Deepak Fertilisers & Petrochemicals Corporation Limited (DFPCL) has reported robust financial results for the first quarter, demonstrating strong growth across key financial metrics.

Financial Highlights

DFPCL reported the following consolidated results:

Business Segments

DFPCL operates across three main verticals:

1. Crop Nutrition Business (48% of revenue)
2. Mining Chemicals (25% of revenue)
3. Industrial Chemicals (21% of revenue)

Tax Appeal Victory

In a significant development, the Income Tax Appellate Tribunal in Mumbai ruled in favor of Mahadhan AgriTech Limited, DFPCL's material subsidiary. The ruling covers tax appeals for assessment years 2016-17 to 2020-21, totaling Rs 581.00 crore.

Expansion Projects

Two major capacity expansion projects are currently underway:

1. TAN project at Gopalpur with 376 KTPA capacity
2. Nitric Acid project at Dahej with 300 KTPA WNA and 150 KTPA CNA capacity

Both projects are expected to be commissioned in Q4.

Market Capitalization

DFPCL's market capitalization stood at approximately $2.51 billion.

Conclusion

With its strong financial performance, successful tax appeal, and ongoing expansion projects, DFPCL is well-positioned for continued growth. The company's diversified business segments and strategic investments in capacity expansion are expected to drive future performance and maintain its competitive edge in the market.

Deepak Fertilisers & Petrochemicals has announced that its wholly owned subsidiary, Deepak Mining Solutions Limited (DMSL), has revised the estimated cost of its Technical Ammonium Nitrate (TAN) Project in Gopalpur. The project's cost has increased from the initial estimate of ₹2,223.00 crores to ₹2,675.00 crores, as approved by DMSL's Board of Directors on July 28, 2025.

Factors Contributing to Cost Increase

The company cited several factors for the ₹452.00 crore increase:

1. Geopolitical Issues and Price Hikes:

   • Stainless Steel prices surged from ₹250.00/kg to ₹370.00/kg
   • Carbon Steel prices rose from ₹43.00/kg to ₹77.00/kg
   • Increased manpower and construction costs
   • Currency fluctuations, with USD to INR exchange rate moving from 74.55 to 85.13

2. Safety and Efficiency Investments: Additional investments were made to improve safety, efficiency, reliability, sustainability, and export-compliant quality.

3. Ammonia Pipeline Development: Extra costs were incurred due to changes and delays in the Ammonia Pipeline development, partly attributed to the ownership change of Gopalpur port from Shapoorji to Adani.

4. Environmental Compliance: Investments in Effluent Treatment Plant (ETP), Zero Liquid Discharge (ZLD), and Ammonium Nitrate recovery systems were necessary as the Common Effluent Treatment Plant from Tata SEZ was not made available.

Project Status and Outlook

Despite the cost increase, DMSL remains optimistic about the project:

• The project is over 90% complete, with most requirements already ordered or arrived.
• The company states that further cost revisions are unlikely at this stage.
• DMSL maintains that the project's financial metrics remain robust, with the Internal Rate of Return (IRR) continuing to exceed internal threshold benchmarks.
• The project is described as strongly aligned with the company's strategic growth objectives and is expected to generate significant long-term value for stakeholders.

This development marks a significant milestone for Deepak Mining Solutions Limited and its parent company, Deepak Fertilisers & Petrochemicals, as they navigate global challenges to bring the Technical Ammonium Nitrate Project to fruition.

Note: This information was disclosed by the company in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.