Deepak Fertilizers and Petrochemicals Corporation Limited — PPTs, 22-05-2025: Investor Presentation

1. Financial Highlights:

Deepak Fertilisers posted consolidated revenue of ₹2,667 Cr in Q4, up 28% YoY, with full-year revenue at ₹10,274 Cr, an 18% increase. Q4 EBITDA rose 10% YoY to ₹480 Cr, while FY EBITDA surged 50% to ₹1,925 Cr. EBITDA margin improved to 19% from 15%, reflecting better operational efficiency. Profit after tax jumped 21% to ₹278 Cr in Q4 and doubled to ₹945 Cr for the year. Net debt declined to ₹3,305 Cr from ₹3,426 Cr, supported by effective working capital management and ₹655 Cr in capex. EPS increased to ₹74 from ₹36.

2. Strategic Initiatives & Growth Drivers:

The company is investing ₹4,500 Cr in capex, including a 376 KTPA Technical Ammonium Nitrate (TAN) plant at Gopalpur and a 450 KTPA Nitric Acid expansion at Dahej, aiming to raise AN capacity to ~1 million MT, making Deepak one of Asia’s largest Nitric Acid producers. These plants’ locations enhance access to mining hubs and exports. Specialty fertilizers now make up 30% of fertilizer sales, with the B2C share in TAN growing to 18%, reflecting a shift towards higher-value products.

3. Business Developments:

Mining Chemicals saw a modest volume rise, with specialty LDAN volumes up 13% QoQ. Industrial Chemicals recorded a 29% YoY jump in nitric acid volumes, despite IPA volumes dipping temporarily due to resolved shutdowns. Crop Nutrition’s manufactured bulk fertilizer sales surged 68% YoY, with specialty product Croptek up 111%. Bulk fertilizer sales crossed 1 million MT in FY25. Long-term contracts cover 65% of concentrated nitric acid capacity, ensuring steady demand.

4. Market Position & Competitive Advantage:

Deepak holds leadership with 40% market share in TAN, 60% in concentrated nitric acid, and a strong specialty fertilizer presence via brands like Mahadhan. It is India’s sole prilled NP 24:24:0 manufacturer and largest Bentonite Sulphur supplier. Wide geographic manufacturing presence supports scale and proximity to agro and mining customers. Focus on specialty fertilizers and pharma solvents strengthens differentiation and margin profile.

5. Investor Implications:

Strong growth in revenue, profits, and margins along with disciplined balance sheet management signals positive growth potential. Large capex reflects strategic market expansion and specialty focus that could drive future earnings. Reduced leverage and enhanced cash flow lower financial risk. Investors should watch for upside from new capacity ramp-up and specialty product growth while keeping an eye on capex execution and commodity price swings.