Deepak Nitrite has reported a strong turnaround in the March quarter of FY26, with profitability surging sharply despite a volatile global chemical environment marked by supply chain disruptions, geopolitical tensions and persistent pricing pressure across key inputs.

The company delivered a 74% quarter-on-quarter jump in EBITDA to Rs. 383 crore in Q4 FY26, up from Rs. 219 crore in Q3 FY26. Revenue from operations rose to Rs. 2,127 crore, marking a 7% QoQ increase, while PBT doubled sequentially to Rs. 301 crore, reflecting a 100% jump QoQ. PAT climbed to Rs. 220 crore, up 120% QoQ.

On a year-on-year basis, revenue declined 3%, but profitability held firm, with EBITDA rising 13% YoY, supported by improved pricing and cost efficiencies.

For the full year FY26, performance remained mixed on revenue but weak on profits. Revenue stood at Rs. 7,947 crore, which was down 5% year-on-year. EBITDA declined by 11% to Rs. 1,041 crore. Profit after tax (PAT) fell by 21% to Rs. 551 crore.

Despite the annual softness, the quarter marked a clear recovery in momentum.

Domestic demand drives resilience

The company reported an 86:14 domestic-to-export revenue mix in Q4, highlighting stronger reliance on the domestic market as global supply chains remained disrupted.

Management attributed the improved quarterly performance to volume stability, better realizations, product mix optimisation, and improved operating leverage across segments.

Segment snapshots

Phenolics and Advanced Intermediates led the recovery.

In Advanced Intermediates, strong domestic demand helped offset weakness in exports. Profitability improved due to better pricing in established product chains. Gains were also supported by product mix optimisation and cost efficiencies driven by integration.

In Phenolics, robust pricing gains supported stable volumes. There was a recovery in downstream demand from polymer and industrial applications. Operational stability and debottlenecking efforts helped increase output. The company also strengthened its domestic leadership by ensuring consistent supply during import disruptions.

Margins support

Cost efficiency and integration continued to support margins. EBITDA improvement was driven by proactive raw material procurement, backward integration, and improved self-sufficiency.

Additional support came from yield improvements and energy optimisation initiatives, along with monetisation of byproducts and value-chain integration. The company also used strategic pass-through mechanisms to manage input cost volatility, although these had a time-lag effect.

Investments & expansion

The company also continued its strategic investments and expansion. A new R&D Centre was established with an investment of Rs. 100 crore across a 5-acre campus. It also developed a polymer-focused R&D facility equipped with advanced synthesis and testing laboratories. More than 100 personnel were added to strengthen R&D capabilities.

The company further expanded into specialty chemistries and advanced technology platforms.

On the manufacturing side, Deepak Chem Tech commissioned Nitration and second hydrogenation plant at Dahej, and Nitric acid plant operations at Nandesari.

Deepak C Mehta, Chairman and Managing Director, Deepak Nitrite Ltd., said the global chemical industry is undergoing a structural shift away from seamless globalisation toward fragmented supply chains and strategic resource control.

He noted that recent geopolitical disruptions have exposed vulnerabilities in legacy sourcing models, making India’s push for self-reliance increasingly relevant.

“We are witnessing a clear shift in the global economic order, where earlier paradigms of seamless globalisation is giving way to emerging blocs, strategic partnerships, and greater control over critical raw materials and supply chains.”

He added that the company’s strategy is aligned with Make in India and Atmanirbhar Bharat, with continued focus on: backward and forward integration, import substitution, securing critical raw material streams, and expanding integrated manufacturing platforms.

“This will enable our customers to 'Depend on Deepak' with greater confidence.”

He said FY26 was a challenging year for the sector, but disciplined execution and cost management helped maintain resilience, while the company is now focusing on innovation, new product development, and geographic expansion to capture emerging opportunities.