Deepak Nitrite shares surge over 9% after profit more than triples in September quarter

Shares of Deepak Nitrite, the country's leading specialty chemicals maker, rose as much as 9.41% to an intraday high of ₹1,616.65 on the BSE on Friday, October 30, a day after it reported its September quarter earning. On the National Stock Exchange, Deepak Nitrite shares climbed as much as 9.38% to hit high of ₹1,615.

Deepak Nitrite on Thursday reported a consolidated net profit of ₹398 crore in July-September period, marking an increase of 234% from ₹119 crore in the same period last year.

The Vadodara-based company's revenue from operations jumped 62% to ₹3,076 crore as against ₹1,902 crore a year earlier.

Deepak Nitrite reported strong operational performance as its earnings before interest, taxes, depreciation, and amortization (EBITDA) also known as operating profit jumped 207% to ₹627 crore and its EBITDA margin improved by 9.6 percentage points to 20.4%.

The company in an investor presentation said that its Phenolics segment achieved record EBIT of ₹933 crore in the first half of current financial year, overtaking previous full-year peak EBIT of ₹867 crore (FY22) in just the first six months of FY27.

Agile procurement of inputs and deep integration of facilities with backward and forward integration has enabled the company to deliver this record-breaking performance in a difficult operating landscape, Deepak Nitrite said.

Upcoming projects will deepen integration of business model and contribute to accretion of top line and profitability, the Vadodara-based company added.

"The performance was achieved against a sharply volatile global operating environment, marked by geopolitical tensions, disrupted trade flows, feedstock constraints and elevated logistics costs, Deepak Nitrite said in an investor presentation.

“The Group successfully navigated these challenges while capitalising on emerging market opportunities, leveraging its integrated manufacturing capabilities, large domestic production base, operational flexibility and proactive commercial strategies. The growing preference for dependable local suppliers, particularly in import-dependent product categories, further reinforced the relevance of Deepak's manufacturing footprint and customer relationships," it added.

As of 11:02 am, Deepak Nitrite shares traded 3.39% higher at ₹1,526, outperforming the NIFTY 500 index which was down 0.1%.