Deepak Fertilisers & Petrochemicals Corporation Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Deepak Fertilisers & Petrochemicals Corporation Ltd filed with BSE on 01 Jun 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Deepak Fertilisers reported full year revenue growth of around 12% to Rs 11,506 crores, with Q4 revenue at Rs 3,011 crores and Q4 EBITDA at Rs 354 crores, as management described a challenging operating environment from LPG and LNG supply disruptions, fertiliser price controls, and export bans. Management attributed second-half margin pressure to sharp increases in input costs in the fertiliser business and pricing pressure in IPA, alongside a planned ammonia plant shutdown that had a one-off impact of around Rs 70-75 crores in Q4. The company also discussed progress on its Gopalpur TAN and Dahej nitric acid projects, both nearing completion, and the start of LNG supply under its long-term Equinor contract.
Numbers mentioned
Revenue: INR11,506 crores (FY26)
p. 5
“we delivered revenue growth of around 12% for the full year with revenue at INR11,506 crores”
Subhash Anand, page 5 of the filed PDF · View the filing
Revenue: INR3,011 crores (Q4 FY26)
p. 5
“For the quarter, revenue stood at INR3,011 crores, reflecting continued volume-led growth in Mining Chemicals and Crop Nutrition, along with a sequential recovery in Industrial Chemicals.”
Subhash Anand, page 5 of the filed PDF · View the filing
EBITDA: INR1,684 crores (FY26)
p. 5
“On profitability, our full year EBITDA stood at INR1,684 crores, while Q4 EBITDA came at INR354 crores.”
Subhash Anand, page 5 of the filed PDF · View the filing
PAT: INR739 crores (FY26)
p. 6
“At the PAT level, full year profit stood at INR739 crores.”
Subhash Anand, page 6 of the filed PDF · View the filing
Net debt: INR4,824 crores (FY26)
p. 6
“As a result, the net debt stood at INR4,824 crores and net debt to EBITDA is around 2.86x.”
Subhash Anand, page 6 of the filed PDF · View the filing
Capex: INR1,569 crores (FY26)
p. 6
“On the balance sheet, capex during the year around INR1,569 crores as we move closer to the completion of our key growth projects.”
Subhash Anand, page 6 of the filed PDF · View the filing
Gopalpur TAN project completion: around 95% complete
p. 6
“Gopalpur TAN project is around 95% complete.”
Subhash Anand, page 6 of the filed PDF · View the filing
Dahej nitric acid project completion: around 86% complete
p. 6
“Dahej nitric acid project is around 86% complete.”
Subhash Anand, page 6 of the filed PDF · View the filing
Mining Chemicals volume growth: 12% Y-o-Y, 27% sequentially (Q4 FY26)
p. 6
“Volume were up 12% Y-o-Y basis and 27% sequentially with a full year growth of around 11%.”
Subhash Anand, page 6 of the filed PDF · View the filing
B2C segment revenue contribution: around 16% (FY26)
p. 6
“The B2C segment continued to scale well, now contributes around 16% of the revenue compared to 13% last year.”
Subhash Anand, page 6 of the filed PDF · View the filing
Specialty and Croptek contribution to segment revenue: around 33% (FY26)
p. 6
“Specialty and Croptek now contributes around 33% of segment revenue, up from 30% previous year, which is a very important structural level lever for improving margins over time.”
Subhash Anand, page 6 of the filed PDF · View the filing
Cumulative CWIP on Gopalpur and Dahej projects: around INR3,050 crores
p. 6
“The cumulative CWIP on both the project is around INR3,050 crores.”
Subhash Anand, page 6 of the filed PDF · View the filing
Total cumulative spend including GST and advances: around INR3,800 crores
p. 6
“total cumulative spend is around INR3,800 crores”
Subhash Anand, page 6 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Gopalpur and Dahej project commissioning — commissioning · Q2 FY27
stated firmly by Subhash Anand
p. 6
“Commissioning is expected in Q2 FY '27, and both projects remain within the approved capex envelope.”
Subhash Anand, page 6 of the filed PDF · View the filing
TAN plant utilization — 90% to 95% utilization on a TPD basis · end of FY27
stated conditionally by Subhash Anand
p. 9
“We expect by end of this year, we should be at least touching 90% to 95% utilization on a TPD basis.”
Subhash Anand, page 9 of the filed PDF · View the filing
FY27 capex — around INR800 crores to INR1,000 crores capex spending, including maintenance · FY27
stated firmly by Subhash Anand
p. 10
“So there is almost INR800 crores to INR1,000 crores capex spending, including maintenance.”
Subhash Anand, page 10 of the filed PDF · View the filing
Capex after FY27 — normal maintenance capex · beyond FY27
stated firmly by Subhash Anand
p. 10
“Next year onward, we should back to a normal capex because our current period of investment will coming to an end.”
Subhash Anand, page 10 of the filed PDF · View the filing
Quality of earnings
stated as an aspiration by Subhash Anand
p. 7
“Going forward, we expect quality of earnings to improve, supported by 3 key levers: tightening global supply conditions, which are helping to improve spreads, better cost visibility and stability from our long-term gas arrangement.”
Subhash Anand, page 7 of the filed PDF · View the filing
Growth and margin in FY27 — FY27
stated conditionally by Subhash Anand
p. 15
“in the current environment of global supply tightness and also with Equinor gas availability or gas surety and the cost advantage which we have, we do expect improvement both on growth as well as on, I call it, on our margin front.”
Subhash Anand, page 15 of the filed PDF · View the filing
Specialty fertiliser business growth
stated as an aspiration by Subhash Anand
p. 16
“Our business focus is very clearly grow our specialty business in fertilisers.”
Subhash Anand, page 16 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management attributed the improvement to seasonal mining demand strengthening and said the trend would continue despite a seasonally weaker Q2
Answered by Tarun Sinha
Asked by Rohit Sinha: Whether the higher TAN volumes in Q4 represent a new run rate or one-off backlog sales
p. 7
“So that would be the primary reason, I would say, for better volumes in Q4.”
Tarun Sinha, page 7 of the filed PDF · View the filing
Management said they are now fully secured with additional shipments already lined up through the year
Answered by Subhash Anand
Asked by Rohit Sinha: How long is gas supply secured following the Equinor shipment
p. 8
“Now we are fully secured. When I say fully secured, the way we have contract -- we have a minimum take-or-pay contract currently with our existing local supplier.”
Subhash Anand, page 8 of the filed PDF · View the filing
Management said prices are elevated due to propylene shortages and expect them to remain elevated before settling at a new, though not previous, normal
Answered by Subhash Anand
Asked by Shubham Dhasmana: Outlook for IPA/acetone prices over the next 6 months
p. 9
“So will the price will remain elevated for some time? Yes, price will remain elevated for some time before the situation becomes normal and then we'll have to see what will be the normal IPA prices once things go back.”
Subhash Anand, page 9 of the filed PDF · View the filing
Management attributed the buildup to a soft rabi season and higher channel inventory, expected to normalize with the kharif season pull
Answered by Subhash Anand
Asked by Sheelkumar Shah: Whether receivables and inventory days increases are a concern
p. 10
“So this is a temporary buildup for our Kharif season. Maybe next month or 2, we'll be back to normal and this elevated working capital will not be there.”
Subhash Anand, page 10 of the filed PDF · View the filing
Management confirmed the spread assumption was directionally right and said ammonia business margins will be significantly better than historical levels without giving a specific number
Answered by Subhash Anand
Asked by Meet Vora: What ammonia spreads and EBITDA benefit could result from current elevated ammonia prices versus gas costs
p. 14
“I will not go with the number. But yes, our margin in ammonia business will be significantly better than what we used to discuss or what we used to talk about.”
Subhash Anand, page 14 of the filed PDF · View the filing
Management said Russian export bans and plant disruptions had caused temporary supply slowness but that Russia's ban has since been lifted and supplies expected to resume
Answered by Tarun Sinha
Asked by Meet Vora: Impact of Russia TAN supply disruptions and outlook for normalization
p. 15
“The ban has been removed earlier this month by government of Russia. So some supplies are expected to resume from Russia, although the cost levels and price levels will be different.”
Tarun Sinha, page 15 of the filed PDF · View the filing
Management said no immediate timeline had been decided but they remain committed to the path
Answered by Subhash Anand
Asked by Parth Kotak: Timeline for demerger or subsidiary listing
p. 11
“we yet to take a call in terms of form and shape and timing of subsidiary listing and demerger or listing, I call it, not demerger, how and when it has to happen.”
Subhash Anand, page 11 of the filed PDF · View the filing
Risks flagged
LPG shortage impacting propylene supply for the IPA business
p. 3
“We saw a sudden impact emerging from sudden shortage of LPG and the refineries were also pushed hard to not reduce the supplies of LPG, and that impacted an LPG cut, which is propylene, which supports our IPA business.”
Sailesh Mehta, page 3 of the filed PDF · View the filing
LNG supply disruption affecting Fertilisers and Chemicals businesses
p. 3
“We also saw LNG cuts that impacted our Fertilisers and Chemicals businesses because LNG vessels got stuck, as you're all aware.”
Sailesh Mehta, page 3 of the filed PDF · View the filing
Delayed and inadequate government subsidy coverage against rising fertiliser input costs
p. 3
“Fertiliser prices went shooting through the roof, and we saw an inadequate and delayed subsidy coverage from the government.”
Sailesh Mehta, page 3 of the filed PDF · View the filing
Skilled labor shortage due to LPG cooking shortages and state elections
p. 3
“Somewhere we saw even skilled labor for our projects impacted by LPG shortage for cooking besides a lot of them vanishing due to the West Bengal and other state elections.”
Sailesh Mehta, page 3 of the filed PDF · View the filing
China export ban on critical products and India's ammonium nitrate export ban
p. 3
“We also saw China bringing an export ban on some of the critical products.”
Sailesh Mehta, page 3 of the filed PDF · View the filing
Planned ammonia plant shutdown impact
p. 4
“Also, while Q4 saw a long-ish planned shutdown for our ammonia plant to also bring in some efficiencies and capacity improvements, and that brought in an impact of around INR70 crores in Q4.”
Sailesh Mehta, page 4 of the filed PDF · View the filing
Sharp increase in phos acid and sulfur input costs outpacing pass-through and subsidy support
p. 5
“This was largely due to sharp increase in input cost in Fertiliser business, particularly phos acid and sulfur, whereas the pass-through to customer and the corresponding subsidy support lagged the cost escalation.”
Subhash Anand, page 5 of the filed PDF · View the filing
Pricing pressure in IPA weighing on margins
p. 5
“At the same time, we also saw pricing pressure in Chemicals segment, especially in IPA, which further weigh on margin during the second half.”
Subhash Anand, page 5 of the filed PDF · View the filing
RGP availability constraint limiting IPA volumes
p. 6
“IPA performance were impacted by weak price and lately constraint in RGP availability, which continue to limit volumes.”
Subhash Anand, page 6 of the filed PDF · View the filing
Lower farm gate prices, elevated channel inventory and input cost increases in Crop Nutrition
p. 6
“The business impacted by lower farm gate prices, elevated channel inventory and sharp increase in input cost.”
Subhash Anand, page 6 of the filed PDF · View the filing
Project delays due to shortage of skilled contract manpower
p. 13
“It was more led by nonavailability of skilled workforce because of various factors which came and got impacted or got affected.”
Subhash Anand, page 13 of the filed PDF · View the filing
Potential El Nino impact on rains
p. 4
“I might also share that while we do hear about the El Nino impact likely to pull down the rains somewhat, we are still tracking for granular details and reports.”
Sailesh Mehta, page 4 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.