Deepak Nitrite sustains sharp profit growth, but sequential margin slips
Year-on-year cost discipline lifted margins, while faster sequential expense growth trimmed the operating margin by 0.58 percentage points.
Filed 29 Oct 2026, 18:41 IST · after market close · Deepak Nitrite Ltd (DEEPAKNTR)
Key takeaways
- Revenue grew +61.75% year on year while expenses rose +44.29%, lifting operating margin by 9.64 percentage points.
- Sequential momentum remained positive, but expenses grew +20.23% against revenue growth of +19.35%, narrowing operating margin by 0.58 percentage points.
- Operating margin of 20.38% was 5.75 percentage points above the 14.63% median for 41 reported Commodities peers.
Price around the results
Year-on-year scale lifted operating profit
Deepak Nitrite’s consolidated revenue growth of +61.75% outpaced expense growth of +44.29% year on year, driving a 206.87% rise in operating profit. Profit before tax increased +232.88%, while net profit rose +234.89%. Other income contributed only 3.00% of pre-tax profit, so the earnings increase was mainly operational rather than income-led.
Sequential growth came with higher cost pressure
Revenue increased +19.35% sequentially, but expenses grew faster at +20.23%, reducing operating margin by 0.58 percentage points. Interest expense also rose +27.19%, adding pressure below the operating line. The tax rate increased by 0.50 percentage points sequentially, so the quarter’s net profit growth of +15.27% was slower than its pre-tax profit growth of +16.05%.
Margins remain well above the peer median
Operating margin has improved from 10.03% in Q1FY26 to 20.96% in Q1FY27 before easing to 20.38% this quarter, making the sequential decline a second straight quarterly dip. Even after that moderation, Deepak Nitrite’s margin was 5.75 percentage points above the 14.63% median among 41 Commodities peers that had reported.
No immediate market reaction after late filing
The consolidated results were filed after market close, so there was no post-results stock reaction yet. Across the eight previous results, the stock rose three times and fell five times, with a median absolute move of 4.27%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,076 cr | ₹2,578 cr | +19.35% | +61.75% |
| Other income | ₹16 cr | ₹14 cr | +16.27% | -18.35% |
| Expenses | ₹2,450 cr | ₹2,037 cr | +20.23% | +44.29% |
| Operating profit | ₹627 cr | ₹540 cr | +16.04% | +206.87% |
| Operating margin (%) | 20.38% | 20.96% | — | — |
| Interest | ₹29 cr | ₹23 cr | +27.19% | +267.00% |
| Depreciation | ₹71 cr | ₹64 cr | +12.00% | +33.90% |
| Profit before tax | ₹543 cr | ₹468 cr | +16.05% | +232.88% |
| Tax | ₹145 cr | ₹123 cr | +18.27% | +227.51% |
| Net profit | ₹398 cr | ₹345 cr | +15.27% | +234.89% |
| EPS (₹) | ₹29.16 | ₹25.30 | +15.26% | +234.79% |
Operating margin of 20.38% compares with a Commodities sector median of 14.63% across 41 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 20.38% after the sequential decline.
- Whether expense growth falls below revenue growth after the +20.23% versus +19.35% gap this quarter.
- Whether interest expense moderates after its +27.19% sequential increase.