Deepak Nitrate hosted conference call on February 13, 2026. In the conference call the company was represented by Mr. Maulik Mehta-Chief Executive Office, Mr. Sanjay Upadhyay, Director – Finance & Group CFO and Mr. Somsekhar Nanda, Chief Financial Office.

Key Takeaways of the call

Q3FY2026

Consolidated total revenue stood at Rs 1,983 crores, registering a growth of 3% on both the yoy year-on-year and the quarter-on-quarter basis. EBITDA for the quarter increased by 16% year-on-year to 219 crores, underscoring the benefits of improved operating efficiencies and prudent cost control measures.

For the nine-month period of FY26, consolidated revenue stood at 5820 crores, with an EBITDA of 658 crores. While profitability during the nine-month period reflects the impact of challenging pricing conditions, the company’s continued focus on operational excellence and volume-led growth supported performance stability.

Domestic-to-export revenue mix remained at 83 -17 during Q3''26, highlighting the resilience of domestic franchise while continuing to strengthen global customer relationships.

The phenolic segment delivered a consistent performance during the quarter. Revenues from operations stood at Rs 1334 crores, and EBIT reached 145 crores, representing a 20% year-on-year increase. Increased phenol and acetone sales volumes were driven by higher plant utilization and ongoing process optimization, resulting in better operating leverage.

The advanced intermediate segment recorded stable revenue growth, with Q3 FY''26 revenue reaching Rs 652 crores, reflecting a growth of 18% year-on-year and 11% quarter-on-quarter. This was driven by higher volumes, with improved market penetration of key products. However, EBIT for the segment stood at Rs 15 crores, reflecting this continued pricing pressure arising from aggressive Chinese dumping and global oversupply. Advanced Intermediates margins declined as pricing pressure continued due to dumping from China.

The commissioning of the nitric acid plant had some technical challenges and it got delayed to middle of Dec2025 while the nitration plant was commissioned before it. As a result, the company decided to buy nitric acid from the open market at spot prices to maximize its market presence. These purchases were made without long-term contracts; thus, losing out on quantity discounts and denting margins in Q3FY26. The company expects improvement in margins in Q4FY26.

Capex:

The company would incur capex of Rs 100 in Q4FY26 and Rs 2500 crore in FY27 .

MIBK/MIBC facilities are targeted to be commissioned in Q4FY26. MIBK/MIBC, Photo chlorination utilization to ramp up in Q1FY27.

The company is working towards a complete integrated facility for polycarbonate by Mar 2028. Plant dismantling activities are underway in Germany, while engineering activities, technology engagement and site construction are going on in India.

The company has received favourable verdict from US’ Supreme Court on ADD on its sodium nitrite. The judgment implies that its tax incidence would drop from 105% to 22-23% on removal of ADD (45.2%) and India reciprocal duty cut to 18%. This should make the company more competitive in US market, wherein it is working to create more value. Earlier DN use to sell 5ktpa of sodium nitrite in US market.

The company has a pipeline of 15 new products at various stages with application such as flame retardant, mining chemicals, flavors and fragrances, personal care and polymers. Other than a product that has application in polymers, all the others products are at pilot scale.

India imports phenol from some Asian countries and China

Management Commentary:

Commenting on the results, Deepak C Mehta said: The chemical industry continues to experience significant pricing pressures driven by persistent oversupply and heightened competitive intensity, particularly from Chinese producers. Despite these external challenges, our diversified portfolio, operational discipline, and strong customer relationships hold us in good stead.

n Deepak Chem Tech Limited (DCTL), we have completed our vertical integration across the ammonia-nitration-amines chain establishing Deepak Group as a premier global player. This strategic move unlocks a wider product range, secures our operations against market volatility, and delivers superior margins and cost efficiency across our key intermediates.

In parallel, we have been taking decisive and tangible steps across the Phenol-to-Polycarbonate value chain, marking significant progress in our state of preparedness for this next phase of growth. We are systematically building an integrated ecosystem spanning through raw material security to final Polycarbonate product, supported by strategic tie-ups with key vendors and suppliers. Necessary financial arrangements and funding tie-ups have been put in place to underpin these initiatives, ensuring readiness from both - capital and balance-sheet perspective. Concurrently, engineering activities are underway, with technology sourcing and engagement with global licensors progressing as planned. Collectively, these actions represent a giant leap in our execution preparedness and reinforce our commitment to creating a fully integrated, high-value specialty materials platform.

During the third quarter, Deepak Group once again demonstrated resilience and adaptability in the face of a demanding global environment. Our core businesses remained operationally resilient during the quarter. The Phenolics segment benefited from consistent plant operations and improved volumes, reflecting the advantages of integration and our continued emphasis on efficiency. While pricing conditions across markets remained soft, the business sustained its momentum through prudent cost management and a balanced market approach. Our commitment to disciplined growth, operational excellence, and long-term value creation for stakeholders remains unwavering.

Recent developments in key export markets warrant cautious optimism, particularly for volume growth. In response, we remain firmly focused on innovation, new product development, and geographic diversification, across multiple chemistries.

While the Group continues to work on different value chains, it has committed to establish integration across chains. This increases overall margins, resilience in challenging times, also reduces carbon footprint. Deepak will continue to look at this across present and future investment plans. Three mantras would be our guiding principles creating different value chains with high degree of integration.

1. World’s best quality

2. World’s best capacity

3. Complete integration across value chain

Current market condition of all petrochemical products globally are undergoing severe pressure, however, our integration would help us to be resilient and be ready to take benefits during cyclical turnarounds.”