Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL) reported a 9% YoY increase in operating revenue for Q2 FY26, driven by higher volumes in Croptek, TAN, and IPA. H1 revenue grew by 13% YoY. While the Fertiliser segment outperformed, the Chemical segment faced headwinds. DFPCL is progressing on its strategic transformation, with specialty products now comprising 28% of CNB’s revenue in Q2 FY26. Net debt to EBITDA ratio stands at 1.74x.
Financial Highlights
Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL) announced strong financial results, demonstrating a solid growth trajectory:
- Operating Revenue: Increased by 9% YoY in Q2 FY26. H1 revenue grew by 13% YoY.
- EBITDA: Operating EBITDA decreased by 6% QoQ to ₹464 Cr but increased by 2% YoY to ₹977 Cr for H1.
- Net Profit: Q2 PAT remained flat at ₹214 Cr, while H1 PAT grew 11% YoY to ₹458 Cr.
Segmental Performance
The company experienced varied performance across its segments:
- Fertiliser: Continued to outperform, reflecting a robust 36% YoY growth.
- Chemicals: Impacted by global headwinds, particularly in the IPA and Ammonia businesses, which saw a 21% YoY decline.
Strategic Developments
- Strategic Shift: Specialty products now make up 28% of CNB’s revenue in Q2 FY26.
- Acquisition: Completed the full acquisition of Platinum Blasting Services (PBS), with ₹533 crore in revenue and ₹80 crore in EBITDA in FY25.
- Net Debt: Rose by only ₹97 Cr, with a net debt to EBITDA ratio of 1.74x.
Project Updates
DFPCL is making significant progress on its key projects:
- Gopalpur TAN Project: Approximately 87% complete.
- Dahej Nitric Acid Project: Around 70% complete.
Segment Review
Key observations from the segment reviews include:
- Mining Chemicals (Technical Ammonium Nitrate): Overall sales volume increased by 29% YoY, with export volumes surging by 28% YoY.
- Pharma / Specialty Chemicals: IPA sales volume rose by 2% YoY.
- Crop Nutrition Business (Fertilisers): Sales volume surged by 54% YoY, driven by key crops.
Financial Position
Key financial ratios and positions include:
- Net Debt/Equity: 0.48x
- Net Debt/EBITDA: 1.74x
Source: BSE
