Deepak Nitrite (DEEPAKNTR) Q2 2025 earnings summary

Executive summary

• Announced a ₹5,000 crore investment in a polycarbonate resin project with technology partnership and asset acquisition from Trinseo PLC, aiming to reduce India's import dependency and support manufacturing growth.

• Consolidated revenue for Q2 FY25 grew 14% year-on-year to ₹2,053 crore; H1 FY25 revenue rose 18% to ₹4,239 crore, with net profit for H1 FY25 at ₹396.73 crore.

• Phenolics segment delivered 29% YoY revenue growth in Q2 FY25 and contributed the majority of profits, while Advanced Intermediates faced pricing pressure and order deferments in Europe.

• Business resilience demonstrated by 84% domestic revenue share, upstream investments, and strategic shift from Europe to Asia amid global volatility.

• Several projects, including nitric acid, hydrogenation, nitration, MIBK-MIBC, acetophenone, and a world-class R&D center, are set for commissioning in the next 6–12 months.

Financial highlights

• Q2 FY25 consolidated revenue was ₹2,053 crore (up 14% YoY); H1 FY25 revenue was ₹4,239 crore (up 18% YoY); Q2 EBITDA at ₹319 crore (flat YoY); H1 EBITDA at ₹647 crore (up 15% YoY); Q2 PAT at ₹194 crore; H1 PAT at ₹397 crore (up 12% YoY).

• Q2 FY25 EPS: ₹14.24 (down 5% YoY); H1 FY25 EPS: ₹29.09 (up 12% YoY).

• EBITDA margin for Q2 FY25 at 16%; H1 FY25 at 15%; PAT margin at 9%.

• Net worth at ₹5,125 crore on a consolidated basis; total consolidated assets as of 30 Sep 2024: ₹7,008.73 crore.

• Maintains zero net debt position and strong credit ratings.

Outlook and guidance

• Anticipates demand uptick from European customers in H2, with margin expansion expected from Q4 onwards and global environment normalization in CY25.

• Growth strategy includes forward and backward integration, expanding downstream products, and leveraging favorable policy shifts and manufacturing migration to India.

• Focus on reducing carbon footprint and commissioning several new projects in the next 6–12 months.

• Investing in polycarbonate resins to address high-growth sectors such as electric vehicles and electronics.