Deepak Fertilisers & Petrochemicals Corporation Ltd has seen a significant increase in stake by SBI Mutual Fund, crossing a key regulatory threshold. The fund acquired 2,09,600 shares of the company on November 11, 2025, through market purchase, bringing its total holding to 63,48,107 shares.

Stake Increase and Regulatory Implications

The recent acquisition has pushed SBI Mutual Fund's stake in Deepak Fertilisers to 5.03% of the company's paid-up share capital, up from 4.96% prior to the purchase. This increase is noteworthy as it crosses the 5% threshold, triggering disclosure requirements under Securities and Exchange Board of India (SEBI) regulations.

Transaction Details

The transaction details are as follows:

Company Overview

Deepak Fertilisers & Petrochemicals Corporation Ltd has a total equity share capital of Rs. 126.24 crore, consisting of 12,62,37,825 equity shares with a face value of Rs. 10 each. The company operates in the fertilizer and petrochemical sectors, playing a significant role in India's agricultural and industrial landscape.

Market Implications

This increased investment by SBI Mutual Fund, one of India's leading asset management companies, may be seen as a vote of confidence in Deepak Fertilisers' business model and future prospects. It could potentially influence market sentiment towards the company and attract attention from other institutional investors.

Regulatory Compliance

The crossing of the 5% ownership threshold necessitates disclosure to regulatory authorities, ensuring transparency in significant shareholding changes. This move aligns with SEBI's efforts to maintain market integrity and keep investors informed about substantial changes in company ownership structures.

As Deepak Fertilisers continues to navigate the fertilizer and petrochemical markets, this increased stake by SBI Mutual Fund marks a significant development in its ownership structure.

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.