन 12% हो गया। फिनोलिक्स सेगमेंट ने आइसोप्रोपिल अल्कोहल का रिकॉर्ड उत्पादन किया। लेकिन एडवांस्ड इंटरमीडिएट्स को चीन से सस्ते माल और अमेरिकी टैरिफ से नुकसान हुआ। कंपनी को उम्मीद है कि दूसरी छमाही में कृषि रसायनों की मांग बढ़ेगी। नए कारखाने और उत्पाद मार्च तक शुरू होंगे। पॉलीकार्बोनेट प्रोजेक्ट मार्च 2028 तक तैयार होगा। चीन से सस्ता माल आने से मुनाफा कम हो सकता है।
Promises0 met · 2 missedRisks4 trackedTranscriptfull text
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0 delivered, 0 close, 2 missed.
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Risk Intelligence
Sustained Chinese dumping in advanced intermediates
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Read Transcript →Quarter Snapshot
Phenolics EBIT
₹145 crore
+23% QoQ
Phenolics segment EBIT grew 23% sequentially to ₹145 crore, driven by higher throughput and favorable product mix.
Advanced Intermediates EBIT Margin
4%
-200bps QoQ
Advanced intermediates EBIT margin fell to 4% from ~6% in Q1, impacted by pricing pressure from Chinese dumping.
Debt-to-Equity
0.21
flat
Company maintains low gearing at 0.21, with net worth of ₹5,550 crore, supporting planned capex.
New Products Launched in Q2
7
N/A
Seven new homegrown products were launched in Q2, targeting life sciences, flame retardants, and mining chemicals.
What Changed vs Last Quarter
NEW
H2 performance expected better than H1
Management expects H2 FY26 to be better than H1, driven by improving demand and commissioning of new capacities.
NEW
Upstream assets (nitric acid, MIBK/MIBC) to commission by Q4 FY26
Nitric acid plant commissioning this quarter; MIBK/MIBC plant expected to start commercial production by March 2026.
NEW
Polycarbonate project on track for March 2028
Integrated polycarbonate complex commissioning targeted for January-March 2028 quarter, with total capex of ~₹9,000 crore.
NEW
Capex guidance of ₹1,500 crore for FY26 maintained
Management reaffirmed capex spend of ~₹1,500 crore for the current fiscal year.
DROPPED
Nitric acid plants to be commissioned by end of Q2 FY26
Concentrated nitric acid in trial production; weak nitric acid commissioning ongoing. Both expected to be fully online by end of Q2, adding 200-300 bps to AI segment EBITDA margins from Q3.
DROPPED
MIBK/MIBC and other solvent plants to commission in Q3 FY26
Advanced solvents MIBK, MIBC, and nitration plants expected to be commissioned in the next quarter (Q3 FY26). Ramp-up will be accelerated, targeting merchant revenue of ~₹550 crore from MIBK alone.
DROPPED
Polycarbonate complex commercial operations by December 2027
India's first integrated polycarbonate project (165 KTPA) with backward integration from propane to phenol/acetone, BPA, and polycarbonate. Total capex ~₹10,000 crore over three years.
DROPPED
Renewable energy target of 60-70% by FY27
Signed PPA for renewable energy; expected to reduce CO2 emissions by 60-65% and deliver cost savings from May 2026.
NEW RISK
Sustained Chinese dumping in advanced intermediates
Chinese dumping in products like sodium nitrite and nitroaromatics is pressuring margins; management expects moderation but no clear timeline.
NEW RISK
US tariff uncertainty impacting agrochemical demand
Customers delayed purchases due to tariff uncertainty; recovery depends on clarity, which remains elusive.
NEW RISK
Polycarbonate project timeline risk from propane supply
Management acknowledged potential delay if propane supply from Petronet LNG is delayed, though they have contingency plans.
NEW RISK
BPA technology partner not yet finalized
When asked about BPA technology, management deferred, indicating discussions are ongoing, which could affect project integration.
RISK GONE
Delayed agrochemical demand recovery
Agrochemical intermediates demand remains subdued due to Chinese oversupply and customer deferrals. Management expects recovery from Q2, but timing is uncertain.
RISK GONE
US tariff impact on indirect exposure
Direct US exposure is only 2.5-3%, but second-order effects on customer demand (textiles, auto) could impact volumes. Management was evasive on quantifying the risk.
RISK GONE
Execution risk on large capex program
₹10,000 crore capex over three years with multiple projects (polycarbonate, nitric acid, solvents) could face delays or cost overruns. Peak debt expected at ₹7,000-7,500 crore.
RISK GONE
Heat wave impact on production
Unprecedented heat wave in Gujarat constrained phenolics production in Q1, despite achieving a new production peak. Future weather events could disrupt operations.
Fast read
Guidance and risk preview
Management expects H2 FY26 to be better than H1, driven by improving demand and commissioning of new capacities.
Chinese dumping in products like sodium nitrite and nitroaromatics is pressuring margins; management expects moderation but no clear timeline.
View Risks →