Deepak Nitrite Q1 profit more than triples as phenolics business shines; board approves ₹2,500 crore BPA project

Deepak Nitrite Ltd. reported that its consolidated net profit more than tripled in the first quarter of FY27, driven by robust growth in its Phenolics business and a sharp improvement in operating profitability. The company also announced a ₹2,500 crore investment to establish a Bisphenol A (BPA) manufacturing facility, strengthening its downstream integration strategy.

The chemical manufacturer posted a consolidated net profit of ₹345.01 crore for the quarter ended June 30, 2026, compared with ₹112.25 crore in the corresponding period last year. Revenue from operations rose 36.4% year-on-year to ₹2,577.60 crore from ₹1,889.88 crore, while profit before tax surged to ₹467.63 crore from ₹154.74 crore a year earlier.

At the operating level, EBITDA jumped to ₹540.2 crore from ₹189.4 crore in the year-ago quarter, while EBITDA margin expanded to 21% from 10.03%, reflecting improved operating leverage and stronger profitability across businesses.

Phenolics business drives earnings growth

The company's Phenolics segment remained the key growth driver during the quarter. Segment revenue increased to ₹1,775.05 crore from ₹1,303.96 crore in the year-ago period, while segment profit before interest and tax surged to ₹417.76 crore from ₹117.90 crore.

The Advanced Intermediates business also delivered healthy growth, with revenue rising to ₹803.85 crore from ₹605.33 crore. Segment profit nearly doubled to ₹66.98 crore from ₹35.47 crore in the corresponding quarter last year.

Board approves ₹2,500 crore BPA plant

Separately, Deepak Nitrite said the board of its wholly owned subsidiary, Deepak Chem Tech Ltd., has approved an investment of approximately ₹2,500 crore to establish a Bisphenol A (BPA) manufacturing facility with a capacity of up to 240 KTA, along with associated greenfield infrastructure. The project will be funded through a mix of debt and equity and is expected to enhance the company's integration across the chemicals value chain.

"The DCTL Board has already approved the establishment of India's first Polycarbonate resin manufacturing plant. With the addition of BPA, Deepak will move towards creating a highly integrated manufacturing platform spanning the value chain from Cumene to Phenol & Acetone, BPA and Polycarbonate resin, including downstream compounding," the company said.

In a separate development, the company appointed Lohit Shringi as chief executive officer of its Advanced Intermediates business with immediate effect. Shringi joins from PCBL Chemical Ltd. and brings more than 27 years of leadership experience across specialty chemicals, business transformation and operations.

Shares of Deepak Nitrite Ltd ended 0.36% higher at ₹1,720 apiece on the NSE on Tuesday. However, the stock has declined over 5% during the past year, underperforming the Nifty 500 index, which has gained nearly 4% over the same period.