Deepak Fertilisers and Petrochemicals Corporation (DFPCL) reported a 101% year-on-year increase in net profit to Rs 490 crore, with revenues rising by 22% to Rs 3,256 crore in the June quarter. The company’s EBITDA margin improved to 26%, up from 19.3% in the previous period. Operating EBITDA surged to Rs 845 crore, a 65% year-on-year growth, driven by enhanced operating leverage and stronger profitability across the integrated value chain.

S C Mehta, Chairman and Managing Director of DFPCL, stated that the company achieved its highest-ever EBITDA and profit during the quarter, despite significant volatility and supply chain disruptions because of the US-Iran conflict. Mehta said the company’s growth was fueled by its integrated value chain, which encompasses LNG, ammonia, and downstream products. This integration allowed DFPCL to mitigate supply and cost risks, capture value throughout the chain, and maintain profitability across market cycles. According to Mehta, there has been an increasing contribution from the strategic shift away from commoditised products towards differentiated solutions.

DFPCL noted that the commencement of Equinor LNG supplies and stronger realisations across Technical Ammonium Nitrate (TAN), Nitric Acid, and IsoPropylene Alcohol (IPA) supported broad-based margin expansion. Despite the volatility and disruptions arising from the US-Iran conflict, revenue growth was bolstered by improved realisations in ammonia, mining chemicals, and industrial chemicals. Although there were temporary volume disruptions in TAN and IPA, favourable industry pricing contributed to robust top-line growth.

Despite ongoing strategic capital expenditures and project investments, the company successfully reduced its net debt to Rs 4,719 crore. The debt-to-EBITDA ratio improved to 1.4x, reflecting stronger cash generation and disciplined balance sheet management.

DFPCL’s projects in Gopalpur TAN and Dahej Nitric Acid are nearing completion and are anticipated to begin contributing to profitability from Q3 FY27 onwards.

Regarding the outlook for the year, the company mentioned that with widespread rainfall across its core markets, demand conditions remain generally supportive. However, this outlook is contingent upon the government’s nutrient subsidy rates amidst elevated input costs.