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Informist, Thursday, Aug. 6, 2026

 

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--Deepak Nitrite: FY28 capex seen around INR 30 bln on new projects
--Deepak Nitrite: See new pdts having better margins on softening competition
--Deepak Nitrite: Targeting H2 FY29 to commission polycarbonate plant
--Deepak Nitrite: Plan to invest INR 700 mln to debottleneck plants
--Deepak Nitrite: Q1 is a strong start to strong year
--Deepak Nitrite: To ramp up production across locations to drive growth
--CONTEXT: Deepak Nitrite mgmt's comments in post-earnings analyst concall
--Deepak Nitrite: Faced a lot of volatility in raw material costs in Q1
 

 

By Narayana Krishna and Shruti Nair

 

HYDERABAD/MUMBAI - Deepak Nitrite Ltd. on Thursday said the June quarter performance was a good start to the financial year and that it expects stronger earnings in 2026-27 (Apr-Mar), driven by capacity expansions and debottlenecking some of its plants. The company is planning to invest INR 700 million on improving productivity at its phenolics plants, its management said at a post-earnings analyst conference call.

 

The speciality chemicals manufacturer reported consolidated net profit of INR 3.45 billion for the June quarter, up over threefold on year. The company's revenue from operations rose 36% on year to INR 25.78 billion.

 

Deepak Nitrite Limited produces over 100 chemical intermediates across four primary segments – phenolics, basic chemicals, fine and specialty chemicals, and performance products.

 

Deepak Nitrite is planning to spend around INR 30 billion as capital expenditure on new projects in FY28. For FY27, the company is expecting INR 10 billion to INR 15 billion as capex, which will mostly go on land development works for future projects, the company management said. Deepak Nitrite is targeting to commission its polycarbonate plant by Oct-Mar of FY29. Besides new plants, the company is also planning to ramp up its existing capacities to drive growth, management said.

 

Deepak Nitrite is expecting its margins to improve in the coming quarter due to pricing power and lower competition in some product segments. For the June quarter, the company's earnings before interest, tax, depreciation, and amortisation margins were at 21% against 11% a year ago. Volatility in raw material costs has impacted the overall margins in the June quarter, the company said. For the June quarter, the company's input costs rose nearly 19% on year to INR 15.8 billion.

 

On Thursday, Deepak Nitrite's shares ended at INR 1,750.40 on the National Stock Exchange, up 0.8% from its previous close.  End

 

Reported by Narayana Krishna

Edited by Saji George Titus

 

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