Deepak Nitrite Limited (DEEPAKNTR)
Large CapChemicals stocks · Large cap · NSE
Deepak Nitrite (DNL) is a leading Indian chemical intermediates company with a diversified product portfolio serving multiple industries. It operates 7 manufacturing facilities, exports to 50+ countries, and is the largest producer of Phenol, Acetone, IPA, and Sodium Nitrite in India. DNL focuses on process expertise, technological prowess, and operational excellence.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/8 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Excellent · 100/100Rev +36% YoY · PAT +208% YoY · margin expansion · +22% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,578 Cr | +36.4% | +21.6% |
| EBITDA | ₹540 Cr | +184.2% | +43.6% |
| Operating margin | 21.0% | +1100 bps | +300 bps |
| PAT | ₹345 Cr | +208.0% | +56.8% |
| PAT margin | 13.4% | +745 bps | +300 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Deepak Nitrite reported strong Q4 FY26 performance with significant sequential growth in profitability, driven by volume stability, favorable pricing, and cost efficiencies, despite a challenging global environment.
The company demonstrated strong Q-o-Q recovery in profitability, supported by strategic actions like proactive procurement, product mix optimization, and backward integration. Management's focus on 'Make in India' and deep integration across value chains suggests resilience against external volatility, reinforcing the long-term thesis despite ongoing global challenges.
Revenue Mix by Geography (Q4 FY26)
Latest issuer-disclosed distribution across 2 reported categories.
Polycarbonate Project
India's first integrated Polycarbonate plant (165,000 MT/yr) to build an integrated value chain from Cumene–Phenol–Acetone.
New R&D Centre
Invested over ₹ 100 Crore in a new world-class R&D Centre at Savli, Vadodara, to drive innovation in Life Sciences, Specialty, and Application-based intermediates.
Cost Optimisation & Energy Transition
Transitioning to 60-70% renewable energy and embracing green chemistry; short-term benefits accruing, long-term expected from FY27.
Favourable Regulatory Reforms
Aligned with 'Atmanirbhar Bharat' for import substitution, benefiting from PCPIR infrastructure and strong government backing for chemical manufacturing.
Polycarbonate Plant Commissioning
Commissioning targeted in 2028, in line with DCTL’s Polycarbonate project timeline. Equipment shipment from Germany to India is underway.
HyCO Plant Agreement
Signed a long-term agreement with Praxair India (Linde) to set up a dedicated HyCO plant on-site, ensuring reliable supply of critical raw materials.
Deepak Chem Tech Plants
Deepak Chem Tech commissioned Nitration & 2nd Hydrogenation Plant at Dahej and started manufacturing at Nitric Acid Plant in Nandesari.
Phenolics Operational Capacity
Ongoing process optimization and debottlenecking initiatives are scaling the operational capacity to align with consistent domestic demand.
Steady Domestic Demand
Advanced Intermediates business witnessed strong performance driven by steady domestic demand with focus on high-demand applications.
Favourable Pricing Trends
Advanced Intermediates saw pricing gains in established product chains. Phenolics business delivered robust performance backed by strong pricing gains.
Recovery in Downstream Demand
Phenolics performance was supported by recovery in downstream demand from polymer and industrial applications.
Import Substitution & Local Sourcing
Overall, witnessed increasing preference for local reliable sourcing amid global supply chain disruptions, positively contributing to business momentum.
Global Volatility & Supply Chain Disruption
Continued volatility, marked by severe disruption in crude-linked supply chains, pricing pressure, and geopolitical events.
Geopolitical Conflict
Geopolitical conflict in the Middle East impacted timely supply of critical feedstocks for Phenolics business.
Feedstock Price Volatility
Current pricing environment for critical feedstocks remains volatile, requiring focus on agile procurement and cost management.
Global Trade Flow Disruptions
FY2025–26 was a challenging year for the global chemical industry, marked by sustained pricing pressure and continued disruption in global trade flows.
Geopolitical Tensions
Geopolitical tensions and shifting trade dynamics can lead to feedstock constraints and price fluctuations, impacting margins.
Aggressive Global Pricing
Aggressive global pricing, especially China-led, poses a potential margin pressure and demand-supply imbalances.
Logistics Disruptions
Logistics disruptions and freight volatility can lead to raw material supply uncertainties and elevated working capital.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Q-o-Q comparison is primary for Q4 FY26 as the company explicitly highlights significant sequential growth in key profitability metrics (EBITDA +74%, PBT +100%, PAT +120%), indicating strong recent momentum and recovery. YoY comparison is also relevant to assess full-year performance and the impact of the challenging environment over a longer period.
Total Revenue (Q4 FY26)
₹ 2,127 Crore (7% Q-o-Q, -3% Y-o-Y)
Total Revenue (FY26)
₹ 7,947 Crore (-5% Y-o-Y)
EBITDA (Q4 FY26)
₹ 383 Crore (74% Q-o-Q, 13% Y-o-Y)
EBITDA (FY26)
₹ 1,041 Crore (-11% Y-o-Y)
Strategic Alignment with 'Make in India'
Proactively aligning growth strategy with 'Make in India' through investments in capacity creation, backward/forward integration, and import substitution.
Focus on Innovation & New Product Development
Sharpening focus on innovation, new product development, and expanding presence across geographies and chemistries.
Deep Integration Across Value Chains
Strategic emphasis remains on deep integration—both within and across value chains—to enhance margins, resilience, and resource efficiency.
Building Globally Competitive Platforms
Strategic partnerships will strengthen supply security for critical feedstocks, enhance operational reliability, and support building integrated and globally competitive manufacturing platforms.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Q-o-Q EBITDA Growth | 74% in Q4 FY26 | Sustained sequential growth indicating continued operational momentum and market recovery. |
| Polycarbonate Project Timeline | Commissioning targeted 2028 | Adherence to the 2028 commissioning timeline and progress on infrastructure activities and equipment ordering. |
| Raw Material Price Volatility | Volatile pricing environment for critical feedstocks | Impact of feedstock price volatility on margins and the effectiveness of agile procurement and cost management strategies. |
| Domestic Demand Stability | Steady domestic demand | Continued stability and growth in domestic demand, especially for high-demand applications, to offset export challenges. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Show extracted source claims
The company's investment strategy for ₹14,000 Crores of projects involves Speciality products, Bisphenol A, Polycarbonate resins, and Methyl methacrylate (MMA).
"Our investment strategy for ₹14,000 Crores of Projects involve Speciality products"
The company's investment strategy for ₹14,000 Crores of projects involves Speciality products, Bisphenol A, Polycarbonate resins, and Methyl methacrylate (MMA).
"Our investment strategy for ₹14,000 Crores of Projects involve Speciality products"
DCTL will establish a world-class Polycarbonate manufacturing facility in Dahej with a capacity of 165,000 metric tons, becoming fully operational by 2028.
"will be relocated and made fully operational at Dahej by 2028"
DCTL will establish a world-class Polycarbonate manufacturing facility in Dahej with a capacity of 165,000 metric tons, becoming fully operational by 2028.
"will be relocated and made fully operational at Dahej by 2028"
The MIBK/MIBC Project and Acetophenone project are expected to be commissioned.
"Commissioning by H1FY26"
The MIBK/MIBC Project and Acetophenone project are expected to be commissioned.
"Commissioning by H1FY26"
The Acid Unit, Photochlorination, Nitration, hydrogenation projects, and the Savli R&D Center are expected to be commissioned.
"Expected to be commissioned in H2 FY25"
The Acid Unit, Photochlorination, Nitration, hydrogenation projects, and the Savli R&D Center are expected to be commissioned.
"Expected to be commissioned in H2 FY25"
Trend score and candlestick chart
60BullishSMA20 +3.2% / mo · MACD −
Technical chart
DEEPAKNTRdaily · 1Y · AUTO+11.5%Daily technical trend read
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 46. Wait for confirmation.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 rising (~3.1% over last month) — short-term momentum positive.
- RSI(14) at 46 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 10% off 52W high · 34% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is 4.8% above the 30-week proxy.
- The 50-DMA is above the 30-week proxy and its slope is rising +1.3%.
- Both 3-month and 6-month returns are positive.
Valuation & score drivers
U-Score 27 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 27 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 7/9.
- Balance sheet contributes 9/15 to the score.
- Cash flow contributes 4/10 to the score.
Main drags
- Fair-value margin of safety is negative at -558.3%.
- Quality is weaker at 1/20; verify the latest quarterly trend.
- Valuation is weaker at 2/30; verify the latest quarterly trend.
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 63rd percentile of the scored universe and 40th percentile within Chemicals. Main check: financial discipline is weak at 50/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: ROCE trend is -4.9%.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Chemicals: 40th pctile, median 73 · Large: 41st pctile, median 73
86 documents have extracted text, but claim history is not strong enough yet.
8 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸6 years of positive FCF.
- ▸3/4 latest quarters had positive YoY PAT growth.
- ▸Latest 3 quarters had positive YoY PAT growth.
Trust risks
- ▸ROCE trend is -4.9%.
- ▸1 of the latest 4 quarters had PAT decline worse than 25% YoY.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 29.50
- P/B
- 4.00
- EV/EBITDA
- 15.94
- Market Cap
- 23356.00Cr
Profitability
- ROE
- 9.82%
- ROCE
- 11.40%
- ROA
- 9.05%
- Dividend Y
- 0.44%
Growth (CAGR)
- Revenue 5Y
- 13.00%
- EPS 5Y
- -7.00%
- Revenue 3Y
- 3.73%
- EPS 3Y
- -13.00%
Balance Sheet
- Debt/Equity
- 0.28
- Interest Coverage
- 21.82×
- Altman Z
- 7.66
- Book Value
- 428.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 6/5
- OCF
- 539.00 Cr
- EPS TTM
- 57.43
Shareholding
- Promoter Hold
- 49.34%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 69%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Chemicals, ranked by similarity
Peers
Business-comparable names in Chemicals, ranked by similarity
Peers
Business-comparable peers in Chemicals — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.