Deepak Nitrite, a specialty chemicals maker and India's largest producer of phenol, acetone, IPA and sodium nitrite, heads into its Q2 FY 2026-2027 print after a record Q1, with two large plants — MIBK/MIBC (~₹735 Cr) and Chlorination & Specialty Chemicals (~₹300 Cr) — commissioned inside the quarter. The print will speak to whether Phenolics' 24% EBIT margin holds as the low-cost feedstock buffer lapses, and how quickly newly commissioned assets and the delayed nitric acid line (₹90–100 Cr EBITDA target) start contributing.
| Results date | October 29, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 2,577.60 Cr |
| Previous quarter PAT | Rs. 345.01 Cr |
| Previous quarter EBITDA margin | 21% |
| Market cap | Rs. 19,733.35 Cr |
| CMP | Rs. 1446.8 |
The Board of Directors will meet on October 29, 2026, to approve the standalone and consolidated unaudited financial results for the quarter and half-year ended September 30, 2026.
The Q2 & H1 FY27 earnings call is scheduled for October 30, 2026, at 3:30 PM IST, hosted by IIFL Capital. Deputy MD Maulik Mehta and Group CFO Sanjay Upadhyay will represent the management.
The quarter tests whether Deepak Nitrite can extend its record Q1 FY27 run — revenue of Rs. 2,577.60 Cr (+36.39% YoY) and a 21% EBITDA margin — into a second straight print against a soft Q2 FY26 base of Rs. 1,902 Cr revenue and 12% margin. Feedstock economics are mixed: ammonia collapsed more than 40% from a record $885/mt in April 2026 to around $500/mt by August, a cost tailwind for the nitric acid chain as it recovers from 45% utilization, while Asian benzene was assessed at $1,178.33/mt FOB Korea on Oct 2, 2026 and management has already flagged that the Q4 FY26 feedstock stockpile cushion 'will not repeat in subsequent quarters'. Newly commissioned MIBK/MIBC (Aug 6, 2026) and chlorination (Sep 29, 2026) plants add first-time volumes, but their capitalization mechanically steps up depreciation and finance costs, extending Q1's trend of finance cost at Rs. 23 Cr (+182% YoY) and D&A at Rs. 64 Cr (+24% YoY). The AI segment's agrochem restock is the swing item — channel inventories have largely normalized and Crisil projects industry revenue up 6-7% this fiscal, but the monsoon was 15% below average as of Sept 21, a documented drag on domestic crop-protection offtake. The US tariff overhang management called 'pervasive' remained unresolved at quarter-end against the 15%-of-revenue export book, while China's supply curbs on chemistries persisted as a nitration tailwind. Management has guided for margin and gross-number improvement 'as we progress into FY27', with FY27 capex of an additional Rs. 1,000–1,500 Cr on top of ~Rs. 1,200 Cr already spent.
Performance vs guidance tracking: Key management markers to verify on the October 30 call:
Phenolics margin sustainability
New capacity ramp within Q2 FY27
Leadership transition and other watch items
The plant operated at 45% utilization in Q4 FY26 due to technical issues, which management said delayed the targeted Rs. 90–100 crore EBITDA contribution. No restated timeline has been given since the delay.
Management confirmed ~1 lakh tonnes of quarterly phenol production on a run-rate basis in Q1 FY27, with April spotty due to a preponed maintenance shutdown and propylene availability issues. The company holds around 55–60% of India's phenol consumption.
Management cited favorable raw material procurement, Indian finished-goods pricing dynamics that differ from global cracks, and value addition from higher utilization. Phenolics gross margins improved 150 bps sequentially even as international phenol spreads declined.
The segment's revenue run rate fell from Rs. 3,000 crore to Rs. 2,400 crore, attributed substantially to pricing pressure from Chinese oversupply. Chinese overcapacity affects 30–40% of the company's products.