Deepak Nitrite Limited showcased operational resilience in Q3 FY26, delivering robust financial performance despite challenging market conditions. The chemical intermediates manufacturer reported strong year-on-year growth across key metrics while advancing strategic capacity expansion initiatives.

Financial Performance Overview

The company achieved notable financial improvements in Q3 FY26, demonstrating the strength of its diversified business model and operational discipline.

*Before exceptional items of ₹12.84 crore towards gratuity provision

The revenue mix showed a domestic-heavy composition at 83:17 for domestic versus exports. Nine-month performance reflected broader market challenges, with revenue at ₹5,820 crore compared to ₹6,163 crore in 9M FY25, while EBITDA declined to ₹658 crore from ₹836 crore year-on-year.

Strategic Capacity Expansion and Integration

Deepak Chem Tech Limited achieved significant operational milestones during the quarter, strengthening the group's manufacturing capabilities and vertical integration.

These commissioning activities position Deepak Group among select global players with complete vertical integration across the ammonia-nitration-amines spectrum. The strategic integration is expected to drive margin expansion, optimize working capital, and deliver enhanced cost efficiency across key intermediate products.

Segment Performance Analysis

The Phenolics segment demonstrated resilience with consistent performance supported by improved volumes and operating efficiencies. Revenue remained stable at ₹1,334 crore compared to ₹1,366 crore in Q3 FY25, while EBIT improved significantly to ₹145 crore from ₹121 crore, representing a 20% year-on-year increase. The segment benefited from:

• Higher sales volumes in both Phenol and Acetone
• Advanced process optimization
• Better operating leverage resulting in improved profitability
• Reinforced market leadership despite import pressures

The Advanced Intermediates segment faced more challenging conditions due to aggressive Chinese competition and overcapacity. However, the segment achieved 18% year-on-year revenue growth to ₹652 crore, driven by:

• Increased market penetration of key products
• Successful geographic expansion
• Leveraging plant fungibility to optimize product mix
• Strategic contributions from new product launches

Regulatory and Market Developments

Several favorable regulatory developments provide positive momentum for the company's export competitiveness. The US Department of Commerce completely removed the 45.16% Anti Dumping Duty on Deepak's Sodium Nitrite exports to the US, effective January 26, 2026. Additionally, favorable shifts in US tariffs and trade agreements with the EU offer medium to long-term tailwinds for market share gains.

Project Pipeline and Future Outlook

The company maintains strong execution momentum across multiple strategic projects. The Polycarbonate project shows significant progress with plant dismantling underway in Stade, Germany, marking a major milestone toward relocating the facility to India. All project activities remain on schedule and aligned with planned installation and commissioning timelines.

Management expects favorable Q4 FY26 performance driven by new capacity ramp-up at DCTL, potential integration benefits, and strategic focus on new product introduction and geographic expansion across Fluorination, Nitration, Nitrite, and Amine segments. The company's commitment to building an integrated ecosystem from raw material security to final products, supported by strategic vendor partnerships and robust financial arrangements, positions it well for sustained growth in the specialty chemicals sector.

Deepak nitrite Limited has scheduled a Board of Directors meeting for February 12, 2025, to consider and approve the company's unaudited financial results for the third quarter of fiscal year 2026. The announcement was made through an official communication to BSE Limited on January 30, 2026.

Meeting Details and Purpose

The board meeting will focus on reviewing and approving both standalone and consolidated unaudited financial results for specific reporting periods. Company Secretary Arvind Bajpai signed the official notification, ensuring compliance with regulatory requirements.

Regulatory Compliance

This announcement fulfills the requirements under Regulation 29(1)(a) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The regulation mandates listed companies to provide advance notice to stock exchanges regarding board meetings that will consider financial results.

The communication references an earlier letter dated December 26, 2025, indicating the company's systematic approach to maintaining transparency with regulatory bodies and stakeholders. The formal notification ensures that all relevant parties are informed about the upcoming financial disclosure.

Corporate Communication Framework

The official communication was addressed to the Department of Corporate Services at BSE Limited, located at Phiroje Jeejeebhoy Towers, Dalal Street, Mumbai. The company's scrip code 506401 was prominently mentioned in the correspondence, facilitating proper identification and record-keeping by the exchange.

Company Secretary Arvind Bajpai digitally signed the document on January 30, 2026, at 10:02:16 +05'30', demonstrating the company's adoption of digital authentication processes for official communications. This digital signature ensures document authenticity and maintains a clear audit trail for regulatory compliance purposes.