Deepak Nitrite jumps 6% as arm starts second hydrogenation plant in Gujarat

Deepak Nitrite share price jumped 5.8 per cent in trade, registering an intra-day high at ₹1,625.4 per share on BSE. At 11:09 AM, Deepak Nitrite shares were trading 4.66 per cent higher at ₹1,607.3 per share. In comparison, the BSE Sensex was down 0.44 per cent at 82,876.34.

 

The stock was in demand after the company’s subsidiary, Deepak Chem Tech, commissioned its Nitration and second Hydrogenation Plant at Dahej, Gujarat.

 

“We would like to inform you that Deepak Chem Tech Limited, a material wholly owned subsidiary of the company has commissioned its Nitration and 2nd Hydrogenation Plant today i.e. January 19, 2026, at Dahej, Dist. Bharuch in Gujarat,” the filing read. 

 

 

That apart, on January 9, 2026, Deepak Chem Tech issued and allotted 68,00,000 or 9 per cent Optionally Convertible Redeemable Preference Shares (OCRPS), having a face value of ₹100 each, aggregating to ₹68 crore to Deepak Phenolics Limited (DPL), another wholly owned subsidiary of the company.  ALSO READ | Aditya Birla Fashion drops over 8%, hits 4-year low after large trades 

In the September quarter (Q2FY26), Deepak Nitrite reported a profit after tax (PAT) of ₹119 crore, as compared to ₹194 crore year-on-year (Y-o-Y), down 39 per cent. 

 

Its revenue from operations stood at ₹1,902 crore, as against ₹2,032 crore a year ago, down 6 per cent. 

 

The Earnings before interest, tax, depreciation and amortisation (Ebitda) stood at ₹224 crore as compared to ₹319 crore a year ago, and Ebitda margins stood at 12 per cent, as compared to 16 per cent Y-o-Y.

 

The company, in a statement, said that on a Y-o-Y basis, both revenue and profit declined, reflecting the vastly different operating conditions compared to the previous year. 

  In the Phenolics business, the company witnessed growth in volumes accompanied by better contribution due to lower feedstock prices. The advanced intermediates business were impacted by the direct and indirect effects of US tariff actions and the continued influx of underpriced Chinese products, which remains a major constraint on a broader sectoral rebound.  ALSO READ | Tata Capital shares hit record as analysts hike target after Q3 results 

The group confronted these headwinds by pivoting to non-traditional geographies, increasing emphasis on India, investing upstream, debottlenecking some capacities, and protecting wallet share across its product range, according to the company. Pressures on profitability are being mitigated through improved product circularity, diversifying energy sources, overhead rationalisation, and ongoing cost optimisation initiatives.

 

Though the near-term outlook remains challenging, H2 performance is expected to improve with the ramp-up of new capacities, volumes for market seeding of new products and stock keeping units (SKUs), with a further uptick possible in case of easing of US tariffs.