Deepak Fertilisers & Petrochemicals FY26 Results

Revenue from operations for FY26 rose 12% to ₹11,506.03 crore, up from ₹10,274.42 crore in FY25. However, consolidated net profit after tax declined by 21.8% to ₹738.76 crore from ₹944.67 crore in the previous year.

Reader Takeaway: Revenue growth driven by volume, but margins squeezed by costs; capex focus for future growth.

What just happened

Deepak Fertilisers and Petrochemicals Corporation Limited announced its audited financial results for the financial year ended 31 March 2026. The company reported a consolidated revenue of ₹11,506.03 crore, a 12% increase year-on-year. However, the consolidated net profit saw a significant drop of 21.8%, falling to ₹738.76 crore from ₹944.67 crore in the prior fiscal year.

Why this matters

The decline in net profit, despite revenue growth, is attributed by the company to volatility in raw material costs and insufficient subsidy support, particularly impacting the fertiliser segment. This pressure on margins is a key concern for investors. The company also declared a dividend of ₹10 per equity share, subject to shareholder approval.

The backstory

Deepak Fertilisers is a key player in India's chemical and fertiliser sectors. The company has been undertaking strategic capital expenditure projects to enhance its production capacity and diversify its product offerings. The fertiliser segment's performance is often influenced by government policies, subsidies, and monsoon patterns.

What changes now

The company is pushing forward with two major capital expenditure projects: the Gopalpur TAN project and the Dahej Nitric Acid project, with expected commissioning in Q2 FY27. These projects, with a combined investment of approximately ₹4,650 crore, are expected to drive future growth. Investors will watch the successful completion and operationalisation of these facilities.

Risks to watch

The company faces ongoing tax litigation with an appeal of ₹96.04 crore for AY 2015-16 pending adjudication. Additionally, there is a risk to the crop nutrition business from potential below-normal monsoon conditions in 2026, as indicated by the India Meteorological Department (IMD).

Peer comparison

While specific peer results for FY26 are not detailed here, the fertiliser and chemical sectors in India are generally sensitive to raw material prices (like natural gas and phosphoric acid) and government subsidy policies. Companies often see margin pressure during periods of high input costs if these cannot be passed on to consumers or offset by subsidies.

Context metrics (time-bound)

• Revenue (FY26): ₹11,506.03 crore (up 12% from FY25)
• Net Profit (FY26): ₹738.76 crore (down 21.8% from FY25)
• Dividend: ₹10 per equity share recommended for FY26
• Capex Progress: Gopalpur TAN project (95% complete), Dahej Nitric Acid project (86% complete)

What to track next

Investors should monitor the commissioning of the new capex projects in Q2 FY27, the extent of government subsidy support for the fertiliser business, and monsoon forecasts impacting the crop nutrition segment. Resolution of the tax litigation will also be a key point to watch.