Deepak Fertilisers clocks 50 pc drop in Q4 profit
Mumbai, May 28
Deepak Fertilisers and Petrochemicals Corporation Limited on Thursday reported a 50 per cent decline in fourth-quarter earnings as higher maintenance and efficiency enhancement costs related to its ammonia plant weighed on margins.
The company posted a 50 per cent year-on-year fall in consolidated net profit at Rs 139.4 crore for the quarter ended March 2026, compared with Rs 277 crore reported in the corresponding quarter of the previous financial year (Q4 FY25), according to its stock exchange filing.
Revenue from operations rose 12.9 per cent to Rs 3,011.4 crore during the quarter, supported by robust volume growth in the Technical Ammonium Nitrate (TAN) and Crop Nutrition Business (CNB) segments.
At the operating level, EBITDA declined 26.3 per cent year-on-year to Rs 354 crore in Q4 FY26, as per its filing.
EBITDA margin contracted sharply to 12 per cent from 18 per cent recorded in the same quarter last financial year.
The company said quarterly profitability was impacted due to planned ammonia plant turnaround maintenance and efficiency enhancement costs amounting to nearly Rs 95 crore.
Adjusted for this one-time impact, the EBITDA decline stood at around 10 per cent year-on-year, while improving 22 per cent sequentially.
For the full financial year FY26, Deepak Fertilisers reported an 18 per cent decline in profit after tax to Rs 439 crore after adjusting for a one-time tax credit of around Rs 40 crore recorded in FY25.
The company said lower finance costs partially helped offset pressure on margins during the year.
The company also highlighted continued improvement in its product mix towards higher-value offerings.
Speciality products contributed 33 per cent of Crop Nutrition Business revenue during FY26, while the B2C segment contribution in the mining chemicals business increased to 16 per cent, supporting better earnings quality.
The Board of Directors recommended a dividend of Rs 10 per equity share for FY26. The company said the register of members will remain closed from August 26 to September 1 for the purpose of dividend payment and the annual general meeting, while the record date has been fixed as August 25.
— IANS
Reader Comments
As someone who follows agri inputs sector, Deepak's focus on speciality products (33% of CNB revenue) is smart. But this one-time maintenance cost hitting EBITDA so hard—hope it was worth it for future efficiency.
I'm not Indian but invested in Indian markets. Deepak seems like a decent company, but a 50% drop in net profit is concerning. Adjusted EBITDA decline of 10% is more manageable. The dividend of Rs 10/share is a silver lining though.
Revenue up but profit down—story of many Indian companies these days. At least they're transparent about the Rs 95 crore maintenance cost. Let's see if the efficiency gains actually materialize in coming quarters. 🤔
I appreciate the B2C segment growth in mining chemicals to 16%. Means they're reaching end users directly. But finance costs reduction is the only thing saving margins right now. Need to see operational improvement.
Why does everyone ignore the dividend announcement? Rs 10 per share is good for small investors like me. Shareholders are getting something back even in tough times. :)
A 50% profit drop is no joke
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