Deepak Nitrite Ltd-$ — Q4 FY26 earnings call
Summary generated by AI from the official transcript Deepak Nitrite Ltd-$ filed with BSE on 22 May 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 Nitrite reported Q4 FY26 consolidated revenue of Rs 2,127 crore with EBITDA of Rs 383 crore, up 74% sequentially, and PAT of Rs 220 crore, up 9% year-on-year. Management attributed the improvement to stable domestic demand, favorable pricing, and plant fungibility, while noting the nitric acid plant ran at about 45% utilization due to technical issues. For FY26, consolidated revenue stood at Rs 7,947 crore with EBITDA of Rs 1,041 crore and PAT of Rs 551 crore, and the Board recommended a final dividend of Rs 7.5 per equity share.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Consolidated revenue: INR2,127 crore (Q4 FY26)
p. 4
“During quarter 4, consolidated revenues stood at INR2,127 crore compared to INR2,202 crore in FY25 and INR1,983 crore in Q3 of FY26.”
Maulik Mehta, page 4 of the filed PDF · View the filing
EBITDA: INR383 crore (Q4 FY26)
p. 4
“EBITDA for the quarter stood at INR383 crore, reflecting strong sequential growth of 74% over Q3 and 13% on a year-on-year basis.”
Maulik Mehta, page 4 of the filed PDF · View the filing
Profit after tax: INR220 crore (Q4 FY26)
p. 4
“Profit before tax and exceptional items stood at INR301 crore, while profit after tax stood at INR220 crore, registering a growth of more than 120% quarter-on-quarter and 9% year-on-year.”
Maulik Mehta, page 4 of the filed PDF · View the filing
EBITDA margin: 18% (Q4 FY26)
p. 4
“EBITDA margins improved significantly to 18% during the quarter under review compared to 11% in Q3FY26.”
Maulik Mehta, page 4 of the filed PDF · View the filing
Domestic to export revenue mix: 86:14 (Q4 FY26)
p. 4
“Our domestic to export revenue mix stood at 86:14 reflecting the resilience of our domestic franchise while continuing to maintain meaningful engagement across export markets.”
Maulik Mehta, page 4 of the filed PDF · View the filing
FY26 consolidated revenue: INR7,947 crore (FY26)
p. 4
“For FY26, consolidated revenue stood at INR7,947 crore, while EBITDA and PAT stood at INR1,041 crore and INR551 crore, respectively.”
Maulik Mehta, page 4 of the filed PDF · View the filing
Advanced Intermediates revenue: INR708 crore (Q4 FY26)
p. 4
“Revenues for the quarter stood at INR708 crore compared to INR654 crore in Q4 FY25 and INR652 crore in Q3 FY26.”
Maulik Mehta, page 4 of the filed PDF · View the filing
Advanced Intermediates EBIT: INR34 crore (Q4 FY26)
p. 4
“EBIT improved substantially on a sequential basis to INR34 crore compared to INR15 crore in Q3 FY26.”
Maulik Mehta, page 4 of the filed PDF · View the filing
Phenolics revenue: INR1,429 crore (Q4 FY26)
p. 4
“Revenue from operations for Q4 stood at INR1,429 crore, while EBIT stood at INR287 crore compared to INR239 crore in Q4 last year and INR145 crore in Q3.”
Maulik Mehta, page 4 of the filed PDF · View the filing
Phenolics EBIT margin: 20% (Q4 FY26)
p. 4
“EBIT margins improved to 20% during Q4.”
Maulik Mehta, page 4 of the filed PDF · View the filing
Earnings per share: INR16.11 (Q4 FY26)
p. 5
“Earnings per share for Q4 stood at INR16.11.”
Sanjay Upadhyay, page 5 of the filed PDF · View the filing
Final dividend: INR7.5 per equity share (FY26)
p. 6
“The Board has recommended a final dividend of INR7.5 per equity share for FY26, reaffirming our commitment to delivering consistent shareholder value, continuing to invest in strategic growth and long-term value creation.”
Sanjay Upadhyay, page 6 of the filed PDF · View the filing
Consolidated net worth: INR5,869 crore (FY26)
p. 6
“Consolidated net worth stood at INR5,869 crore, providing adequate financial flexibility to support future growth initiatives.”
Sanjay Upadhyay, page 6 of the filed PDF · View the filing
Finance costs: INR19 crore (Q4 FY26)
p. 6
“Finance costs for Q4 FY26 stood at INR19 crore, reflecting borrowings associated with ongoing growth investments and strategic expansion projects.”
Sanjay Upadhyay, page 6 of the filed PDF · View the filing
Nitric acid plant utilization: 45% (Q4 FY26)
p. 7
“But during this quarter under review, we were roughly at about 45% of utilization.”
Maulik Mehta, page 7 of the filed PDF · View the filing
Total polycarbonate project investment: around INR11,000 crore
p. 15
“So, the total project, what we have announced is around INR11,000 crore.”
Sanjay Upadhyay, page 15 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.
MIBK/MIBC commissioning — Q2 FY27
stated firmly by Maulik Mehta
p. 4
“We witnessed a steady progress of our multipurpose agrochemical intermediates and MIBK, MIBC projects, which are scheduled for commissioning in Q2 FY27.”
Maulik Mehta, page 4 of the filed PDF · View the filing
Polycarbonate project commissioning — June 2028 · June 2028
stated firmly by Maulik Mehta
p. 14
“So we've clarified earlier, and we are, by and large, remaining kind of in line with that, and we are expecting it to be commissioned by June 2028.”
Maulik Mehta, page 14 of the filed PDF · View the filing
Q1 FY27 performance — Q1 FY27
stated firmly by Maulik Mehta
p. 9
“I can say that our Q1 looks on track for numbers, which are better than Q4, whether it is on standalone or on a consolidated basis.”
Maulik Mehta, page 9 of the filed PDF · View the filing
Standalone business margin profile — FY27
stated as an aspiration by Maulik Mehta
p. 12
“Therefore, in FY27, we expect a stronger margin profile, even for the standalone business, compared with FY26.”
Maulik Mehta, page 12 of the filed PDF · View the filing
Feedstock inventory stabilization — end of Q2 FY27 or midway through Q2 FY27
stated as an aspiration by Maulik Mehta
p. 9
“Going with this perspective, we anticipate that the Company has a reasonable inventory of feedstock at enviable prices until we see a stabilizing, perhaps at the end, maybe Q2 or maybe halfway through Q2.”
Maulik Mehta, page 9 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 said the plant ran at about 45% utilization due to technical issues and that they anticipate reaching target performance once operations stabilize.
Answered by Maulik Mehta
Asked by Sanjesh Jain: Was the nitric acid plant achieving expected utilization and margin profile, and is the company on track for the targeted EBITDA addition?
p. 7
“So in Q4, while we did start the plant, we were unable to run it on a consistent basis because of some technical issues that took place during the quarter under review.”
Maulik Mehta, page 7 of the filed PDF · View the filing
Management said feedstock and finished product availability were secured and profitability is expected to remain healthy and improving into Q1.
Answered by Maulik Mehta
Asked by Sanjesh Jain: What is the status of propylene availability and Phenolics spreads versus China?
p. 8
“So I don't anticipate a challenge on that front because of propylene or anything like that.”
Maulik Mehta, page 8 of the filed PDF · View the filing
Management indicated commissioning is expected around the end of Q1 or early Q2.
Answered by Maulik Mehta
Asked by Sanjesh Jain: When will the MIBK/MIBC plant be commissioned?
p. 8
“And at some point, maybe perhaps at the tail end of Q1 or the early part of Q2 is when we will be looking at commissioning of the asset because the asset is commissioned along with a couple of other plant assets as well.”
Maulik Mehta, page 8 of the filed PDF · View the filing
Management said new products are progressing toward regularized commercial production from Q3 and that raw materials had been proactively secured.
Answered by Maulik Mehta
Asked by Nirav Jimudia: How does the company view FY27 for the standalone business given new products and raw material availability?
p. 8
“So the 6, 7 new products as well as the fluorinated molecules, etc., we've already started the manufacturing for the commercial scale validation batches.”
Maulik Mehta, page 8 of the filed PDF · View the filing
Management said Chinese regulatory constraints are expected to create a tailwind for nitration chemistries where Deepak has a strong market position, while sulfur downstream costs remain a headwind.
Answered by Maulik Mehta
Asked by Nirav Jimudia: Are there green shoots in DASDA, sodium nitrate and other nitration-linked products?
p. 9
“So there, we find that there will be some uptick in the demand as well as the profitability for nitration products.”
Maulik Mehta, page 9 of the filed PDF · View the filing
Management declined to comment on other companies' spreads but said Deepak continues to operate with high productivity and expects Q1 to be better than Q4.
Answered by Maulik Mehta
Asked by Arun Prasath: What explains the Phenol price differential between China and India, and will it normalize?
p. 10
“What I can say is that Deepak continues to operate with a high degree of productivity efficiency and is able to ensure that it is able to create the margin that you are seeing.”
Maulik Mehta, page 10 of the filed PDF · View the filing
Management said buying patterns are mixed, with some customers normalized and others still constrained by their own input availability.
Answered by Maulik Mehta
Asked by Arun Prasath: Are domestic Phenol buyers returning to regular ordering patterns?
p. 11
“So answer to this question, to be honest, Arun, is mixed.”
Maulik Mehta, page 11 of the filed PDF · View the filing
Management confirmed the nitration and hydrogenation plants are fully operational while the nitric acid plant faced technical issues requiring market purchases.
Answered by Maulik Mehta
Asked by Arun Prasath: What is the status of the nitration and hydrogenation plants and nitric acid utilization?
p. 11
“No, those plants are fully operational.”
Maulik Mehta, page 11 of the filed PDF · View the filing
Management confirmed the tailwind has already started happening.
Answered by Maulik Mehta
Asked by Archit Joshi: Has the anticipated tailwind from Chinese nitration plant restrictions already begun to materialize?
p. 14
“It has already started happening.”
Maulik Mehta, page 14 of the filed PDF · View the filing
Management said the roughly Rs 11,000 crore project will be funded through a 60:40 debt-equity mix with bank funding already tied up.
Answered by Sanjay Upadhyay
Asked by Vidhi Shah: How will the polycarbonate project be funded?
p. 15
“So, the total project, what we have announced is around INR11,000 crore. The funding is for all the projects together. We have tied up with the banks for debt.”
Sanjay Upadhyay, page 15 of the filed PDF · View the filing
Management said capacity utilization was not the issue but realizations were lower, and a shift to dealership and CSA models was made to secure outstanding receivables.
Answered by Sanjay Upadhyay
Asked by Tushar Raghatate: Why have receivable days increased and is Advanced Intermediates underutilized?
p. 12
“So what you are seeing as underutilized is actually the realization which has gone down, not that the capacity had gone down.”
Sanjay Upadhyay, page 12 of the filed PDF · View the filing
Risks flagged
War in the Middle East disrupted supply chains and logistics, including blocking of the Strait of Hormuz
p. 3
“The environment further intensified in the fourth quarter due to the war in the Middle East, following which the industry witnessed unprecedented disruption in established supply chains, challenges to logistics and freight with the blocking of the Strait of Hormuz, leading to volatility in prices of crude oil as well as related feedstocks.”
Maulik Mehta, page 3 of the filed PDF · View the filing
Technical issues limiting nitric acid plant utilization
p. 7
“We're working along with the technology supplier and the equipment supplier to address these.”
Maulik Mehta, page 7 of the filed PDF · View the filing
Global headwind in sulfur downstream chemistries affecting costs
p. 9
“Now meanwhile, there is also some degree of a headwind, but it is a global headwind, not limited to India or Deepak, which is in the sulfur downstream.”
Maulik Mehta, page 9 of the filed PDF · View the filing
Near-term industry conditions influenced by geopolitical developments, Chinese supply dynamics, U.S. tariff policies and feedstock volatility
p. 6
“Near-term industry conditions are expected to remain influenced by geopolitical developments, Chinese supply dynamics, U.S. tariff policies and feedstock volatility.”
Sanjay Upadhyay, page 6 of the filed PDF · View the filing
Volatility in currency, freight times, freight costs and material movement
p. 10
“We are also, at the same time, seeing volatility in currency, in freight times, freight costs and material movement from port to customers' plant.”
Maulik Mehta, page 10 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.