Deepak Nitrite

“We believe the business is well placed to sustain the momentum, and we'll be setting a new benchmark in annual performance for this segment by the end of the financial year.”

“So we expect Q3, in terms of EBIT percentage, somewhere between Q1 and Q2, I think closer to Q1 in terms of percentage.”

“So I would assume that in Q4 EBIT percentage should be better than Q3. And on an annualized basis from next year onwards, we should see further improvement.”

“There is an upside available. So we can assume that INR 250 crore plus another INR 250 crore is the kind of visibility that we have on steady state for the existed investments.”

“Progress at Dahej, alongside the dismantling and relocation activities in Germany are expected to steadily build up the foundation for our entry into advanced materials.”

“The polycarbonate resin plant commissioning is actually slated earlier than that. So we continue to remain in line with our FY29 number.”

“However, the integrated asset from propylene to polycarbonate resin is in line with the feedstock availability plan. So you will see the polycarbonate resin certainly come in earlier. It will be using bought out BPA perhaps for a brief bit of time.”

“So the lion's share of the investment will focus on the polycarbonate facility. There is some investment planned for the AI business, but it will be marginal.”

“So these are in a very advanced stage. Once we are able to lock these out, the investments will begin.”

“And by and large, we will be able to add another 80 to 100 KTPA in the market from the new capacity.”

“With regards to asset capability, I think we have come close enough to the 4 lakh tonnes plus or minus. We'll continue to see how we can squeeze out more production.”

“we have started supplying and we should see ramp-up of it. It will certainly be seen and present in Q3, and we should be able to ramp up to full capacity very soon.”

“We already have a capacity in place. We will be able to expand that capacity at short notice.”

“So, by and large, I would say that in FY31, you already have seen a fully optimized utilization of polycarbonate, you would be seeing an increasing utilization of the compounding facility”

“Phenolics delivered highest ever quarterly revenue of INR 2,291 crore, an increase of 29% sequentially and 72% year-on-year. EBIT increased to INR 515 crore, up 23% quarter-on-quarter, with EBIT margin of approximately 22%.”

“our EBIT of INR 933 crore has surpassed previous highest annual EBIT of INR 867 crore, which was registered in FY22.”

“The Advanced Intermediates quarterly revenue stood at INR 811 crore, representing 38% growth year-on-year and marginal sequential increase, the EBIT stood at INR 49 crore compared with INR 67 crore in Q1 FY27 with EBIT margin at 6%.”

“material costs and better placement with regards to our product. This is what will lead us to a sustained profitability in Q3.”

“We are also seeing an improvement in the legacy product portfolio. So, it will be balanced across legacy as well as new commissioned assets.”

“Looking forward in Q3 and Q4 and beyond that also, we've seen most of these consumers return back to Deepak as their preferred source of supply.”

“What you are seeing is the result of a buoyant domestic demand, coupled with the general disruptions which take place with geopolitical material movement.”

“But, to be clear, even in the given circumstances, the export market, especially in Europe, East and West, is extremely attractive.”

“So generally, the capacity for the Indian market to consume phenol is approximately about 6 lakh tonnes, growing at about 6% to 7% annually.”

“So we believe that even if new capacity as and when they come in and they gets commissioned, there is enough and more consumption, even excluding the growth, to cater to India's manufacturing as well.”

“EBITDA reached a record INR 643 crore, growing at 187% year-on-year and 16% quarter-on-quarter with EBITDA margin sustained at 21%.”

“The improvement was driven by a combination of healthy capacity utilization, favorable domestic realization and procurement efficiencies.”

“The sequential moderation in profitability reflects the headwinds from input prices, some variation in customer volumes as well as impact of duties, logistics and freight rates.”

“In many cases, we've actually paid double the price that we would have paid and possibly close to double the index”

“Yes, because there will be formula-linked and cost pass-through clauses.”

“Consolidated net debt stood at INR 1,657 crore compared to INR 1,676 crore at the end of the previous quarter. Consequently, our net debt-to-equity ratio improved to 0.25x from 0.27x.”

“Working capital management also continues to improve with net cash conversion cycle reducing to 53 days from 57 days in Q1.”

“Now on balance sheet and capital allocation, consolidated net worth increased to INR 6,521 crore at the end of September 2026.”

“The financing arrangement for our growth investments are in place, and we continue to monitor project expenditure, funding requirements and cash flow closely to preserve our financial flexibility.”

“We have already pumped in the equity required whatever, around INR 50 crore is left.”

“funding because we already tied up with the bank. So more or less our equity funding is done.”

“So one is where we're putting up an AHF and ultra-pure DHF plant. But that is not coming in Deepak Nitrite. That is coming in a separate entity. It will also supply the AHF to Deepak Nitrite.”

“So just to clarify, Deepak Nitrite will be buying this from another entity for its own captive consumption. That entity will be selling into the solar and electronic applications.”

“It is not a subsidiary of Deepak Nitrite.”

“we recently were able to also get REACH registrations for both MIBK as well as MIBC. We will also be focusing on export participation of this product.”

“So right now, we are approved with electronic grade applications. We are approved with some degree of mobility, a key one, but this is defence as an application.”

“First quarter, we had a shutdown, which is not there in the second quarter.”

“Consumers saw elevated ammonia prices and other raw material prices and imported proactively, which landed up in July. This led to lower utilization of some plants despite the moderation in raw material prices.”

“In the last 6 months, there has been a disturbance with regards to propylene availability.”

“Of course, the Government had also removed the duty on imports of phenol and appreciate their support in reinstating it in Q2.”

“generally, we don't see China really participating in the phenol landscape in India. And we are not anticipating this also in the short to medium term.”

“But this is actually more reflective of what we were able to produce because of limited feedstock availability.”

“Consolidated revenue from operations increased to INR 3,091 crore, registering growth of 61% year-on-year and 19% sequentially.”

“PBT increased to INR 543 crore, while PAT reached INR 398 crore, representing sequential growth of 16% and 15%, respectively.”

“For H1 FY27, consolidated revenue stood at INR 5,682 crore registering 48% year-on-year growth. EBITDA increased 173% to INR 1,197 crore with margins expanding to 21% compared with approximately 11% in corresponding period last year.”

“PAT increased 221% to INR 743 crore.”

“And Deepak now stands as India's largest acetone consumer.”