Deepak Nitrite Stock Faces Sell Call: Motilal Oswal Flags Weak Q2 Performance and Cautious Outlook

Overview

Motilal Oswal has reiterated a 'Sell' recommendation for Deepak Nitrite, citing a weak operating performance in the second quarter of fiscal year 2026 (2QFY26). The company reported a 31% year-over-year decline in EBITDA to INR 2 billion, accompanied by a contraction in gross and EBITDA margins. While anticipating a recovery in the second half of the fiscal year driven by new capacities and product launches, the brokerage maintains its earnings estimates and a target price of INR 1,530.