Deepak Fertilisers Doubles Profit, Seals LNG Deal

Deepak Fertilisers & Petrochemicals Corp Ltd (DFPCL) has made headlines this week with a 15‑year LNG supply deal with Norway’s Equinor, ensuring long‑term feedstock stability, even as its stock fell 8.4% to ₹1,230.20 amid broader market weakness. The company’s Q1 FY27 profit doubled to ₹490 crore, marking its highest‑ever EBITDA of ₹845 crore, driven by strong realisations across ammonia, nitric acid, and IPA. ⚙️ Key Financial Highlights (Q1 FY27) Metric Value YoY Change Revenue ₹3,256 crore +22 % Net Profit ₹490 crore +101 % EBITDA ₹845 crore +65 % EBITDA Margin 26 % up from 19.3 % EPS ₹38.82 up from ₹19.26 Segment Revenue: Chemicals: ₹1,881.7 crore Fertilisers: ₹1,366.9 crore Project Updates: Gopalpur TAN Project 96 % complete; Dahej Nitric Acid Project 93 % complete — both expected to start commercial operations by end‑Q2 FY27. 🌍 Strategic & Operational Developments Equinor LNG Deal: Norway’s Equinor began 15‑year LNG deliveries to DFPCL, securing natural‑gas feedstock and reducing exposure to spot‑market volatility. Energy Security: The partnership aligns with the India‑EFTA Trade and Economic Partnership Agreement, strengthening bilateral industrial ties. Management Change: Rabindra Purohit, VP‑Legal & Company Secretary, resigned effective 28 Sep 2026. 📉 Market Snapshot (19 Oct 2026) Price: ₹1,230.20 (−8.43 %) Trend: Trading below all major moving averages (5‑, 20‑, 50‑, 100‑, 200‑day) — broad‑based downtrend. Sector Comparison: Underperformed fertiliser peers by 6.6 %; Sensex fell 0.44 %. 1‑Week Performance: −11.2 % vs Sensex +3.4 %. 🔍 Analyst & Industry Outlook JM Financial expects chemical stocks like Deepak Fertilisers to benefit from global supply disruptions and higher realisations, especially in commodity chemicals. Structural Drivers: Domestic import‑substitution, LNG integration, and mining‑chemical demand remain strong.