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Deepak Fertilisers and Petrochemicals Corporation (DFPCL) reported a rise in its June quarter earnings, with consolidated net profit more than doubling year-on-year, supported by higher realisations across its chemicals business and improved operating margins, despite geopolitical disruptions during the quarter.
The company's consolidated net profit for the June quarter rose to ₹490 crore from ₹243 crore a year earlier. Revenue increased 22.5% to ₹3,256.3 crore, compared with ₹2,658.8 crore in the corresponding quarter last year.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) climbed 65% year-on-year to ₹845.5 crore, while EBITDA margin expanded to 25.96% from 19.30%.
The company said revenue growth was driven by stronger realisations in its ammonia, mining chemicals and industrial chemicals businesses. It added that despite volatility and supply disruptions arising from the US-Iran conflict, favourable industry pricing offset temporary volume disruptions in Technical Ammonium Nitrate (TAN) and Isopropyl Alcohol (IPA), supporting robust topline growth.
Looking ahead, DFPCL said it remains well positioned due to its integrated gas-to-ammonia platform, long-term LNG sourcing strategy and favourable import parity across ammonia, nitric acid and TAN. The company also expects improved propylene availability to aid recovery in its IPA business.
Chemicals, fertiliser business outlook
In the mining chemicals segment, sales volumes of Technical Ammonium Nitrate declined 12% year-on-year, primarily due to production and dispatch disruptions linked to changes in the Petroleum and Explosives Safety Organisation (PESO) portal. However, the company expects elevated fertiliser-grade ammonium nitrate (FGAN) prices, favourable import parity and a value-based pricing strategy to support margins, despite seasonal moderation in mining activity during the monsoon.
In the pharma and speciality chemicals business, DFPCL said nitric acid demand is expected to remain stable, while improved propylene availability should support the recovery of IPA operations. The company added that innovation and application-led growth continue to strengthen its speciality chemicals portfolio.
The crop nutrition business faced a challenging operating environment due to delayed monsoon progression, elevated raw material costs and inadequate subsidy support. Even so, manufactured NPK fertiliser sales rose 4% year-on-year and 11% sequentially to 133 KT, despite supply-side disruptions.
The company said demand conditions remain broadly supportive due to widespread rainfall across its key markets. However, it noted that the industry's outlook would depend on the government's timely alignment of nutrient subsidy rates with elevated input costs.
Expansion projects near completion
DFPCL said its Gopalpur Technical Ammonium Nitrate (TAN) project has reached 96% completion, while the Dahej Nitric Acid project is 93% complete. Commissioning activities are underway, with commercial operations expected by the end of the second quarter of FY27. The company said total capital expenditure remains within the approved budget.
Once operational, the projects are expected to strengthen DFPCL's leadership in nitric acid and technical ammonium nitrate, improve operating leverage, enhance supply assurance and support the company's next phase of growth.
Commenting on the results, Chairman and Managing Director SC Mehta said the Dahej Nitric Acid complex and the Gopalpur TAN project are nearing completion and are expected to begin contributing to profitability from the third quarter.
He added that investments made over the past decade in LNG and ammonia integration, speciality products, customer solutions and strategic capacity expansion are beginning to translate into tangible outcomes, positioning the company for its next phase of growth.
Separately, the company said its wholly owned subsidiary, Deepak Mining Solutions, completed the acquisition of Chardham Chemicals, an explosives manufacturer, on May 6, 2026, for a total consideration of ₹21.45 crore, according to the exchange filing.
Shares of Deepak Fertilisers fell as much as 4.3% to ₹1,556 following the earnings announcement.
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