Deepak Fertilis. Q1 FY27 Results (NSE: DEEPAKFERT)
Signal: Margins at cyclical peak
The read
A clean beat on all fronts: consolidated PAT doubled to ₹490 Cr on record EBITDA of ₹845 Cr, driven by input-cost tailwind (LNG supplies, lower RM %rev) and operating leverage. Chemicals segment operating profit surged 119% YoY. The standalone entity contributed only 14% of group PAT, highlighting subsidiary strength. Net debt reduced to ₹4,719 Cr (1.4x EBITDA). Key risk: 12% volume dip in Mining Chemicals due to PESO portal disruption — a transient operational issue, not structural.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,256.26 Cr | 22.5% | 8.1% |
| EBIT | ₹746.16 Cr | 193.1% | |
| Net profit | ₹490.04 Cr | 101.0% | |
| EPS | ₹38.82 | 101.6% | |
| EBIT margin | 26.0% |
P&L walk
Revenue grew 22% YoY to ₹3,256 Cr on stronger realisations across Ammonia, TAN and Industrial Chemicals despite 12% volume dip in Mining Chemicals; EBITDA surged 65% YoY to record ₹845 Cr as gross margin expanded 1410bps YoY (raw material % revenue fell 910bps YoY to 46.2%) and employee cost grew only 29% YoY (vs revenue 22%), confirming input-cost tailwind from LNG supply and operating leverage; EBIT of ₹746 Cr (+193% YoY) drove PAT of ₹490 Cr (+101% YoY).
Segments
Chemicals segment was the overwhelming driver: operating profit surged 119% YoY to ₹80,519 lakh, accounting for 95% of segment total, lifted by higher TAN and Nitric Acid realisations; Fertilisers segment profit fell 63% YoY to ₹4,385 lakh on margin compression, while Realty turned positive from a loss. Standalone PAT of ₹6,834 lakh is only 14% of consolidated PAT of ₹49,004 lakh — the group's profit sits predominantly in subsidiaries (Mahadhan AgriTech, explosives cos).
Key positives
- Consolidated revenue ₹3,256 Cr, +22% YoY, driven by stronger realisations across Ammonia, Mining Chemicals and Industrial Chemicals.
- EBITDA record high of ₹845 Cr, +65% YoY; EBITDA margin expanded 670bps YoY to 26.0%.
- PAT ₹490 Cr, +101% YoY; EPS ₹38.82 vs ₹19.26.
- Gross margin expanded 1410bps YoY to 47.4% (raw material % revenue fell 910bps YoY to 46.2%) — input-cost tailwind from LNG supply.
- Chemicals segment operating profit surged 119% YoY to ₹80,519 lakh, driving group performance.
- Net debt reduced to ₹4,719 Cr; Net Debt/EBITDA improved to 1.4x from ~2.0x.
- Specialty and Croptek products contributed 43% of Crop Nutrition revenues; B2C sales grew 42% YoY in Mining Chemicals.
- Two major projects (Dahej Nitric Acid, Gopalpur TAN) nearing completion, expected to contribute from Q3.
Key concerns
- Mining Chemicals (TAN) sales volumes fell 12% YoY due to PESO portal disruption — a transient operational issue.
- Fertilisers segment profit fell 63% YoY to ₹4,385 lakh, dragged by margin compression.
- Standalone revenue declined 11.4% YoY and standalone PAT fell 21.3% YoY — group profit reliant on subsidiaries.
- Other income dropped 74.9% YoY to ₹595 lakh, though not material to overall profit.
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