Deepak Nitrite (DEEPAKNTR) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 consolidated revenue grew 3% year-on-year to INR 1,983 crore, with EBITDA up 16% year-on-year to INR 219 crore, reflecting resilience and improved efficiencies amid global competition and pricing pressures.

• Nine-month FY26 revenue reached INR 5,820 crore, with EBITDA at INR 658 crore, supported by operational excellence and volume-led growth despite challenging market conditions.

• Domestic revenue mix remained strong at 83%, with exports at 17%, highlighting resilience in the domestic market and ongoing global expansion.

• Strategic integration and ramp-up of new capacities, including Nitric Acid and hydrogenation plants, completed vertical integration and enhanced raw material security.

• Operational agility, disciplined value creation, and strong contributions from the Phenolics segment supported performance.

Financial highlights

• Q3 FY26 consolidated revenue: INR 1,983 crore (up 3% YoY); EBITDA: INR 219 crore (up 16% YoY); PAT: INR 100 crore (up 2% YoY); EBITDA margin improved to 11% from 10% YoY.

• Nine-month FY26 consolidated revenue: INR 5,820 crore; EBITDA: INR 658 crore; PAT: INR 331 crore.

• Q3 PBT: INR 151 crore, including a one-time exceptional provision of INR 12.84 crore under new labor codes.

• Finance costs for Q3: INR 11 crore; depreciation and amortization: INR 58 crore, reflecting new asset capitalization.

• EPS for Q3 FY26 was INR 7.32, up 2% YoY but down 16% sequentially.

Outlook and guidance

• Q4 FY26 expected to show favorable performance, with margin normalization as integration benefits materialize and new products are commercialized.

• Cautious optimism for Q4 and Q1, with ongoing global volatility and Chinese overcapacity impacting select products.

• Prioritizing new product introductions and geographic expansion, especially in Fluorination, Nitration, Nitrite, and Amines.

• Removal of U.S. anti-dumping duty on Sodium Nitrite exports and favorable U.S.-India tariff policy expected to boost export opportunities.

• In-house Nitric Acid production and downstream amination to steadily enhance margins.