Deepak Fertilisers Q2 Profit Flat, Revenue Grows 9% Amid Chemicals Segment Pressure

Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) announced its financial results for the quarter ending September 2025, reporting a consolidated net profit of ₹214 crore, which is largely flat compared to the same period last year. However, the company saw a healthy 9% rise in its revenue from operations, reaching ₹3,005.83 crore from ₹2,746.72 crore in the year-ago quarter.

Chairman and Managing Director S.C. Mehta attributed the performance to the company's strategic transformation and operational efficiency. The fertiliser and Technical Ammonium Nitrate (TAN) businesses were highlighted as key drivers of growth, showing strong performance.

Conversely, the chemicals segment experienced pressure. The IPA (Isopropyl Alcohol) business saw a significant 21% year-on-year decline due to global trade shifts, pricing volatility in benzene and acetone, and the impact of anti-dumping duties on Chinese imports, which increased US imports and squeezed margins. The ammonia segment also faced a volatile quarter, although recent price recovery above $400 per tonne and operational improvements offer a positive outlook. A planned shutdown in the fourth quarter is expected to boost capacity and save on natural gas costs.

Furthermore, DFPCL successfully completed the full acquisition of its Australian subsidiary, Platinum Blasting Services (PBS), which generated ₹533 crore in revenue and ₹80 crore in EBITDA in FY25.

Impact: This news has a mixed impact on investors. The robust performance in core segments like fertilisers and TAN is positive. However, the challenges faced by the chemicals segment, especially IPA, due to external global factors, could affect overall profitability and investor sentiment in the short term. The completion of the Australian subsidiary acquisition represents a strategic expansion for the company. Impact Rating: 6/10.

Difficult Terms: * Consolidated Net Profit: The total profit of a company including all its subsidiaries. * Revenue from Operations: The total income generated from the company's primary business activities. * Year-on-year (YoY): A comparison of a company's performance metric from the current period to the same period in the previous year. * Speciality Products: Products with unique chemical properties or compositions tailored for specific applications. * Operational Agility: The ability of a company to respond quickly and effectively to changes in its operational environment or market conditions. * Fertiliser: A chemical or natural substance added to soil or plants to supply essential nutrients for growth. * Technical Ammonium Nitrate (TAN): A chemical compound primarily used as an industrial explosive and as a component in fertilisers. * Global Headwinds: Unfavorable external economic or political conditions that impact businesses. * IPA (Isopropyl Alcohol): A common solvent and chemical intermediate used in various industries. * Ammonia: A colorless gas with a pungent odor, widely used in fertilisers, cleaning products, and industrial applications. * FOB (Free On Board): A shipping term where the seller is responsible for the goods until they are loaded onto the vessel, after which the buyer assumes risk and cost. * EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization; a measure of a company's operating performance. * Anti-dumping duties: Tariffs imposed on imported goods sold at unfairly low prices to protect domestic industries.