Deepak Nitrite (DN IN) – Q2FY27 Result Update – Higher Spreads led to expansion in margins – REDUCE
Published on 30 Oct 2026
Deepak Nitrite reported consolidated revenue of INR30.7bn in Q2FY27, up 62% YoY and 19% QoQ, The Phenolics segment delivered its highest ever quarterly revenue of INR22.9bn, up 72% YoY and 29% QoQ, while EBIT increased to INR5.2bn, with reported margins of ~22.5%. Performance was driven by stable domestic demand, higher landed costs of imports amid global supply chain disruptions, favorable domestic realizations and procurement efficiencies. The Advanced Intermediates segment reported revenue of INR8.1bn, up 38% YoY, while EBIT declined to INR488mn from INR670mn in Q1FY27, with margins at 6%, impacted by higher input costs, variations in customer volumes, duties and elevated logistics and freight costs. The stock is currently trading at ~25x FY29E EPS. We value the company at 24x Sep’28E EPS and maintain our 'REDUCE' rating with a target price of INR1,419.
