Deepak Nitrite Ltd. announced a remarkable financial performance for the second quarter of fiscal year 2027 (Q2 FY27), driving its shares up by 9% in early trading. The chemical manufacturing giant reported a staggering 235% year-on-year (YoY) increase in consolidated net profit, reaching Rs 398 crore. This was accompanied by a 61% rise in total revenue, which hit Rs 3,091 crore, compared to Rs 1,922 crore in the same period last year.
The company's Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) also saw substantial growth, surging 187% YoY to Rs 643 crore from Rs 224 crore in the year-ago quarter. Consequently, the EBITDA margin expanded significantly to 20.8%, up from 11.6% previously, reflecting enhanced operational efficiency. Profit before tax climbed 233% YoY to Rs 543 crore.
Phenolics Segment Fuels Record Growth
The Phenolics segment emerged as a primary driver of Deepak Nitrite's exceptional quarterly results. Revenue from this segment soared 72% YoY to Rs 2,291 crore, while its Earnings Before Interest and Tax (EBIT) witnessed an impressive 256% surge, reaching Rs 515 crore. The company attributed this robust performance to a combination of favorable domestic market dynamics, reduced import competition, and elevated international freight costs, which collectively bolstered the competitiveness of its domestically produced goods.
Advanced Intermediates Performance
In contrast, the Advanced Intermediates segment recorded a 38% YoY increase in revenue, totaling Rs 811 crore. However, its EBIT stood at Rs 49 crore, an improvement from Rs 23 crore in the corresponding quarter last year, but its profitability faced headwinds. The company noted that aggressive global pricing pressures, persistently high raw material and energy costs, and increased export freight expenses impacted the segment's overall profit margins.
Management Optimistic on Performance
"Against this demanding backdrop, Deepak Group has delivered record performance in Q2 and H1 FY27, reflecting the quality of our manufacturing assets, preparedness of our teams and operational agility," stated Deepak C. Mehta, Chairman and Managing Director of Deepak Nitrite. He further emphasized the company's successful efforts to maximize capacity utilization across its facilities, despite ongoing supply-chain challenges.
Half-Yearly Overview
For the first half of FY27, Deepak Nitrite continued its strong trajectory. Total revenue increased 48% YoY to Rs 5,682 crore, with EBITDA rising 173% to Rs 1,197 crore. The company's net profit for H1 FY27 climbed a significant 221% to Rs 743 crore, compared to Rs 231 crore in H1 FY26, underscoring a period of sustained growth and operational excellence.