Deepak Fertilisers profit drops 22% as costs outpace revenue
Revenue grew 12% to ₹11,506 crore, but raw material pressures and subsidy gaps hit margins.
— 4 earlier stories on Deepak Fertilisers And Petrochemicals Corporation Ltd. →What's new
- Consolidated revenue rose 12% to ₹11,506 crore for FY26.
- Operating EBITDA fell 13% to ₹1,684 crore.
- The board recommended a dividend of ₹10 per share.
Why this matters
The results show a clear margin squeeze where top-line growth failed to offset rising input costs and insufficient subsidy support. While the dividend remains steady, the double-digit decline in both EBITDA and net profit signals a challenging operating environment.
What we're watching
- Whether subsidy support improves in the coming quarters.
- Management commentary on raw material price trends.
- The impact of the new board appointment on governance.
The full read
Deepak Fertilisers grew its top line by 12% to ₹11,506 crore in FY26, but the gains failed to reach the bottom line. Operating EBITDA dropped 13% to ₹1,684 crore, while net profit slid 22% to ₹739 crore. The company attributes the margin erosion to raw material cost pressures and a lack of sufficient subsidy support. Despite the earnings contraction, the board maintained its capital allocation policy by recommending a dividend of ₹10 per share, matching the prior year's payout. Other board actions included the re-appointment of auditors and the addition of Mr. Yeshil Mehta as a non-executive director. These results are largely in line with market expectations for the sector, offering little surprise for investors.
Questions answered
- How did the company perform in FY26?
- Revenue grew by 12% to ₹11,506 crore. However, profitability suffered, with operating EBITDA dropping 13% to ₹1,684 crore and net profit falling 22% to ₹739 crore.
- What caused the decline in profitability?
- The company faced significant pressure from rising raw material costs combined with inadequate subsidy support.
- Is the dividend changing?
- No, the board recommended a dividend of ₹10 per share, which is consistent with the payout from the previous year.
- Were there any major governance changes?
- The board approved the re-appointment of auditors and appointed Mr. Yeshil Mehta as an additional non-executive director.
Story so far
All notes on DEEPAKFERT →- 28 May 2026 · 4:12 PM IST 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
- today Deepak Fertilisers profit drops 22% as raw material costs bite