Deepak Nitrite reported a record Q2 FY27, with revenue climbing 61% to INR 3,091 crore and EBITDA soaring 187% to INR 643 crore. Strong performance in the Phenolics segment offset temporary margin pressure in Advanced Intermediates. Investors should note the company's ambitious INR 11,700 crore four-year capex plan and the successful commissioning of new specialty chemical assets in Dahej.
Deepak Nitrite Reports Record Q2 FY27 Performance
Q2 Revenue: INR 3,091 crore | Q2 EBITDA: INR 643 crore
Reader Takeaway: Strong Phenolics growth and successful asset commissioning drive results; watch Advanced Intermediates margin recovery and capex execution.
What just happened
Deepak Nitrite delivered a robust second-quarter performance for FY27, with consolidated revenue rising 61% year-on-year to INR 3,091 crore. The company saw a massive surge in operational profitability, with EBITDA reaching INR 643 crore—a 187% increase compared to the same period last year. Margins were sustained at 21%.
Why this matters
The company’s performance was anchored by the Phenolics segment, which posted record quarterly revenue of INR 2,291 crore, up 72% year-on-year. This demonstrates the strength of the company’s integrated manufacturing model. While the Advanced Intermediates segment faced headwinds due to input price volatility and logistics costs, resulting in a 6% EBIT margin, management is confident that ramp-ups in new capacity will drive recovery in the coming quarters.
Corporate Expansion
Deepak Nitrite has successfully commissioned new chlorination, photohalogenation, and specialty chemicals assets in Dahej, representing a INR 300 crore investment. Furthermore, the fluorination capacity project is now complete. The long-term growth roadmap is underpinned by a total capex guidance of INR 11,700 crore over the next four years, with a major focus on the upcoming integrated propylene-to-polycarbonate resin plant slated for FY30.
Risks to watch
Investors should closely monitor the margins of the Advanced Intermediates business, which management aims to return to the 14-15% EBIT range. Additionally, the execution timeline for the massive integrated polycarbonate project remains a critical long-term monitorable. While hedging strategies are in place, dependence on raw feedstock like propylene and ammonia continues to be a factor in operational performance.
Context metrics
For the H1 FY27 period, the company recorded a 48% rise in revenue to INR 5,682 crore, while Profit After Tax (PAT) surged 221% year-on-year to INR 743 crore. The balance sheet remains healthy with a net debt of INR 1,657 crore and a low debt-to-equity ratio of 0.25x.