Deepak Fertilisers Q2 results: Profit jumps 85% to Rs 394 crore, revenue rises 11%

Revenue grew 10.9% year-on-year to Rs 3,334 crore, while EBITDA surged 61.4% to Rs 749 crore, reflecting stronger operational performance in Q2 FY27.Its business-to-consumer (B2C) revenue grew 40% and accounted for 16% of segment revenue, compared with 14% in the year-ago quarter.Deepak Fertilisers and Petrochemicals Corporation reported a strong set of September-quarter results, with consolidated net profit rising 84.7% year-on-year to Rs 393.8 crore in the second quarter of FY27, compared with Rs 213.2 crore in the corresponding quarter last year.Revenue increased 10.9% to Rs 3,334 crore from Rs 3,006 crore a year earlier. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 61.4% to Rs 749 crore, compared with Rs 464 crore in the year-ago quarter.The company's EBITDA margin also improved significantly, expanding to 22.5% in Q2 FY27 from 15.4% in the corresponding quarter last year.MINING CHEMICALS AND SPECIALTY PRODUCTS SUPPORT GROWTHChairman and Managing Director SC Mehta said the company delivered its best-ever first-half performance despite market volatility and supply-chain disruptions arising from the US-Iran conflict. He attributed the company's resilience to its integrated LNG-to-ammonia-to-downstream value chain, which helps manage supply and cost fluctuations while supporting profitability across market cycles.The technical ammonium nitrate (TAN) business recorded a 25% year-on-year increase in revenue, despite an 8% decline in sales volumes. The company attributed the moderation in volumes largely to the impact of the monsoon and an export ban. Its business-to-consumer (B2C) revenue grew 40% and accounted for 16% of segment revenue, compared with 14% in the year-ago quarter.In the pharma and speciality chemicals business, nitric acid volumes increased 14% year-on-year to 80 kilotonnes (KT). Isopropyl alcohol (IPA) volumes stood at 17 KT, increasing sequentially despite continued constraints in RGP supplies.The company also expanded its speciality products portfolio across solar chemicals, healthcare sanitation and pharmaceutical applications.CROP NUTRITION BUSINESS FACES CHALLENGESThe company's crop nutrition business faced challenges during the quarter due to deficient rainfall in key markets, limited phosphoric acid availability, higher raw material costs and elevated industry inventories.Deepak Fertilisers said it was focusing on irrigated and high-potential markets to support growth amid these challenges.Mehta also highlighted the company's strategy to move away from commoditised products towards differentiated, solutions-led offerings. The growing contribution from speciality products, Croptek and business-to-consumer offerings is aimed at strengthening customer relationships and supporting more sustainable earnings.TWO EXPANSION PROJECTS NEAR COMPLETIONDeepak Fertilisers is nearing the completion of two major expansion projects: its nitric acid complex at Dahej and the technical ammonium nitrate project at Gopalpur.Both projects have achieved approximately 98% completion, with commissioning activities under way. The company expects them to commence operations in the fourth quarter of FY27.Mehta said the projects would strengthen the company's position in these product segments, improve supply assurance and support its next phase of growth.- Ends