Deepak Nitrite Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 3,076.37 Cr (+61.75% YoY) and PAT growth of +234.99% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 29, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 3,076.37 Cr (+61.75% YoY) |
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| PAT (Q2) | Rs. 397.67 Cr (+234.99% YoY) |
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| EBITDA margin | 20.91% (+912 bps YoY) |
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| EPS (Q2) | Rs. 29.16 (+234.90% YoY) |
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| Market cap | Rs. 20,146.54 Cr |
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| CMP | Rs. 1,476.40 |
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Quarter Snapshot
Deepak Nitrite delivered a second consecutive record quarter with revenue up 61.75% YoY to Rs.3,076.37 Cr and PAT up 234.99% to Rs.397.67 Cr, with EBITDA margin at 20.91% (up 912 bps YoY). Both committed plants (MIBK/MIBC ~Rs.735 Cr, chlorination ~Rs.300 Cr) were commissioned within Q2 and a ~Rs.2,500 Cr BPA project was approved, while leverage stayed at 0.25x D/E. Watch items are the QoQ fade in Advanced Intermediates margin (6.01% vs 8.33%), mild Phenolics margin give-back, and Rs.49.38 Cr of government incentive income embedded in revenue.
Key Investment Insights
Key Positives
- Revenue grew 61.75% YoY and 19.35% QoQ to Rs.3,076.37 Cr, a second consecutive record quarter
- Owners' PAT grew 234.99% YoY to Rs.397.67 Cr; EPS of Rs.29.16 vs Rs.8.71 a year ago
- EBITDA margin expanded 912 bps YoY to 20.91%, holding within ~59 bps of the Q1 record
- Phenolics revenue grew 71.82% YoY with EBIT margin of 22.50% vs 10.86% a year ago
- Advanced Intermediates EBIT grew 112.28% YoY on 37.93% revenue growth as the Chinese oversupply drag lapsed
- MIBK/MIBC (~Rs.735 Cr) and chlorination (~Rs.300 Cr) plants commissioned within Q2 as committed
- H1 CFO of Rs.650.90 Cr vs Rs.204.03 Cr a year ago; FCF improved to (Rs.82.26) Cr from (Rs.461.35) Cr despite higher capex
- Debt/equity held at 0.25x while equity grew 11.11% since March 2026
Risk Factors
- Advanced Intermediates EBIT fell 27.20% QoQ with margin slipping to 6.01% from 8.33%, as Q1 restock-driven highs were not sustained
- Phenolics EBIT margin gave back ~104 bps QoQ (22.50% vs 23.54%) as the feedstock buffer lapsed
- Government incentive income of Rs.49.38 Cr (9.10% of PBT) is booked inside revenue and flatters the YoY comparison
- Finance costs rose 267.00% YoY to Rs.29.14 Cr and D&A rose 33.90% as growth capex capitalized
- Cash and equivalents fell Rs.227.22 Cr to Rs.15.94 Cr; H1 FCF was negative at (Rs.82.26) Cr
- Inventory build of Rs.54.57 Cr (production exceeded sales) weighed on margin by ~0.9% of revenue