Deepak Nitrite (DEEPAKNTR) Q2 2026 earnings summary

Executive summary

• Q2 FY26 consolidated revenue was INR 1,922 crore, stable sequentially but down year-over-year, with EBITDA at INR 224 crore, up 5% quarter-over-quarter but down 30% year-over-year; PAT for Q2 was INR 119 crore, up 6% sequentially but down 39% year-over-year.

• H1 FY26 revenue was INR 3,836 crore, down from INR 4,239 crore year-over-year, with EBITDA at INR 430 crore (vs. INR 647 crore in H1 FY25) and PAT at INR 231 crore, a 42% decline year-over-year.

• The company navigated global headwinds from tariffs, dumping, and pricing pressures, but maintained operational excellence and sequential profitability improvement.

• Major investments include a new hydrogenation asset (INR 118 crore) and a state-of-the-art R&D center (INR 100 crore) to drive innovation and product diversification.

• Strategic projects such as India's first integrated polycarbonate complex and upstream/downstream chemical plants are progressing, with most commissioning by June 2026.

Financial highlights

• Q2 FY26 consolidated revenue: INR 1,922 crore; EBITDA: INR 224 crore, up 5% sequentially; PAT: INR 119 crore, up 6% sequentially but down 39% year-over-year.

• H1 FY26 consolidated revenue: INR 3,836 crore (vs. INR 4,239 crore in H1 FY25); EBITDA: INR 430 crore (vs. INR 647 crore); PAT: INR 231 crore.

• Domestic-to-export revenue mix at 86:14 for Q2; domestic revenue INR 1,632 crore, export revenue INR 270 crore.

• Consolidated net profit for H1 FY26 stood at INR 228.33 crore, compared to INR 396.73 crore in H1 FY25.

• Basic and diluted EPS (consolidated) for H1 FY26 was INR 16.94, down from INR 29.09 in H1 FY25.

Outlook and guidance

• H2 FY26 performance expected to improve with ramp-up of new capacities, phenolics traction, and new product launches, including polycarbonate resins.

• New products in advanced intermediates expected to ramp up from Q4 FY26, with full impact in FY27.

• CapEx guidance for FY26 remains at INR 1,500 crore; total outlay for next three years projected at INR 9,000 crore, with INR 3,000–4,000 crore annually.

• Shift towards 60-70% renewable energy and further integration to enhance competitiveness.

• Board and management reviewed and approved results, with no adverse auditor remarks, indicating confidence in financial reporting and ongoing operations.