Deepak Fertilisers & Petrochemicals Corporation Ltd. Q4 FY26 Results

Consolidated Revenue: ₹3,011.38 crore | Consolidated Net Profit: ₹139.39 crore

Reader Takeaway: Revenue up, profit down; major capex underway.

What just happened

Deepak Fertilisers and Petrochemicals Corporation Limited announced its financial results for the fourth quarter and full year ending March 31, 2026. The company reported a consolidated revenue of ₹3,011.38 crore for Q4 FY26, a 12.9% increase from ₹2,667.35 crore in Q4 FY25. However, consolidated net profit after tax saw a significant decline of 49.8%, dropping to ₹139.39 crore from ₹277.86 crore in the same period last year. For the full fiscal year FY26, consolidated revenue stood at ₹11,506.03 crore, with a net profit of ₹738.76 crore.

Why this matters

The decline in quarterly profit, attributed to input cost pressures and margin challenges, is a key concern for investors. Despite revenue growth, the reduced profitability impacts earnings per share and overall financial health in the short term. However, the company also announced a dividend of ₹10 per share (100%), indicating confidence in its cash flow and commitment to shareholder returns. The re-appointment of auditors and Mr. Yeshil S. Mehta as an additional director are standard governance updates.

The backstory

In Q4 FY25, Deepak Fertilisers had reported a net profit of ₹277.86 crore on revenues of ₹2,667.35 crore. The company has been focusing on expanding its mining chemicals (TAN) and industrial chemicals segments, with TAN sales volumes growing 12% YoY and Building-Block Nitric Acid volumes up 11% YoY. The crop nutrition business performance was affected by input costs and subsidy issues.

What changes now

Investors will be closely watching the company's ability to manage input costs and navigate subsidy challenges in the crop nutrition segment. The upcoming commissioning of significant capacity expansion projects, including the TAN project at Gopalpur and the Nitric Acid project at Dahej, both slated for Q2 FY27, is a key growth driver. These projects represent substantial capital expenditure, with the TAN project costing ₹2,675 crore and the Nitric Acid project ₹1,983 crore.

Risks to watch

A major concern is the significant year-on-year decline in Q4 profit. Additionally, a below-normal monsoon forecast for 2026 (92% of LPA) poses a demand risk for the Crop Nutrition business. The company also has a pending tax litigation matter involving a penalty appeal of ₹96.04 crore for AY 2015-16.

Peer comparison

(No peer comparison data available in the filing).

Context metrics (time-bound)

• TAN Project (Gopalpur): 376 KTPA capacity, expected commission Q2 FY27. Capex: ₹2,675 crore.
• Nitric Acid Project (Dahej): 300 KTPA (WNA) & 150 KTPA (CNA) capacity, expected commission Q2 FY27. Capex: ₹1,983 crore.
• Dividend: ₹10 per share (100%).
• Record Date for Dividend: 25th August, 2026.

What to track next

Investors should monitor the progress of the capex projects, the impact of monsoon on the fertiliser business, and the resolution of the tax litigation. The company's ability to pass on raw material cost increases will also be critical.