Deepak Fertilisers And Petrochemicals (DEEPAKFERT) Q1 25/26 earnings summary

Executive summary

• Achieved 17% year-over-year revenue growth and 22% increase in net profit for Q1 FY26, with strong performance in specialty, Croptek, and crop nutrition segments; operating EBITDA rose 10% to INR 513 Cr.

• Specialty and Croptek products contributed significantly to revenue, with Croptek volumes up 73% year-over-year and specialty products now comprising up to 80% of the top line in some reports.

• Net debt reduced to INR 3,078 Cr, improving net debt/EBITDA to 1.5x, despite INR 377 Cr capex in Q1.

• Received favorable ITAT order for Mahadhan AgriTech, eliminating INR 581 Cr tax demand and expected withdrawal of INR 479 Cr penalty.

• Strategic capex projects and expertise-driven growth initiatives are progressing on track, positioning for future growth.

Financial highlights

• Q1 FY26 operating revenue reached INR 2,659 Cr, up 17% year-over-year, with broad-based segment growth.

• Operating EBITDA was INR 513 Cr, up 10% year-over-year; EBITDA margin at 19.3%.

• Net profit grew 22% year-over-year to INR 244 Cr; PAT margin at 9.1%.

• Net debt reduced from INR 3,305 Cr to INR 3,078 Cr; net debt/equity at 0.43x.

• CapEx investment of INR 377 Cr during the quarter.

Outlook and guidance

• Q2 expected to be seasonally muted for mining chemicals due to monsoon, but export quota increase to 50,000 MT/year is a strategic positive for H2.

• Anticipates strong momentum in crop nutrition business, supported by favorable monsoon and high-value product adoption.

• EBITDA margin expected to remain in the 18%-20% range for the year.

• Ongoing capex projects (Gopalpur TAN ~80% complete, Dahej Nitric Acid ~57% complete) on track for FY26 commissioning.