Deepak Nitrite Limited Earnings Summary — Q4 FY2026
Deepak Nitrite Reports Resurgent Performance in Q4 FY26 with Strong Margin Recovery
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 5 consecutive quarters.
- Revenue of ₹2,578 Cr is 36.4% higher year-on-year.
- Revenue has compounded at 8.9% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹345 Cr is 207.5% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 14.6% annualised across the period.
- Operating margin stands at 21.0% in Q1 FY2027.
- Operating margin expanded by 1093 bps year-on-year.
- Over the last two years operating margin has expanded by 669 bps.
- PBT margin is 18.1%.
- Expense growth of 19.8% remained below revenue growth of 36.4%.
- Operating profit of ₹540 Cr is 185.0% higher year-on-year.
- Operating leverage continues to improve.
- 3 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 81/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Accelerating | 2,578 | 2,120 | 1,975 | 1,902 | 1,890 | 2,180 | 1,903 | 2,032 | 2,167 | 2,126 |
| Expenses | Stable | 2,037 | 1,744 | 1,764 | 1,698 | 1,700 | 1,863 | 1,735 | 1,734 | 1,858 | 1,825 |
| Operating Profit | Accelerating | 540 | 376 | 211 | 204 | 190 | 317 | 169 | 298 | 309 | 301 |
| Operating Margin | Accelerating | 21.0% | 17.7% | 10.7% | 10.7% | 10.0% | 14.5% | 8.8% | 14.6% | 14.3% | 14.2% |
| Other Income | Volatile | 14 | 7 | -4 | 20 | 25 | 23 | 21 | 21 | 19 | 99 |
| Interest | Accelerating | 23 | 19 | 11 | 8 | 8 | 9 | 6 | 6 | 6 | 4 |
| Depreciation | Improving | 64 | 63 | 58 | 53 | 51 | 51 | 48 | 48 | 47 | 46 |
| Profit Before Tax | Volatile | 468 | 301 | 138 | 163 | 155 | 279 | 135 | 264 | 275 | 349 |
| Tax | Volatile | 123 | 82 | 38 | 44 | 42 | 76 | 37 | 70 | 72 | 95 |
| Net Profit | Volatile | 345 | 220 | 100 | 119 | 112 | 202 | 98 | 194 | 203 | 254 |
| Net Margin | Volatile | 13.4% | 10.4% | 5.0% | 6.2% | 5.9% | 9.3% | 5.2% | 9.6% | 9.3% | 11.9% |
Key Takeaways
- Q4 FY2026 revenue stabilized at ₹2,120 Cr, showing a strong sequential recovery from the December dip.
- Operating margins saw a significant rebound to 18%, returning to levels not seen since early FY2023.
- Net profit more than doubled on a quarter-over-quarter basis (₹220 Cr vs ₹100 Cr), though it remains slightly below the high-water mark of Mar 2024.
- Borrowings have climbed significantly to ₹1,638 Cr to fund aggressive expansion into polycarbonate and advanced intermediates.
- Capital Work in Progress (CWIP) remains very high at ₹1,828 Cr, representing ~21% of the total balance sheet, indicating massive upcoming capacity.
- The Phenolics subsidiary continues to dominate domestic market share despite global price volatility in Benzene and Propylene.
- Interest costs have surged to ₹19 Cr for the quarter, reflecting the increased debt footprint to support capital expenditure.
- Management continues to focus on import substitution, specifically targeting high-value specialty and performance chemicals.
Management Guidance
The company is transitioning from basic chemicals to high-value specialty intermediates with a focus on polycarbonate projects. While global chemical prices remain cyclical, the massive greenfield investments are expected to drive the next leg of growth once commissioned.
Sentiment Shift
Improving
A sharp recovery in operating margins from 11% to 18% in the latest quarter marks the end of a multi-quarter period of margin erosion.
Outlook
Deepak Nitrite's outlook is tied to the commissioning of its ₹1,828 Cr worth of projects in the pipeline. While rising debt and interest costs are short-term headwinds, the underlying margin recovery suggests better absorption of input costs and improved product spreads in the Phenolics segment.
From the Annual Report (Key Quotes)
“Deepak Nitrite has transitioned from a basic chemicals manufacturer to a dominant player in the Phenol/Acetone space.”
“The vision to substitute imports in the Indian market has been successfully executed with Phenol and IPA.”
“Management has shown the ability to execute massive greenfield projects, though recent softening in chemical prices reflects the cyclical nature of the industry.”
Official Quarterly Documents
This summary is AI-generated from Deepak Nitrite Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.