DEEPAKNTR
Large CapDeepak Nitrite Limited
Industrials
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 weak.
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 31 Mar 2026
Bad · 20/100Rev -3% YoY · PAT +9% YoY · margin expansion · +7% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,120 Cr | -2.8% | +7.3% |
| EBITDA | ₹376 Cr | +18.6% | +78.2% |
| Operating margin | 18.0% | +300 bps | +700 bps |
| PAT | ₹220 Cr | +8.9% | +120.0% |
| PAT margin | 10.4% | +111 bps | +532 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
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.
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"
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 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
56NeutralSMA20 +9.1% / mo
Technical chart
DEEPAKNTRdaily · 6M+9.8%Technical trend read
NeutralTrend is undirectional — long-term trend unclear. RSI 44.
- SMA20 rising (~1.4% over last month) — short-term momentum positive.
- RSI(14) at 44 — sideways, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 12% off 52W high · 31% 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.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
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 10/15 to the score.
- Cash flow contributes 4/10 to the score.
Main drags
- Fair-value margin of safety is negative at -725.7%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 1/30; 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
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 46th percentile of the scored universe and 41st percentile within Industrials. Main check: results consistency is weak at 29/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: 2 latest quarters had PAT decline worse than 25% YoY.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Industrials: 41st pctile, median 68 · Large: 24th pctile, median 74
107 documents indexed, but claim history is not strong enough yet.
8 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed 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.
Trust risks
- ▸2 latest quarters had PAT decline worse than 25% YoY.
- ▸ROCE trend is -4.8%.
- ▸1/4 latest quarters had positive YoY revenue growth.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 40.90
- P/B
- 3.92
- EV/EBITDA
- 20.34
- Market Cap
- 22890.00Cr
Profitability
- ROE
- 9.97%
- ROCE
- 11.50%
- ROA
- 6.35%
- Dividend Y
- 0.45%
Growth (CAGR)
- Revenue 5Y
- 13.00%
- EPS 5Y
- -6.00%
- Revenue 3Y
- -0.36%
- EPS 3Y
- -13.00%
Balance Sheet
- Debt/Equity
- 0.28
- Interest Coverage
- 21.33×
- Altman Z
- 7.29
- Book Value
- 428.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 6/5
- OCF
- 539.00 Cr
- EPS TTM
- 40.36
Shareholding
- Promoter Hold
- 49.33%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 54%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Industrials — 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.