Deepak Nitrite reported its consolidated Q4 & FY26 financial results, showcasing a strong sequential recovery in profitability and operational efficiency. While revenue witnessed a modest year-on-year decline, the company's bottom line and margins demonstrated meaningful improvement both on a quarterly and annual comparison basis. The Board of Directors, at their meeting held on May 15, 2026, recommended a dividend of ₹7.50 per equity share for FY26, subject to shareholder approval. The company also held its Q4 & FY26 Earnings Conference Call on May 18, 2026, with the audio recording uploaded to its official website in compliance with SEBI listing regulations. Looking ahead, management expects better margins for the standalone business in FY27 compared to FY26, benefiting from Chinese restrictions on certain chemicals, with Q1 FY27 results anticipated to be stronger than Q4 FY26 for both standalone and consolidated businesses, driven by new products slated to commence commercial production in Q3 FY27 to meet export customers' needs.

Dividend Announcement

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board of Directors recommended a dividend of ₹7.50 (Rupees Seven and Fifty Paisa Only) per equity share, representing 375%, for the year ended March 31, 2026. The dividend is applicable on 13,63,93,041 equity shares of face value ₹2 each. The recommendation is subject to approval by shareholders at the ensuing 55th Annual General Meeting of the Company. If approved, the dividend will be paid within 30 days from the date of the AGM. The Board Meeting commenced at 2:10 P.M. and concluded at 4:30 P.M. on May 15, 2026. The communication was filed under reference DNL/140/NSE/1657/2026 and signed by Arvind Bajpai, Company Secretary.

Q4 FY26 Financial Performance at a Glance

Deepak Nitrite delivered a robust sequential rebound in Q4 FY26, with EBITDA surging 74% quarter-on-quarter to ₹383 crore and PAT jumping 120% QoQ to ₹220 crore. On a year-on-year basis, EBITDA grew 13% and PAT rose 9%, even as total revenue declined 3% YoY to ₹2,127 crore. The EBITDA margin expanded to 18% in Q4 FY26 from 15% in Q4 FY25, reflecting improved cost efficiency and operating leverage. The domestic-to-exports revenue mix stood at 86:14 for Q4 FY26.

The table below summarises the consolidated P&L highlights for Q4 FY26:

FY26 Full-Year Financial Summary

For the full year FY26, Deepak Nitrite reported total revenue of ₹7,947 crore, compared to ₹8,366 crore in FY25, a decline of 5%. EBITDA for FY26 stood at ₹1,041 crore versus ₹1,176 crore in FY25 (down 11%), while PAT came in at ₹551 crore against ₹697 crore in FY25 (down 21%). The full-year EBITDA margin was 13% in FY26 versus 14% in FY25, and PAT margin was 7% versus 8%.

Segment-Wise Performance

Both business segments — Advanced Intermediates and Phenolics — delivered strong sequential recovery in Q4 FY26. The Advanced Intermediates segment reported revenue of ₹708 crore in Q4 FY26, up 8% QoQ and 8% YoY, with EBIT of ₹34 crore (up 125% QoQ). For FY26, segment revenue was ₹2,553 crore (up 1% YoY) with EBIT of ₹107 crore. The Phenolics segment posted Q4 FY26 revenue of ₹1,429 crore (up 7% QoQ, down 7% YoY) and EBIT of ₹287 crore (up 97% QoQ, up 20% YoY). For FY26, Phenolics revenue stood at ₹5,401 crore with EBIT of ₹695 crore.

*Q3 FY26 EBIT figures are before exceptional gratuity provision expenses of ₹11.31 crore and ₹1.53 crore in Advanced Intermediates and Phenolics segments respectively.

The Advanced Intermediates business benefited from steady domestic demand, pricing gains in established product chains such as Nitrites and Fuel Additives, and initial contributions from recently launched specialty products. The Phenolics segment delivered robust performance backed by strong pricing gains, stable plant operations, and recovery in downstream demand from polymer and industrial applications. Deepak Nitrite achieved its highest-ever production and sales in the Phenolics segment during FY26.

Strategic and Operational Highlights – FY26

During FY26, Deepak Chem Tech (DCTL) commissioned its Nitration and 2nd Hydrogenation Plant at Dahej, and started manufacturing at its Nitric Acid Plant in Nandesari. The company secured renewable energy tie-ups across key sites, enabling 60–70% renewable energy adoption and driving annual cost savings. Deepak Nitrite also established a new R&D Centre with an investment of ₹100 crore spread across 5 acres at Savli, Vadodara, with more than 100 employees, dedicated to Life Sciences, Specialty, and Application-based intermediates. The company recorded foreign exchange gains of approximately ₹12 crore in FY26.

On the Polycarbonate project, plant dismantling at Stade, Germany is progressing rapidly with shipment of equipment to India already underway. Infrastructure activities and contractor mobilization in India are currently underway. The company signed a long-term agreement with Praxair India (Linde) to set up a dedicated HyCO plant on-site, with commissioning targeted in 2028, in line with DCTL's Polycarbonate project timeline. India's first integrated Polycarbonate plant is planned at a capacity of 1,65,000 MT per year, with total project costs estimated at INR 11,000 crores, funded through 60% debt and 40% equity, targeting a launch by June 2028.

FY27 Outlook and Upcoming Projects

Management has indicated that the standalone business is expected to deliver better margins in FY27 compared to FY26, supported by Chinese restrictions on certain chemicals that are expected to benefit Deepak Nitrite's product portfolio. Q1 FY27 results are anticipated to be stronger than Q4 FY26 for both the standalone and consolidated businesses, with new products playing a key role in driving margins higher. Notably, new products are set to commence commercial production in Q3 FY27 to meet the needs of export customers.

On the project pipeline, the MIBK (Methyl Isobutyl Ketone) and MIBC (Methyl Isobutyl Carbinol) projects are set to start by the end of Q1 FY27 or early Q2 FY27, following the completion of mechanical and pre-commissioning activities. The key milestones for upcoming projects are summarised below:

Management Commentary

Commenting on the performance for Q4 & FY26, Mr. Deepak C. Mehta, Chairman & Managing Director, stated: "FY2025–26 was a challenging year for the global chemical industry, marked by sustained pricing pressure across chemical value chains and continued disruption in global trade flows. Despite the difficult external environment, our core businesses remained resilient during the year delivering steady performance. Disciplined cost management and a balanced market approach enabled us to sustain operational momentum. Our continued investments in capacity creation, backward and forward integration, import substitution, and securing key raw material streams are strengthening our ability to operate reliably in an increasingly fragmented and volatile global landscape. While current market conditions remain challenging, we remain confident that our integrated business model, disciplined execution, and strategic positioning will enable us to navigate the cycle effectively and capture opportunities as the industry environment improves."

Awards & Recognitions

During Q4 FY26, Shri Deepak C. Mehta received several prestigious recognitions. He was honoured with the Lifetime Achievement Award by Chemtech in February 2026, awarded an Honorary Doctorate of Science by the Institute of Chemical Technology in February 2026, and felicitated with the Gyan Ratna Award by the Society of Human Resource Professionals in January 2026.

Earnings Conference Call Recording

In a regulatory filing addressed to BSE Limited, Deepak Nitrite confirmed the upload of the audio recording of its Q4 & FY26 Earnings Conference Call, held on May 18, 2026. The filing was referenced under DNL/138/BSE/1155/2026 and submitted pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The recording is available on the company's official website at https://www.godeepak.com/financial-result/ . The communication was signed by Arvind Bajpai, Company Secretary, on May 18, 2026.

The Board of Directors of Deepak Nitrite Limited , at its meeting held on 15th May, 2026, approved a series of significant changes to the company's board composition. The meeting commenced at 2:10 P.M. and concluded at 4:30 P.M. These changes are subject to shareholder approval at the ensuing Annual General Meeting and have been disclosed pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key Board Changes at a Glance

The board decisions encompass the re-appointment of an existing executive director, the appointment of a new executive director, and the retirement of a director. The following table summarises the key changes approved:

Re-appointment of Shri Girish Satarkar as Executive Director

The board approved the re-appointment of Shri Girish Satarkar (DIN: 00340116) as a Whole-time Director designated as Executive Director of the company for a period of three years with effect from 4th August, 2026. Shri Satarkar holds a B.Sc. (Tech) and M.Sc. (Tech) in Textile Chemistry from The Institute of Chemical Technology, ICT (formerly UDCT) University of Mumbai, and a Masters of Marketing Management (MMM) from Welingkar Institute of Management, University of Mumbai.

He brings over 37 years of experience in the chemical industry, including 18 years in leadership positions. His expertise spans business operations, risk management, corporate governance, and international and domestic marketing. Shri Satarkar is not related to any of the directors or Key Managerial Personnel of the company and is not debarred from holding the office of a director by virtue of any SEBI order or any other authority.

Appointment of Shri Anant Pande as Executive Director & CMO

The board approved the appointment of Shri Anant Pande (DIN: 08186854) as a Whole-time Director designated as Executive Director & Chief Manufacturing Officer (CMO) for a period of three consecutive years with effect from 5th August, 2026. Shri Pande, aged 63 years, holds a B.E. (Hons.) in Chemical Engineering and M.Sc. (Hons.) in Chemistry from Birla Institute of Technology & Science, Pilani, Rajasthan, and an Executive Diploma in Management from Kirloskar Institute of Advanced Management Studies, Harihara, Karnataka.

Shri Pande brings approximately 40 years of experience in life science chemicals and pharmaceutical companies, with a focus on developing and implementing growth strategies. His prior leadership roles include:

• Dhampur Sugar Mills Limited – Chief Executive Officer
• Jubilant Life Sciences – Whole-time Director & Chief of Operations
• Atul Limited – President, Technology & Manufacturing
• Jubilant Life Sciences Limited – President, Manufacturing & Projects
• Continental Carbon India Limited – Chief Executive, Operations
• Indo Greefuel Private Limited – Chief Operating Officer
• Aditya Birla Group – Leadership role

Shri Pande also co-chairs the Manufacturing Excellence Committee of the Federation of Indian Chambers of Commerce & Industry (FICCI). He is not related to any of the directors or Key Managerial Personnel of the company and is not debarred from holding the office of a director by virtue of any SEBI order or any other authority.

Retirement of Shri Ajay C. Mehta

Shri Ajay C. Mehta (DIN: 00028405) is retiring by rotation at the ensuing Annual General Meeting and has not offered himself for re-appointment. His cessation is effective August 5, 2026. The board has recommended to shareholders the appointment of Shri Anant Pande as a Director liable to retire by rotation in place of Shri Ajay C. Mehta. All three changes remain subject to shareholder approval at the ensuing Annual General Meeting of the company.