Deepak Fertilisers And Petrochemicals (DEEPAKFERT) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 saw consolidated revenues surge 39% YoY to INR 2,579 crore, EBITDA up 72% to INR 486 crore, and net profit rise 318% to INR 253 crore, marking the highest quarterly EBITDA in five years.

• Strong volume growth across all product segments, driven by operational excellence, capacity utilization (85%-105%), and strategic alignment with India's growth sectors.

• Strategic focus on backward integration, specialty product development, digitization, ESG initiatives, and corporate restructuring to enhance business focus and profitability.

• Board-approved demerger of Mining Chemicals and Fertiliser businesses completed in July 2024, creating three independent entities.

• Market cap reached ₹15,123 crore as of Dec 2024, with a 93% CAGR in value creation since Mar 2020.

Financial highlights

• Q3 FY25 operating revenue: INR 2,579 crore (up 39% YoY); nine-month revenue: INR 7,607 crore (up 15% YoY).

• Q3 EBITDA: INR 486 crore (up 72% YoY); nine-month EBITDA: INR 1,445 crore (up 70% YoY); EBITDA margin expanded to 19%.

• Q3 net profit: INR 253 crore (up 318% YoY); nine-month net profit: INR 667 crore (up 181% YoY); net margin at 10%.

• Net debt reduced to INR 3,245 crore; net debt/equity improved to 0.55x.

• Cash profit for Q3FY25: INR 353 crore (up 132% YoY).

Outlook and guidance

• Expectation of increased demand for TAN in Q4 due to peak mining and infrastructure activity.

• Nitric acid demand and margins expected to remain stable; IPA margins likely to improve with anti-dumping duties and narrowing spreads.

• Capacity expansion projects at Dahej and Gopalpur on track to go live in H2 FY26, expected to drive future growth.

• Focus on growing specialty share in revenue and margin expansion across all business lines.

• Positive outlook for Crop Nutrition and Industrial Chemicals segments, supported by strong demand drivers and strategic initiatives.