Deepak Nitrite reported record-breaking revenue and EBITDA in the first quarter of FY27, driven by strong phenolics demand and strategic capacity expansions, signalling a move towards higher-value chemistries amidst market volatility.
Deepak Nitrite said its first-quarter performance for the year ended March 2027 reached a new high, with revenue rising 35% from a year earlier and EBITDA jumping 159%, helped by stronger volumes and a better product mix. The company’s phenolics business delivered its strongest ever quarterly EBIT of ₹418 crore, with margins widening to 24% as domestic demand remained firm and operating efficiency improved, according to the earnings-call summary published by GuruFocus.
Management also said the integration of its ammonia-to-amines chain has now been completed and stabilised, strengthening supply security and improving structural cost competitiveness. Deepak Nitrite said projects for MIBK, MIBC and acetophenone are on track for commissioning in the second quarter of FY27, with product quality already meeting required standards. The company added that these assets should support margins once they begin operating at scale.
At the same time, the advanced intermediates business remained under pressure from costly raw materials in parts of its portfolio, while the quarter was also affected by manpower shortages and interruptions in natural gas supply, which delayed some pre-commissioning work. Management did not offer specific guidance on spreads or margins, citing volatile markets, but said it is managing procurement actively amid feedstock swings, freight inflation and geopolitical uncertainty. The company has also been adjusting export terms and shipment models to cushion higher logistics costs, while keeping customer demand intact.
Looking beyond the quarter, Deepak Nitrite described a stronger balance sheet, with debt to equity at 0.27 times and full debt funding already arranged for its polycarbonate project on competitive terms. The company said around ₹1,200 crore has already been spent on that broader capital plan, with another ₹1,500 crore to ₹1,600 crore expected this year, and peak debt projected at about ₹8,000 crore to ₹8,500 crore including working capital. Analysts cited by Arthneeti and Sahi have also pointed to a broader shift in Deepak Nitrite’s strategy, as it moves from commodity phenolics towards higher-value chemistries and advanced materials, with new products expected to add revenue from later in FY27.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
