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Deepak Fertilisers Profit Plummets Amid Costs
28 May
Summary
- Fourth-quarter net profit fell 50% to ₹139.4 crore.
- Revenue increased 12.9% to ₹3,011.4 crore due to higher volumes.
- Planned ammonia plant maintenance incurred costs of ₹95 crore.
Deepak Fertilisers and Petrochemicals Corporation Limited experienced a substantial 50% decrease in its fourth-quarter net profit, reporting ₹139.4 crore for Q4FY26 compared to ₹277 crore in the prior year. This profit reduction was significantly influenced by a planned maintenance shutdown and efficiency enhancement costs for its ammonia plant, totaling around ₹95 crore.
Despite the profit dip, the company demonstrated robust financial performance with a 12.9% rise in revenue, achieving ₹3,011.4 crore. This growth was propelled by increased sales volumes in its Technical Ammonium Nitrate (TAN) and Crop Nutrition Business (CNB) segments. EBITDA saw a 26.3% decline to ₹354 crore, with margins contracting to 12% from 18% year-on-year.
For the full fiscal year FY26, profit after tax declined by 18% to ₹439 crore, after accounting for a one-time tax credit in FY25. The company is actively enhancing its product mix, with a growing contribution from higher-value speciality products. A dividend of ₹10 per equity share has been recommended for FY26.
