DEEPAKFERT - Deepak Fertiliz.

📊 NSE: DEEPAKFERT 🏢 Chemicals 📅 Last Updated: 12/13/2025 21:27

💰 Financial Performance

Revenue Growth by Segment

In FY 2024-25, the Chemical Business (Industrial and Mining Chemicals) contributed 49.53% to total revenue, while the Fertilisers Business contributed 49.83%. For Q2 FY26, consolidated operating revenue grew 9% YoY to INR 3,006 Cr, and H1 FY26 revenue grew 13% YoY to INR 5,665 Cr.

Geographic Revenue Split

Not disclosed in available documents; however, the company operates manufacturing facilities in Maharashtra, Gujarat, Andhra Pradesh, and Haryana.

Profitability Margins

Net profit margin for FY 2024-25 improved by 381 basis points to 9.19%. Operating EBITDA margin for FY 2024-25 was 18.73%, an expansion of 390 bps from 14.83% in the previous year. Q2 FY26 EBITDA margins dropped to 15% from 18% YoY due to global geopolitical headwinds.

EBITDA Margin

Operating EBITDA for Q2 FY26 was INR 464 Cr, down 6% QoQ from INR 494 Cr. H1 FY26 EBITDA stood at INR 977 Cr, up 2% YoY. The margin for Q2 FY26 was 15%, reflecting a 300 bps decline YoY.

Capital Expenditure

Standalone purchase of property, plant, and equipment (including capital work-in-progress) was INR 870.03 Cr for the half-year ended September 30, 2025, compared to INR 555.80 Cr in the previous period.

Credit Rating & Borrowing

Finance costs for the standalone entity were INR 15.08 Cr for H1 FY26. The company issued compulsory convertible debentures worth INR 800 Cr during the period to strengthen the balance sheet.

⚙️ Operational Drivers

Raw Materials

Ammonia (critical for fertiliser and chemical production), Isopropyl Alcohol (IPA) feedstocks, and Technical Ammonium Nitrate (TAN) components. Ammonia represents a significant cost, with a planned shutdown in Q4 requiring imports to maintain business continuity.

Import Sources

Global markets for Ammonia imports; domestic sourcing from Gujarat, Maharashtra, Andhra Pradesh, and Haryana for other inputs.

Key Suppliers

Not specifically named in documents, though the company relies on third-party suppliers for Ammonia during plant shutdowns.

Capacity Expansion

New world-class production facility currently under development with full capacity realization expected by FY 2029. New projects are expected to deliver an asset turn of 0.5 to 0.6 and ROCE of 20% plus.

Raw Material Costs

Inventory turnover ratio increased due to an 18% rise in turnover and an 8% reduction in inventory, indicating improved procurement and stock management efficiency.

Manufacturing Efficiency

Capacity utilization metrics not specifically disclosed, but the company focuses on specialty products like Croptek and B2C TAN to drive higher-margin efficiency.

📈 Strategic Growth

Expected Growth Rate

11%

Growth Strategy

The company is shifting toward a specialty product portfolio and B2C segments. Specialty products (Croptek) now contribute 35% of fertiliser revenue, and B2C TAN contributes 14% of mining chemical revenue. Growth is supported by a new facility reaching capacity by FY 2029 and a focus on customer engagement and operational agility.

Products & Services

Industrial Chemicals, Pharma Chemicals (IPA), Mining Chemicals (Technical Ammonium Nitrate), Crop Nutrition (Specialty Fertilisers), and Value Added Real Estate.

Brand Portfolio

Croptek, Croptek+.

New Products/Services

Specialty product portfolio (Croptek) and B2C TAN products are the primary new growth drivers, currently contributing 35% and 14% to their respective segments.

Market Expansion

Expansion into B2C segments for TAN and specialty fertilisers to reach customers directly and capture higher margins.

Market Share & Ranking

One of India’s leading producers of industrial & mining chemicals and fertilisers.

🌍 External Factors

Industry Trends

The industry is shifting toward specialty and customized nutrient solutions to optimize use and minimize environmental impact. DFPCL is positioning itself through its 'Croptek' specialty line and B2C mining chemicals.

Competitive Landscape

Faces competitive pressures in bulk chemical trading and standard fertiliser segments; mitigating this by moving into B2C and specialty chemicals.

Competitive Moat

Moat is built on a 40-year legacy, diversified multi-product enterprise status, and a shift toward high-margin specialty products (35% of fertiliser revenue) which are harder for commodity players to replicate.

Macro Economic Sensitivity

Highly sensitive to global geopolitical trends and trade policies. Profit Before Tax rose 77% in FY 2024-25, showing high sensitivity to operational scale and market pricing.

Consumer Behavior

Farmers are increasingly adopting high-efficiency, customized nutrient solutions for higher yields, supporting the 35% revenue contribution from specialty fertilisers.

Geopolitical Risks

Significant risk from international trade tariffs (e.g., Trump's tariffs) which impact global supply chains and margin stability.

⚖️ Regulatory & Governance

Industry Regulations

Subject to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and governmental/regulatory trends affecting chemical and fertiliser pricing/distribution.

Environmental Compliance

Committed to sustainable agriculture and nutrient use optimization; specific ESG spend not disclosed.

Taxation Policy Impact

Standalone income tax paid (net) was INR 217.53 Cr for H1 FY26.

Legal Contingencies

Provision for doubtful other receivables of INR 2.00 Cr was made in H1 FY26. No specific high-value court cases disclosed in the provided text.

⚠️ Risk Analysis

Key Uncertainties

Geopolitical trade barriers (tariffs) and raw material price volatility (Ammonia) are the primary uncertainties, with potential to impact margins by 300-400 bps.