Deepak Fertilisers & Petrochemicals Corporation Ltd (DFPCL) has reported a 9% year-on-year growth in operating revenue, reaching INR 3,006.00 crores for Q2 FY26. However, the company faced margin pressure as operating EBITDA margins declined from 18% to 15%.

Key Financial Highlights

• H1 FY26 operating revenue increased 13% to INR 5,665.00 crores
• Net profit for H1 FY26 rose 11% to INR 458.00 crores
• Q2 FY26 net profit remained stable at INR 214.00 crores

Segment Performance

Technical Ammonium Nitrate (TAN) Business

• Strong performance with 29% volume growth
• B2C segment contributed 14% to total TAN revenue

Crop Nutrition Business

• 54% growth in the Croptek product line
• Specialty products now contribute 22% of H1 revenues

Chemicals Segment

• Faced challenges with IPA and Ammonia businesses declining 21% year-on-year
• Impacted by global price volatility and oversupply issues

Strategic Developments

1. Acquisition: Completed full acquisition of Platinum Blasting Services in Australia at 6.7x EBITDA multiple for INR 537.00 crores enterprise value.

2. Ongoing Projects:

   • TAN project at Gopalpur: 87% complete
   • Nitric Acid project at Dahej: 70% complete
   • Both projects expected to commission by end of Q4 FY26

3. Financial Position:

   • Net debt-to-EBITDA stands at 1.74x
   • Peak debt expected to reach INR 4,500.00 crores

Market Outlook

• Favorable monsoon expected to boost Rabi season demand for Crop Nutrition products
• Post-monsoon recovery anticipated in mining and infrastructure activities, benefiting TAN business
• IPA market showing early signs of price stabilization

Management Commentary

Mr. Sailesh C. Mehta, Chairman and Managing Director, stated, "Our journey from commodity to specialty or holistic solutions stayed steadfast and now contributes to almost 22% share in our H1 revenues with Crop Nutrition leading with crop-specific NPK grades."

Mr. Subhash Anand, President and CFO, added, "We are pleased to share another quarter of resilient performance, underscoring the strength of our diversified business model and disciplined execution."

Deeepak Fertilisers continues to focus on operational excellence, capital discipline, and stakeholder value creation as it navigates through market challenges and capitalizes on growth opportunities.

Note: This article is based on the Q2 FY26 earnings conference call held on November 6, 2025.

Deepak Fertilisers & Petrochemicals has reported mixed financial results for the second quarter of fiscal year 2026, with revenue growth offset by a decline in profitability.

Revenue Growth Amid Challenges

The company's consolidated revenue for Q2 FY26 increased by 9% year-over-year to ₹3,006.00 crore. For the first half of FY26, revenue grew by 13% to ₹5,665.00 crore.

Profitability

Net profit remained flat at ₹214.00 crore for the quarter but increased 11% for the half-year to ₹458.00 crore.

Segment Performance

Fertilizer Business

• Showed strong performance with 36% year-over-year growth
• Specialty products now comprise 28% of the crop nutrition business revenue

Chemicals Segment

• Declined 21% due to headwinds in IPA and Ammonia businesses

Strategic Developments

Deepak Fertilisers completed the full acquisition of Platinum Blasting Services (PBS), its Australian subsidiary. PBS delivered ₹533.00 crore in revenue and ₹80.00 crore in EBITDA in FY25.

Ongoing Projects

• Expansion project at Gopalpur (TAN) is 87% complete
• Dahej (Nitric Acid) project is 70% complete
• Both projects are expected to be commissioned by the end of FY26

Management Commentary

S.C. Mehta, Chairman and Managing Director of Deepak Fertilisers, stated, "Our Fertiliser and TAN businesses continue to deliver robust performance, driving strong growth in both revenue and margins. The Chemicals segment, however, was impacted by global headwinds, particularly in the IPA and Ammonia businesses."

As Deepak Fertilisers navigates through market challenges, it continues to focus on its strategic transformation towards specialty products and customer-centric solutions, aiming for sustainable growth in the long term.