Deepak Nitrite reported a sharp rise in Q1 FY27 net profit to ₹345.01 crore, driven by strong performance in its Phenolics segment. The company also announced a ₹2,500 crore investment to build a new Bisphenol A facility. Shares showed a minor gain as the market digested the results and future expansion plans.
Deepak Nitrite Ltd. reported a significant jump in its consolidated net profit for the first quarter of fiscal year 2027, reaching ₹345.01 crore compared to ₹112.25 crore in the same period a year ago. This growth was primarily fueled by the company’s Phenolics segment, which remains a key revenue driver. The segment generated ₹1,775.05 crore in revenue, with profit before interest and tax reaching ₹417.76 crore.
The company’s overall profitability metrics showed improvement, with EBITDA rising to ₹540.2 crore from ₹189.4 crore in the previous year's first quarter. This pushed the EBITDA margin to 21%, up from 10.03% a year earlier. The Advanced Intermediates segment also supported this performance, reporting revenues of ₹803.85 crore and a segment profit of ₹66.98 crore.
Strategic Expansion into BPA Manufacturing
Deepak Nitrite plans to deepen its manufacturing integration by investing ₹2,500 crore through its subsidiary, Deepak Chem Tech Ltd. This capital spending will fund a new Bisphenol A (BPA) plant with a capacity of 240,000 tonnes per annum. The project is designed to complete an integrated chain that connects Cumene to Phenol, Acetone, BPA, and eventually Polycarbonate resin. This move aims to reduce reliance on external suppliers for key raw materials.
Leadership Changes and Market Context
Alongside the financial results, the company announced the appointment of Lohit Shringi as the new CEO of its Advanced Intermediates business. Shringi brings over 27 years of experience in the specialty chemicals sector, including past roles at PCBL Chemical Ltd.
On the stock market, Deepak Nitrite shares closed at ₹1,720 on the NSE, marking a marginal gain of 0.36%. Over the past year, the stock has trended lower by approximately 5%, contrasting with a roughly 4% gain in the broader Nifty 500 index. Investors looking ahead will likely monitor the execution timeline for the new BPA facility and the ability of the company to maintain its current profit margins in the face of global chemical pricing volatility. The progress of the Polycarbonate resin plant, which was approved in an earlier phase, will also be a key factor for the company's long-term production capacity.