Deepak Fertilisers & Petrochemicals Corp delivered exceptional financial performance in the June 2026 quarter, with consolidated net profit more than doubling to ₹490.04 crore, representing a 101% year-on-year growth from ₹244 crore in Q1FY26. According to the company's latest disclosures, this represents the highest-ever quarterly net profit in the company's history, demonstrating strong operational efficiency and market performance during the quarter. As noted by Chairman and Managing Director S.C. Mehta, the doubling of profits validates the company's core strategy despite significant market volatility and supply chain disruptions from global conflicts, with the Dahej Nitric Acid complex and Gopalpur TAN project nearing completion and expected to begin contributing to profitability from Q3 FY27.
The company's total income rose to ₹3,256.21 crore in the first quarter of this fiscal from ₹2,659 crore in the corresponding period of the preceding year, with an 8% quarter-on-quarter increase from ₹3,011 crore in Q4 FY26. This revenue growth indicates robust demand for the company's fertiliser and petrochemical products, with the company successfully expanding its market presence and product portfolio during the quarter. The performance was driven by stronger realisations in ammonia, mining chemicals and industrial chemicals businesses, with the company successfully offsetting temporary volume disruptions in Technical Ammonium Nitrate (TAN) and Isopropyl Alcohol (IPA) caused by the US-Iran conflict through favourable industry pricing. In the crop nutrition business, manufactured NPK fertiliser sales rose 4% year-on-year and 11% sequentially to 133 KT despite supply-side disruptions.
The company achieved remarkable operational improvements with operating EBITDA growing 65% year-on-year to ₹845 crore, while operating EBITDA margins expanded by nearly 670 basis points to 26.0% compared to 19.3% in Q1FY26. This margin expansion reflects better cost management and operational efficiency, contributing significantly to the overall profit growth despite higher revenue levels. The strong EBITDA performance represents the highest-ever quarterly EBITDA in the company's history, demonstrating the effectiveness of the company's integrated value chain spanning LNG, Ammonia, and downstream products. The company's Chemicals segment contributed significantly to the earnings surge, with segment results reaching ₹8,051.9 crore before tax and finance costs, up sharply from ₹3,672.0 crore in Q1FY26. The strong EBITDA performance was largely attributed to the commencement of Equinor LNG supplies and favorable pricing for key products such as Technical Ammonium Nitrate (TAN), Nitric Acid, and Isopropyl Alcohol (IPA).
Looking ahead, S.C. Mehta highlighted that the company is positioned to enter its next growth phase with Dahej and Gopalpur expansion projects nearing completion. The strategic pivot towards differentiated solutions continues to enhance earnings quality, with the strength of the integrated value chain spanning LNG, Ammonia, and downstream products supporting future growth prospects. The company expects improved propylene availability to aid recovery in its IPA business and anticipates that once operational, the projects will strengthen DFPCL's leadership in nitric acid and technical ammonium nitrate, improve operating leverage, enhance supply assurance and support the company's next phase of growth. However, the company noted that the industry's outlook would depend on the government's timely alignment of nutrient subsidy rates with elevated input costs, while demand conditions remain broadly supportive due to widespread rainfall across key markets.
Deepak Fertilisers demonstrated strong balance sheet discipline, reducing its Net Debt to ₹4,719 crore, resulting in an improved Net Debt/EBITDA ratio of 1.4x. The company also completed the acquisition of Chardham Chemicals, an explosives manufacturer, on May 6, 2026, for a total consideration of ₹121.45 crore through its wholly owned subsidiary Deepak Mining Solutions. The Gopalpur Technical Ammonium Nitrate (TAN) project has reached 96% completion, while the Dahej Nitric Acid project is 93% complete, with commissioning activities underway and commercial operations expected by the end of the second quarter of FY27. The Board of Directors approved the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, with the results reviewed by the Audit Committee on July 29, 2026, and subjected to a limited review by statutory auditors P G Bhagwat LLP.
