Deepak Fertilisers Q2 Net Profit Flat at Rs 214 Cr

Mumbai, Nov 5 (PTI) Deepak Fertilisers and Petrochemicals Corporation on Wednesday reported a flat consolidated net profit at Rs 214 crore in the second quarter ended September 30.

Its revenue from operations during the quarter under review increased 9 per cent 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 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," Deepak Fertilisers and Petrochemicals Corporation Chairman and Managing Director SC Mehta said.

The company's fertiliser and TAN businesses continue to deliver robust performance, driving strong growth in both revenue and margins, he added.

He said the chemicals segment, however, was impacted by global headwinds, particularly in the IPA and ammonia businesses, which saw a 21 per cent 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.

"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 USD 300 per metric tonne and operational constraints, adding to cost pressures, Mehta said.

"That said, the outlook is encouraging. Prices have rebounded above USD 400 MT, and a planned Q4 shutdown is expected to enhance capacity while delivering further NG savings. With the Equinor NG supply contract in place and operational efficiencies underway, we are well-positioned for a strong recovery in the coming quarters.

"We also completed the full acquisition of Platinum Blasting Services (PBS), our Australian subsidiary, which delivered Rs 533 crore in revenue and Rs 80 crore in EBITDA in FY25," he added.