Deepak Fertilisers And Petrochemicals (DEEPAKFERT) Q2 24/25 earnings summary

Executive summary

• Consolidated revenues grew 13% year-over-year to INR 2,747 crores for Q2 FY25, with EBITDA up 73% to INR 494 crores and net profit up 237% to INR 214 crores.

• Maintained market leadership in mining chemicals, industrial chemicals, and crop nutrition, supported by strategic initiatives like backward integration, specialty product focus, and corporate restructuring.

• Strategic capex projects underway to expand TAN and nitric acid capacities, positioning for global leadership.

• Board-approved demerger of mining chemicals and fertilizer businesses completed, enhancing focused leadership.

• Recognized with multiple awards for operational excellence, supply chain, and workplace culture.

Financial highlights

• Q2 FY25 operating revenue was INR 2,747 crores, EBITDA margin improved to 18%, and net profit reached INR 214 crores, up 237% year-over-year.

• PAT margin increased to 8% year-over-year; net debt/EBITDA reduced to 1.64x and net debt/equity to 0.55x.

• H1 FY25 operating revenue was INR 5,028 crores, up 6% year-over-year; H1 FY25 PAT was INR 414 crores, up 134% year-over-year.

• INR 200 crores of debt prepaid during the quarter, reducing overall debt by 10%.

• Cash profit for Q2 FY25 was INR 314 crores, up 117% year-over-year.

Outlook and guidance

• Management expects the 18% EBITDA margin to be sustainable, with some cyclicality.

• Strong rabi season anticipated due to above-normal monsoon, supporting crop nutrition business.

• Demand recovery expected in mining chemicals in Q3, supported by growth in coal, cement, and steel.

• Anti-dumping duty on IPA to support margins in industrial chemicals.

• Strategic capex projects to commission in H2 FY26, expanding capacity and global market position.