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Deepak Fertilisers Q2 Profit Soars 85% to Rs 394 Crore, Revenue Up 11%
Sentiment: PositiveHigh Priority
What Happened?
Deepak Fertilisers reported a consolidated net profit of Rs 393.8 crore for Q2 FY27, an 84.7% increase from last year. Revenue rose 10.9% to Rs 3,334 crore.
Key points
- EBITDA surged 61.4% to Rs 749 crore, improving the margin to 22.5%.
- B2C revenue grew 40%, contributing 16% to segment revenue.
- The technical ammonium nitrate business saw a 25% revenue increase despite an 8% decline in sales volumes.
- Challenges in the crop nutrition business included deficient rainfall and higher raw material costs.
- Two major expansion projects are nearing completion, expected to start operations in Q4 FY27.
Key insights
- The growth in B2C revenue may enhance customer loyalty and long-term profitability.
- Expansion projects could significantly improve supply assurance and market position.
- Challenges in crop nutrition highlight the need for strategic adjustments in product offerings.
Why it matters
The strong financial performance indicates resilience amid market challenges, which could attract investor interest.
Entities
Deepak Fertilisers and Petrochemicals Corporation· CompanySC Mehta· Person
Source
India Today
