Deepak Fertilisers & Petrochemicals Corp Ltd (DEEPAKFERT) Q1 FY27 Results Analysis: PAT Doubles, Chemicals Margin Expands 1,660 bps

Deepak Fertilisers & Petrochemicals Corp Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 3,256.26 Cr (+22.50% YoY) and PAT growth of +100.90% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Deepak Fertilisers delivered a strong Q1 FY27 with consolidated revenue up 22.5% YoY and PAT doubling, driven by a 34.5% surge in the chemicals segment which saw margins expand 1,660 bps to 42.8%. EBITDA margin improved 670 bps to 26.0%, exceeding the company's prior FY26 guidance of 18-20%. The fertiliser segment remained under pressure from subsidy lag and input costs. The TAN project at Gopalpur is 95% complete, expected to contribute from Q3 FY27.

Key Investment Insights

Key Positives

• Revenue grew 22.5% YoY to Rs.3,256 Cr.
• Consolidated PAT doubled with 100.9% YoY growth to Rs.490 Cr.
• EBITDA margin expanded 670 bps YoY to 26.0%.
• Chemicals segment revenue surged 34.5% YoY with margin expanding 1,660 bps to 42.8%.
• Operating leverage: Total expenses grew only 11.7% vs revenue growth of 22.5%.
• TAN Project Gopalpur 95% complete, expected contribution from Q3 FY27.

Risk Factors

• Fertiliser segment margin contracted 630 bps YoY to 3.2% due to elevated input costs and subsidy lag.
• Standalone PAT declined 21.3% YoY, indicating dependence on subsidiaries.
• Finance costs increased 7.6% YoY due to ongoing capex.
• Below-normal monsoon forecast (92% LPA) creates demand uncertainty for fertilisers.
• Cash flow hedge loss of Rs.3,711 Lakh due to adverse forex movement (non-cash).