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Informist, Tuesday, Aug. 4, 2026

By Rosalin Lenka

MUMBAI – Specialty chemicals manufacturer Deepak Nitrite Ltd. is expected to report a sharp rise in net profit for the June quarter supported by higher phenol and acetone spreads, improved product realisations, and pass through of higher input cost, according to brokerages tracking the company.
 

The company's net profit for the June quarter is expected to nearly double on year to INR 2.17 billion, according to the average of estimates from seven brokerages. The company had reported a net profit of INR 1.12 billion in the year-ago quarter. The highest estimate for the company's June quarter net profit is INR 3.04 billion from ICICI Securities Ltd. and the lowest is INR 638 million from HDFC Securities Ltd.

The company's net sales for the June quarter are expected to rise over 22% on year to INR 23.1 billion, according to the average of estimates. The company had reported net sales of INR 18.9 billion in the year-ago quarter. The highest estimate for net sales is INR 28.7 billion from Kotak Securities Ltd. and the lowest is INR 20.4 billion from Elara Securities.

The company's product realisations are expected to be supported by higher feedstock prices following the war in West Asia, which lifted chemical prices during the early part of the quarter, brokerages said. Although crude oil and natural gas prices corrected later in the quarter, average prices remained above pre-war levels, brokerages said.

Specialty chemical companies are expected to recover part of the higher input costs through price hikes, while commodity chemical producers are likely to continue facing margin pressure due to limited pricing power, according to Prabhudas Lilladher Ltd. The potential implementation of anti-dumping duties on key products such as para-tertiary butyl phenol, sodium nitrite, and antioxidants, among others could provide further relief to domestic chemical manufacturers. Deepak Nitrite is among the companies likely to benefit from anti-dumping duties on products such as sodium nitrite, according to Prabhudas Lilladher.

The company is expected to report earnings before interest, tax, depreciation, and amortisation of INR 3.53 billion in the June quarter, up 80% on year, according to the average of seven estimates. The highest EBITDA estimate is INR 4.78 billion from Kotak Securities and the lowest is INR 1.62 billion from HDFC Securities. The company is expected to report an EBITDA growth despite surging prices of raw materials including sulphur, ammonia, and natural gas and delayed price hikes that will likely put pressure on operating margins, Elara Securities said. Persisting shortages of key raw materials are expected to further constrain sector profitability, Elara said.
 

Deepak Nitrite manufactures industrial and specialty chemicals, including sodium nitrite, fuel additives, dyes and dye intermediates. The company also supplies products used in pharmaceuticals, agrochemicals, rubber, and fine chemicals. The company will detail its June quarter earnings Tuesday.
 

At 1343 IST, shares of Deepak Nitrite traded slightly up at INR 1,720.30 apiece on the National Stock Exchange. The stock is slightly down since the company reported its results for the March quarter on May 15.

Of the eight research reports on the company available with Informist, three have a "buy" recommendation on the stock with an average target price of INR 2,001, which is 16% higher than the current market price. Three brokerages have a "hold" recommendation on the stock with an average target price of INR 1,772 and two brokerages have a "sell" recommendation on the stock with an average target price of INR 1,473.

The following are the Apr-Jun earnings estimates, for Deepak Nitrite Ltd. from seven brokerages in the descending order of the estimates of net profit, in INR million:

 

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Pankaj Aher
 

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