About Deepak Fertilisers and Petrochemicals Corporation Limited
Deepak Fertilisers and Petrochemicals Corporation Limited (DEEPAKFERT) is a major Indian manufacturer of industrial and agricultural chemicals and fertilizers. Founded in 1979 and headquartered in Mundhwa, Pune, Maharashtra, it began as an ammonia producer and has since grown into a publicly listed, diversified chemical conglomerate with a strong presence in several key sectors.
The company’s business spans industrial chemicals (such as nitric acid, isopropyl alcohol and methanol), crop nutrition and fertilizers (sold under brands like Mahadhan through its subsidiary Smartchem Technologies), and technical ammonium nitrate (TAN) used in mining and infrastructure. It also has interests in value-added real estate.
The company operates multiple manufacturing plants across India and is recognized for being one of the largest producers of nitric acid in Southeast Asia and a leading global manufacturer of technical ammonium nitrate.
Financial Performance (Q3 FY26)
Consolidated revenue rose 9.7–9.73% year-on-year to around ₹2,830 crore for the quarter ended Dec 31, 2025. Net profit declined sharply (43–44% YoY) to about ₹141–₹142 crore, driven by margin pressures and higher costs. EBITDA was materially lower vs last year, with margins contracting significantly on tougher input cost conditions.
Standalone vs. Consolidated
Standalone performance was weaker, with sales and profits down substantially compared with last year’s quarter.
Key Drivers & Business Trends
Rising input costs (raw materials, energy etc.) and softer demand in some segments squeezed margins and profits. Although the fertilizer business saw some volume growth, certain chemical segments like IPA faced headwinds. Management emphasized focus on specialty products and strategic capacity investments in presentations accompanying results.
Strategic Moves
The Board approved permanent closure and dismantling of an older 300 TPD methanol plant that has been non-operational for years as part of asset optimization and freeing up capacity for future projects.
Market Reaction & Outlook
The results were met with a negative market reaction, with shares trading lower following the earnings release. Commentary suggests the company is navigating a challenging cost and demand environment while pushing toward higher-margin product segments and growth capex.