Deepak Nitrite shares slide 5% after weak Q1; stock down 28% so far this year

Earnings miss, margin squeeze, and revenue decline weigh on Deepak Nitrite

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26 Aug, 2025 12:21

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Shares of Deepak Nitrite fell five percent to Rs 1,785 on August 14 after the company’s June quarter (Q1FY26) earnings fell short of market expectations. The weak performance weighed on sentiment, extending the stock’s downtrend this year.

So far this year, this chemical stock has tumbled over 28 percent, underperforming benchmark Nifty 50's 2 percent rise.

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For the quarter ended June 30, 2025, Deepak Nitrite posted a 44.6 percent year-on-year decline in net profit to Rs 112 crore, compared with Rs 202.5 crore in the same period last year.

Revenue came in at Rs 1,889.8 crore, down 12.8 percent from Rs 2,166.8 crore in the year-ago quarter, reflecting soft demand and pricing pressure in several product segments.

Operating performance took a sharper hit, with EBITDA slipping 38.8 percent year-on-year to Rs 189.3 crore from Rs 309.4 crore in Q1FY25.

The EBITDA margin contracted to 10 percent from 14.3 percent last year, as higher input costs and lower realisations eroded profitability.

Deepak Nitrite faced pressure across both its core business divisions during the quarter. In the Advanced Intermediates segment, revenue fell 15 percent to Rs 605.33 crore, while EBIT (earnings before interest and taxes) tumbled 47 percent to Rs 35.47 crore.

In the Phenolics segment, revenue declined 11 percent to Rs 1,303.96 crore, with EBIT sliding 43 percent to Rs 117.90 crore.

Despite the current challenges, Deepak Nitrite remains optimistic about its future prospects, saying multiple projects are underway, including capacity expansion, securing stable input supplies, and driving both backward and forward integration.

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