Deepak Nitrite Q3 net profit plunges over 50% on-year, margin shrinks

Deepak Nitrite Limited (DNL) reported a sharp 51.5% year-on-year (YoY) decline in net profit for the third quarter of FY25, posting ₹98 crore, compared to ₹202 crore in the same period last year. The weak performance was driven by lower sales and a significant drop in operating margins.

Revenue fell 5.3% YoY to ₹1,903.4 crore, down from ₹2,009.2 crore, reflecting softer demand in key segments.

EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) declined 44.7% YoY to ₹168.5 crore, compared to ₹304.6 crore in Q3FY24, impacted by higher input costs and lower realizations.

Operating margins contracted sharply to 8.9%, compared to 15.2% in the year-ago quarter, signalling cost pressures and weaker pricing power.The results come amid a challenging environment for the chemical industry, with subdued demand in end-user industries such as paints, cosmetics, and pharmaceuticals.

Ahead of the earnings announcement, Deepak Nitrite’s stock closed at ₹2,231 on the BSE, reflecting investor caution.

Deepak Nitrite Limited is a leading Indian chemical manufacturer, producing intermediates that serve industries such as agrochemicals, paints, cosmetics, and pharmaceuticals. The company has been facing margin pressures due to rising raw material costs and slower recovery in key segments.

Analysts expect cost-optimisation measures and capacity expansions to be key factors in improving performance in the coming quarters.