Deepak Fertilisers And Petrochemicals (DEEPAKFERT) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 was challenging due to extended rains, geopolitical uncertainties, and price volatility, but resilience was maintained through portfolio transformation and operational improvements.

• Year-to-date FY26 revenues grew 12% to ₹8,495 Cr, driven by crop nutrition and bulk businesses, though PAT declined 4% after adjusting for a one-time tax credit.

• Major impacts included unseasonal heavy rains affecting mining and agriculture, and global ammonia price increases raising raw material costs.

• Unaudited standalone and consolidated financial results for Q3 and nine months ended 31 December 2025 were approved and released.

• Permanent closure and dismantling of a 300 TPD Methanol Plant at K1 Unit, non-operational since August 2021, was approved.

Financial highlights

• Q3 FY26 consolidated operating revenue was INR 2,830 crore (₹2,83,007 lakhs), up 10% YOY, led by crop nutrition business.

• YTD revenue reached INR 8,495 crore, up 12% YOY.

• Q3 EBITDA was INR 353 crore (₹31,575 lakhs), down 27% YOY, mainly due to higher raw material costs and weaker IPA and nitric acid realizations.

• Adjusted Q3 PAT was INR 141 crore (₹14,149 lakhs), down 34% YOY; YTD PAT was INR 599 crore, down 4% YOY.

• EPS (consolidated, Q3): ₹11.21, down from ₹19.86 in Q3 last year.

Outlook and guidance

• Mining activity and demand for TAN and nitric acid expected to normalize as weather stabilizes.

• Rabi season anticipated to be strong for crop nutrition due to favorable water tables.

• Major projects (Gopalpur TAN, Dahej acid) to be commissioned in Q1 FY27, enhancing competitiveness and margins.

• LNG contract with Equinor to provide double-digit percentage reduction in gas costs, improving ammonia margins.

• Management remains confident regarding ongoing tax appeals and expects positive outcomes.