Q2 FY27 results analysis · November 13, 2026
Deepak Fertilisers & Petrochemicals Corp Ltd (DEEPAKFERT) Q2 FY27 Results Analysis: PAT Jumps 84.7%, Margin Expands 706 bps
+84.7%PAT year on year, Rs. 393.76 Cr
Source: Quarterly results filing (BSE)
Quick summary
Deepak Fertilisers & Petrochemicals Corp Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 3,333.96 Cr (+10.90% YoY) and PAT growth of +84.70% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 13, 2026 |
|---|---|
| Revenue (Q2) | Rs. 3,333.96 Cr (+10.90% YoY) |
| PAT (Q2) | Rs. 393.76 Cr (+84.70% YoY) |
| EBITDA margin | 22.49% (+706 bps YoY) |
| EPS (Q2) | Rs. 31.19 (+84.70% YoY) |
Quarter Snapshot
Q2 FY27 delivered 10.9% YoY revenue growth and 84.7% PAT growth with EBITDA margin up 706 bps YoY to 22.49%, entirely driven by the Chemicals segment (+42.5% YoY revenue, 35.4% margin). H1 PAT of Rs.883.80 Cr already exceeds full FY26 PAT, arithmetically securing the FY27 guidance, while leverage improved to 1.49x ND/EBITDA. Offsets are a third COD slip to Q4 FY27, an Rs.873.34 Cr inventory build against working-capital guidance, and a 348 bps QoQ margin fade as ammonia prices moderate.
Q2 FY27 Expectations vs Results
| Driver | What happened | Verdict |
|---|---|---|
| Crop Nutrition "behind — sharp, broad-based demand contraction" (DBT sales −10 to −34% YoY) | CNB revenue Rs.1,494 Cr, −12.8% YoY; Fertilisers margin 8.4% | Played out |
| TAN "behind early, recovering late" vs 137 KMT base | TAN volume 126 KT (−8% YoY); revenue +25% YoY on FGAN prices | Played out |
| Ammonia tailwind compressing through the quarter | FOB-ME $621 vs $762 Q1; EBITDA margin 22.49% vs 25.96% QoQ | Played out |
| Full Equinor quarter = stronger cost tailwind than Q1 | Margin +706 bps YoY at 22.49%; savings quantum not disclosed | Partially |
| FGAN realizations "present but moderating" | TAN revenue +25% YoY | Played out |
| Subsidy-adequacy risk on fertilizer margin | Fertilisers margin 8.4% vs 3.2% Q1, 9.2% PY | Partially |
| Q2 print with little/no new-capacity volume; CWIP capitalization signal | No commissioning; both 98% complete; CWIP +Rs.594.14 Cr; COD → Q4 FY27 | Played out on volume; timeline slipped again |
| Deleveraging "flat-to-marginal" | Net debt Rs.4,743 Cr (+Rs.24 Cr vs Jun-26) | Played out |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| Strategic capex commissioning Q2 FY27 → end Q3 FY27 → H2 FY27 | Q1 FY27 presentation/call (31 Jul 2026); AGM (1 Sep 2026) | ~98% complete, COD now guided Q4 FY27 — third slip | Missed |
| "Contribute to profitability from Q3 onwards" | Q1 FY27 concall (31 Jul 2026) | Contribution window pushed to Q4 FY27 | Missed |
| FY27 PAT significantly higher than FY26 (Rs.738.76 Cr) | Q1 FY27 concall (31 Jul 2026) | H1 PAT Rs.883.80 Cr = 119.6% of full FY26 PAT | On Track |
| FY27 capex Rs.800–1,000 Cr | Q4 FY26 concall (May 2026) | H1 spend Rs.774.27 Cr (cash basis) — ahead of pace | On Track |
| Working capital normalizes "within 1–2 months" from May 2026 | Q4 FY26 concall (May 2026) | Inventories +Rs.873.34 Cr in H1; receivables flat | Missed |
| Deleveraging as new capacities contribute | Q1 FY27 concall | ND/EBITDA 1.49x vs 2.86x Mar-26; net debt +Rs.24 Cr vs Jun-26 | On Track |
| Gopalpur utilization 90–95% by end FY27 | Q4 FY26 concall (May 2026) | Not yet commissioned | Too Early |
| Ammonia "USD600 plus... two to three quarters" | Q1 FY27 concall (31 Jul 2026) | FOB-ME $621/MT Q2 vs $762 Q1 — moderating | On Track |
| "Monsoon-driven slowdown... may impact Q2 demand, though elevated FGAN prices should support margin" | Q1 FY27 concall (31 Jul 2026) | TAN volume 126 KT (−8% YoY, −4% QoQ); TAN revenue still +25% YoY on price | Confirmed |
| Margins supported by "Global Supply Tightness and Equinor Gas" | Q2 FY27 earnings presentation | EBITDA margin 22.49% vs 15.42% PY — on YoY basis; QoQ −348 bps | Confirmed |
Key Numbers, Quarter by Quarter
| Metric | Q2 FY26 | Q1 FY27 | Q2 FY27 |
|---|---|---|---|
| TAN volume (KMT) | 135 | 129 | 126 |
| TAN revenue (Rs. Cr) | 590 | 904 | 734 |
| IC revenue (Rs. Cr) | 479 | 490 | 592 |
| CNB revenue (Rs. Cr) | 1,713 | 1,367 | 1,494 |
| CNB specialty+Croptek % | 28 | 43 | 28 |
Key Investment Insights
Key Positives
- Revenue grew 10.9% YoY to Rs.3,333.96 Cr; H1 revenue up 16.3% YoY
- PAT to owners grew 84.7% YoY to Rs.393.76 Cr; H1 PAT of Rs.883.80 Cr is 119.6% of full FY26 PAT, securing the FY27 guidance of PAT significantly higher than FY26 (Rs.738.76 Cr)
- EBITDA margin expanded 706 bps YoY to 22.49%
- Chemicals segment revenue rose 42.5% YoY with result margin of 35.4% vs 22.1% PY; TAN revenue +25% YoY and B2C revenue +40% YoY at 16% share
- Net Debt/EBITDA improved to 1.49x from 2.86x at Mar-26
- H1 CFO of Rs.1,315.73 Cr was 1.49x PAT; FCF positive at Rs.541.46 Cr despite Rs.774.27 Cr capex
- Both growth projects (Gopalpur TAN 376 KTPA; Dahej Nitric Acid 300+150 KTPA) at ~98% completion with COD guided Q4 FY27
Risk Factors
- COD for both growth projects slipped a third time, from Q2 FY27 to Q4 FY27, deferring profitability contribution
- Inventories built Rs.873.34 Cr in H1 to Rs.2,611.11 Cr, missing management's working-capital normalization guidance of 1-2 months from May 2026
- Fertilisers revenue fell 12.8% YoY with result margin of 8.4% below PY's 9.2%; ANP utilization at 60% and NPK at 35%
- EBITDA margin fell 348 bps QoQ as ammonia FOB-ME prices faded from $762 to $621/MT
- Finance costs rose 50.6% YoY to Rs.112.60 Cr
- Standalone PAT halved YoY to Rs.25.60 Cr (−48.8%)
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.