Deepak Nitrite delivered a resilient Q3 FY26 performance, reporting Total Revenue of ₹1,983 Crore and EBITDA of ₹219 Crore, showcasing 3% Y-o-Y revenue growth and 16% Y-o-Y EBITDA growth for the quarter. The company is focusing on strategic integration, new product launches, and geographic expansion across Fluorination, Nitration, Nitrite, and Amines to navigate current industry pressures. Key achievements include the removal of the U.S. Sodium Nitrite Anti Dumping Duty (ADD).
Q3 & 9M FY2026 Financial Highlights
Deepak Nitrite announced its financial results for the third quarter and nine months ending FY2026 on 12 February, 2026. The results highlight a resilient performance despite ongoing macroeconomic challenges, driven by operational agility.
Key Consolidated Financials for Q3 FY26:
- Total Revenue: ₹1,983 Crore
- EBITDA: ₹219 Crore (16% Y-o-Y growth)
- PBT After Exceptional Items: ₹138 Crore (2% Y-o-Y growth)
- PAT: ₹100 Crore
For the 9M FY26 period, Total Revenue stood at ₹5,820 Crore, marking a -6% Y-o-Y decline, while EBITDA was ₹658 Crore (-21% Y-o-Y).
Performance Overview by Segment
Phenolics
The Phenolics segment reported a strong Y-o-Y EBITDA performance driven by increased capacity utilization across key products. Revenue from Operations for Q3 FY26 was ₹1,334 Crore (-2% Y-o-Y), while EBIT stood at ₹145 Crore (20% Y-o-Y).
Advanced Intermediates
This segment faced challenges from aggressive Chinese dumping, impacting pricing power. However, stable revenue growth was achieved through increased volumes and market penetration. Q3 FY26 Revenue from Operations reached ₹652 Crore (18% Y-o-Y), but EBIT was lower at ₹15 Crore (-11% Y-o-Y).
CMD Commentary on Performance and Strategy
Chairman & Managing Director, Mr. Deepak C. Mehta, acknowledged significant pricing pressures from global oversupply but emphasized that the company’s diversified portfolio and operational discipline provided stability. Key strategic mandates moving forward include:
- Achieving World’s best quality.
- Securing World’s best capacity.
- Pursuing Complete integration across value chain.
The integration across the ammonia-nitration-amines chain via DCTL is complete, positioning the Group as a premier global player, unlocking superior margins and cost efficiency.
Key Developments and Outlook
Strategic Integration Milestones
The company highlighted major achievements in vertical integration:
- Deepak Chem Tech (DCTL) commenced manufacturing at the Nitric Acid Plant in Nandesari, enhancing backward integration.
- DCTL also commissioned a new Nitration & 2nd Hydrogenation Plant at Dahej, strengthening the footprint across the ammonia-nitration-amines chain.
Project Status Update
Progress remains on schedule for ongoing projects:
- The MIBK/MIBC Project is targeted for commissioning in the current quarter.
- The Polycarbonate plant dismantling is underway in Stade, Germany, moving toward relocation to India.
Outlook for Q4 FY26
To navigate near-term headwinds, the Group is prioritizing new product introduction and geographic expansion in Fluorination, Nitration, Nitrite, and Amines segments. Positive factors include:
- A favorable shift in U.S. tariff environment.
- The U.S. Department of Commerce has completely removed ADD (45.16%) on Deepak’s export of Sodium Nitrite to the U.S. effective January 26, 2026.
Against this backdrop, the company expects a favorable Q4 FY26.
Growth Drivers
Growth trajectory is supported by several pillars:
- Product Driven Expansion: Focus on high-value sectors like pharmaceuticals and agrochemicals, and building the integrated Cumene-Phenol-Acetone to Polycarbonate value chain.
- Expansion Projects: Commissioning of India’s first integrated Polycarbonate plant (165,000 MT/yr).
- Favorable Regulatory Reforms: Benefit from ‘Atmanirbhar Bharat’ initiatives and the withdrawal of U.S. ADD on Sodium Nitrite.
- Cost Optimisation: Moving towards a 60-70% renewable energy mix.
Company Snapshot & Responsibility
Deepak Nitrite is recognized as a ‘Responsible Manufacturer’ and a ‘Supplier of Choice,’ supported by 7 Modern Manufacturing Facilities. The company has a rich legacy spanning over 5 Decades and serves customers across 50+ Countries. The company also remains committed to CSR, having served over 700,000 beneficiaries across focus areas like Education and Healthcare.
Source: BSE
