Deepak Nitrite shares defy market sentiment, rally 5% despite fall in Q4 profit

Over the past year, shares of Deepak Nitrite have fallen around seven percent.

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Chemical player Deepak Nitrate Ltd's shares rallied four percent despite a muted market sentiment on May 29, 2025, after reporting its earnings show for the quarter ended March 31, 2025.

Deepak Nitrite reported a 20.7 percent year-on-year fall in consolidated net profit for the quarter ended March 2025, at Rs 202.41 crore, down from Rs 253.8 crore in the same period last year. However, the company posted an exceptional gain of Rs 79.8 crore during Q4FY24.

Further, the company attributed the decline in profit to challenges such as geopolitical tensions, high input costs, and surplus supply from China.

Revenue from operations rose 2.52 percent year-on-year to Rs 2,179.69 crore from Rs 2,126.21 crore.

At 11.30 am, shares of the company were quoting Rs 2,108.4, higher by 5.4 percent on the NSE.

Deepak C Mehta, Chairman and MD of Deepak Nitrite, said, “This year also marks our renewed vigor and energy in creating the new Deepak. As technology gets signed up, project activities at the new site start taking shape and our relationships with new customers in material sciences would pick up.”

He added, "Our growth plan envisages the development of further upstream products like Nitric Acid and downstream products such as MIBK, MIBC, for which capacities are set to be operationalized in the upcoming quarters. These will deepen the degree of integration across our business and strengthen our competitive position."

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Motilal Oswal noted that the firm's EBITDA stood at Rs 320 crore, compared to its estimate of Rs 190 crore. However, the EBITDA adjusted for government incentive income was Rs 160 crore, 18 percent below its estimate.

The brokerage maintained its neutral rating, and noted that it would share more details following the chemical player's earnings call for the quarter with investors and analysts.

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