Mukul Agrawal stock falls 8% after reporting a 44% YoY decrease in net profit

Synopsis: Deepak Fertilisers plunged sharply today after its Q3 profit dropped 44% year-on-year to Rs 141 crore, even as revenue rose 10% to Rs 2,830 crore. EBITDA was down 27%, with margins narrowing to 12%.

The shares of this chemical company, engaged in the business of fertilisers, agri services, bulk chemicals, mining chemicals and real estate, are in focus after the company reported a disappointing Q3. In this article, we will dive more into the details of it. As of Q3 FY26, Mukul Mahavir Agrawal holds a 1.19 percent stake in the company, and this has stayed constant over the past few years.

With a market capitalisation of Rs 13,540 crore, the shares of Deepak Fertilisers & Petrochemicals Corp Ltd reached a day-low of Rs 1,014 per share, down 8.4 percent from its previous day’s closing price of Rs 1,107.45 per share. Over the past five years, the stock has delivered a robust 577 percent return, outperforming NIFTY 50’s return of 86 percent.

Q3 Highlights

The revenue from operations for Deepak Fertilisers stands at Rs 2,830 crores in Q3 FY26 compared to Q3 FY25 revenue of Rs 2,579 crores, up by 10 per cent YoY. However, on a QoQ basis, it reported a decline of 6 percent from Rs 3,006 crore. 

Also, EBITDA stood at Rs 353 crore in Q3 FY26, a decline of 27 percent as compared to Rs 486 crore in Q3 FY25. Additionally, on a QoQ basis, it reported a decline of 24 percent from Rs 464 crore. Also, coming to the margins front, EBITDA margins declined by a staggering 637 bps YoY and by 295 bps QoQ, reaching 12 percent in Q3 FY26.

Coming down to its profitability, the company’s net profit stood at Rs 141 crore in Q3 FY26, a sharp decline of 44 percent as compared to Rs 253 crore in Q3 FY25. Additionally, on a QoQ basis, it reported a decline of 34 percent from Rs 214 crore. The company is currently undertaking a significant capex drive of about Rs 4,650 crore. 

At Gopalpur, the TAN project is almost complete, which is now 91 percent finished, and once it starts operations in Q1 FY27 it involved a capex of Rs 2,675 crore, it will add 376 KTPA to capacity. This will raise total ammonium nitrate production to nearly 1 million metric tons per year. With this addition, the company becomes the world’s third-largest pure-play TAN producer. Gopalpur is strategically located right by major mining regions in East India and has convenient access to ports for export.

At the same time, the Nitric Acid project in Dahej is progressing. The target is also Q1 FY27, with a capex of Rs 1,983 crore and this project adds 300 KTPA of WNA and 150 KTPA of CNA. Once operational, total WNA capacity will reach around 1.2 million metric tons per year, establishing the company as Asia’s largest nitric acid producer. The Dahej site is close to key customers in West and Central India, and 65 percent of the CNA output is already secured through a 20-year contract, and about 79 percent of the project work is complete so far.

The company operates three primary businesses, namely mining chemicals, industrial chemicals, and crop nutrition and has a strong presence in the domestic market. Starting with mining chemicals, the company manufactures up to 587 KTPA of Technical Ammonium Nitrate (TAN), holding about 40 percent of the domestic market share. This segment alone contributes around 20 percent of the company’s total revenue, making it significant for India’s mining and infrastructure sectors.

In industrial chemicals, the company produces 885 KTPA of Diluted Nitric Acid (DNA), 231 KTPA of Concentrated Nitric Acid (CNA), and 70 KTPA of Iso Propyl Alcohol (IPA) and maintains a solid market share across all product categories. This segment contributes to 15 percent of the company’s total revenue.

For crop nutrition, the company manufactures 300 KTPA of NP, 800 KTPA of NPK fertilisers, and 57 KTPA of Bensulf. This substantial production volume places the company among the leaders in speciality and water-soluble fertilisers in India, and this segment accounts for about 58 percent of total revenue.

Deepak Fertilisers and Petrochemicals Corporation Limited is a key player in India’s fertiliser and industrial chemicals market. The company operates across several segments, including chemicals, bulk fertilisers, and real estate. Their product lineup features ammonia, methanol, nitric acid, TAN, and a variety of fertilisers such as DAP and potash. Additionally, they’re involved in agricultural products, mining consultancy, and the construction of malls and design centres.

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