DEEPAKNTR

Deepak Nitrite’s (DN) Q1FY26 has shown marginal improvement over adj. Q4FY25 EBITDA; however, overall performance remains subdued. This was due to slower recovery in agrochemical, marginal volume growth in other AI segment applications and depressed spreads in phenolics. We expect a notable uptick in earnings to emerge H2FY26 onwards, on the back of project commissioning – nitric acid, hydrogenation, MIBK/MIBC and other solvents and nitration. Capex here would aid new product launches and margins. Polycarbonate integrated facility is taking shape with technology partners signed on; and capex intensity shall rise FY27 onwards.