Deepak Fertilisers and Petrochemicals Corporation Limited (NSE:DEEPAKFERT) filed the transcript of its Q1 FY2027 earnings conference call with stock exchanges on 6 August 2026, covering results for the quarter ended 30 June 2026. The call, held on 31 July 2026, disclosed record consolidated EBITDA of Rs 845 crore and net profit of Rs 490 crore.
Key Highlights
- Consolidated revenue for Q1 FY27 stood at Rs 3,256 crore, up 22% year-on-year and 8% quarter-on-quarter, driven by stronger realisations across ammonia, mining chemicals, and industrial chemicals.
- Operating EBITDA reached a record Rs 845 crore, up 65% year-on-year and 139% sequentially, with EBITDA margin improving to 26% from 19% in Q1 FY26.
- Net profit for the quarter was Rs 490 crore, up 101% year-on-year and 252% quarter-on-quarter, reflecting margin expansion and improved operating leverage.
- Net debt reduced to Rs 4,719 crore with debt-to-EBITDA improving to 1.4x, even as the company incurred over Rs 500 crore of capital expenditure during the quarter.
About the Company
Deepak Fertilisers and Petrochemicals Corporation Limited (NSE:DEEPAKFERT), headquartered in Pune, Maharashtra, manufactures and markets technical ammonium nitrate, industrial chemicals including nitric acid and isopropyl alcohol, and crop nutrition products under its Croptek brand. The company operates manufacturing facilities at Taloja in Maharashtra and Dahej in Gujarat, and is developing a new Technical Ammonium Nitrate plant at Gopalpur, Odisha. It holds a long-term LNG supply agreement with Norway-based Equinor to support its gas-to-ammonia integration strategy.
Announcement in Detail
The transcript filed pursuant to Regulation 30(6) read with Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 covers the call moderated by Rohit Sinha of Sunidhi Securities. Management participants included Chairman and Managing Director Sailesh Mehta, President and CFO Subhash Anand, President of the Technical Ammonium Nitrate business Tarun Sinha, and Executive VP Corporate Finance Suparas Jain.
CFO Subhash Anand confirmed that the Gopalpur TAN project is approximately 96% complete and the Dahej nitric acid project approximately 93% complete, with commissioning of both projects expected in Q2 FY27. Total capital expenditure incurred on these projects through Q1 FY27 is approximately Rs 3,850 crore, and both remain within the approved capex envelope. The first cargo under the long-term LNG agreement with Equinor was received in May 2026, marking commencement of supplies.
Impact on Investors
The filing shows that the company's debt-to-EBITDA ratio improved materially from 2.86x to 1.4x within a single quarter, which investors will note reflects the combined effect of record earnings and ongoing debt reduction. Shareholders will observe that both major capital projects are nearing commissioning, meaning the peak capex cycle is close to completion as stated by management.
Investors will note that management flagged near-term headwinds for Q2 FY27, including a seasonal slowdown in mining chemical volumes due to monsoon, supply chain strain on phosphoric acid and sulphur inputs arising from Middle East geopolitical conditions, and the need for timely government subsidy corrections in the crop nutrition segment. The disclosed terms indicate that IPA volumes were impacted by propylene availability constraints in Q1, though management stated progressive recovery is expected as supply improves.
Sector / Market Context
India's fertiliser sector operates under a government subsidy framework administered through the Nutrient Based Subsidy scheme, which directly affects the crop nutrition segment's realisations. The mining chemicals segment is linked to coal, limestone, and metals extraction activity, sectors that the Ministry of Mines has identified as central to India's infrastructure build-out. Technical ammonium nitrate demand in India is regulated under the Explosives Act and overseen by PESO, the Petroleum and Explosives Safety Organisation.