Deepak Nitrite Limited (DNL) announced a resilient performance for the fiscal year ended March 31, 2025 (FY25), despite a challenging global chemical industry environment, and a strong recovery in the fourth quarter (Q4 FY25).

• FY25 Consolidated Financial Highlights:

  • Total Income: ₹8,366 crore, an 8% increase over FY24.
  • EBITDA: ₹1,176 crore, marginally lower than ₹1,199 crore in the previous year, with a margin of 14%.
  • Profit Before Tax (PBT): ₹953 crore.
  • Profit After Tax (PAT): ₹697 crore.

• Q4 FY25 Consolidated Financial Highlights:

  • Total Income: ₹2,202 crore, marking a 14% sequential increase and a 3% year-on-year rise.
  • EBITDA: ₹339 crore, a 79% sequential increase and a 6% year-on-year increase. This was partially supported by government incentives totaling ₹161 crore, which included an accumulation from previous periods (normally ₹60 crore to ₹70 crore annually).
  • PBT: ₹279 crore, more than doubled sequentially (106% increase).
  • PAT: ₹202 crore, a 106% increase quarter-on-quarter.
  • Domestic sales accounted for 82% of revenue, with exports contributing 18%.

• Segmental Performance (FY25):

  • Advanced Intermediates (AI) segment: Revenue of ₹2,527 crore (7% year-on-year decline) with EBIT of ₹176 crore (7% margin).
  • Phenolics segment: Revenue increased by 16% to ₹5,805 crore with EBIT of ₹783 crore (13% margin).

• Management Commentary (Mr. Maulik Mehta, Executive Director & CEO):

  • FY25 was challenging due to global slowdown, geopolitical tensions, and intense price competition, particularly from Chinese producers. Domestic demand provided a vital cushion.
  • The company focused on cost optimization, digital transformation, and capturing niche demand, achieving record production volumes in several products through process optimization and capacity augmentation.
  • Confident in delivering improved growth and profitability in FY26 due to upcoming project commissioning.
  • Deepak Nitrite aims to transition 60% to 70% of its energy consumption to renewable sources in Gujarat and Maharashtra, projecting a 60% reduction in carbon emissions.
  • The Board maintained a dividend of ₹7.5 per share (375%) for FY25.

• Key Project Updates and Future Outlook:

  • The state-of-the-art R&D center in Savli, Vadodara, involving over ₹100 crore capex, is anticipated to be commissioned by Q2 FY26.
  • A compounding facility for applications in electric vehicles (EVs) and medical devices has been commissioned.
  • The Nitric Acid unit, a critical upstream integration, is expected to be commissioned by the end of Q1 or early Q2 FY26.
  • Expansion projects across nitration and hydrogenation are also set for commissioning.
  • The MIBK and MIBC project, downstream derivatives of acetone, are expected to be commissioned by the second half of FY26.
  • The Deepak Chem Tech Board has approved an investment of ₹3,500 crore for new capacities in phenol, acetone, and IPA. Combined with an earlier ₹5,000 crore approval, the total investment in the polycarbonate (PC) resins project, starting from phenol and acetone, now stands at approximately ₹8,500 crore.
  • Upon commissioning, Deepak Nitrite will become one of the world's largest single-location producers of phenol and acetone, with over half of this capacity converted into higher-value derivatives like bisphenol and polycarbonate resins.
  • While specific guidance for Q1 and Q2 FY26 is not provided due to geopolitical uncertainties, management expressed confidence in optimistic growth for the full-year projections.