Deepak Nitrite lifts operating margin to 20.96% as revenue outpaces costs
Operating leverage outweighed higher interest costs, while other income contributed only 3.00% of pre-tax profit.
Filed 04 Aug 2026, 18:06 IST · after market close · Deepak Nitrite Ltd (DEEPAKNTR)
Key takeaways
- Deepak Nitrite’s consolidated operating margin expanded 10.93 percentage points YoY to 20.96% as revenue grew +36.39% and expenses +19.83%.
- Consolidated net profit climbed +207.36% YoY to Rs 345.01 cr despite interest rising +181.80%, while the tax rate fell 1.24 percentage points to 26.22%.
- Operating margin was 1.69 percentage points above the 19.27% median for 51 reported Commodities-sector peers.
Price around the results
Revenue growth translated into a sharp operating recovery
Deepak Nitrite’s consolidated revenue rose +36.39% YoY to Rs 2,577.60 cr, while operating profit increased +184.97% to Rs 540.19 cr. Expenses grew +19.83%, well below revenue growth, widening operating margin by 10.93 percentage points to 20.96%. Net profit rose +207.36% to Rs 345.01 cr.
Higher interest diluted, but did not erase, the operating gain
Interest expense increased +181.80% YoY to Rs 22.91 cr, compared with a +24.21% rise in depreciation. The tax rate declined 1.24 percentage points to 26.22%, which also supported net profit growth. Other income was only 3.00% of pre-tax profit, so the quarter’s earnings were driven mainly by operations rather than non-operating income.
Margin improved for a second straight quarter and beat the peer median
Sequentially, revenue grew +21.57% while expenses rose +16.80%, lifting operating margin by 3.23 percentage points from Q4FY26. Margin has now increased from 10.68% in Q3FY26 to 17.73% in Q4FY26 and 20.96% in Q1FY27. It was 1.69 percentage points above the 19.27% median among 51 Commodities-sector peers that had reported.
No immediate market reaction after the post-close filing
The results were filed after market close, so there was no market reaction to report yet. Across the last eight result events, the stock rose three times and fell five times; the median absolute move was 4.27%. Its recent history includes a -15.09% move, indicating that reactions have sometimes been materially larger than the typical move.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,578 cr | ₹2,120 cr | +21.57% | +36.39% |
| Other income | ₹14 cr | ₹7 cr | +104.23% | -42.96% |
| Expenses | ₹2,037 cr | ₹1,744 cr | +16.80% | +19.83% |
| Operating profit | ₹540 cr | ₹376 cr | +43.67% | +184.97% |
| Operating margin (%) | 20.96% | 17.73% | — | — |
| Interest | ₹23 cr | ₹19 cr | +21.15% | +181.80% |
| Depreciation | ₹64 cr | ₹63 cr | +1.71% | +24.21% |
| Profit before tax | ₹468 cr | ₹301 cr | +55.18% | +202.20% |
| Tax | ₹123 cr | ₹82 cr | +50.42% | +188.59% |
| Net profit | ₹345 cr | ₹220 cr | +56.94% | +207.36% |
| EPS (₹) | ₹25.30 | ₹16.11 | +57.05% | +207.41% |
Operating margin of 20.96% compares with a Commodities sector median of 19.27% across 51 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 20.96% after its 3.23-percentage-point sequential increase.
- Whether revenue growth remains ahead of the +19.83% YoY expense growth rate.
- Whether interest expense stays below Rs 22.91 cr and the tax rate below 26.22%.