Deepak Fertilisers annual profit drops 22% on raw material volatility
Revenue climbed 12% to ₹11,506 crore, but subsidy shortfalls and volatile input costs hit the bottom line.
— 5 earlier stories on Deepak Fertilisers And Petrochemicals Corporation Ltd. →What's new
- Annual revenue rose 12% to ₹11,506 crore on higher chemical and fertiliser volumes.
- Net profit fell 22% to ₹739 crore due to ammonia and phosphoric acid price swings.
- The board recommended a ₹10 dividend and appointed Yeshil S. Mehta as a non-executive director.
Why this matters
Volume growth failed to protect margins against input price volatility and subsidy delays. The dividend payout remains steady, but the bottom-line contraction shows the company struggles to pass on costs in a volatile commodity environment.
What we're watching
- Whether raw material prices stabilize in FY27.
- Any improvement in the timing of government subsidy receipts.
- The impact of the new board appointment on long-term strategy.
The full read
Deepak Fertilisers grew its annual consolidated revenue by 12% to ₹11,506 crore in FY26, driven by higher volumes in its chemical and fertiliser divisions. Despite this top-line expansion, the company's bottom line suffered. Annual net profit dropped 22% to ₹739 crore. Management attributed the margin squeeze to volatile raw material prices, particularly for ammonia and phosphoric acid, compounded by delays in subsidy payments. The board recommended a dividend of ₹10 per share, maintaining historical payout levels. Alongside the financial results, the company announced the appointment of Yeshil S. Mehta as a non-executive additional director. The results show a disconnect between volume-led growth and profitability in a commodity-sensitive business. The next test is whether the company can stabilize margins if raw material volatility persists into FY27.
Questions answered
- Why did net profit decline despite higher revenue?
- Annual revenue grew 12% to ₹11,506 crore, but net profit fell 22% to ₹739 crore. The decline stems from volatility in raw material prices, specifically ammonia and phosphoric acid, alongside subsidy shortfalls.
- What is the dividend payout for the year?
- The board recommended a dividend of ₹10 per share. This aligns with the company's historical payout trends.
- Who was appointed to the board?
- Mr. Yeshil S. Mehta was appointed as a non-executive additional director. This is part of the company's routine succession planning.
- What drove the revenue growth?
- The 12% increase in consolidated revenue was supported by volume growth across both the chemical and fertiliser segments.
Story so far
All notes on DEEPAKFERT →- 28 May 2026 · 6:36 PM IST Deepak Fertilisers annual profit drops 22% on raw material volatility
- today Deepak Fertilisers profit drops 22% as costs outpace revenue
- today Deepak Fertilisers profit drops 22% as input costs bite
- today Deepak Fertilisers annual profit drops 18% on raw material costs
- today Deepak Fertilisers profit drops 22% as margins buckle under costs