Deepak Fertilisers Reports Strong Revenue Growth with Margin Challenges

Deepak Fertilisers achieved ₹11,506 crore in revenue for FY 2026, a 12% increase year-over-year. Q4 FY 2026 revenue stood at ₹3,011 crore.

Reader Takeaway: Revenue growth is positive, but margin pressure from costs is a key concern.

What just happened

Deepak Fertilisers and Petrochemicals Corporation Ltd announced its financial results for the full year and fourth quarter of FY 2026. The company reported a 12% year-on-year increase in full-year revenue to ₹11,506 crore, with Q4 revenue at ₹3,011 crore. Full-year EBITDA was ₹1,684 crore, and PAT stood at ₹739 crore. Profitability in the second half of the fiscal year was compressed due to rising input costs and delays in subsidy realignments.

Why this matters

The revenue growth indicates continued demand for the company's products. However, the margin compression highlights the challenges of rising raw material expenses (like phos acid and sulfur) and subsidy payment lags, which can affect the bottom line. The company is also heavily invested in new projects, with significant capital expenditure.

The backstory

Deepak Fertilisers has been focused on expanding its capacity and strategic integration. The company is undertaking major projects, including the Gopalpur TAN project (95% complete) and the Dahej nitric acid project (86% complete), both slated for commissioning in Q2 FY 2027. A 15-year LNG contract with Equinor has been secured to ensure stable gas supply for its ammonia operations.

What changes now

Investors will be looking for the successful commissioning of the Gopalpur and Dahej projects, which are expected to drive future revenue and profitability. The company's strategy includes a focus on higher-margin B2C segments. The long-term LNG contract is expected to provide stability and cost benefits to its ammonia business.

Risks to watch

The primary risks include the potential for further input cost inflation, continued subsidy payment lags creating working capital pressure, and any further delays in project commissioning. The company's Net Debt to EBITDA ratio of 2.86x reflects its investment phase, making timely project execution crucial.

Peer comparison

[Grounded search for peer comparison not available or reliable. No data included.]

Context metrics (time-bound)

• Full Year FY 2026 Revenue: ₹11,506 crore
• Full Year FY 2026 EBITDA: ₹1,684 crore
• Full Year FY 2026 PAT: ₹739 crore
• Net Debt as of March 31, 2026: ₹4,824 crore
• Annual Capex in FY 2026: ₹1,569 crore
• Cumulative Project Capex as of March 31, 2026: ₹3,800 crore
• Gopalpur TAN Project completion: 95%
• Dahej Project completion: 86%

What to track next

Investors should closely track the commissioning timelines and ramp-up of the Gopalpur and Dahej projects, as well as the company's ability to manage input costs and secure timely subsidy payments. The performance of the mining chemicals segment and IPA prices will also be key indicators.