Capex initiatives, including the technical ammonium nitrate project in Gopalpur and the nitric acid project in Dahej, are progressing as planned and are set to deliver long-term value
Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL), one of India’s leading producers of industrial & mining chemicals and fertilisers, Q3 FY25 consolidated revenues saw a strong 39% growth, reaching Rs. 2,579 crore for the quarter and a phenomenal 318% jump in net profit reaching Rs. 253 crore.
During the quarter, DFPCL’s consolidated revenues saw a strong 39% growth, reaching Rs. 2,579 crores and EBITDA grew by a remarkable 72% increase, bringing it to Rs. 486 crores with a sustainable EBITDA Margins improved from 15% to 19%.
Commenting on the company’s performance, S. C. Mehta, Chairman and Managing Director, DFPCL said, "India faced a slightly slower start to the year, but with the government’s ongoing focus on investment-led growth and strong structural drivers, we remain confident about the future of the chemical and fertilizer industries. Our Q3 FY25 results reflect the strength of this confidence, highlighting the success of our strategic transition from commodity products to high-value specialty offerings, moving from customer to end consumers supported by effective backward integration and innovation.
"The demand drivers remain robust, with clear undercurrents emerging from India’s increasing needs for coal for power generation, limestone for cement, and infrastructure development—all of which provide strong tailwinds for our Mining Chemicals business. Likewise, the rising income levels and shifting food consumption towards more fruits and vegetables, perfectly aligning with the growth of our Crop Nutrition business. Additionally, the China Plus One strategy and the growing demand for specialty chemicals are driving growth in our Industrial Chemicals business," said Mehta.
"Our Capex initiatives, including the technical ammonium nitrate project in Gopalpur and the nitric acid project in Dahej, are progressing as planned and are set to deliver long-term value. These projects are uniquely positioned to mitigate risks, thanks to our 40+ years of experience in these sectors. Moreover, we have established distribution networks and customer bases, ensuring a smooth offtake from these projects," commented Mehta.
Mining Chemicals (Technical Ammonium Nitrate): In Q3 FY25, overall sales volume surged by 19% (YoY), reaching 129 KMT compared to 108 KMT in Q3 FY24. Over the first 9 months, sales volume grew by 5% YoY to 372 KMT. Premium product, LDAN, saw a notable 10% YoY growth in sales volume for Q3 FY25, with a stronger 16% YoY increase over the first 9 months of the year.
Industrial Chemicals: IPA sales volume rose by 36%, reaching 17.48 KMT from 12.89 KMT in Q3 FY24. Over the first 9 months, sales increased by 4%, totaling 48.89 KMT despite global volatility mainly driven by growth in the pharma sector which is growing in double digits. In Q3 FY25, Nitric Acid volumes were up by 4% year-over-year, while for the first 9 months, there was a slight decline of 3% YoY, mainly due to the rise in imports of nitroaromatics.
Crop Nutrition Business (Fertilisers): In Q3 FY25, manufactured bulk fertilizer achieved robust sales of 231 KMT, marking a 64% year-over-year increase. For the first 9 months, sales rose by 52%, driven by above-normal monsoon rains in the operating region. Flagship products, Smartek and Croptek, saw exceptional sales growth, with volumes rising by 186% and 56%, respectively. This performance was driven by the successful execution of our Go-To-Market strategy and strong demand-generation initiatives. Both products focus on Nutrient Unlocking Technology, which helps improve yield per acre. Sale of specialty fertilizer Bensulf and water-soluble fertilizers was 19 KMT, up 8% YoY.
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