Deepak Fertilisers Shares Fall To One-Month Low After Q2 Results
Shares of Deepak Fertilisers and Petrochemicals Corporation have pared losses up to 4.15% in trade on Thursday, reaching an intraday high of Rs 1,472, before falling to a nearly one-month low of Rs 1,442.
The company on Wednesday reported a flat consolidated net profit of Rs 214 crore in the second quarter ended September, which was in line with the expectations of many stock market analysts. The revenue from operations during the quarter under review increased 9% to Rs 3,005.83 crore compared to Rs 2,746.72 a year ago, Deepak Fertilisers and Petrochemicals Corporation said in a regulatory filing.
Q2 FY26 Results: A Mixed Bag
According to Deepak Fertilisers and Petrochemicals Corporation Chairman and Managing Director SC Mehta, ‘Q2 FY26 reaffirms the strength of our strategic transformation and disciplined execution, anchored in our continued focus on speciality products, customer-centricity, and operational agility amidst evolving market dynamics.’ The company’s fertiliser and TAN businesses continue to deliver robust performance, driving strong growth in both revenue and margins, he added.
However, the chemicals segment was impacted by global headwinds, particularly in the IPA and ammonia businesses, which saw a 21% year-on-year decline. ‘Our IPA business navigated a dynamic quarter shaped by global trade realignments and pricing volatility. A sharp correction in benzene and acetone prices, coupled with the impact of anti-dumping duties on China, led to increased US imports and margin pressure,’ Mehta said.
Outlook For The Chemicals Segment
Despite the challenges faced by the chemicals segment, Mehta remains optimistic about the future. ‘Despite these temporary headwinds, we are actively repositioning for growth. With early signs of price stabilisation and easing geopolitical tensions, we are confident in a near-term recovery,’ he stated. The Ammonia segment also faced a volatile quarter, with FOB Middle East prices averaging $300 per metric tonne and operational constraints, adding to cost pressures.
However, the outlook is encouraging, with prices rebounding above USD 400 MT, and a planned Q4 shutdown expected to enhance capacity while delivering further NG savings. With the Equinor NG supply contract in place and operational efficiencies underway, the company is well-positioned for a strong recovery in the coming quarters.
Acquisition Of Platinum Blasting Services
The company also completed the full acquisition of Platinum Blasting Services (PBS), its Australian subsidiary, which delivered Rs 533 crore in revenue and Rs 80 crore in EBITDA in FY25. This acquisition is expected to further strengthen the company’s position in the market and drive growth in the coming years.
For investors looking to invest in the stock market, it is essential to keep a close eye on the company’s performance and any future developments. The Indian stock market trends can be volatile, and it is crucial to stay informed to make informed investment decisions.
What Investors Should Know
In conclusion, the Q2 results of Deepak Fertilisers and Petrochemicals Corporation have been a mixed bag, with the company’s fertiliser and TAN businesses performing well, while the chemicals segment faced challenges. However, the company remains optimistic about the future, and with the acquisition of Platinum Blasting Services, it is well-positioned for growth in the coming years.
Investors looking to buy stocks online should keep a close eye on the company’s performance and any future developments. It is also essential to do stock market research and stay informed about the latest stock market news to make informed investment decisions.