Deepak Nitrite delivered exceptional financial results for the quarter ended June 30, 2026, with consolidated net profit more than tripling to ₹345.02 crore compared to ₹112.20 crore in the corresponding quarter last year. According to latest reports, revenue from operations increased 36.39% year-on-year to ₹2,577.60 crore, up from ₹1,889.88 crore a year earlier. The most significant improvement was in operating profitability, with EBITDA rising 45% to ₹554 crore from ₹383 crore in the year-ago quarter, while EBITDA margin expanded to 21% compared with 19% a year ago. As per the latest data, profit before tax soared 202.2% to ₹467.63 crore from ₹154.74 crore a year earlier, highlighting substantial profitability gains across all business segments. Following the strong earnings announcement, Deepak Nitrite shares gained 2.3% to ₹1,755, with the stock showing continued positive momentum across multiple technical indicators.
The company's Phenolics segment emerged as the key growth driver, with segment revenue increasing to ₹1,775.05 crore from ₹1,303.96 crore in the year-ago period, recording 36% year-on-year growth. According to the latest financial results, segment profit before interest and tax surged to ₹417.76 crore from ₹117.90 crore, demonstrating exceptional operational leverage. The Advanced Intermediates business also delivered robust performance, with revenue rising to ₹804 crore from ₹605.33 crore and segment profit nearly doubling to ₹66.98 crore from ₹35.47 crore in the corresponding quarter last year, recording 33% YoY growth. These strong segment performances contributed significantly to the overall improvement in operating margins and profitability metrics, with the company maintaining a balanced revenue mix of 85% domestic sales and 15% exports during the quarter.
The company announced a significant expansion plan through its wholly owned subsidiary Deepak Chem Tech Ltd. (DCTL), approving a ₹2,500 crore investment for a Bisphenol A (BPA) manufacturing facility with capacity of up to 240 KTA. As reported by CNBC TV18, the project includes development of a greenfield manufacturing complex and related infrastructure, with the total investment estimated at around ₹2,500 crore. The company stated the project will be funded through an appropriate mix of debt and equity, with final capital outlay to be determined after detailed engineering completion. This investment reflects Deepak Nitrite's strategy of expanding into higher-value downstream chemicals while strengthening its manufacturing capabilities. The company announced that the DCTL Board has already approved the establishment of India's first Polycarbonate resin manufacturing plant, with the BPA facility enabling Deepak to move towards creating a highly integrated manufacturing platform spanning the value chain from Cumene to Phenol & Acetone, BPA and Polycarbonate resin, including downstream compounding.
Investor sentiment has strengthened significantly during the June 2026 quarter, with both foreign and domestic institutional investors increasing their holdings in Deepak Nitrite. Foreign Institutional Investors (FIIs) increased their stake from 6.19% to 6.24%, while Mutual Fund holdings rose from 11.01% to 11.45% during the quarter. From a technical perspective, the stock continues to show positive momentum with the 14-day Relative Strength Index (RSI) at 57.7, indicating neutral-to-positive trading conditions. The stock is currently trading above all eight key Simple Moving Averages (SMAs), suggesting a bullish technical setup. With strong quarterly earnings, capacity expansion plans, positive technical indicators, and rising institutional participation, Deepak Nitrite remains in focus among investors tracking the chemical sector.
