By: ICN Bureau
Last updated : August 25, 2025 6:41 pm
The company stands at the threshold of a transformative phase, marked by giant leaps in industry leadership, strategic technology partnerships, and large-scale CAPEX initiatives
Deepak Nitrite Ltd. recently announced its financial result for the quarter ended June 30, 2025 (Q1 FY26). The company reported a 45 per cent drop in its net profit to Rs. 112 crore in Q1 FY26 as compared to Rs. 203 crore in Q1 FY25.
Revenue dipped 13 per cent to Rs. 1,890 crore against Rs. 2,167 crore in the corresponding period of the preceding fiscal. EBITDA also witnessed a slump of 35 per cent to Rs. 214 crore as compared to Rs. 328 crore in Q1 FY25.
Commenting on the performance for Q1 FY26, Deepak C. Mehta, Chairman & Managing Director said: “The first quarter of FY26 has reinforced our belief that ‘Destination Bharat’ is not just a strategic choice but a resilient foundation for continued long-term growth of our business. Amidst a volatile geopolitical environment marked by shifting global trade dynamics and elevated tariffs, Deepak continues to benefit from its India-centric, import-substitution-led business model.
Domestic consumption remains robust, and our backward and forward integration strategy is proving effective in helping us navigate pricing pressures and demand fluctuations across global markets.
Our Phenolics segment, powered by favorable domestic demand, continues to excel, laying a solid foundation for future growth. Concurrently, our AI segment is emerging from a period of global headwinds. We are channeling our resources to accelerate strategic initiatives that will not only help us weather current market conditions but also position us at the forefront of the next wave of industry innovation. This unwavering focus on our long-term vision ensures we are building a more resilient and forward looking enterprise.
We stand at the threshold of a transformative phase, marked by giant leaps in industry leadership, strategic technology partnerships, and large-scale CAPEX initiatives. Multiple projects are currently underway, some successfully commercialized, with a robust pipeline scheduled for rollout over the coming quarters. These initiatives span a wide spectrum of objectives, including capacity expansion, securing stable input supplies, and driving both backward integration for production efficiency as well as forward integration into new product lines. Our renewable energy transition, which began yielding tangible benefits since March 2025, is already enhancing energy security and strengthening the sustainability footprint across operations. Collectively, these efforts are set to deepen integration across our value chain and significantly elevate our competitive positioning in the market.
Our unwavering commitment to innovation, import substitution, and global market expansion continues to strengthen our agility and responsiveness to the evolving needs of our customers. Looking ahead, we are confident that Deepak’s deeply integrated and scalable business model is uniquely positioned to play a pivotal role in shaping a self-reliant chemical ecosystem for a Viksit Bharat.”
On Advanced Intermediates front, the chemical industry faced a challenging environment in Q1 FY26, primarily driven by a global economic deceleration and continued oversupply from China. This resulted in pricing pressure and compressed margins across various product lines. The agrochemicals segment, in particular, saw a slower-than expected recovery especially in Europe amid cautious purchasing behavior from global customers. These factors, combined with evolving geopolitical tensions and sluggish demand in major economies, created a volatile backdrop.
Despite these headwinds, Deepak Nitrite has showed resilience, benefiting from steady domestic demand and strategic initiatives like import substitution. Agrochemical-linked intermediates witnessed headwinds, as slow offtake in key products weighed on both revenue and EBITDA.
Phenolics experienced steady volume trajectory and optimized variable costs, showcasing the strength of the integrated manufacturing capabilities. This was steered by debottlenecking and capacity augmentation initiatives.
Outlook: Various initiatives are underway to enhance the margins like cost optimization, digital transformation, new product variants and capacity enhancement that will drive sustainable growth and long-term profitability. The company is well-positioned for a stable performance going forward, driven by the anticipated recovery in agrochemicals, and the strategic ramp-up of new capacities.