By: ICN Bureau
Last updated : November 08, 2025 11:54 am
Specialty segment contributes 22% to group revenue in H1
Deepak Fertilisers and Petrochemicals Corporation Limited (DFPCL) reported a 9 per cent year-over-year increase in Q2 FY26 consolidated revenue to Rs. 3,006.00 crore, while net profit remained flat at Rs. 214.00 crore. The fertilizer business grew 36 per cent, but the chemicals segment declined 21 per cent.
Reflecting on the company’s performance, S.C. Mehta, Chairman and Managing Director of DFPCL, stated, “Q2 FY26 reaffirms the strength of our strategic transformation and disciplined execution, anchored in our continued focus on specialty products, customer-centricity, and operational agility amidst evolving market dynamics.”
DFPCL delivered strong performance across its Fertiliser and Technical Ammonium Nitrate (TAN) businesses, driving healthy growth in both revenue and margins. This resilience underscores the success of the company’s differentiated portfolio and deep customer engagement across core sectors. The Chemicals segment, however, faced temporary challenges, impacted by global headwinds in the IPA and Ammonia businesses, which recorded a 21 per cent year-on-year decline.
The IPA business navigated a dynamic quarter influenced by global trade realignments and pricing volatility. A sharp correction in benzene and acetone prices, combined with the impact of anti-dumping duties on China, resulted in increased US imports and margin pressure. Despite these temporary headwinds, DFPCL is repositioning the business for sustainable growth. With early signs of price stabilization and easing geopolitical tensions, the company remains confident in a near-term recovery. The strategic focus on expanding pharma-grade exports, driving cost efficiencies, and ensuring fair trade practices is expected to strengthen competitiveness and profitability in the IPA business.
The Ammonia segment experienced a volatile quarter with FOB Middle East prices averaging around $300/MT, alongside operational constraints that added to cost pressures. However, the outlook remains positive as prices have rebounded above $400/MT. A planned plant shutdown in Q4 is expected to enhance capacity and deliver natural gas savings. Supported by the Equinor natural gas supply contract and ongoing operational efficiencies, DFPCL is well-positioned for a strong recovery in the coming quarters.
During the period, DFPCL completed the full acquisition of Platinum Blasting Services (PBS), its Australian subsidiary, which delivered Rs. 533 crore in revenue and Rs. 80 crore in EBITDA in FY25. Acquired at an attractive 6.7x EBITDA multiple, PBS strengthens DFPCL’s presence in the high-growth Australian mining market and aligns with the company’s forward integration strategy. This acquisition positions Deepak Mining Services Limited (DMSL) to further enhance its leadership in mining solutions across Australia and India.
DFPCL’s strategic growth projects continue to progress as planned, laying a strong foundation for the next phase of value creation. The company remains committed to delivering sustainable growth through sharper execution, deeper customer engagement, and a clear focus on long-term value creation for all stakeholders.